Financing

[Nidwow]

Cash in hand is worth more than credit on a card, every single time.

That is not always true. It is good to have both. My employer do check credit history of the new hired (with their permission). The last thing the employer want is to have their employees selling off the company proprietaries or could be a sign of irresponsibility. If your credit report have some red flag.

 

[JungleLarry]

It's not about interest, it's about payments. Payments destroy cash flow. The minimum on a credit card with a balance of $1,000 and a 0% interest rate is most likely $29. The minimum on a credit card with a balance of $1,000 and an 18% interest rate is most likely $29. Man, how tempting? A 10,000 car loan @ 0% for 60 months is $166.67/month. A 10,000 car loan @ 8% for 60 months is $202.76/month. Yeah, interest costs money, but interest free doesn't negate the necessity of having to make a payment, either way. Interest in my auto loan example is a measly $36. It's not like I'm suddenly rich because my auto loan is 0%. It doesn't solve the problem of owing someone else for something. I like to own what I buy.

I finance nearly everything I own because it presents an opportunity to leverage assets at a rate I know I can beat and it lowers my cost basis.

You look at the numbers from the lender's perspective; I look at them from mine. There's always money going in and money going out. So far you've only addressed one side of the equation. Maybe it works for you, but I assure you your cash-only strategy would introduce a significant opportunity cost for people like me.

 

[KWKSLVR]

Some people don't have $400 - $600 to plop down all at once. Or maybe they do but don't want to strap themselves down.
There's nothing wrong with financing and paying $50 or $100 per month. There is something wrong if you're going to struggle with the minimum payment.

Also, some will finance until they can sell their current device to help fund their new one.

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So, in other words, you didn't actually read anything I wrote?

That is not always true. It is good to have both. My employer do check credit history of the new hired (with their permission). The last thing the employer want is to have their employees selling off the company proprietaries or could be a sign of irresponsibility. If your credit report have some red flag.

There is a difference between having no credit and having bad credit. All I'm saying is that you do not need a credit score to buy a house. You do not need a credit score to buy a car and you don't have to have $50,000 for a down payment on a house. I mean, we're talking about people that can't come up with $500 for a phone, yet we think it's a good idea for them to finance everything else? Hogwash. Most people do use credit. Most people are broke. If most people jump off a cliff, is everyone going to do it?

My fiance and I are debt free. We both have been for a long time. She is currently putting herself through school without loans. After we get married I'll help put her the rest of the way through. We are not rich. I'm a private investigator and she's a nurse. Look those average incomes up. We are both above average national wide, but we aren't sitting on stacks of cash. The best we can figure our future budget, after we get married, in our first year we'll be able to save 15K-20K towards a down payment on a house depending on what her school load looks like and how much she can work. In a mere two years we'll have 30K for a down payment on a house.Why? Because we don't have payments on anything. If every month we were paying $100 on cell phones, $600 on two cars, $200 for crap charged on credit cards or whatever else people buy, we wouldn't be able to have a house.

So what do people want, crap and a credit score, or a house? We choose a house. Your FICO doesn't give you a positive rate of return on your investment.

 

[ultravisitor]

I remember one time where a customer came in with a complaint. He had purchased a few thousand dollars worth of furniture from Ashley Furniture, and like a good Wells Fargo customer, he used his shiny Wells Fargo credit card to autopay the payment every month. The problem was that his card had been skimmed, and shut off for "security" reasons a few days before his payment on the furniture was due. He didn't know, and the payment didn't go through. In fact, he didn't find out until he tried to use that card over a week later for a transaction that was declined. This caused his account to go delinquent and stacked on an insane amount of back interest. I've never seen someone more pissed. Did Wells Fargo show mercy and fix the problem? Hell no they didn't, and they lost a customer over it too. The cynic in me is tempted to believe someone at the bank flipped the switch on a "fraudulent transaction" just because the poor guy was at something like payment #50 of 60 and hadn't skipped a beat yet. Nope, can't afford to miss out on the interest for all that!

This goes back to NYC_ROCK's point about people needing to make sure that they are disciplined. If that guy really was disciplined, he would have doublechecked each month to make sure that the payments were being made. That is always a problem that people have with autopayments--I know people who have missed mortgage payments because of it--and it's one reason why I don't use them. **** like this always happens with banks. For instance, with some 0% interest financing plans, it's not unheard of for all of a sudden one of the last payment stubs to get "lost" in the mail, leading someone to forget to make the payment and then all of a sudden they owe a ton a money. I've had to do 0% financing before, so I've made sure to always be sure to never miss a payment because of it.

Again: discipline.

 

[DS1331]

So, in other words, you didn't actually read anything I wrote?
There is a difference between having no credit and having bad credit. All I'm saying is that you do not need a credit score to buy a house. You do not need a credit score to buy a car and you don't have to have $50,000 for a down payment on a house. I mean, we're talking about people that can't come up with $500 for a phone, yet we think it's a good idea for them to finance everything else? Hogwash. Most people do use credit. Most people are broke. If most people jump off a cliff, is everyone going to do it?

My fiance and I are debt free. We both have been for a long time. She is currently putting herself through school without loans. After we get married I'll help put her the rest of the way through. We are not rich. I'm a private investigator and she's a nurse. Look those average incomes up. We are both above average national wide, but we aren't sitting on stacks of cash. The best we can figure our future budget, after we get married, in our first year we'll be able to save 15K-20K towards a down payment on a house depending on what her school load looks like and how much she can work. In a mere two years we'll have 30K for a down payment on a house.Why? Because we don't have payments on anything. If every month we were paying $100 on cell phones, $600 on two cars, $200 for crap charged on credit cards or whatever else people buy, we wouldn't be able to have a house.

