No Interest for 30 Months

[TheVTCGuy]

For all of you that exclaim you should NEVER buy a luxury item unelss you can walk in and pay for it with cash, and practise what you preach, I am seriously and from my heart very happy for you. You obviously manage your money exceptionally well and are a lot smarter then I am in financial issues (which isn't saying much ). Although I do fairly well in the salary department and own a home in a lucrative location, I DO NOT have that particular capability; I will admit to making mistakes in my past which have caught up with me, and quite frankly am a Dorklehead when it comes to money matters; (Here, I'll throw in another twit selfie ). ALthough my credit is EXCELLENT, for which I am very proud I do not have the ability to pay for an item like my Rolex in cash. And there it is!

So, do I forbid myself of owning such a product? Sell my nice car (which I enjoy), move in to a low-rent district and eat top ramen every night until I AM able to pay cash for this item? Uhm... in a word.... no. I am too old, too selfish, and with no kids or other financial responsabilities other then myself too self-centered to do this. SO...

My other option is to use my excellent credit and purchase my Rolex on a charge account. Here, I have two options. The Credit card, which charges (I think) at lease several percent interest, possibly something like up to 20 if I am not mistaken... OR, I take advantage of my AD offering me one-year-same-as-cash terms and make monthly payments; all the while enjoying my nice new Rolex (a wonderful DJ41 ). My point is, if you have the ability to pay cash for such a luxury item, more power to you and I am seriously happy you manage your money so well But for a lot of us, myself being a prime example, we are not as either A: financially well off as you are or B: (in my case) not as monetarily intelligent. Something I whole-heartedly admit to. Nevertheless, I choose to use my good credit to purchase and enjoy a fine luxury item like a Rolex, and am very happy with it. And in this instance, the no-interest loan offered by my AD is a very good option that allows me to do just that. I think a lot of people on the forum are in similar circumstances....

Don't look down at us for that.

[hugs]

Originally Posted by TheVTCGuy

..

Fair point here. There are a lot of people who could easily put aside a lot of money per month for a nice watch or car but they are trigger happy with their wallet and don't have the discipline. This forces you to "save" for the item as the money you spend paying it off you would just spend on frivolous items anyway plus the bonus of enjoying it from day one.

[droptopman]

I would have no problem using "their" money for the term. Even if I could pay cash, if there is a 0 interest option, I will at times take it. Especially with cars. I had a nice down payment saved up for my wife's last new car, but with 0 percent financing, I put that money where it could earn a little.

Read the fine print though. I bought a bunch of furniture on a 0 interest deal a few years back. I was making the monthly payments with a auto payment set up. I decided to look a little deeper and was paying a $27 a month processing fee. Total scam...I just paid it off. Lesson learned.

[TheVTCGuy]

Originally Posted by droptopman

I would have no problem using "their" money for the term. Even if I could pay cash, if there is a 0 interest option, I will at times take it. Especially with cars. I had a nice down payment saved up for my wife's last new car, but with 0 percent financing, I put that money where it could earn a little.

Read the fine print though. I bought a bunch of furniture on a 0 interest deal a few years back. I was making the monthly payments with a auto payment set up. I decided to look a little deeper and was paying a $27 a month processing fee. Total scam...I just paid it off. Lesson learned.

Absolutely agree! Do your homework, make SURE what they say is what they will do and there are no hidden fees

[superdog]

Originally Posted by TheVTCGuy

For all of you that exclaim you should NEVER buy a luxury item unelss you can walk in and pay for it with cash, and practise what you preach, I am seriously and from my heart very happy for you. You obviously manage your money exceptionally well and are a lot smarter then I am in financial issues (which isn't saying much ). Although I do fairly well in the salary department and own a home in a lucrative location, I DO NOT have that particular capability; I will admit to making mistakes in my past which have caught up with me, and quite frankly am a Dorklehead when it comes to money matters; (Here, I'll throw in another twit selfie ). ALthough my credit is EXCELLENT, for which I am very proud I do not have the ability to pay for an item like my Rolex in cash. And there it is!

So, do I forbid myself of owning such a product? Sell my nice car (which I enjoy), move in to a low-rent district and eat top ramen every night until I AM able to pay cash for this item? Uhm... in a word.... no. I am too old, too selfish, and with no kids or other financial responsabilities other then myself too self-centered to do this. SO...

My other option is to use my excellent credit and purchase my Rolex on a charge account. Here, I have two options. The Credit card, which charges (I think) at lease several percent interest, possibly something like up to 20 if I am not mistaken... OR, I take advantage of my AD offering me one-year-same-as-cash terms and make monthly payments; all the while enjoying my nice new Rolex (a wonderful DJ41 ). My point is, if you have the ability to pay cash for such a luxury item, more power to you and I am seriously happy you manage your money so well But for a lot of us, myself being a prime example, we are not as either A: financially well off as you are or B: (in my case) not as monetarily intelligent. Something I whole-heartedly admit to. Nevertheless, I choose to use my good credit to purchase and enjoy a fine luxury item like a Rolex, and am very happy with it. And in this instance, the no-interest loan offered by my AD is a very good option that allows me to do just that. I think a lot of people on the forum are in similar circumstances....

