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24-07-2008, 10:57 PM | #31 | |||
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24-07-2008, 10:59 PM | #32 | ||
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I think some of you guys watch too much ACA/today tonight.
Interest free is not a rort. The only people who complain about interest free are the dumb s who don't know what they are talking about. Case: I purchase $5000 worth of goods on interest free. The interest free period was 36 months. The total profit from the sale was 14% (due to the goods being in a catalogue sale). The interest free period cost the retailer 12%. Even if I was able to negotiate a 5% discount (pretty pointless for the retailer as they would be losing money) I would have only saved $250. Now I agree that $250 is more money than I would want to throw away. But by me using the interest free offer I was able to put my $5000 into a bank account which pays 8% pa for the 3 years. Result: I earn $1200 over the 3 years (would be more when you consider that the interest is paid monthly and would compound). If I had paid cash I "may" have saved myself $250 + monthly account fee of 2.99 per month, which over 3 years is $107.65. End result is I am up over $800. I don't see anything wrong with that. |
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24-07-2008, 11:09 PM | #33 | ||
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On original topic. Some car brokers are criminals, so are some homeloan brokers.
Just look at what has happened in the US. The whole reason the housing market is rooted over there is due to greedy finance companies writing loans to sub prime mortgage candidates with adjusting interest rates. Bottom line is that so long as you read what your signing everyone should be AOK. |
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24-07-2008, 11:51 PM | #34 | |||||
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25-07-2008, 12:51 AM | #35 | ||
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no you don't get it. clearly.
If a TV is ticketed at $3000 then thats what you will pay for it on hoc. but that tv is really worth $2500 so if u pay cash thats what ull get it for. Therefore if u bargain ofcourse the sales assistant is gonna knock $500 off it and the store is going to still break even and profit. WORK IT OUT? The prices are risen when interest free applies and only the dumbs*its who pay $3000 for it with cash should not buy anything. therefore $500 of that 3000 is profited which interms is what? 24 months interest free on a certain interest rating. i hope u, understand that? far out. Hidden fees apply, even to the people that are braindead and cant work it out |
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25-07-2008, 06:16 AM | #36 | |||
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In support of flappist here you will get bugger all in way og a discount if you sign on to 24 months interest fee infact you can usualy do quite well in th ediscount stakes with a regular cc as the back fees are no where near as high as the never never, and as flappist said once the 24 months is up forget 18 - 25% interes, man, they wach on extra fees and high interest and it just keeps going.
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25-07-2008, 07:03 AM | #37 | |||
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25-07-2008, 10:12 AM | #38 | |||
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Besides which, you're trying to convince us of something we already know: you pay more when you buy using a means other cash... I thought this was already well known and applied to a lot of different payment methods... What I am saying is that if you use the credit at the RIGHT TIME then you will get a cheaper price - in this instance the xboxes were being sold cheaper than everywhere else so HN could MOVE the stock. Using credit during sales is how you maximise its value. Of course in some sales they won't let you use anything other than cash. I think you lot think I don't get what you're saying: I do, I'm just pointing out that what you're saying is already well known and not some hidden fee that only the high elders of the church of the dollar know about... EDIT: Oh and how do you explain a colleague of mine here who bought a big screen plasma for $500 less than the advertised price... and used his GE card? Maybe the store made a loss who knows but he did get it cheaper and I did see him do it (I helped him move it to his house in fact).
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25-07-2008, 10:13 AM | #39 | |||
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Yes $770 is to much to pay a car finance broker who worked for about 2 hours if that on my credit file.....All they basically do is access your credit file and sent it off to would be creditors .....Its not rocket science and is in no way worth what he was trying to charge me. I guess if your credit rating is poor and you will allow yourself to be ripped off in order to get credit then more fool you By the way anyone can become a car finance broker with accreditation in as little as 5 days... A licenced plumber has to go to tech for 4 years to learn his trade .....
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25-07-2008, 10:33 AM | #40 | ||
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It is quite amusing to read back over this.