So what do people want, crap and a credit score, or a house? We choose a house. Your FICO doesn't give you a positive rate of return on your investment.

So according to your plan all I have to do is get married and have 2 incomes to by a house

Q10, HTC One, Nexus 7, Moto X

 

[androidatic]

So, in other words, you didn't actually read anything I wrote?

I don't believe that I quoted you.

 

[4runner]

Did anyone do the moto financing? wonder how good your credit has to be?

I did it. They have me a credit limit of over $3000. You can link your payments to your checking account or pay online for no charge so you don't have to worry about stamps of missing a payment and then dealing with the interest charges.

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[DS1331]

I did it. They have me a credit limit of over $3000. You can link your payments to your checking account or pay online for no charge so you don't have to worry about stamps of missing a payment and then dealing with the interest charges.

Posted via Android Central App

where do you sign up though on motorola website?

Q10, HTC One, Nexus 7, Moto X

 

[Woosh]

where do you sign up though on motorola website?

Q10, HTC One, Nexus 7, Moto X

Motorola - A Google Company

 

[Paisley]

I want to get the moto x but im a college student with not a lot of money in the bank and no upgrade until May and even then its on my brothers phone number. I want to do the Financing program but have read bad things about Comenity(?) Bank and how terrible they are. Albeit most if not all of these reviews weren't for the moto financing.

Anyone have a negative experience with them so far? I will be able to make every monthly payment but I've read they screw you over with false missed payments etc. Do you know if their payment system is easy? Any help is much appreciated!

I hope you're talking about getting financing for the $350 deal and not real full price.

Posted via Android Central App

 

[DS1331]

I hope you're talking about getting financing for the $350 deal and not real full price.

Posted via Android Central App

even so, this phone is worth $500

Q10, HTC One, Nexus 7, Moto X

 

[Paisley]

even so, this phone is worth $500

Q10, HTC One, Nexus 7, Moto X

Of course, but not for financing for a student on a budget when there's currently a deal for $350.

Posted via Android Central App

 

[DS1331]

if you can get the deal yes, last time it sold out in minutes

Q10, HTC One, Nexus 7, Moto X

 

[jebba]

I got a code from someone on a different thread who was nice enough to give an extra one he had away. I wound up borrowing money from a fraternity brother, no interest, no monthly payments, just "pay me back when you have the money."
But I probably would have used the financing if no one had offered to lend me money.

 

[KWKSLVR]

This goes back to NYC_ROCK's point about people needing to make sure that they are disciplined. If that guy really was disciplined, he would have doublechecked each month to make sure that the payments were being made. That is always a problem that people have with autopayments--I know people who have missed mortgage payments because of it--and it's one reason why I don't use them. **** like this always happens with banks. For instance, with some 0% interest financing plans, it's not unheard of for all of a sudden one of the last payment stubs to get "lost" in the mail, leading someone to forget to make the payment and then all of a sudden they owe a ton a money. I've had to do 0% financing before, so I've made sure to always be sure to never miss a payment because of it.

Again: discipline.

Oh, I agree fully. My point is that by not participating in the system in the first place, you eliminate the potential for problems. People also tend to spend more swiping plastic (credit or debit) than they do spending cash, but that's another topic.

Posted via Android Central App

 

[KWKSLVR]

So according to your plan all I have to do is get married and have 2 incomes to by a house

Q10, HTC One, Nexus 7, Moto X

Or you can spend less than you make and save money. Two incomes is a wash with 2 people. If anything, there's less to spend per person. My point is have a plan and be aware that it's always better to buy a house with a down payment than financing the whole thing. It's instant equity and it also lowers risk.

Posted via Android Central App

 

[JHBThree]

Or you can spend less than you make and save money. Two incomes is a wash with 2 people. If anything, there's less to spend per person. My point is have a plan and be aware that it's always better to buy a house with a down payment than financing the whole thing. It's instant equity and it also lowers risk.

Posted via Android Central App

It's also something that the wide majority of buyers can't do. Financing exists for a reason. You are an anomaly.


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[nyry]

When you use the Moto Maker website on a computer there is an option. I believe in red that gives you an option to finance now.

 

[Puzzlegal]

It's also something that the wide majority of buyers can't do. Financing exists for a reason. You are an anomaly.


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To never use credit is an anomaly, but to save for small items, like a phone, rather than use credit is not unusual, and personally, I think it is wise.

I speak as someone who just paid off my mortgage. ;-)

Quite a lot of Americans get trapped by debt, and can never get off the hamster wheel of interest payments.

I do buy phone on contract, because the contract price includes a subsidy for the phone whether I use it or not. I looked into going off-contract for this purchase, but didn't find an option I liked in contract-free plans. Maybe next time.

 

[KWKSLVR]

To never use credit is an anomaly, but to save for small items, like a phone, rather than use credit is not unusual, and personally, I think it is wise.

I speak as someone who just paid off my mortgage. ;-)

Quite a lot of Americans get trapped by debt, and can never get off the hamster wheel of interest payments.

I do buy phone on contract, because the contract price includes a subsidy for the phone whether I use it or not. I looked into going off-contract for this purchase, but didn't find an option I liked in contract-free plans. Maybe next time.

I do as well, mostly because my only options are Verizon or AT&T (I travel a ton). I've had a couple of horrible experiences with AT&T in both the cell service and internet departments and I've decided to no longer give them my business. I've essentially roped myself into Verizon or nothing so I mind as well take a subsidy. I do keep cash handy to break my contract if I need to.

I speak with my money.

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