Rooms to go

Cherokeekid88

Cherokeekid88

Well-Known Member
Joined
Jun 30, 2007
Location
High Point, NC
Anyone know if there is a way around having to pay the tax upfront when purchasing furniture from rooms to go? I understand the delivery charge and don't mind paying that up front.
We asked the lady at the store and she said there was no way around it not paying the taxes up front but then 5 minutes later she says well, when can add the taxes on your part you finance but they only give you 1 year interest free... So I am wondering if there is a way to just add on the taxes? Anyone have experience with this?
 
I'd be there is a bunch of fancy paper work that goes into that and how much tax rooms to go actually claims per quarter. I'm sure they do it so that it is in their best interest.

But to answer your actual question. I don't have any idea.
 
Usually, no, they want the tax money up front because they have to pay that on each sale reguardless of how iit is paid for.

MOST of their sales are financed. Which means they have to wait for the money for which ever finance company they are working with, the tax man don't wait.

Most car sales are the same way, you pay the tax or at least part of it at time of sale.
 
Yup as noted above - they have to report all their income from sales when they happen, and pay the state at that time. The fact that they let you drag out payments is between you and them, but they still owe the tax $$ in full. So the only way you'd get out of it is for them to have some incentive to eat it and drag it out of you, like a higher interest rate or something.

IMO financing furniture is a horrible idea, its a quickly devaluing asset. You'll hate the furniture and want a change before you even finish paying it of, but it won't be worth anything.
Exception being something like if you're doing it as an investment to boost a flip or something and will get the $$ back to pay off the purchase.
 
I pulled my bills from my furniture I got through them about two years ago.

I paid a 405 dollar deposit. There really isn't much info on what that deposit was, but I believe it was tax and delivery fees. In the end it was a wash, I got a 400 dollar gift card from best buy with the furniture.

Make sure you understand the way that interest free stuff works. It's not from the date of purchase, it's from January 1st.
 
braxton357 said:
Not to be that guy...but to be that guy, "if you can't cover the taxes up front--probably take a minute to think if you should be financing furniture."
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Not that I can't cover it, just trying not to put out a big deposit for something I'm financing anyways.
Not a big deal, just wondering if anyone knew of a loophole
 
Macdaddy4738 said:
Make sure you understand the way that interest free stuff works. It's not from the date of purchase, it's from January 1st.
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Do what? I've never bought anything at rooms to go, but used the interest free plans plenty of times. The interest is calculated and from the date of purchase, but you don't pay any of it til the term (one yr in this case) runs out. Pay off the original balance before that term, pay no interest...if you carry the balance past the term, all that interest from year one is added to the balance.
 
Cherokeekid88 said:
Not that I can't cover it, just trying not to put out a big deposit for something I'm financing anyways.
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FYI

Financing means "cant cover it"

make payments on appreciating assets not depreciating ones.

Fuck it...never mind.


'Merica On.
 
RenegadeT said:
Do what? I've never bought anything at rooms to go, but used the interest free plans plenty of times. The interest is calculated and from the date of purchase, but you don't pay any of it til the term (one yr in this case) runs out. Pay off the original balance before that term, pay no interest...if you carry the balance past the term, all that interest from year one is added to the balance.
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When I went in there, I figured it was interest free for two years, expiring on the date of purchase (which was November 2012 I think). It's not. It's interest free for two years, but the interest free deal stops at the first of the year (so January 2015 rather than November 2015).

Doesn't matter that much anyways. If you cut it that close with a plan like this, you're asking for trouble. The APR on that card looks to be around 29.99, but that may have changed. I never use it anymore.
 
Tell them your computer crashed..
 
Ron said:
FYI

Financing means "cant cover it"

make payments on appreciating assets not depreciating ones.

Fuck it...never mind.


'Merica On.
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I agree, but that means you have never bought a car, or you had the cash on hand for it? I don't finance used cars, but I did the new one.
 
GotWood said:
I agree, but that means you have financed a car, or you had the cash on hand for it? I don't finance used cars, but I did the new one.
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fixed it for you... There are in fact a lot of folks that advocate or live by this philosophy...

But there is a big difference here in scale and devaluation. Cars lose value, but not like your typical furniture. High-end hand crafted may be a different story... but look at the resale value on furniture vs cost new...

And technically it makes more sense to finance a used car than new, b/c the devaluation rate is slower (you don't have that ridiculous drop-off from the first year). But of course people need financing for new cars b/c of the higher cost, so it's kind of irrelevant.
 
Ron said:
FYI

Financing means "cant cover it"

make payments on appreciating assets not depreciating ones.

Fuck it...never mind.


'Merica On.
Click to expand...

That really depends if it is 0% interest or no interest until X. You could argue that at 0% interest, why spend the money up front (if you have the complete funds in the bank) if you could keep your money and have it work for you. In the end you can make more money over time then if you paid in cash up front for something with investing those dollars. If somebody will give me 0% interest often times I will take it and keep the cash until later. You also have to look at the time value of money if you really want to consider everything. It brings a lot of people to bring on more they can afford but done properly its a great strategy.
 
GotWood said:
I agree, but that means you have never bought a car, or you had the cash on hand for it? I don't finance used cars, but I did the new one.
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I have bought new cars before. The last when I was 24. Young and dumb I call it. I will NEVER buy another new car again. Biggest waste of money on the face of the earth, literally I think buying cocaine is less a waste of money than buying a new car.

But to answer your question..I have a separate checking account at my bank called "Wife's car" every month we put $400 into it. Thats our car payment. (and maintenance, repairs if needed etc for that matter) when its time for a new car we have the cash there.
 
