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All iPads Can you finance the iPad without over paying?
- Thread starter DBZmusicboy01
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Using no interest on an iPad 4 at BB for 18 months is like stealing. I could easily have dropped the cash but why?.??
As someone already mentioned, the risk is greater than the reward. You have so service the monthly payments and you risk retroactive interest charges if you make a mistake.
What's the potential reward on a $500 purchase? Financially, not much. A $40K car is a different story. Plus, there usually aren't retroactive interest charges on a 0% auto loan if you are late on a payment, especially the last one.
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Oh, here is a good one. I had credit from Dell and had a long term promo rate of 0% on a computer purchase. Then I made a couple smaller subsequent purchases. They applied my payments to the longer term promotion first instead of the small purchases I wanted to pay off immediately causing finance charges on the smaller purchases. Lesson learned.
Not just this, but do you realize how often people (ESPECIALLY young people, myself included as I'm only 33), do something with the full intention of carrying through on it, say: paying off a large purchase in full when the first bill comes, but see a low monthly payment instead and decide they can get MORE new stuff they want if they just keep the money and make the payment instead!!! How could they LOSE?!?!
It's what credit card companies bank on, and if you have the intestinal fortitude to ALWAYS pay it off fine, but I would bet more than a good percentage of people with that INTENTION never actually do it.
The fact remains, you will NEVER get yourself in trouble if you pay cash. There may only be a small chance if you are a trustworthy, intelligent person, with a 0 interest card, but there is NONE if you just pay cash.
The CC companies aren't offering it to be nice. They are offering it because they know a lot of people will FAIL the concept. Believe me when I say, it is harder to pay for something in full AFTER you've had it for month, especially when they offer to let you make a small monthly payment instead. I've been there, not passing judgement, but realize it happens ALL the time...
I am sorry. This entire thread is about financing. It has just about zero to do with buying an Ipad, Iphone, Imac or anthing Apple. It applies to most anything you want to buy.
I am saddened about those that are totally naive about money.
It is very, very, very sad.
I am saddened about those that are totally naive about money.
It is very, very, very sad.
Say what? They are trying to get an "Ipad" without what they would consider overpaying for it by financing it.
Folks here are giving options on how to do that. Like I said, I could have given BB $500 cash for the iPad. I chose not to and keep that money and just finance it via no interest for 18 months. Bet 90% of the people on this forum didn't know you can do that, obviously the OP didn't know.
Sounds like a no brainer for me personally. I don't need any lessons on financing risks.
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I don't really see the point. If you have the money now, why not pay $500 at once rather than having to keep paying $28 a month for 18 months? Any interest that you save (a buck or two) is not worth the headache.
I am financing my 64GB iPad 4 with LTE and WiFi through AT&T's next program. I pay $41.50 a month for 20 months and that is with 0% financing.
Of course I could trade it in after 12 payments for a newer model and then owe nothing and start payments over with the newer item.
Of course I could trade it in after 12 payments for a newer model and then owe nothing and start payments over with the newer item.
I did that with the first gen iPad. There was a free financing period and I paid it off without incurring any finance charges. Then I cancelled the card. You have to be disciplined and make sure to follow through.
The easiest way is to set up a recurring payment via online banking each month so you don't even have to think about it.
It is a shame now they don't give MyBestBuy reward points for financed purchases. I had a real good run this year getting points but as of Aug. 1st they removed points for financed purchases!
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I too purchased my first gen iPad on the Barclay card. One thing of note, if you just get a base model, you won't be spending enough to get 12 mo. financing, just 6 mo. 0 interest same as cash. So you may want to look at the fine print on how much you need to spend to kick it up to the full 12 mo. period for iPads.
I've done it with my Macbook before and it's no different than any other loan or financing plan. Just make sure you keep track of your payments. If you miss or are late on a single payment, you will be hit with an huge interest charge based on the original price (not just the remaining balance).
Otherwise, as long as you keep the minimum payments and pay it off by the date, there will no interest (provided, they are running a promotion when you buy it).
Otherwise, as long as you keep the minimum payments and pay it off by the date, there will no interest (provided, they are running a promotion when you buy it).
I look at it this way, if a bank can't offer me 29.99% interest on my savings, then I sure as hell aren't giving them 29.99% when I use their credit card.
However, there are times when carrying debt can make you money (if you know how to do it).
Example... Bank pays you 1.75% interest in a savings account. A loan costs you 1% interest. As long as you can make more in interest then paying interest, having debt can help you profit.
However, there are times when carrying debt can make you money (if you know how to do it).
Example... Bank pays you 1.75% interest in a savings account. A loan costs you 1% interest. As long as you can make more in interest then paying interest, having debt can help you profit.