Financing

[Danielmanriquez]

Hey guys i was wondering what you guys thought about financing. I plan on financing a pc that costs 1400 with a gtx 1070 inside. The financing will have no interest attached and be paid within 12 months so monthly payments of 116. The reason i am doing financing is because i need a pc for work but if i am going to buy a pc i wanted to buy one that is good and able to handle the games i want to play like witcher and fortnite.thoughts?

[Binner]

Depends on the full spec to be honest (please show us :p)

[knightslugger]

Agreed. Before i would drop $1400 on a pre-built, i'd want to know EXACTLY what's inside.

 

Regarding financing, it's all well and good that it's 0% APR... but consider the possibility of missing a payment for some reason. say you sent the check, but they never received it, or processed it late, or applied it to an incorrect account. your balance is now delinquent. What's the APR now? hint: It's gonna suck a lot.

 

As in, it would not surprise me if it was over 25% APR.

[Christophe Corazza]

Like I have said in your previous thread:

 

 

 I'm still not sold on the financing part of your plan.

Don't spend money that you don't have.

 

By the way... have you just made a second account to ask this question for a second time?

[Fred Castellum]

I was getting excited at seeing a financing thread, then I read the contents and found out its about financing for a PC. Blatantly bad idea in my opinion, what type of work are doing that requires a PC? Maybe you can get your employer to buy you a PC though that's a stretch depending on the job....

[Thinkfreely]

So I advise never to get into debt if you can help it. Thats just good financial advise. That being said the first all brand new pc I built was on Newegg credit over 10 years ago. No payments or interest were due for 6 months. So I planned it out and basically paid it off in 6 months, so I never paid interest or fees. If your going to finance it, I suggest doing something similar.

[AncientNerd]

Avoid debt if at all possible, save your payments ahead of time and when you have enough saved up then buy your computer. 

[Danielmanriquez]

The pc has a gtx 1070 with 8gb 

16gb of memory 2 tb 2666 mhz

128ssd 

Comes with windows 10 

Intel core 17 8700

 

7 hours ago, Thinkfreely said:

So I advise never to get into debt if you can help it. Thats just good financial advise. That being said the first all brand new pc I built was on Newegg credit over 10 years ago. No payments or interest were due for 6 months. So I planned it out and basically paid it off in 6 months, so I never paid interest or fees. If your going to finance it, I suggest doing something similar.

You suggest to finance pc parts from newegg?

[Thinkfreely]

11 minutes ago, Danielmanriquez said:

You suggest to finance pc parts from newegg?

Im suggesting not getting into debt at all if you can help it. I am just sharing what I did. I applied and was approved (as I have always managed my credit and finance well) when I was 18 for a newegg credit line. I then bought the parts I wanted brand new, as every system I built before that was partly used parts. They had a promotion where no interest or payment was due for 6-12 months. I planned it out so I knew I could pay it off in that time, so never paid interest on it.

[AntiTrust]

43 minutes ago, Danielmanriquez said:

The financing will have no interest attached and be paid within 12 months so monthly payments of 116

Technically its a better choice to finance at zero percent interest even if you have the money sitting in your bank account.. If you can stretch the payments out over more than a year I would definitely do it.  

 

 

[Teddy07]

2 minutes ago, AntiTrust said:

Technically its a better choice to finance at zero percent interest even if you have the money sitting in your bank account.. If you can stretch the payments out over more than a year I would definitely do it. 

2

Yes but people tend to spend the money meanwhile for other things.

[grimreeper132]

depends, calculate the total cost of the PC done through financing and compare it with building one yourself, and buying one straight out. If there is a large difference I suggest you buy just a cheap core2 PC for about £30-£70 which hopefully will be enough to keep you going at work till you can afford the good PC, either that or a dual or quad core LGA 771 xeon which should hopefully be enough for work at least, and if it is means you can have a separate work and home PC, which can be handy

[Techicolors]

just pay on-time like your life depend on it. also you can pay more than the minimum, the finance period will be shorter 

[Cole5]

Dont finance a PC, just save up, never but things on credit you dont need

Food gas House car. 

[tvanreeven]

I'd say put some effort into finding cheaper parts and building it yourself as it will result in lower costs in the end anyway. Start with a lower end GPU that can be upgraded later(mind your PSU for future expandability) and you will save a few 100 bucks in the beginning. Half of that 1400 can build you a good system for years to come. If you need help on finding the right parts, ask anyone here.

 

Being in debt for something like a computer is just not worth it imho

[trag1c]

Remember no interest financing for low values like that is a trap if you can't fully pay it off within the 0% period. They will take on the full interest amount of the entire loan to the amount owing so if its 1400 then they will charge the interest on 1400 not on what is still owed.

 

Not to say it isnt worth looking at you just have to be disciplined with your finances. That's how I've done my car audio, laptop, and most recently a Milwaukee toolbox all interest free.

[Razor Blade]

Finance a computer? Not a snowball's chance in hell.

 

"gaming the system" so to speak (i.e. taking the 0% finance plan and paying it off before the introductory APR) takes the discipline of a person that doesn't borrow money in the first place. Things happen. Life happens. If you're making payments on a stupid computer and something happens where you miss a payment or two not only would you likely get hit with back interest you likely would be facing huge fees too...yeah that's exactly what you need in a crisis. Another slap right across the face...for a computer you could not afford in the first place.

 

Sorry if this sounds mean...but a little tough love is a good thing. Buy a computer that suits your needs now. Save money for the computer that suits your wants later.

