Saw an ad on TV last night which completely blew my mind. Jordan’s Furniture is offering 84 months of interest-free “same as cash” financing to purchase furniture.
It’s been a while since I’ve been in a furniture store, but is furniture so expensive lately that you need 7 years to pay for it? I recall purchasing our first bedroom set back in 1986 (which we still own) and taking 2 years to pay for it. Thought that was a bit outrageous.
So, would buying furniture with an 84 month “same as cash” financing option, taking the funds and instead buying a 7 year CD at a little better than nothing interest rate (1.5% at PenFed) then paying the furniture off completely on the 84th month (no interest - same as cash) be something that I should do if I was buying furniture?
From what I’ve heard from some people, it might take 84 months to get your furniture! Mostly joking but like many things now, there are some serious months long delay in getting some furniture items.
My concern with any of those 0% interest things are the penalties if you forget to pay within the time limit or other small print that I miss. Sometimes trying to save a few dollars ends up costly you a lot more.
Makes you wonder. Also the zero percent offerings and the no payment until 2023 or 2024 stuff. All falls into what Intercst identifies as “the skim”. Some of these places are too big to be able to negotiate, but in many cases a cash deal will get a better price.
Makes you wonder. Also the zero percent offerings and the no payment until 2023 or 2024 stuff. All falls into what Intercst identifies as “the skim”. Some of these places are too big to be able to negotiate, but in many cases a cash deal will get a better price. - daryll44
Exactly. All business, those who remain in business anyway, must have prices that covers their costs, and cost of capital is one of those costs. The interest free price just embeds the finance charge in the price so you can’t see it.
offering 84 months of interest-free “same as cash” financing to purchase furniture.
… is furniture so expensive lately that you need 7 years to pay for it?
When I was messing in rental real-estate, a broker once told me that many of the renters she dealt with were “People who never had $500 all at the same time in their entire life.”
So, would buying furniture with an 84 month “same as cash” financing option, taking the funds and instead buying a 7 year CD at a little better than nothing interest rate …
a) There is a monthly payment on the furniture. I bet the payment is 1/84’th of the loan amount.
b) You (who does have $500 all at the same time) wouldn’t probably be buying so much furniture that the 1.5% interest would earn enough dollars to be worth messing with.
Saw an ad on TV last night which completely blew my mind. Jordan’s Furniture is offering 84 months of interest-free “same as cash” financing to purchase furniture.
That would make me less inclined to shop there. I pay real “cash” (actually Visa) and don’t care for the price I pay being raised to cover the cost of such a policy.
The fine print (click on Get Details) says Equal Payments.
Nah, it’s probably okay to shop there. Their prices will be negotiable.
Best way to do it is like the best way – in normal times, not right now – to negotiate buying a car. One of you likes it, the other dislikes it and is surly and refuses to pay that much for that ugly/uncomfortable sofa.
Cars are an odd thing. Sometimes you can get a better price if you don’t take the subsidized financing. Other times they won’t do that, so you pretty much wouldn’t turn down the subsidized financing. And there are the deals where you get $500 or $1000 off the car price if you take regular non-subsidized financing (and then pay the loan off as soon as you can do so without penalty).
“If I was living hand-to-mouth, this may be a dream come true for my family.”
If I was living hand to mouth, I’d be shopping at Goodwill, Salvation Army, and garage sales for used but servable furniture. Or hand me downs from neighbors/parents/relatives, etc. Or build my own from scrap lumber. Same for clothes.
Other than some mattresses, you don’t have to buy a lot of ‘new’.
Saw an ad on TV last night which completely blew my mind. Jordan’s Furniture is offering 84 months of interest-free “same as cash” financing to purchase furniture.
The kicker is sometimes this: You don’t have to make payments until some future time, and when you do make payments or pay off the bill in the future the interest rate was zero percent. So, just like you’d think…
BUT, if you don’t comply with the terms of the loan, you owe interest back to the purchase date, and the interest rate is really high. Another “gotcha” is that they won’t send you a reminder to pay prior to the interest kicking in because that’s a big money-maker for the finance company that the furniture store uses.
I’d be shopping at Goodwill, Salvation Army, and garage sales for used but servable furniture.
Cinder blocks, milk crates, scrap lumber, a futon mattress, and used clothes were my personal look well into my 20s. I did better with the hippie chicks than the sorority girls…
he kicker is sometimes this: You don’t have to make payments until some future time, and when you do make payments or pay off the bill in the future the interest rate was zero percent. So, just like you’d think… BUT, if you don’t comply with the terms of the loan, you owe interest back to the purchase date, and the interest rate is really high. Another “gotcha” is that they won’t send you a reminder to pay prior to the interest kicking in because that’s a big money-maker for the finance company that the furniture store uses.
So, basically, it’s a scam to make money by lending money with “gotchyas”. And furniture just happens to be the bait.
Like my Daddy used to say “this ain’t no gift shop(the business)’. Somebody has to pay ford goods and services, it’s up to the customers to read and understand the details.
Saw an ad on TV last night which completely blew my mind. Jordan’s Furniture is offering 84 months of interest-free “same as cash” financing to purchase furniture.
Over the past couple years my woodworking hobby has evolved to I’m now building the occasional furniture piece. With the price of some woods, you almost need financing for some projects.
JLC - who just finished a $5000 black walnut dinning table if he were to price for sale.