Don't look down at us for that.

You know, you bring up an excellent few points.

And every situation is going to be different. I avoid credit only because I am very scared of repeating the mistakes of many family members and friends that I watched growing up. I act the way I do with credit, mostly out of fear.

I also got lucky a few years ago, so it makes my personal situation a little different. Again, every situation is going to be different.

That said, you are not a spring chicken. You are clearly very successful, and you clearly have a good, in demand job. No kids, no wife etc. Yeah man, I am in 100% agreement with your situation.

Every situation will be different. Not that you need my approval. Clearly you do not. But if I was in the same situation, I would likely be doing the same thing.

[TheVTCGuy]

Originally Posted by hugs

Fair point here. There are a lot of people who could easily put aside a lot of money per month for a nice watch or car but they are trigger happy with their wallet and don't have the discipline. This forces you to "save" for the item as the money you spend paying it off you would just spend on frivolous items anyway plus the bonus of enjoying it from day one.

Uhm... saving a little each month until you can pay for it cash; I get it. Let's take a look at my particular situation.

The amount I financed from Ben Bridge was (roughly) $3,500. My monthly payments are (again roughly) $300, which of course I calculated I can handle in my budget. My two options are:

A. Put $300 every month away for a year until I can pay the $3,500 and walk in to the store with it to buy my watch, or

B. Buy the watch on one year terms, pay the same amount every month-all the while enjoying my nice new Dj 41 for that year.

ASSUMING, I have emergency funds tucked away for an unforseen situation where I need immediate cash (which I do), WHY wouldn't I take advantage of the store's offer and enjoy my watch for that year? I am "paying" the same every month.

[TheVTCGuy]

Originally Posted by superdog

You know, you bring up an excellent few points.

And every situation is going to be different. I avoid credit only because I am very scared of repeating the mistakes of many family members and friends that I watched growing up. I act the way I do with credit, mostly out of fear.

I also got lucky a few years ago, so it makes my personal situation a little different. Again, every situation is going to be different.

That said, you are not a spring chicken. You are clearly very successful, and you clearly have a good, in demand job. No kids, no wife etc. Yeah man, I am in 100% agreement with your situation.

Every situation will be different. Not that you need my approval. Clearly you do not. But if I was in the same situation, I would likely be doing the same thing.

Will you adopt me Seth? I am potty trained! (Well, MOST of the time anyway ).

[superdog]

Originally Posted by TheVTCGuy

Will you adopt me Seth? I am potty trained! (Well, MOST of the time anyway ).

My man, I am possibly your biggest fan.

Please, come on over. You are welcome anytime.

[tyler1980]

Originally Posted by superdog

And every situation is going to be different. I avoid credit only because I am very scared of repeating the mistakes of many family members and friends that I watched growing up. I act the way I do with credit, mostly out of fear.

A bit off topic but a charge card (not a credit card) is a good option if you are nervous about credit. It has to be paid at the end of the month and you can't revolve a balance. AMEX are mostly charge cards as long as you don't add on the extended payment option.

You then get the benefits of paying with a CC as far as points and miles, purchase protection, and piece of mind if someone steals your account info and goes on a shopping spree as its not your money thats gone vs a checking account where your money is gone while the bank investigates.

I know a lot of people who are more comfortable with that than a CC where they don't have to pay it off at the end of the month.

IMO you have to use credit in order to become more comfortable with it.

[TheVTCGuy]

Originally Posted by superdog

My man, I am possibly your biggest fan.

Please, come on over. You are welcome anytime.

Careful what you wish for buddy

[superdog]

Originally Posted by tyler1980

A bit off topic but a charge card (not a credit card) is a good option if you are nervous about credit. It has to be paid at the end of the month and you can't revolve a balance. AMEX are mostly charge cards as long as you don't add on the extended payment option.

You then get the benefits of paying with a CC as far as points and miles, purchase protection, and piece of mind if someone steals your account info and goes on a shopping spree as its not your money thats gone vs a checking account where your money is gone while the bank investigates.

I know a lot of people who are more comfortable with that than a CC where they don't have to pay it off at the end of the month.

IMO you have to use credit in order to become more comfortable with it.

I am a member since 92. I used to pay at the end of the month.

Now, I pay it weekly.

I just recently got a Chase card because I want the mileage for flights. I am using that more than Amex lately because I have not been overly pleased with the points system with Amex. But I pay that weekly too.

