In general, I don’t advocate buying things that you don’t have the money for, whether it’s an expensive item like a car or an inexpensive item like a pair of shoes. In the case of computers, however, those offers to get a new laptop from Apple or Dell for “as low as $26.00 a month” always look so enticing, so I decided to see what they’re about.
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Yikes! I had no idea that the financing terms on computers were so poor. I was thinking about purchasing a new laptop and was planning on reviewing the financing options available – now I know I’ll be paying cash for my new laptop. Thanks for educating us!
Financing a computer is a terrible idea. The only reason to finance one is the ‘spoiled child’ syndrome of ‘I want it and I want it now!’
Watch out for companies like Blue Hippo as well. They have a pretty bad history of ripping off customers, just google them, and all the links after the first few are complaints against the company.
I “financed” an Apple PowerMac several years ago. It was actually a decent deal – no interest, no payments for 6 months. 5 months and three weeks later, I paid it off in full. The only downside was the nonstop MBNA credit offers over the next 5 years.
I have purchased computers on credit cards. Not just for the convenience, but for the additional purchase protection and warranty coverage. I also benefit from the card purchase rewards program.
However, like my first example, I pay off the card fully within the billing period, avoiding any finance charges.
Paying for a computer on a monthly installment plan, especially with double-digit interest rates, is a terrible idea.
Stingy Student, I have never heard of Blue Hippo–I’ll be sure to look them up. Thanks for the tip.
I do not like the idea of purchasing anything on finance. If you can’t afford it, you shouldn’t make debts.
To me paying cash for everything works. However, I do buy certain things with my credit card, as for the additional warranty/insurance/protection (that is usually holidays/trips and of course the internet). BUT, when I get the statement, I always have the money ready to pay the whole amount (whatever that is) off within the asked period so there are no additional costs.
There is a way to finance a computer without getting hit with the interest and the poor financing terms that most companies offer. My Computer Club actually offers no interest/no credit check financing without the requirements of payment that Blue Hippo uses to default on delivery.
They do charge a membership fee though. It is $89 a year but you get your hardware delivered rightawway after your 20% deposit (i think its 20 but don’t quote me). Blue Hippo requires 3 months of payments without a default before they will send their customers the product. If the customer misses the 3rd month of payment the timeframe resets and they need another period of 3 months payments before they will send the product (again please don’t quote me). I would recommend at least taking a look at this as an option if you are in need of a computer but don’t want to wait.