[KhandakeF]

4 hours ago, Razor Blade said:

Buy a computer that suits your needs now. Save money for the computer that suits your wants later.

Oofff

 

This hit my head, hard

[Dredgy]

11 hours ago, Thinkfreely said:

So I advise never to get into debt if you can help it. Thats just good financial advise.

It's actually terrible financial advice if you want to grow wealth. To make the most of your money, leverage debt as much as you can, and free up your cash for investment.

For instance, why would you spend $20k on a car - which will depreciate in value and end up costing you a bunch of money - when you could pay a 10% deposit on a loan and invest the remaining $18k into something that will service the loan and give you a bit of extra money. 

 

For day to day use, the right credit card more than pays for itself - I get essentially free international first class travel simply by putting my day-to-day expenses on a credit card.

 

What you don't want to do is spend money you don't have or get into debt that you aren't going to be able to service, but getting into debt to make the most of money that you do have is a smart thing to do.

[Pixel5]

26 minutes ago, Dredgy said:

It's actually terrible financial advice if you want to grow wealth. To make the most of your money, leverage debt as much as you can, and free up your cash for investment.

For instance, why would you spend $20k on a car - which will depreciate in value and end up costing you a bunch of money - when you could pay a 10% deposit on a loan and invest the remaining $18k into something that will service the loan and give you a bit of extra money. 

 

For day to day use, the right credit card more than pays for itself - I get essentially free international first class travel simply by putting my day-to-day expenses on a credit card.

 

What you don't want to do is spend money you don't have or get into debt that you aren't going to be able to service, but getting into debt to make the most of money that you do have is a smart thing to do.

you are correct that leveraging debt is a good thing is you have the cashflow to do so AND if you are in the US because nowhere else you will get andy of these bonuses on credit cards.

 

But then again the example of this thread is absolutely not a way to leverage debt, its a zero return on investment kind of thing as i highly doubt there will be any work done on this PC that a customer pays for.

 

The example of the car is also not good because while you are right with "why would you spend 20l on a car" the fact that you finance the car does make it any better, it still loses value and it still costs you money.

A typical car loan right now comes in at about 4% interest rate may be lower if you got a good credit score now you invest that 18k an get an average return of about 7% unless the market crashes.

 

that gives you a total return after interest on the car of about 3% which may be enough to cover one single monthly payment per year at the cost of having a car that is expensive and loses value fast and having 18k in an investment that could fail as well.

 

in cases like this it is usually smarter to take the guaranteed return which is buy the car with cash and you have an instant 4% return.

 

 

anyways back to topic, OP you already posted the same exact thing yesterday with a different account and the idea was torn apart, you are looking for confirmation to because you know this is not a good idea but you want other people to assure you it is.

 

this is not gonna happen here because this is a terrible idea, if you can afford to make a payment of $116 a month and still have money left over there is no reason why you could not save up for half a year and buy the PC with cash.

 

The only one single situation where buying this PC makes sense is if you have signed contracts of customer work lined up that basically pays for the PC over the next year or so.

I dont mean " yeah i could do this and that" type of work i mean actual work lined up and all you need to have is exactly this PC to get it done.

 

I highly doubt this is the case.

[Dredgy]

4 hours ago, Pixel5 said:

you are correct that leveraging debt is a good thing is you have the cashflow to do so AND if you are in the US because nowhere else you will get andy of these bonuses on credit cards.

 

But then again the example of this thread is absolutely not a way to leverage debt, its a zero return on investment kind of thing as i highly doubt there will be any work done on this PC that a customer pays for.

Oh I'm not commenting on whether the OP's move is smart or not. Though I will say, most of these "interest free" purchases do charge an annual or upfront fee so I would avoid it and if your income supports it, I'd recommend something like AfterPay, where you can break up into four larger payments.

 

I just don't like the blanket "debt is bad" advice, when it's not true. Though there are some other countries where you can get good bonuses - I'm Australian based  

[Thinkfreely]

11 hours ago, Dredgy said:

It's actually terrible financial advice if you want to grow wealth. To make the most of your money, leverage debt as much as you can, and free up your cash for investment.

For instance, why would you spend $20k on a car - which will depreciate in value and end up costing you a bunch of money - when you could pay a 10% deposit on a loan and invest the remaining $18k into something that will service the loan and give you a bit of extra money. 

 

For day to day use, the right credit card more than pays for itself - I get essentially free international first class travel simply by putting my day-to-day expenses on a credit card.

 

What you don't want to do is spend money you don't have or get into debt that you aren't going to be able to service, but getting into debt to make the most of money that you do have is a smart thing to do.

Is this a financial wealth building thread? I'm referring to getting into debt for a liability (unless he uses it for a profession) versus saving money and paying  cash.  We're not talking about doing investing,  cmd,  stocks,  bonds,  options, real estate,  or any other vehicle of wealth investing.  We're talking about a arbitrary purchase where the person is buying a luxury item and isn't able to pay for it all at once,  and won't generate any type of income. 

 

Avoiding debt IS good financial advise IF that debt doesn't build or generate wealth.  So I agree with you,  but you took a simple answer and took it to place that had nothing to do with his questions. 

 

[Christophe Corazza]

8 minutes ago, Thinkfreely said:

We're talking about a arbitrary purchase where the person is buying a luxury item and isn't able to pay for it all at once,  and won't generate any type of income. 

 

As said by many others (including me) before:

Don't finance your computer!

[Danielmanriquez]

Okay thanks for the feedback guys i will see what i decide to do now