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Old 15 August 2017, 03:36 PM   #31
tamiya
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Headsup too that the retailer (customer lead referrer) usually gets a commission/kickback from the financier... so all things equal, they got more fat to offer a bigger DISCOUNT than if you're paying straight cash ;)
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Old 15 August 2017, 03:41 PM   #32
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Originally Posted by texex91 View Post
Watches are toys. If you don't have cash you shouldn't buy.

To each their own.
This should always be a HARD CASH hobby.

Go to the AD and slap down the CASH.

Shows you're not fooling around and are ready to deal...everytime.
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Old 15 August 2017, 04:21 PM   #33
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this should always be a hard cash hobby.

Go to the ad and slap down the cash.

Shows you're not fooling around and are ready to deal...everytime.
yes!!
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Old 15 August 2017, 07:25 PM   #34
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This should always be a HARD CASH hobby.

Go to the AD and slap down the CASH.

Shows you're not fooling around and are ready to deal...everytime.
Who carries $15k cash around on them? I sure don't. Also, businesses are required to report cash transactions over $10k to the IRS and the Financial Crimes Enforcement Network to prevent money laundering. Do you want to get flagged as a potential person of interest by either of those agencies? From the IRS website: Money laundering is a tool used to support various criminal activities, ranging from tax evasion to terrorist financing to drug dealing, to hide the proceeds from their illegal activity.

Nope, I'd rather use credit.
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Old 15 August 2017, 07:33 PM   #35
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Absolutely never finance luxury goods.
Didn't buy my first "high end" watch until I had my student loans, mortgage, and cars paid off. Plus had 18 months of salary banked, plus 401(k) and other options rolling. All at the age of 35.
Debt is the devil.
That's a HUGE exception my friend. Student loans and car being paid off, sure......but to have your entire mortgage paid off at 35? Gotta be realistic...

In a lot of areas a good home is $500k, not $100k. Also, you probably aren't going to purchase until you're around 30 (32 is the average age of American first time home buyers). Assuming you put down 10%, you'd be looking at a 5 year, $450k loan (at 3.5%) to be an 'affordable' $8.2k per month. Even at 10 years, that's almost $4.5k per month.

Kudos to however you did that, but it's not feasible for 99.99% of people.
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Old 15 August 2017, 07:44 PM   #36
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Absolutely never finance luxury goods.
Didn't buy my first "high end" watch until I had my student loans, mortgage, and cars paid off. Plus had 18 months of salary banked, plus 401(k) and other options rolling. All at the age of 35.
Debt is the devil.
debt and financing are not necessarily the same thing. Taking advantage of 0% rates while letting the money you could have used for the item grow is a smart thing to do IMO.

Same thing with CC's. I charge everything possible on mine to get points and miles. It makes no sense to use cash or checks. Its not really "debt" until you start paying interest and revolve a balance.
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Old 15 August 2017, 08:27 PM   #37
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debt and financing are not necessarily the same thing. Taking advantage of 0% rates while letting the money you could have used for the item grow is a smart thing to do IMO.

Same thing with CC's. I charge everything possible on mine to get points and miles. It makes no sense to use cash or checks. Its not really "debt" until you start paying interest and revolve a balance.
Exactly! I don't understand why that principle is so hard for folks to grasp. Being a CPA I'm often advising folks on their finances. Using interest free money while your savings is working for you in other investments is smart finance.
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Old 15 August 2017, 08:43 PM   #38
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0% interest makes sense to me and I've used this type of offer a couple of times in the past. Once on a lawnmower when I was just starting out in life with my first home and once on a BMW when I needed a new car.
If you're disciplined and know you can pay it off in time there is no risk to doing this. For me, there was a "psychic" benefit to paying for something in future earnings rather than taking cash out of the bank. Sure, I realize that what I'm paying on the loan represented money not going into my savings, but I liked keeping my savings safe and working for me.
And, as someone suggested, these interest free offers tend to come at the expense of a potential discount upfront. The buyer has to do the math and make an informed decision.
However, with all that said, the most economical way to purchase is likely to be from a trusted seller.
One final thought regarding credit scores. If you have a score over 700 there is probably nothing you can't get the best rate on. 800+ scores don't usually carry any more weight than 700 scores. I've never been late on a payment in my life and I haven't paid a penny in interest in decades and my highest score ever is barely 800.
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Old 15 August 2017, 08:45 PM   #39
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Originally Posted by Fleetlord View Post
This should always be a HARD CASH hobby.

