sadie said:Wondering what way makes the most economical sense to buy a car? Have the cash to buy a second hand or new car, but is it wiser to pay for it partly by a bank loan or finance package, so that you are not 'spending' all your money at the beginning, as it were?
daltonr said:Issue #2. The dealer giving you the 0% deal may not be giving you as good a deal (discount, trade-in etc) that he might have otherwise given. The difference could actually be more than the interest you supposedly save.
You're dead right - yet another reason to run a mile from "0% finance". As I said before:MugsGame said:if anything I'd say the retailer makes a profit on these schemes
oysterman said:These so-called deals are the spawn of Satan
MugsGame said:Oysterman - if anything I'd say the retailer makes a profit on these schemes.
oysterman said:This could not be the case in a hire purchase/retail financing type situation because the consumer is not establishing an ongoing relationship with the finance house.
No hidden cost to you in this instance and it's obviously a smart move if you currently have an unpaid balance on your cc. What's in it for the cc provider to which you are moving is that it is a perfectly tartgeted piece of cherrypicking by them. It is almost uniquely somebody who doesn't pay off their cc in full every month who will consider availing of such an offer. These are the profitable customers. The cc company doesn't want the boring people who do pay theirs off religiously. A small number of the latter category may switch and allow a balance to build up over the six months intending to pay it in full at the end of the period. Some of these will let their finances get a little out of hand during this period and be unable to pay in full as intended after the six months. These will now be profitable customers. It's great marketing.CCOVICH said:I'm thinking of changing credit cards and doing a balance transfer that will attract a 0% interest rate for six months. What is the 'hidden' cost to the consumer in this instance? (The rate after the introductory period is still lower than most other credit cards and won't necessarily be a factor as long as the balance is cleared on time anyway).
Do they? If they do then your analysis is sound but are customers really that stupid? Even in the case of very large credit deals like cars? If they do default through sheer carelessness they probably deserve every bit of the APR they get.MugsGame said:the vast majority of consumers "default" on the interest free terms
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