I have problems.

[tyler1980]

Originally Posted by superdog

I am a member since 92. I used to pay at the end of the month.

Now, I pay it weekly.

I just recently got a Chase card because I want the mileage for flights. I am using that more than Amex lately because I have not been overly pleased with the points system with Amex. But I pay that weekly too.

I have problems.

I pay mine early too. The same way as if i would balance my checkbook at the end of the week

Its all about using it like a debit account. Plus if you pay it off before the statement closes it doesn't count toward your credit utilization in your credit report... I'm super OCD about that as well.

AMEX platinum 5 points per dollar on airfare. If you travel a lot its the best option as i am a points/miles nut. $200 per year in free uber rides, $200 per year in travel credits, $100 global entry/precheck reimbursement, SPG gold status included, free wifi hot spot subscription, travel and luggage insurance included... so in reality there is no annual fee.

If you don't travel a lot but just want to earn miles the chase sapphire reserve is the best.

[BristolCavendish]

An interesting discussion/debate over how to best procure a 'non-essential' luxury item.

[rr-nyc]

Originally Posted by Tony64

What's better than free money?

Making money on your own money over 30 months while using that free money to pay for that Rolex.

[droptopman]

I do similar with cards. I use different cards for different activities based on the points and pay off the balances every two weeks. For a long time I used the Costco AMEX business card for a majority of purchases and traveling. Since they left Costco, I am not using Amex as much and using an Alaska Airlines card for travel and the Citi Costco card for recurring payments and other purchases. I have not carried a CC balance for many, many years, but I do earn so nice points every year using them. Works good for me.

[Wesley Crusher]

I'd rather pay in full from a seller here and receive a discount that finance for free at full MRSP.

[Wesley Crusher]

Originally Posted by droptopman

I do similar with cards. I use different cards for different activities based on the points and pay off the balances every two weeks. For a long time I used the Costco AMEX business card for a majority of purchases and traveling. Since they left Costco, I am not using Amex as much and using an Alaska Airlines card for travel and the Citi Costco card for recurring payments and other purchases. I have not carried a CC balance for many, many years, but I do earn so nice points every year using them. Works good for me.

Credit cards are dangerous for 95% if people, but if you're smart and treat your credit card like your debit card, it's a great way to rack up tons of points.

[tyler1980]

Originally Posted by Wesley Crusher

I'd rather pay in full from a seller here and receive a discount that finance for free at full MRSP.

then you probably paid more than i did. I ran the numbers this afternoon and my GMT II i bought a few years ago had an effective discount of around 22% since i paid full MSRP and financed it and kept my money invested.

I financed it at 24 months so i pro-rated to to 30 months to compare apples to apples.

I bought it in the UK in USD so i just used the US retail price for reference and to keep things simple.

US RRP was 8450 and over 2.5 years my 8450 grew to around 10,500. I took the returns from a moderate risk index fund that i would have pulled the money from had i chosen to pay cash. That effectively made the GMT $6,400

To each their own but a "discount" does not always mean you are getting a better deal

I usually don't finance watches however, at the time the market was doing very well so i didn't want to pull any money. Today I'm a bit more conservative and would use a lower risk fund as a benchmark for determining wether to finance or not.

[NothingToSeeHere]

Originally Posted by MaxEight

Go for it. This is exactly how I bought my Rolex. 30 months, interest-free, and even though I had the cash I decided to use their credit because, hey, if I can pay it over time with no interest, I'm essentially using their money for my own benefit. That being said, to qualify for this promotion you DO have to be approved for their credit card - so if you're buying a watch for $6 or 8 or 10k or more, you'll still have their card with $10k or whatever amount of credit against your name after it's all said and done. Though, I suppose you could just cancel it afterward. If you're going to use the card again, that's great, but you'll end up with 29% APR after the promotion is over. They set it up so that you pay it off in exactly 30 months - therefore, $8.5k for, say, a Submariner would be roughly $300 a month, plus whatever sales tax rate your state has. The "minimum payment" is exactly this amount each month, so there's no risk of going over and incurring interest. And to answer your last question, you don't need to put anything down, but of course whatever cash you do hand over right away will just come off whatever you owe them.

I understand why people would say "if you have to finance a luxury good then you can't afford it," but I see people financing Lambos and paying credit for their Louis Vuitton crap all the time. Compared to that, a Rolex is chump change. You want the watch, calculate the monthly payment, and go for it.

It would blow your mind if you knew how many Lamborghini owners are complete Poseurs. I'd say damn near 50%. Guys making $150k a year leasing a Huracan. How in the hell they do it, no clue. Don't ask me how I know, but I know people, who know people, that know people, who know someone that knows people.