Those who have done the selling or work in the industry all agree that the interest free thing is a scam. Those who have bought interest free all have about a zillion reasons why what they did was far better that paying cash because they could not have made a mistake. It is also interesting to note that HN et al are extending the interest free period and giving advertising an absolute flogging at the moment. It appears that even those who never have any money and never pay their bills on time are not buying anymore which is a sure sign of a slowing economy.... |
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25-07-2008, 01:37 PM | #41 | |||
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25-07-2008, 03:31 PM | #42 | |||
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25-07-2008, 04:33 PM | #43 | ||
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my old man works for aussie and deals with people needing to refinance daily.
One of the biggest problems are these store or GE money cards run by places like Harvey Norms, he's got clients that are deep in debt on the money cards. To me they dont seem like a good idea and my dad has warned me many times not to get involvled with them. And on another point, when placing a order/deposit on a car that is subject to finance, its a good idea to put in the name of the company you wish to get finance from ie "subject to finance approval from Ford Credit" if you have a broad "subject to finance" claus means that if you get knocked back by your prefered finacier the dealer can hold you to the deal by obtaining you finance elsewhere.. By the way 90% of new cars i sell are subject to finance approval.
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25-07-2008, 06:09 PM | #44 | ||
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Sorry, i'm not going to quote from here and there.
Agree with Flappist. These businesses offering any sort of credit are doing so to make a handsome profit. Very very few can jig it into their favour. The lazy, and the free spirits / trendy's who live payslip by payslip will use this to buy their plasma TV's, Ipods etc. And naturally, as mentioned, there is always a good reason to justify it.. Ohhh I make $X a week, and will pay it off in no time etc etc. Credit has it's place.... but it's my opinion that it's not for things like cars, big screen TV's etc.... CASH IS KING... and ALWAYS WILL BE! |
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25-07-2008, 09:22 PM | #45 | ||
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I would bet that a Dealer is in a position to do a better deal when you package more purchases together than not.
Example - if you buy the car and the credit from the dealer they have more profit silos to ultimately deliver a better deal. Like it or not, if you are in debt somewhere you're not paying for it in cash just because the notes are coming out of your wallet. |
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25-07-2008, 09:48 PM | #46 | |||
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GE charge 28% then add monthly accoun t keeping fee so when added up it works out at 31% but i know one family that are not very well educated and they pay 34%to GE plus monthly fee's.they advertise low rates but they only apply to people with good credit rating and a good job,there real bread and butter is in people with pensions and low income who will sign almost anything to have nice stuff they could never afford anyway else,
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25-07-2008, 09:57 PM | #47 | ||
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ive lost count of how many people ive tried to warn about GE and the like,i always tell them to double what ever the recomended minimum payment is,as the minimum means at end of interest free period they still owe at least half original price and automatically go to 28-34% starting from the date when first signed,its amazing how few understand what its going to cost in the long run
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25-07-2008, 10:49 PM | #48 | ||
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You do realise that you can pay it out EARLY without incurring any charges? As I said, if you're silly enough to let it run to the interest period starts then well maybe you shouldn't have one...
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25-07-2008, 11:02 PM | #49 | |||
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lots of these people are not silly as you put it,Just Poor.this is why GE and the like make huge profits, they prey on the unsuspecting
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25-07-2008, 11:05 PM | #50 | ||
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What's so silly about taking on the interest free period? What I did was take advantage of 6 months of interest free on my credit card and put the money I would've spent in my managed funds.
When it came time to pay, I just paid the bill and was left with a nice bit of change in the account. Interest free is awesome if you use it properly. It's the people who can't handle their cash who subsidise it for the rest of us. |
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25-07-2008, 11:58 PM | #51 | |||
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Pretty much, if your smart with your money interest free, or even interest can make you money on the side.
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26-07-2008, 09:27 AM | #52 | |||
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So if people get loans for stuff they want but can not afford, I do not really feel sorry for em, may be work a bit harder to get it, do some OT, get another job, work some week ends etc etc, all of which I have done to afford things that I wanted... |
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26-07-2008, 07:08 PM | #53 | |||
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26-07-2008, 07:32 PM | #54 | ||
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Then again - as my Grandfather used to say -
"No point in being poor and looking it" |
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