Be careful if you are financing through Moto

[Almeuit]

Minimum purchase for 18 month financing is $549. Interest is over 28% if you miss a payment or don't complete the purchase in the time frame. See the details on Moto website.

Yep -- this is normal. Anyone who has used financing before will be used to these terms.

 

[hallux]

This isn't really related to the OP's topic, but here's what I don't understand about Motorola's financing: I bought the 64GB Nexus 6 and financed it for 18 months. My payment is $25/month. After 18 months I will have paid $450. When does the balance of about $300 come due?

I don't really care that much. I have the cash from the sale of an iPhone and could have paid for it all up front, but I decided to use the financing since it was available and no cost. But I'm curious to see how it spins out.

That $25 is your MINIMUM payment. That payment is all that is required to avoid getting hit with the interest from the entire finance period. You do still need to pay it off at the end of the term though.

I bought a new mattress, 0% financing for 18 months. $1500 or so but the required monthly payment was $20 or so. I had Lasik, 0% financing for 12 months, $3500 charge but the minimum payment was $29/month. If you can afford to make larger payments every month, do it or you'll end up with a large lump sum at the end.

As for the high interest charge and being back-billed for ALL the interest if you miss a payment or don't pay it off by the end of the term, this is nothing new. Both of the financing plans I noted above were that way, many are if you read the "fine print".

 

[bhatech]

Wow people don't get confused with minimum payment and what you owe, as I mentioned ignore the minimum payment and divide your total phone cost by number of interest free months. That will be your monthly payment you should be making. If you do minimum payment every month then put a reminder to pay off the remaining balance when your interest free term is ending. Do some research on what these things mean otherwise you will get hit with high interest after the promotional period. That is how promotional interest free financing work everywhere, heck any credit card purchases will have crazy interest if you don't pay off your monthly balance.

Sent from my Nexus 6 using Tapatalk

 

[worldspy99]

Brazil and we are facing huge financial and political crisis

Ping one of us here and we will get it to Brazil, wink, wink....

 

[tgp]

That $25 is your MINIMUM payment. That payment is all that is required to avoid getting hit with the interest from the entire finance period. You do still need to pay it off at the end of the term though.

I bought a new mattress, 0% financing for 18 months. $1500 or so but the required monthly payment was $20 or so. I had Lasik, 0% financing for 12 months, $3500 charge but the minimum payment was $29/month. If you can afford to make larger payments every month, do it or you'll end up with a large lump sum at the end.

As for the high interest charge and being back-billed for ALL the interest if you miss a payment or don't pay it off by the end of the term, this is nothing new. Both of the financing plans I noted above were that way, many are if you read the "fine print".

Thanks! You and landale above explained it. I don't care if a large lump sum comes through at the end. I have the cash, so I'll just pay whatever the bill is. I'm just financing it because I can. My main question was why the payment is too low to pay the phone off in 18 months, and that's been answered.

 

[hallux]

I'm on the fence about signing up for Motorola credit to finance the phone. It's yet ANOTHER credit card (that's really all it is, you get a new credit card and an instant 0% balance transfer). I already have 2 credit accounts I'll probably never use again from buying the bed and getting Lasik done. GoodYear from buying tires, my Best Buy one finally lapsed after 6 years of non-use. EVENTUALLY, it'll catch up on my credit score (which is just dandy right now so it's not a HUGE concern).

 

[getbretweir]

I'm on the fence about signing up for Motorola credit to finance the phone. It's yet ANOTHER credit card (that's really all it is, you get a new credit card and an instant 0% balance transfer). I already have 2 credit accounts I'll probably never use again from buying the bed and getting Lasik done. GoodYear from buying tires, my Best Buy one finally lapsed after 6 years of non-use. EVENTUALLY, it'll catch up on my credit score (which is just dandy right now so it's not a HUGE concern).

I never use store specific cards, they're too limited. I use a cash back card (points equal cash that hit my checking account in $25 increments) and have it on auto pay. make about $300 a year from points and never paid a cent in interest.

Posted via the Android Central App

 

[alphabets]

I financed both my 2013 and 2014 X through Moto. Both were 12 months though, not 18. I don't remember 1 even being offered, but who knows. I'm financing it again in September. Can't beat 0% and plus I just apply the sale of my old X to the purchase.

 

[TJH132]

... ignore the minimum payment and divide your total phone cost by number of interest free months. That will be your monthly payment you should be making.

I routinely subtract one month for a higher monthly payment but peace of mind that I won't be hit with the interest charges.

Posted via Android Central App

 

[getbretweir]

I routinely subtract one month for a higher monthly payment but peace of mind that I won't be hit with the interest charges.

Posted via Android Central App

same here ... **** happens so that's a smart tactic.

 

[Ryan Oneill]

Damn that's pretty expensive, does anyone here use this as an option to pay??