Go to the AD and slap down the CASH.

Shows you're not fooling around and are ready to deal...everytime.
That seems extreme. Who carries that much cash? Likely that's not overly safe.

Besides, might as well get points or mikes from the purchase.
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Old 15 August 2017, 08:51 PM   #40
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My fav ad has 5yr 0% through Wells Fargo. But I hate Wells Fargo. And they send you a maxed out cc. Not a fan, but generally if I can use someone else's money, especially on a depreciating asset, at a low/no rate, then I'd rather put my money in the market.
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Old 15 August 2017, 08:57 PM   #41
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I believe it is more complicated than just accepting the interest free 30 months. I would need a reasonable discount on the watch and the financing. I have used interest free before, usually in conjunction with a significant down payment. I think you have to look at it from all angles. I understand others that say never buy luxury items on credit but for me it is more complicated than a hard and fast rule. It is about finding a balance on what you want to achieve, buy, and utilizing all avenues available. The ability to appropriately use credit is part of an overall financial plan that does include, for me, the purchase of some luxury items.
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Old 15 August 2017, 09:04 PM   #42
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did you pay MSRP for the 116613LB? The main downside to these 0% financing deals seems to be lack of discounts where they might otherwise be had
Exactly, so 0% interest easily becomes 10% depending on the model
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Old 15 August 2017, 09:05 PM   #43
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I wonder if they are willing to negotiate on price with a zero % finance option ... My guess is no.

I prefer to pay upfront as opposed to finance, I've always found you get a better deal if you are prepared to pay on the spot. One less hassle for the retailer.
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Old 15 August 2017, 09:09 PM   #44
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I wonder if they are willing to negotiate on price with a zero % finance option ... My guess is no.

I prefer to pay upfront as opposed to finance, I've always found you get a better deal if you are prepared to pay on the spot. One less hassle for the retailer.
Depends on the item and how bad they want to make the sale
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Old 15 August 2017, 09:11 PM   #45
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Originally Posted by joli160 View Post
Exactly, so 0% interest easily becomes 10% depending on the model
depends, lets just say it was a 10k watch. Spread out over two and a half years at 0% its still probably a better option to pay a non discounted price and keep the 10K invested than save 1K today. The example would probably be more worthwhile if we were talking 50K watches.

Future value of money. You could spend 9k today or less than 9k in the future.

I see your point though.
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Old 15 August 2017, 09:29 PM   #46
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While I am a big believer in using other peoples money, this is likely not a very good option. You would likely not get a very good price on the watch and the pitfalls on missing a payment are severe.

In addition I would not shop at that store, ever.
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Old 15 August 2017, 11:13 PM   #47
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I didn't have enough cash on me when I bought my Rolex so they offered me 0% interest on a loan of up to $15k (I think they put that amount because that's a little more than the watch cost with sales tax). Interest free for one year. I looked at the terms and it said if it wasn't paid off by the one year mark the interest rate would jump to 29.9%. I have it almost paid off currently and I bought the watch back in June. I put $4k cash down, paid $5k the first month and just paid another $3k. It will be paid off next month.

If nothing else, it will boost my credit score from its already lofty 830 points.
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Old 15 August 2017, 11:48 PM   #48
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debt and financing are not necessarily the same thing. Taking advantage of 0% rates while letting the money you could have used for the item grow is a smart thing to do IMO.

Same thing with CC's. I charge everything possible on mine to get points and miles. It makes no sense to use cash or checks. Its not really "debt" until you start paying interest and revolve a balance.
Agreed 100%
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Old 16 August 2017, 01:14 AM   #49
Fleetlord
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That seems extreme. Who carries that much cash? Likely that's not overly safe.

Besides, might as well get points or mikes from the purchase.
I'm thinking more like a planned purchase rather impulse, so you would only have the cash on you for a limited time.