[droptopman]

Originally Posted by Wesley Crusher

Credit cards are dangerous for 95% if people, but if you're smart and treat your credit card like your debit card, it's a great way to rack up tons of points.

Exactly. I have friends who earn a good living, but always seem to be in debt. Just lighting money on fire by paying interest on CC's.

Basically, we have a rule. Outside of our home and cars, if we cannot pay it off before the end of the month, it is not for us. Nice cars are a pretty big expense, but I enjoy them so much, I justify it. But logically they are a terrible depreciating asset.

[Tony64]

Originally Posted by TheVTCGuy

Uhm... saving a little each month until you can pay for it cash; I get it. Let's take a look at my particular situation.

The amount I financed from Ben Bridge was (roughly) $3,500. My monthly payments are (again roughly) $300, which of course I calculated I can handle in my budget. My two options are:

A. Put $300 every month away for a year until I can pay the $3,500 and walk in to the store with it to buy my watch, or

B. Buy the watch on one year terms, pay the same amount every month-all the while enjoying my nice new Dj 41 for that year.

ASSUMING, I have emergency funds tucked away for an unforseen situation where I need immediate cash (which I do), WHY wouldn't I take advantage of the store's offer and enjoy my watch for that year? I am "paying" the same every month.

Actually Paul, if you choose option "A" (wait and save for a year) it might end up costing you more. There's no assurance that the price today will be the same a year from now...

[Tony64]

Originally Posted by rr-nyc

Making money on your own money over 30 months while using that free money to pay for that Rolex.

Still not sure how that's better than free money, but to each his own.

[lapince]

Originally Posted by texex91

Watches are toys. If you don't have cash you shouldn't buy.

To each their own.

Couldn't agree more. Never even thought of getting a watch or any luxury item for that matter, using any kind of credit. I even try not to take any credit when I buy real estate, but a watch? No way. And nothing's free, pass the deadline and I feel you'll be in a world of pain... but hey if you can't do otherwise and instead of putting money aside every month towards the purchase, and instead spend it on frivolous things, and are sure to make the deadline, sure why not. Just remember seeeing a documentary about ex bankers saying how in the US they give loans to anyone basically, they don't care if you can't pay, they'll take everything you have, so between those who cannot pay àd those who can they are winning either way.
For a conclusion I really don't trust banks or credit institutions, but that's just me, so someone offering me money without interest for 30 months, I will always think there is a catch...

[tyler1980]

Originally Posted by lapince

Couldn't agree more. Never even thought of getting a watch using any kind of credit. I even try not to take any credit when I buy real estate, but a watch? No way. And nothing's free, pass the deadline and I feel you'll be in a world of pain...

OK, this thread is like herding cats.
No one here is saying finance if you can't afford it. But, financing does in fact have the ability to make the watch cheaper than it would be otherwise when you "keep" your money and have it invested in other places.

Some of the richest people I know use coupons at the grocery store. Not because they can't afford the groceries but because they see the value in paying less than they otherwise would have to.

[lapince]

^^^ lol yeah well we all have our differences when it comes to investing or buying, what works for one won't work for the other, I don't even have a credit card, had a bad experience with that at 18, thanks dad for taking care of that, since then have only debit cards, to each his own

[tyler1980]

Originally Posted by lapince

^^^ lol yeah well we all have our differences when it comes to investing or buying, what works for one won't work for the other, I don't even have a credit card, had a bad experience with that at 18, thanks dad for taking care of that, since then have only debit cards, to each his own

Some times CC are bad but not for the reason you might suspect. The points and miles game is almost as addictive as collecting watches. I usually redeem points for travel but my end goal now is to buy an AP with a statement credit from AMEX points even though redeeming for free travel is usually a better value. Its going to take a while though.

[Andad]

I have a headache.

[tyler1980]

Originally Posted by directioneng

I have a headache.

most hospitals will offer competitive financing rates to take care of that issue for you... never mind you live in Australia

[Andad]

Originally Posted by tyler1980

most hospitals will offer competitive financing rates to take care of that issue for you... never mind you live in Australia

Not because of your post Mr T.

The chances of finding a Rolex you want in Oz = zero chance.

Same goes for 0% finance.

As for hospitals - have you heard of 'ramping'?

We are about to open our 2.4 billion dollar hospital.

Beat that!

Repayment is 1 million dollars a day.

The State Government would kill for 0%.

[TheVTCGuy]

Originally Posted by directioneng

Not because of your post Mr T.

The chances of finding a Rolex you want in Oz = zero chance.

Same goes for 0% finance.

As for hospitals - have you heard of 'ramping'?

We are about to open our 2.4 billion dollar hospital.

Beat that!

Repayment is 1 million dollars a day.

The State Government would kill for 0%.

Is it in Melbourne? Do they have a psyc ward?

I'll be there in a couple weeks and might check myself in