Apple No Longer Offers Financing to Individuals in Canada

[sudo1996]

Respectfully, your opinion is wrong. The interest has nothing to do with, and is not the indication of debt. The monthly payment you owe for the item is the debt. You don't own it until it's paid for in full. If you don't pay for the item in full in the agreed time frame, that debt will be collected by either repossession, lien, or both.

The point is you get the financing on the condition that you pretty much know you'll pay it. 0% interest is a steal because there's inflation and opportunity cost. Even if you can buy the computer in full, if you instead invested that money then made recurring payments as necessary, you'd theoretically end up with more money in the end.

 

[Juicy Box]

Leaving cash on the table? Where do you invest your money?

Best guaranteed return on savings I can get is 0.5% these days. On a $3000 mac, that's $1.25/month. This was a 3 month no interest deal followed by high interest. So I can save $3.75 on $3000 *if* I remember to pay after 3 months, or it could wind up costing a lot more.

Any non-guaranteed return on a horizon as short as 3 months means you may end up spending more for the item. It's too short a return to invest reliably.

I was referring to free and deferred financing in general, and not based off of the three months example of the article. The quote in my first post was expressing someone's lack of understanding of the benefits of buying anything with free financing and considered paying cash as the smarter way of paying.

That said, even with your example of a Mac @ $3,000, there is no reason that paying cash up front is better than free financing for 3 months from a financial point of view. Even if you make $1 from the transaction, that is $1 that you would not of had otherwise.

Also, you mentioned a non-guaranteed return, there are plenty of ways to earn short term interest while keeping it's liquidity. A savings account for one. Yes, the return might be small, but it is still better, at least from a financial perspective, than paying up front with cash.

Now, if the seller offered a discount for cash, then cash could be the way to go.

 

[69Mustang]

The point is you get the financing on the condition that you pretty much know you'll pay it. 0% interest is a steal because there's inflation and opportunity cost. Even if you can buy the computer in full, if you instead invested that money then made recurring payments as necessary, you'd theoretically end up with more money in the end.

I completely understood the point bbeagle was trying to make. Had no issue with the point. The issue was the words don't match the point. Financing, whether at 0% or 32%, is incurring debt. When you say, "I do NOT feel this is incurring debt" you're wrong; no matter the point you were trying to make.

 

[statik13]

The point is you get the financing on the condition that you pretty much know you'll pay it. 0% interest is a steal because there's inflation and opportunity cost. Even if you can buy the computer in full, if you instead invested that money then made recurring payments as necessary, you'd theoretically end up with more money in the end.

Absolutely correct as long as you have the willpower to both pay off everything exactly on time and not take on more debt than you otherwise would of.

I believe buying on credit is beneficial to Apple as it strongly encourages people to upgrade to better specs on BTO orders.

ie: Oh, I can upgrade from the 512 SSD to the 1024 SSD for $400? No way! Too much money, and I don't really need it. Oh wait, if I buy on credit that's 3 payments of just $140, or I can make 12 payments of only $35.00 / month? What a sweet deal!

 

[Grey Area]

That said, even with your example of a Mac @ $3,000, there is no reason that paying cash up front is better than free financing for 3 months from a financial point of view. Even if you make $1 from the transaction, that is $1 that you would not of had otherwise.

I have not done this, but I suspect the time spent setting up a financing solution would be considerably more valuable to me than that dollar I would make in return.

 

[michaelemery]

Fine with me. I’m of the opinion that if you can’t afford a new phone or a new computer and you still have one that works, you should save up and then buy when you have the money - instead of incurring debt.

I'm not sure why you feel that your opinion must apply to everyone else, especially as your opinion does not account for the time value of money. If you buy something with someone elses money, and you don't pay interest, then your own money can be earning interest in your savings account. You come out financially better off.

For those who depend on their device to earn a living. Interest free finance can be a real saviour if their device gets damaged, lost or stolen and they don't have the cash immediately at hand. Of course, that comes with a risk, but the alternative is worse.

 

[jblagden]

I'm not sure why you feel that your opinion must apply to everyone else, especially as your opinion does not account for the time value of money. If you buy something with someone elses money, and you don't pay interest, then your own money can be earning interest in your savings account. You come out financially better off.

For those who depend on their device to earn a living. Interest free finance can be a real saviour if their device gets damaged, lost or stolen and they don't have the cash immediately at hand. Of course, that comes with a risk, but the alternative is worse.

When there's no interest, it's more of a matter of principle.

 

[Juicy Box]

I have not done this, but I suspect the time spent setting up a financing solution would be considerably more valuable to me than that dollar I would make in return.

I can understand this, as my time is very valuable to me as well. This would be considered a part of opportunity costs, as someone else already mentioned.

I am not sure how it was in Canada, but in the US, applying for the Barclay financing is as simple as applying for a credit card online. Once you get the Barclay account, you don't need to apply again in the future, so any future purchases that are eligible for deferred financing can be activated automatically. Although, I think you may have to click on a button stating you agree with the terms and conditions of the deferred financing. This takes like one extra second.

It may not have been worth the trouble in Canada with only 3 months worth of free financing, but in the US, Barclay has 12, 18, 24 months deferred financing depending on the dollar amount purchased.

 

[statik13]

When there's no interest, it's more of a matter of principle.

And the winner of the "Worst dad pun ever" is...

 

[groove-agent]

I can't believe people need financing to buy an Apple product.

Maybe if you can't afford it, you just shouldn't purchase it.

Do you have a mortgage on your house? How about a student loan? Ever took out a car loan? It's an extreme example, but buying a Mac is almost on par with buying a used car these days. Sometimes you just need one - either a car to get to work or a computer to use for school. From a business prospective, financing equipment to increase productivity can be worth it.

 

[thekev]

The point is you get the financing on the condition that you pretty much know you'll pay it. 0% interest is a steal because there's inflation and opportunity cost. Even if you can buy the computer in full, if you instead invested that money then made recurring payments as necessary, you'd theoretically end up with more money in the end.

Companies are able to support higher price points with things like financing. It may feel cheaper when broken down into monthly payments.

 

[iLilana]

I would like this to return. I would buy stuff. M1 or M1x. I would buy stuff.

 

[statik13]

I would like this to return. I would buy stuff. M1 or M1x. I would buy stuff.

Why not just get a line of credit at the bank?