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double fail
 
I took Ron's advice (I figured it out on my own back in 2006) and have to say, once you are no longer a slave to financing "things" and begin spending responsibly, it makes life so much easier.
I'd rather fix my clapped out 99 7.3 than make a $700-$800 a month payment on a new replacement.
When it needs repairs it's not even a question to fix it. The money is in the bank to cover it.

Don't finance something you'll set a sandwich on. That's my advice.
 
I was gonna say, "Don't finance something you'll ding up and get coaster rings on anyway"... but the above remains true.
 
I know that financing something is not the way to go...but not everyone can pay upfront for things unless you save for a while....if your getting something interest free and can pay it off in that allotted time, then I don't really see the problem.
I have $800 sitting around and I need a new couch...I can either pay for it out right and have no money saved or I can pay $40 a month and have it paid off in no time with no interest and still keep my $800 for something that might happen in the mean time.....

I have a couch now, that is torn up and very uncomfortable and is causing me back pain.....
I need something that is comfortable and we have company coming for the holidays and who doesn't like to have something nice people can sit on and not feel grossed out and uncomfortable while visiting.
 
Cherokeekid88 said:
I know that financing something is not the way to go...but not everyone can pay upfront for things unless you save for a while....if your getting something interest free and can pay it off in that allotted time, then I don't really see the problem.
I have $800 sitting around and I need a new couch...I can either pay for it out right and have no money saved or I can pay $40 a month and have it paid off in no time with no interest and still keep my $800 for something that might happen in the mean time.....

I have a couch now, that is torn up and very uncomfortable and is causing me back pain.....
I need something that is comfortable and we have company coming for the holidays and who doesn't like to have something nice people can sit on and not feel grossed out and uncomfortable while visiting.
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Or, you can find a pretty nice set on Craigslist, or through your local "bored mom's online chat group" etc for < $150.
2 years ago we got a nearly-new sofa/loveseat combo for $150. They even had hide-a-beds.

Last weekend, we replaced one of them w/ a nice leather sofa that one of my wife's friends (again, the local 'mom's online' club - in this case Chesapeak Mommies - connection) for free, they were renovating and didn't have room anymore. It's in very lightly-used condition.

Of course you want to be picky/careful about who you get furniture from, thats why you look to either pay > $100 or through a friend network. Also the local Habitat Re-Store will often have nice furniture, you just have to dig through all the ugly stuff from the 80s...
 
As a follow-up to that...
If you look closely at furniture, you'll find that any set (multiple pieces) you can buy new for $800 is NOT good quality furniture. it may look nice now, but in 5 years it will sag and flex when you move it, and not hold up to real-life use/abuse. "Real", good stuff that last, new, is considerably more expensive.
You'll find that getting "good stuff" used for $150 will last you just as long as the new cheapies.

Just my experience, take it or leave it.

Oh and FWIW also, spending $80 on nice slip covers can go a loooong way to "refreshing" couches.
Of course if you're having comfort issues, that is a very reasonable reason for replacement (although it may be a sign you spend too much time on the couch... o_O)
 
I'll agree with these other guys. About 10 years ago my wife and I moved into a new house that was larger than our old house. We had an empty room that was needing some couches. We went down to Home Comfort in Raleigh and they had the zero interest free financing deal. My wife found some couches that they promised us would hold up to pets, last us for a long time, blah blah blah. We paid $2000 for them or something like that. We hardly ever used them becuase they were in a room that didn't get much use. The dog destroyed them by sitting on them, they faded to odd shades, etc. Right now they are sitting in my garage waiting for me to finish my upstairs so they can go up there, where my kids and pets can finish destroying them without me caring much.

Right now my living room is housing two REALLY nice couches that I bought off of Craigslist for $150. I have made some stupid money mistakes in my life, but those fucking Home Comfort couches are up there extremely high on my list.

I also do like Ron does. I drive old cars, but put $200 per month into a savings account for when my wife needs a new vehicle. More than likely we will have to finance a little bit on it because we only have started in the last 6 months and her car has 220k on it, but we will definitely be able to afford a bit chunk of it when the time comes - especially if it can make it till my youngest is done with daycare next summer.
 
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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...until you loose your job 6 months down the road and need that money in the bank to feed the family and can't pay back the loan at the end of the finance period and get hit with HUGE interest charges that are back dated to the time of purchase even if you only owe $1.
 
mbalbritton said:
...until you loose your job 6 months down the road and need that money in the bank to feed the family and can't pay back the loan at the end of the finance period and get hit with HUGE interest charges that are back dated to the time of purchase even if you only owe $1.
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If you lost your job 6 months later, the money you have in the bank would be greater if you financed (assuming you had the cash to pay it outright if you wanted).

I realize the strategy doesn't work for everybody, but in situations for the right type of fiscally responsible person it makes sense. You wind up being able to make more with what you currently have. I am not saying you should use financing to buy things you can't afford from the beginning, just using it as leverage to make your current savings work for you better.
 
We have actually decided against getting new furniture right now. We went back to the store last night to look at it again and with the Holidays coming up, we want to save as much as we can right now for Christmas. Maybe I will look around and if I can find a sofa/loveseat on craigslist or through someone for cheap, I can get that to get us on our way for now.
 
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