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I don't necessarily disagree with your perspective here, it makes sense. That being said, with payment plans, there's typically some notion of an interest rate.
by bhupy 5y ago
I don't necessarily disagree with your perspective here, it makes sense. That being said, with payment plans, there's typically some notion of an interest rate. If you miss a payment, you "just" owe the compounding interest (eventually).
Typically, rates are regulated, and even when it's not regulated, usury is highly frowned upon.
Taking your analogy to its conclusion, the "interest rate" for nonpayment here could potentially be outright death when the thing in question stops working. It's hard to put a dollar value on a human life, but that's a hell of an interest rate!
- dahart 5y agoIt doesn't stop working while you're riding, that's just hyperbole stirred up by this headline. This is not a safety issue, nor is this unreasonable "usury". Just like any financing plan in existence, the interest rate here is that the total cost of ownership is higher on the payment plan than on the alternative pay-up-front plan they offer. The benefit of the payment plan is you can start for less money. The unusual feature of this payment plan compared to your house, car, or credit cards is you get to pause and/or cancel it with no penalties.
- bhupy 5y agoYeah that's fair.