Financing Issue(s) getting financed?

[ultrarunner]

I tend to see credit as a sometime necessary evil.

It was ironic when I was young and really needed credit I could not get the time of day... either paid cash or for homes came in with a large down and seller financing which was a win/win every time.

Now that I am older credit is around every turn but unless I am doing a Real Estate deal no thank you.

I had an unusual situation at work where I would use my card and put in for reimbursement... sometimes nothing to put in for months but during a project I could rack up a lot... sure that helped my standing... running up the bill and then paying in full...

 

[LD1]

I don't play the CC game. So I was simply asking if your CC benefits are greater than 1.5%.

For me, sometimes.

Food, restraunts, grocery, gas, and autoparts I get 2%. Everything else I get 1%

But it doesn't really matter what the perks is. Be it 1/2% or 10%. If cash price is the same as charge price, I'm paying less charging. Where is the financial benefit to paying cash?

Until merchants start offering a greater cash discount (or passing the 3% fee on to consumers who charge), I will charge it all and pay one bill a month.

My Verizon bill...charge
Direct TV....charge
Internet.....charge
Electric..... charge
Groceries....charge
Literally, everything including monthly bills....charge.

There are a few that I do not charge though.
Water bill. Pay with check (online banking) because they charge a 3% fee for an online payment. So I have free internet banking. A few clicks and my bank prints and mails a check.

BMV (tags)...pay by check or cash when I have to go in person (commercial stuff). Or by checking that fertilizer online for personal autos. They charge a 3% fee to swipe.

Property taxes. Same as above.

Insurance. They offer a discount for setting up automatic withdrawal from a checking acct. Don't remember what it is but it's greater than the card reward perk.

That's it. If it don't cost more to charge, I am actually benefiting by charging. Sure, in the grand scheme we might very well be paying 2-3% more for goods. But until it changes, and I start getting a benefit for NOT using my card, I'll continue to charge away.

In a side note, I do get a nice report for taxes at the end of every year detailing all my charges. Breaking them down into about 20 categories, such as utilities, groceries, auto parts, gas, restaurants, etc. Bout 30 pages last year.

And I never have to worry about how much money is in the checking account. Because I like to keep it to a minimum, and keep most of my accessable money in a savings that has a pretty good interest instead. My paychecks go straight to savings. Then once a month I transfer just enough to pay the card + the few bills that I mentioned above.

 

[timswi]

There is nothing i buy that cost me more by paying credit, so it is all cash back to me. If stores charge more for products to cover credit costs, i dont benefit by paying cash. Gas, costco, amazon, groceries are my biggest credit card purchases.

When i bought my last car, it was actually less to finance than if i had paid cash.

I agree..If you walk into a dealer and say you're paying cash, they add their back end profit into your buy price...No secret dealers make more on the back end than the front end vehicle profit. If you have the cash, finance it and pay it off after the 3rd or 4th payment if you like the dealer...If you don't like them pay it off on the first payment then they get hit with a recourse...I don't recommend that--They gotta make a buck too and will most likey remeber this. In the end, you make out ok minus a few bucks in interest. This is how I do it.

 

[ovrszd]

For me, sometimes.

Food, restraunts, grocery, gas, and autoparts I get 2%. Everything else I get 1%

But it doesn't really matter what the perks is. Be it 1/2% or 10%. If cash price is the same as charge price, I'm paying less charging. Where is the financial benefit to paying cash?

Until merchants start offering a greater cash discount (or passing the 3% fee on to consumers who charge), I will charge it all and pay one bill a month.

My Verizon bill...charge
Direct TV....charge
Internet.....charge
Electric..... charge
Groceries....charge
Literally, everything including monthly bills....charge.

There are a few that I do not charge though.
Water bill. Pay with check (online banking) because they charge a 3% fee for an online payment. So I have free internet banking. A few clicks and my bank prints and mails a check.

BMV (tags)...pay by check or cash when I have to go in person (commercial stuff). Or by checking that fertilizer online for personal autos. They charge a 3% fee to swipe.

Property taxes. Same as above.

Insurance. They offer a discount for setting up automatic withdrawal from a checking acct. Don't remember what it is but it's greater than the card reward perk.

That's it. If it don't cost more to charge, I am actually benefiting by charging. Sure, in the grand scheme we might very well be paying 2-3% more for goods. But until it changes, and I start getting a benefit for NOT using my card, I'll continue to charge away.

In a side note, I do get a nice report for taxes at the end of every year detailing all my charges. Breaking them down into about 20 categories, such as utilities, groceries, auto parts, gas, restaurants, etc. Bout 30 pages last year.

And I never have to worry about how much money is in the checking account. Because I like to keep it to a minimum, and keep most of my accessable money in a savings that has a pretty good interest instead. My paychecks go straight to savings. Then once a month I transfer just enough to pay the card + the few bills that I mentioned above.

Good management. I understand completely. You are rightfully taking advantage of the loopholes in the scam. Kudos to you and the others that do so.

 

[ovrszd]

I agree..If you walk into a dealer and say you're paying cash, they add their back end profit into your buy price...No secret dealers make more on the back end than the front end vehicle profit. If you have the cash, finance it and pay it off after the 3rd or 4th payment if you like the dealer...If you don't like them pay it off on the first payment then they get hit with a recourse...I don't recommend that--They gotta make a buck too and will most likey remeber this. In the end, you make out ok minus a few bucks in interest. This is how I do it.

I'm lifelong friends with my dealers and salesmen. I'll take the honest route.

 

[Steppenwolfe]

I'm lifelong friends with my dealers and salesmen. I'll take the honest route.

What is more honest than agreeing to a purchase price and completing the deal??? Trust me, you are no more honest than I because you walk another path...

 

[ovrszd]

What is more honest than agreeing to a purchase price and completing the deal??? Trust me, you are no more honest than I because you walk another path...

Didn't claim to be. Just don't treat my dealers/salesmen that way.

 

[timswi]

I'm lifelong friends with my dealers and salesmen. I'll take the honest route.

Well then the honest route, in terms of the dealer, is paying 3 or 4 payments, you get the benefit of their back end income. The bank takes the income hit, not you or the dealer.

 

[buckeyefarmer]

I'm lifelong friends with my dealers and salesmen. I'll take the honest route.

You know an honest car salesman?

Last car, had a price negotiated online with the dealer. Went in, took a test drive, said I'd take it. Had a check in my pocket to pay it all. Told them I'd take it. They wrote it up for $2k more than the price they gave me.

So i questioned it, they said i didnt meet some of the rebates. I said what rebates, we agreed upon a price.

Then she says, didn't you read the fine print? We have a disclaimer.

I told her I dont do business with dishonest people, got up and walked out.

Went to a different dealer who beat the price. Negotiated online. They were the ones who said the price was higher if i paid cash, so i financed it for less.

I could have turned around and paid it off, nothing dishonest about that, but i havent. Every statement they send me has the payoff amount listed, if i choose to pay it off.

 

[PILOON]

My last car I had to fight off the salesman who tried every trick to get me to finance, to no avail.
Paid cash via bank draft which the called to verify! My take was he wanted the finance kickback.

And yes that exists, when I sold fork lifts the finance co actually asked how much we wanted back.

With credit cards if caught discounting for cash the merchant can lose his privileges and today no cc's no sales. (in the contract fine print)

I do use CC's but have a feature whereby my bank on the actual due day makes the transfer automatically so I am never late but still get the card 'perks'.