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> People with lots of money don't buy on credit Interesting, but lots of wealthy people do finance their purchases, especially if they are active investors. S

> People with lots of money don't buy on credit Interesting, but lots of wealthy people do finance their purchases, especially if they are active investors. Someone elsewhere in the thread mentioned that the Affirm rate is de-facto 0% if you factor in the subscription for the full-term. Taking that as fact (apparently it's changed now, so can't 100% confirm), you'd have to be pretty anti-debt (or lacking in cashflow) to pay in full on that rather than earn interest on the balance for 3 years if you intended to book the subscription anyway.

sangnoir 7y ago
> Interesting, but lots of wealthy people do finance their purchases, especially if they are active investors. The wealthy borrow in order to get tax-advantaged liquidity (borrowing against, instead of selling their securities which attracts immediate tax obligations). I'm also certain the wealthy are not borrowing at 27% APR - they'll likely get a 5% APR loan from a bank and use a small fraction of it to buy the Peloton bike in cash.