0% financing from AD.is it worth it?

[jjnd08]

I'd rather have the discount.

[airchitect]

If I were going to finance at all Id get the points on my card or I'd look for a place that will do it in house for a yr and still give a discount.... Just me

[jhe888]

I did a little math and roughly calculated the present value of the interest you could earn on the amount of money you could earn if you set aside the price of the watch and invested it, while using that fund to make the payments of the 0% financing deal.

Assuming a $10,000 watch and a 2% rate of return on an investment, if you can get a discount of more than about $400 on the watch, you should choose the discount. If your rate on investments is better, you will need a better discount to make that the better option.

[jhe888]

Originally Posted by kunlun

Nope! Don't make luxury purchases like a watch on credit. Just save up, then find yourself a discount from a better AD.

I don't think this advice makes any sense if you can get 0%. That is free money.

[superstarmar]

Go for it !!! I did it ... But make sure you get a discount as well plus the 0% interest otherwise it's not really a deal ... Lol

I got 15% off plus 0% for 12 months and no tax from another AD in Florida. Plus if you need more than 12 months transfer to a 0% credit card before your initial 12 months are up from AD... BTW it wasn't Mayors not to say I wouldn't go there but the piece I wanted was in stock at another AD... Wish you the best !!!

[superstarmar]

Just noticed the no discount ... I guess I missed that ... lol
There are other AD's that have 0% interest plus offer a discount as well like
I mentioned in my previous post.. Check out other AD's
There's Underwoods in North Florida ... I can refer you a salesman if you'd like
Who'll take good care of you ...

[wantonebad]

Like others have said you have to do the math, 0% is free money, but the discount can be as large as 20% or 25% percent. at 10K that's $2,500. I'd rather pocket that money, but if your talking a new model that won't be discounted for a while and you want to be an early adopter this might be a nice way to differ a lump sum payment for a while.

[onefastman]

So long as you aren't financing as a way to 'afford it' then I absolutely would. Unless you are so bad at making money that it is cheaper for you to spend it than invest it...

[chaw6125]

I put mine on a 0% credit card over two years. I got mine tax free in the airport. But in the UK discounts are near impossible on a sub or daytona. They just won't do it. And buying from a trusted seller here means you are open to big import taxes.

I'm not surprised you can't get discount and 0% as it is viewed as a discount by Rolex from what I have been told. Any other watch can be had on 4 years 0% in the UK except Rolex who limit it to 2.

If you can get a discount and a cheap credit card or cash then that is a good way to go but it depends on what you want. I wanted to pay for it without it affecting my savings. I look at it that if I do a days overtime a month my watch payment has been made. I could afford it either way but it is free money.

The tax I saved was the same as 20% in my local AD.

[landroverking]

It depends on your income.
For me it would be great.

[Etschell]

My rule is if you can't buy it in cash don't buy it.

[anothernewphone]

One of my best friends is worth millions, and still found it prudent to take the 0% over 30 months. There weren't any discounts available, so it didn't matter. If there's a discount for up-front payment, then you're not getting 0% financing, you're paying more money to finance.

[ronricks]

If they were willing to discount whatever the tax rate is I would consider it for a BLNR or Daytona. Sounds like a Mayors or a chain and the 2 Mayors by me will not discount under any circumstance I don't see how they stay in business

[FineTime305]

Seeing as you're in Miami I assume Mayors. I am extremely familiar with the credit options.

That being said for those giving feedback:
1. 30 months at 0% cannot be applied to any steel models, there has to be gold with the steel or all gold.
2. It cannot be used for the hard to get watches (BLNR, SS Daytona, or Deep Sea with the blue dial)

That being said, if the watch has steel and gold it is applicable.

If it is not you have the option to do a 10 month plan at 0% or a few other plans with a 3.99% or 9.99% rate...

If you have ay questions feel free to PM me.

[srvrf]

Originally Posted by Ks6pd

I did it. It's free money. Why fork out $13k of my money when I can drop it in my money market account and let it do something for me over 24 months, or in your case, 30 months. Just don't buy anything on credit you don't already have the cash for. That's when you get into trouble.