Posted via the Android Central App

 

[Cakefish]

I don't understand why people don't employ a bit of patience and save up monthly until they can afford to buy the phone outright instead of owing lots of debt, paying it back monthly and ending up spending this 28%+ extra through interest.

 

[YankInDaSouth]

I don't understand why people don't employ a bit of patience and save up monthly until they can afford to buy the phone outright instead of owing lots of debt, paying it back monthly and ending up spending this 28%+ extra through interest.

While I understand what you're saying, but what's the difference between that and taking advantage of 12 or 18 month interest free promo through Motorola's credit program. As long as you stick to the monthly payment that'll have you paying it off before the interest free promo ends, it's essentially the same thing as saving money every month, IMO

G4'ed it!

 

[Cakefish]

While I understand what you're saying, but what's the difference between that and taking advantage of 12 or 18 month interest free promo through Motorola's credit program. As long as you stick to the monthly payment that'll have you paying it off before the interest free promo ends, it's essentially the same thing as saving money every month, IMO

G4'ed it!

Didn't realise there was an interest free option. Still, I'd personally prefer to get it over and done with rather than having to worry about being able to pay it off within the time limit. Don't like being under pressure.

I don't have a reliable source of income as I'm a full time student (though not for much longer) so that's why I'm super against the idea of committing to monthly payments. I understand it's different for most of you with full time jobs (hopefully I'll have one soon).

 

[YankInDaSouth]

Didn't realise there was an interest free option. Still, I'd personally prefer to get it over and done with rather than having to worry about being able to pay it off within the time limit. Don't like being under pressure.

I don't have a reliable source of income as I'm a full time student (though not for much longer) so that's why I'm super against the idea of committing to monthly payments. I understand it's different for most of you with full time jobs (hopefully I'll have one soon).

I'm not 100% certain about the interest free either, but they've done it in the past (however it's standard for purchases over like $550 I think) ...

I completely understand and respect not wanting to commit to monthly payments! Honestly, we should ALL exercise this practice ... But I suffer from G.T.H.I.N. syndrome ( Got To Have It Now) LOL

And congratulations and good luck on soon entering the workforce!

G4'ed it!

 

[Cakefish]

Thanks! It's a postgraduate master's degree so I've been studying for a while now. I feel quite eager to finally enter the job market after all these years!

I too suffer from that condition! I just follow rumours to get rough estimates on when things I like the sound of will most likely launch so that I can make sure I've saved up enough beforehand to buy outright immediately once it's up for sale. Pretty difficult on my budget I'll admit. My moneys pretty tight at the moment which is why I'm opting for Moto X Play instead of Moto X Style (also gotta love that huge battery!).

 

[Almeuit]

Didn't realise there was an interest free option. Still, I'd personally prefer to get it over and done with rather than having to worry about being able to pay it off within the time limit. Don't like being under pressure.

I don't have a reliable source of income as I'm a full time student (though not for much longer) so that's why I'm super against the idea of committing to monthly payments. I understand it's different for most of you with full time jobs (hopefully I'll have one soon).

It's a preference thing as you said.. You prefer to pay it off up front. I don't mind getting 12 months no interest and just tossing $100 a month at it and paying it off well before that 12 months.

It isn't so bad as long as you pay it. The ones who don't or don't have a record of doing so shouldn't do it. I love no interest things for big purchases.. Doesn't break the bank .

 

[bhatech]

I routinely subtract one month for a higher monthly payment but peace of mind that I won't be hit with the interest charges.

Posted via Android Central App

Yeah I do that as well just didn't mention. But nice tip in general since it's peace of mind and don't have to worry about crazy interest.

Sent from my Nexus 6 using Tapatalk

 

[getbretweir]

I don't understand why people don't employ a bit of patience and save up monthly until they can afford to buy the phone outright instead of owing lots of debt, paying it back monthly and ending up spending this 28%+ extra through interest.

so true cake!! patience is the problem though, people want it now and they'll pay a premium for the convenience. financing at 0% is smart credit. you can earn points (I have a cash back card so I get $25 automatically deposited into my savings account every time I earn 1,000 points) and you end up paying no interest or fees.

unfortunately so many people don't know how to use credit to their advantage, or like you said, have the patience to save.

in all your studies (congratulations BTW) how many classes did you take in credit, or managing it? my guess is 0. amazing how it's all about money, money, money, and schools train you to go out there and earn it, but they don't teach you a thing about it.

 

[Raptor007]

You can also divide the total payments out to get the minimum needed each month and pay it off within the 0% term, and set that as your auto-payment each month. 0% is great if you read the rules tied to it. Plus you can use the Moto X Pure on any carrier so you are not tied to any carrier payment plan and won't have to pay off the balance just to switch carriers which would be helpful for some.