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Ron said:
literally I think buying cocaine is less a waste of money than buying a new car..
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yeah, I mean come on - Cocaine is a great tool for social networking and investing in friendships/connections.
If you try to do that w/ a car, you're just a tool...
 
DSM Turbos said:
That really depends if it is 0% interest or no interest until X. You could argue that at 0% interest, why spend the money up front (if you have the complete funds in the bank) if you could keep your money and have it work for you. In the end you can make more money over time then if you paid in cash up front for something with investing those dollars. If somebody will give me 0% interest often times I will take it and keep the cash until later. You also have to look at the time value of money if you really want to consider everything. It brings a lot of people to bring on more they can afford but done properly its a great strategy.
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No it doess not.
You are buying the myth.

Last time I bought furniture at rooms to go they had the 0% interest deal. Our purchase was ~ $2,400...when I realized their finance arm was GE Capitol I knew GE at the time was charging 7% for the paper. (Today its a bit better at around 4.8%)...So I complimented the slaes rep and aksed for the General Manager. He took 5% off the total for "cash" payment and gave me another point for writing a check instead of using a credit card.

Now TVM does have a role I will agree. And to be fair none of my investment vehicles are returning less than the 5% I saved in that example.
But...$2,000 isnt moving the investment fund needle and it totally eliminates the what if factor in my life. What if something changs and I cant make that payment in 15 months.
 
RatLabGuy said:
yeah, I mean come on - Cocaine is a great tool for social networking and investing in friendships/connections.
If you try to do that w/ a car, you're just a tool...
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Plus I mean...look the Pyramids.
 
Ron said:
No it doess not.
You are buying the myth.

Last time I bought furniture at rooms to go they had the 0% interest deal. Our purchase was ~ $2,400...when I realized their finance arm was GE Capitol I knew GE at the time was charging 7% for the paper. (Today its a bit better at around 4.8%)...So I complimented the slaes rep and aksed for the General Manager. He took 5% off the total for "cash" payment and gave me another point for writing a check instead of using a credit card.

Now TVM does have a role I will agree. And to be fair none of my investment vehicles are returning less than the 5% I saved in that example.
But...$2,000 isnt moving the investment fund needle and it totally eliminates the what if factor in my life. What if something changs and I cant make that payment in 15 months.
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The rooms to go example is just one of many I could use with a 0% Interest. If you can negotiate a cash price of paying up front, no doubt you are better off. Very valid points.
 
Ron said:
I have bought new cars before. The last when I was 24. Young and dumb I call it. I will NEVER buy another new car again. Biggest waste of money on the face of the earth, literally I think buying cocaine is less a waste of money than buying a new car.

But to answer your question..I have a separate checking account at my bank called "Wife's car" every month we put $400 into it. Thats our car payment. (and maintenance, repairs if needed etc for that matter) when its time for a new car we have the cash there.
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I wish I could get into this position. The way I see you can never really not have a car payment, unless you think your current car will outlive you. You are either financing (in my case) or saving for the next.
 
strange1 said:
I wish I could get into this position. The way I see you can never really not have a car payment, unless you think your current car will outlive you. You are either financing (in my case) or saving for the next.
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In my case it only took one cycle. You would be surrpised people think "old" cars break down. But if you are making a $400/moth car payment you can pay to have the delaership replace the engine or transmission every 4 months. Even more frequent if you have a good independent repair shop nearby.

I post in these types of threads hoping to make people stop and think...and then do whatever the hell they want. Its their life and their money after all. But there is such a zombie spender mentality in this country right now. So many of us spend so much more than we need to and for what? Then when you sk people about it they say "Well if I cant enjoy my life why bother living"...I would suggest that if the quality of your life is dramtically changed by a new couch, or by a one year newer vehicle that "no one else has ever driven", or by a new piece of iJunk the quality of that life is already in question.

Sorry rant off.

I'll go back in my hole.
 
And totally sorry for totally de-railing the thread.

If the cashier is competent and you have a high enough credit limit GE Capital will let them add anything they want onto the financing...some even do cash back deals.
 
Ron said:
But if you are making a $400/moth car payment you can pay to have the delaership replace the engine or transmission every 4 months. Even more frequent if you have a good independent repair shop nearby.
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some of the best advice ever. It sucks having a car in the shop, but if my repair bills aren't enough to make a car payment, that's what I will continue to do.
 
Ron said:
No it doess not.
You are buying the myth.

Last time I bought furniture at rooms to go they had the 0% interest deal. Our purchase was ~ $2,400...when I realized their finance arm was GE Capitol I knew GE at the time was charging 7% for the paper. (Today its a bit better at around 4.8%)...So I complimented the slaes rep and aksed for the General Manager. He took 5% off the total for "cash" payment and gave me another point for writing a check instead of using a credit card.

Now TVM does have a role I will agree. And to be fair none of my investment vehicles are returning less than the 5% I saved in that example.
But...$2,000 isnt moving the investment fund needle and it totally eliminates the what if factor in my life. What if something changs and I cant make that payment in 15 months.
Click to expand...


LOL. We've had this discussion many times driving down the road.

I totally agree with Ron but with one point to add (or 2)... It can work both ways but the only way it works if you are financing is if the opportunity created by actually having the $ on hand is actually realized AND is greater than the cost of financing. Also, it only works if you have the $ on hand to pay cash and choose to finance because the opportunity of keeping your cash is actually realized and this opportunity remains fairly liquid in the event the "what if" happens and you need the $$$.

If you have to finance because you can't afford to pay cash for a depreciating asset, then IMO, you can't afford it. That has been my philosophy
 
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