Here's a new twist...for $30.03 a month...

RRP

A large local store is running a huge ad today offering 19 different gas and charcoal grills for sale on a no interest 36 month payment plan with NO down payment!  For instance they are offering an 18" Classic Joe for $30.03 per month. Seeing most of these are gassers then buyers will probably just be making their last payment the same time they kick it to the curb! I wonder how many repos they will experience! Having been in the banking game most of my career I think this store hasn't a clue what they are getting themselves in to! 

Scottborasjr

That just sounds bad for the consumer and the business at the same time. First time they've done something like this?

TexanOfTheNorth

Just curious... why doesn't anyone offer "lay away" plans anymore?

RRP

Scottborasjr said:

That just sounds bad for the consumer and the business at the same time. First time they've done something like this?

Best of my knowledge and I bet it will be the last! BTW the cheapest offering is a gasser for $15 a month! 

Legume

I can't imagine the store is backing that Ron, has to be a bank underwriting, looking for new loan customers.  Mattress places do the same thing and the loan is through a bank.

jaydub58

Great comment about repos, Ron.
In the middle 60's I was US Bank of Oregon's outside collector for Central Oregon.
Got to do a whole bunch of that!

Thatgrimguy

It's probably a CC with a 0% intro rate and they just get you to sign.

Mattman3969

Sounds like the same game that the Rent to Own Furniture and the Buy here Pay here Car Lots play.  They count on the Repo so they can charge you penalties and once the merchandise is back in their possession they can rent it again A very shady way of doing biz.  

Legume

just before July 4th, just like the big TV ads before Super Bowl.

Grillin_beers

I hate layaway plans and payment plans in general.  Don't even get me started on cash advance places and high interest car loans.  It's just this simple, if you can't afford to pay upfront, you can't afford it. 

stemc33

@Grillin_beers, there are plenty of good reasons to finance. Even a BBQ. Think about the youngsters trying to establish credit. Especially those people that work in a trades field and didn't take out college loans to help establish their credit history. 

No, it's not smart to buy a BBQ and pay $15. a month for 10yrs. But for some people, financing makes sense. 

Draining a a bank account to buy a $25,000 car makes no sense either. 

What is sad though, is the used car lots that either charge 18% or mark up the cars and take advantage of an 18 year old kid with limited life skills. 

Layaway plans are great for items that rarely come on sale. Especially for household needed items. 

Grillin_beers

@stemc33 I understand your point.  However most times those 18 year olds trying to establish credit end up buying more than they need/ can afford and dig themselves a hole.  These "offers" Perpetuate a debt riddled poverty cycle.  If you have self control and it works for you then fantastic! 

Mattman3969

Totally agree with @grillin_beers with the addition that these type of businesses count on that 18yr old not reading the fine print.  

RRP

Funny thing about this store is the staff is really hoity-toity and  too good to wait on you unless you look like Mr & Mrs GotRocks! I just imagine today was a hoot when some folks went in looking for the $15 a month gas grill! 

FearlessTheEggNoob

Walk out with a classic for $30/mo no interest and no down payment. Thats $1080 over the term. Whats not to like?

RRP

Legume said:

I can't imagine the store is backing that Ron, has to be a bank underwriting, looking for new loan customers.  Mattress places do the same thing and the loan is through a bank.

On the second full page of their egg which has outdoor furniture sets there is a statement that the "36 months Special Financing is with your Synchrony Financial Credit Card" so you're right! This is a credit card gimmick and the store is not carrying the paper!

HofstraJet

And those are usually store branded cards that are useless anywhere else so you end up getting a line of credit for a one time use that sits open on your credit report long after you paid off the purchase. 

Ozzie_Isaac

Wow.  Seriously if you cannot afford the grill you should not be buying steak or lump.

This is a hobby I view as a luxury.  If I was financing my grill I think I would sit back and re-evaluate my priorities.

Toxarch

0% financing, no problem with that as long as you make the payments on time. Put the money in the market and make a little interest while you pay off the 0% loan.
And sadly, credit cards, even unused ones, are good for your credit score. Your credit will actually drop if you cancel them. More credit cards is seen as more companies who trust you.

TexanOfTheNorth

Toxarch said:

0% financing, no problem with that as long as you make the payments on time. Put the money in the market and make a little interest while you pay off the 0% loan.
And sadly, credit cards, even unused ones, are good for your credit score. Your credit will actually drop if you cancel them. More credit cards is seen as more companies who trust you.

I always thought you could have too many credit cards as it was a sign that your available credit might be more than necessary and, if fully extended, could make you a less attractive credit risk.

stemc33

TexanOfTheNorth said:

Toxarch said:

0% financing, no problem with that as long as you make the payments on time. Put the money in the market and make a little interest while you pay off the 0% loan.
And sadly, credit cards, even unused ones, are good for your credit score. Your credit will actually drop if you cancel them. More credit cards is seen as more companies who trust you.