Then get in the AD and slap it down for the best deal!
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Old 16 August 2017, 01:28 AM   #50
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Oh boy

People call it free money because it costs nothing to borrow. It has nothing to do with paying it back.

It's actually better than free money if you factor the time value of money on 30 months
What's better than free money?
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Old 16 August 2017, 01:30 AM   #51
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I believe it is more complicated than just accepting the interest free 30 months. I would need a reasonable discount on the watch and the financing. I have used interest free before, usually in conjunction with a significant down payment. I think you have to look at it from all angles. I understand others that say never buy luxury items on credit but for me it is more complicated than a hard and fast rule. It is about finding a balance on what you want to achieve, buy, and utilizing all avenues available. The ability to appropriately use credit is part of an overall financial plan that does include, for me, the purchase of some luxury items.
^^
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Old 16 August 2017, 01:37 AM   #52
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debt and financing are not necessarily the same thing. Taking advantage of 0% rates while letting the money you could have used for the item grow is a smart thing to do IMO.

Same thing with CC's. I charge everything possible on mine to get points and miles. It makes no sense to use cash or checks. Its not really "debt" until you start paying interest and revolve a balance.
I realize that you've got debt in quotes, but understand that it's a debt from the moment you sign the contract. Anytime you don't pay cash for a purchase, it becomes debt.

Some debt may be smart, some not. Devil is in the details.

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Old 16 August 2017, 01:43 AM   #53
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I realize that you've got debt in quotes, but understand that it's a debt from the moment you sign the contract. Anytime you don't pay cash for a purchase, it becomes debt.

Some debt may be smart, some not. Devil is in the details.

depends on how you look at it. If you operate your debt obligations like a checking account i use the term "debt" more loosely than a mortgage that you probably could not pay off in a week if you had to without some serious liquidation of portfolio.

As long as you have plenty of liquidity available to cover it, personally i don't consider it debt. But, were getting into semantics here.
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Old 16 August 2017, 01:49 AM   #54
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Wrong.
You had your opinion and this person has his. Why do you feel the need to discount his?
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Old 16 August 2017, 01:53 AM   #55
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You had your opinion and this person has his. Why do you feel the need to discount his?
Dave Ramsey type financial advice is helpful to some who have trouble living within their means. For others it is irrational and makes no sense as you get tons of benefit using credit to your advantage.

Credit and financing isn't bad if you can use it to benefit yourself. If you are not disciplined enough to do that then its a slippery slope to problems.
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Old 16 August 2017, 01:55 AM   #56
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I am generally very frugal but If you want it and can pay without putting yourself into a bind go ahead.
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Old 16 August 2017, 02:14 AM   #57
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Dave Ramsey type financial advice is helpful to some who have trouble living within their means. For others it is irrational and makes no sense as you get tons of benefit using credit to your advantage.



Credit and financing isn't bad if you can use it to benefit yourself. If you are not disciplined enough to do that then its a slippery slope to problems.


People are so quick to lump credit use and debt as evil. If everyone lived like Suzy Orman preaches, our entire economy would crash
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Old 16 August 2017, 02:22 AM   #58
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Dave Ramsey type financial advice is helpful to some who have trouble living within their means. For others it is irrational and makes no sense as you get tons of benefit using credit to your advantage.

Credit and financing isn't bad if you can use it to benefit yourself. If you are not disciplined enough to do that then its a slippery slope to problems.
I'm a big Dave Ramsey fan, but what you're saying is true. However the reason finacial advisors advise against it is because most people don't have the discipline to do what you're saying.
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Old 16 August 2017, 02:28 AM   #59
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No interest for 30 months. I see you've been talking to Mrs Magwitch.
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Old 16 August 2017, 03:19 AM   #60
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I'm a big Dave Ramsey fan, but what you're saying is true. However the reason finacial advisors advise against it is because most people don't have the discipline to do what you're saying.
My favorite thing about Dave Ramesy is he urges you to cut up your credit cards but sells (or use to) sell all of his products on his website and you could pay with a CC. AFAIK he offered no "cash on delivery" payment option

Debt is bad, unless you use it to buy my products.
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