The problem of course now is that most money market accounts are less than 1% interest. So at 1% on say $13,000 that's about $330 after 30 months. And if you're in one of the top tax brackets subtract a third or so and it equals around $225 earned for 30 months. And I'm not smart enough to factor in the fact that if you do this, you'll be pulling out principal over the 30 months to make payments so the interest would be even less.

So assuming you have the money (and don't really need to finance), I think convenience is the primary reason to do this. But if you have the cash, all you need is more than a 2% discount to be ahead so I'd ship around and push for one. Or buy from a trusted seller here of course.


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[fabini]

ok here's the deal. i'd be financing a rose gold daytona.retail is 37450. i'll be financing about 26k at 0% for 30 months.the payment will be $890 per month.if i decided to put those 26k on a credit card at approximately 19% interest rate,to pay it in the same 30 months I'll have to pay about $1140 per month. so the deal is attractive except for the 0% discount. 1William makes a good point: today at the AD they offered me a BLNR which at 0% interest is a great deal. I'm still undecided. and thank you all so much for your input.will keep you posted

[rr-nyc]

This topic comes up every damn month. Search the forum and you will see there are two answers: 1) No because cash is king or if you cant pay cash you cant afford it and 2) Yes, its free money. Nobody can argue against that, period. The rebuttal usually contains something about the inconvenience of having to pay a bill every month or what if you lose your job or whatever nonsensical response one can muster.

Again, its free money. If you are able to negotiate a discount, negotiate first and then tell them you want to finance the agreed upon price. If no discount is available you are still ahead

[Roll the Lex]

Originally Posted by 1William

It depends on the model and the metal. On a PM model the no interest does not work due to the large hit you will take in value as opposed to what you could see in discount. For SS models that are currently popular the numbers work better.

Good call on PM.
Another thing to think about is the cost of cashing out an investment- ie capital gains taxes.

I've been toying with the idea of using PayPal to buy from a trusted seller- you pay extra but can get reward points back on the credit card. Then again it depends how much you can get peer point and if you just opened up an account and get extra bonus points for spending a certain amount.

[rr-nyc]

Originally Posted by srvrf

The problem of course now is that most money market accounts are less than 1% interest. So at 1% on say $13,000 that's about $330 after 30 months. And if you're in one of the top tax brackets subtract a third or so and it equals around $225 earned for 30 months. And I'm not smart enough to factor in the fact that if you do this, you'll be pulling out principal over the 30 months to make payments so the interest would be even less.

So assuming you have the money (and don't really need to finance), I think convenience is the primary reason to do this. But if you have the cash, all you need is more than a 2% discount to be ahead so I'd ship around and push for one. Or buy from a trusted seller here of course.


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Your point is well taken but very few in the top income bracket that actually pays the top income bracket rate. Second, the idea behind using free money to make the purchase while your money works for you wouldn't include a savings account.

[witch watch]

Originally Posted by chaw6125

But in the UK discounts are near impossible on a sub or daytona. They just won't do it. And buying from a trusted seller here means you are open to big import taxes.

I'm not surprised you can't get discount and 0% as it is viewed as a discount by Rolex from what I have been told. Any other watch can be had on 4 years 0% in the UK except Rolex who limit it to 2.
.

Not strictly true and definitely not true.

It is possible, admittedly a slog, on a Sub as long as it's not LV or LVC and I can easily get four or in one case up to 5 years 0%.

[chaw6125]

Originally Posted by witch watch

Not strictly true and definitely not true.



It is possible, admittedly a slog, on a Sub as long as it's not LV or LVC and I can easily get four or in one case up to 5 years 0%.

I can only go from my experience. A couple of ADs let me walk over it. If you want to share the AD that offers that then feel free. Even by PM. That was my first purchase there but even on my second I couldnt get a discount on a GV milguass.

It is getting harder here on a steel watch IMO. But it is only my opinion.

[bayerische]

I'd love 0% financing on everything. Easy to make money then.