I always thought you could have too many credit cards as it was a sign that your available credit might be more than necessary and, if fully extended, could make you a less attractive credit risk.

I thought the same thing, but it's just the opposite. If you want to improve your credit score, add another card. With that said, maxing out your credit cards does not help your credit. The percentage/balance of your available credit used is one the factors used to rate your credit worthiness.  

I was complaining about a creditor and mentioned closing that account to another creditor because of the crappy service. He quickly informed me to keep it open, just don't use it. 

SoCalGirl

Texan: why doesn't anyone offer "lay away" plans anymore?
The problem with layaway plans is that you have to pay it off before you can take it home.  So the I NEED IT NOW people who can't wait will bite.  And pay.

Regarding repo'd grills: What kind of shape would they be in?  They'd be trashed by somebody who was upset his grill was being taken.  (Can you see the repo guys in black sneaking into a backyard in the dead of night, braving dogs to pull the grill without being seen?  An interesting visual.)

TexanOfTheNorth

SoCalGirl said:

Texan: why doesn't anyone offer "lay away" plans anymore?
The problem with layaway plans is that you have to pay it off before you can take it home.  So the I NEED IT NOW people who can't wait will bite.  And pay.

Regarding repo'd grills: What kind of shape would they be in?  They'd be trashed by somebody who was upset his grill was being taken.  (Can you see the repo guys in black sneaking into a backyard in the dead of night, braving dogs to pull the grill without being seen?  An interesting visual.)

Exactly! I just remember back in the 60's my Mom buying lots of things using Sears lay away. That, and S&H Green Stamps!

Legume

Haha, I read that as SGH green stamps.  I remember my Mom using those as a kid also.  

TexanOfTheNorth

Legume said:

Haha, I read that as SGH green stamps.  I remember my Mom using those as a kid also.  

I'm sure @SGH would be pleased to know that you thought of him.

Mickey

My first 20 years in the new car world was "recourse paper" with GMAC, Toyota, a few banks, and a short run with Chrysler. Fun times, lots of dealers lost stores over that crap. 
This store needs to add "no payments till 2016". 

Toxarch

TexanOfTheNorth said:

Toxarch said:

0% financing, no problem with that as long as you make the payments on time. Put the money in the market and make a little interest while you pay off the 0% loan.
And sadly, credit cards, even unused ones, are good for your credit score. Your credit will actually drop if you cancel them. More credit cards is seen as more companies who trust you.

I always thought you could have too many credit cards as it was a sign that your available credit might be more than necessary and, if fully extended, could make you a less attractive credit risk.

Stop using your "logic" and making sense.

I thought the same thing but apparently we are wrong.

I had a Cabelas Visa card. Only place I ever used it was at Cabelas. All of a sudden there was a bunch of false charges from Romania. The card company kept asking me if I had been to Romania lately and asked me 20 questions to prove it was me on the phone. I  got tired of all the questions and asked what was up. They said someone in Romania had my card number and ALMOST all my information. They were trying to get a large purchase approved. The CC company tried to blame me for using the card in the wrong place. I told them to look at my purchase history. Using a Cabelas card in cabelas is the wrong place? More like Cabelas or the CC company was hacked. I said cancel my card. They offered a replacement and I said no thanks.
The next day I get a notice that my credit score had dropped some 20 points for cancelling that card. Didn't matter that I rarely ever used it and paid it completely off when the bill came. Didn't matter why I cancelled it. More credit cards, even unused ones, are better for your credit score.

BYS1981

People still use lay away, I had a friend who used it several years ago while I was in the military. I remember being surprised it was around still.

RRP

BYS1981 said:

People still use lay away, I had a friend who used it several years ago while I was in the military. I remember being surprised it was around still.

As I recall either last Christmas season or maybe it was 2013 that Wally World made a big thing over bringing back lay away in a grand scale.

byrne092

I mean I don't see a problem with this, if I was in the market for a new cooker and came across this I would be all over it. Granted, I would know in my mind that I could pay it off no problem in the time period. Spreading out $1500 over 3 years no interest sounds better than lightening my wallet by $1500 in 1 day...

But yeah probably not the best idea for the store

Skiddymarker

I'm with @byrne092 on this, if the price has not been inflated and the offer is for a competitively priced grill available elsewhere, why not use the CC company money? Depending on the gasser's being sold the life could be much more than the three years of the finance term, making it a good deal.
Son has a cheapie big box grill that is 6 years old, gets used two or three times a week and it still looks brand new. He does clean it and keep it covered when not in use. 
I often wonder why folks use debit? If there is a discount for debit or maybe a premium for credit, I can understand it (noticed this at some US gas stations). Otherwise I get cash back or some other reward for using a credit card so why not get it?