Financing Issue(s) getting financed?

[smstonypoint]

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)

That may be true in Canada, but not in the States: As rules change, more retailers offer discounts for cash payments - The Washington Post.

Steve

 

[ovrszd]

Thanks for that clarity Steve.

I'll remain hopeful that our merchants eventually offer cash discounts. I think the less organized consumers need it.

 

[CobyRupert]

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

Uhmm.... Now I'm curious..

Show of hands: Do some people think it's bad form to pay off your loans early? A stab in the back to the financier?

It has NEVER occurred to me that if I owe somebody money and pay it off early that somehow this is an offense.

They've got their money and can now invest it and make what they would of earned in interest. Or they can loan it out again.
Or they can roll around in it in a big pile on their bed. Whatever...

If they invest it they should be able to make as much money as the interest. Plus now they have the benefit of being in possession of the principle / security.

Plus if you pay them off with future dollars (i.e over the life span of the loan), you're paying them off with dollars that are worth less than paying them off with today's dollars. (i.e. due to inflation). So there's a benefit to them.

Interested in what others think..

 

[silvertramp]

I kind of thought that is how it worked sometimes...Right now I have an offer on one of my credit cards. 0% interest for 12 months if the balance is paid in full by the 12 month promotional period...Also a $200 dollar cash back on a purchase of $2000 or more...

So my thinking was to purchase a hydraulic post hole digger from EA for $2500, using my credit card I'd get $200 cash back, pay off that credit card a couple days later, and now my cost for that implement was $2300...

Too good to be true?

I bet that it's legit. I was offered $300 cash back if I spent $***.**. I had some purchases to make so I got the card. Yup, they paid.

 

[smstonypoint]

Uhmm.... Now I'm curious..

Show of hands: Do some people think it's bad form to pay off your loans early? A stab in the back to the financier?

It has NEVER occurred to me that if I owe somebody money and pay it off early that somehow this is an offense.

Surely you have days when you wonder: "Are prepayment penalties predatory or do they promote efficiency"? Then you come to the same old realization: "I need the advice of an economist. An economist would be able to answer my question."

Per http://economics.umbc.edu/files/2014/09/wp_11_133.pdf, it all depends.

Steve

 

[ovrszd]

Uhmm.... Now I'm curious..

Show of hands: Do some people think it's bad form to pay off your loans early? A stab in the back to the financier?

It has NEVER occurred to me that if I owe somebody money and pay it off early that somehow this is an offense.

They've got their money and can now invest it and make what they would of earned in interest. Or they can loan it out again.
Or they can roll around in it in a big pile on their bed. Whatever...

If they invest it they should be able to make as much money as the interest. Plus now they have the benefit of being in possession of the principle / security.

Plus if you pay them off with future dollars (i.e over the life span of the loan), you're paying them off with dollars that are worth less than paying them off with today's dollars. (i.e. due to inflation). So there's a benefit to them.

Interested in what others think..

I think we changed subjects somehow. I agree with everything you said above.

If I tell my dealer/salesman one thing, which has an effect on his profit margin, then do something different, which decreases his profit margin, I consider that deceptive and dishonest.

I consider this the same as if I buy a tool from you. You sell it to me at a discounted price because I'm your friend and I've said I'm buying it to use. Then I turn around the next day and sell it at a profit. Would that be okay with you?

 

[ovrszd]

Surely you have days when you wonder: "Are prepayment penalties predatory or do they promote efficiency"? Then you come to the same old realization: "I need the advice of an economist. An economist would be able to answer my question."

Per http://economics.umbc.edu/files/2014/09/wp_11_133.pdf, it all depends.

Steve

Thanks again for good stuff Steve.

 

[Turbys_1700]

I've read this entire thread.

Everyone is different. Some folks can handle credit. Some can not. Lenders are in business to make money. More folks revolve their credit than those who don't. If it was reversed those rebates would go away. We are pretty much a cash less society now. Most transactions are derived off of credit. Craigslist purchases are the exception. To be honest with you I don't carry much cash anymore. Well a dollar or two.

Personally we don't use credit cards, only debit and cash. The cash back's that I am missing out on is not a major concern of mine. To those that can take advantage of it great.

 

[CobyRupert]

If I tell my dealer/salesman one thing, which has an effect on his profit margin, then do something different, which decreases his profit margin, I consider that deceptive and dishonest.

I consider this the same as if I buy a tool from you. You sell it to me at a discounted price because I'm your friend and I've said I'm buying it to use. Then I turn around the next day and sell it at a profit. Would that be okay with you?

You make a good point that all transactions should be open and honest. I've taken 3 loans/mortgages in my life and have always asked, to be clear and honest, if there was a penalty or prohibition for paying off early.

I guess I'm asking about what is implied or assumed?
Do most people assume early pay-off is a given/acceptable "option"? I take it you think of it more as a "loophole" the debtor snakes out of?

I've always assumed it was an "option". No harm / no foul. Right or wrong, I've assumed that this is the same option as when the seller asks "Cash or credit?" That's it's an open-ended question over the life of the loan.

Regarding mixing friendships with business, that's a whole other topic...

 

[cford36]

Uhmm.... Now I'm curious..

Show of hands: Do some people think it's bad form to pay off your loans early? A stab in the back to the financier?

It has NEVER occurred to me that if I owe somebody money and pay it off early that somehow this is an offense.

They've got their money and can now invest it and make what they would of earned in interest. Or they can loan it out again.
Or they can roll around in it in a big pile on their bed. Whatever...

If they invest it they should be able to make as much money as the interest. Plus now they have the benefit of being in possession of the principle / security.

Plus if you pay them off with future dollars (i.e over the life span of the loan), you're paying them off with dollars that are worth less than paying them off with today's dollars. (i.e. due to inflation). So there's a benefit to them.

Interested in what others think..

I believe (and I don't know all the details) if you finance thru the dealership and immediately refinance the dealership may lose any incentive they received for the financing.
In my case I received an additional rebate for financing thru the manufacturer. I knew my salesman and he asked me to make a couple of payments before refinancing because otherwise the dealership would be charged back for the incentive I received.
We don't need to hash out the pros or cons of this again, just explaining what I think they meant about being courteous to your dealer.