OT: Why doesn't Best Buy offer 0% interest on PC's anymore? - AVS Forum
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post #1 of 17 Old 05-09-2007, 12:01 PM - Thread Starter
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start rant

Best Buy used to offer 0% interest for 18-24 month just about every week. That is how I bought my last PC and laptop. But now that I am in the market for a new PC, they never have it anymore. I've been waiting ever since Vista came out and not once have they offered 0% on PC's! I swear, every week they offer it on home theater and major appliances purchases but I just want a freaking computer deal. Is that asking too much? Are PC sales doing so well that they don't need to offer any extra incentives? Did they stop offering 0% because they ended rebates so they don't to give anything else back?

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post #2 of 17 Old 05-09-2007, 12:29 PM
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So why not get a computer from somewhere else? Or better yet, upgrade your current PC or build your own? I haven't bought a new computer for myself in over 6 years. I just keep upgrading the one I have.

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post #3 of 17 Old 05-09-2007, 02:12 PM
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My guess would be b/c the average PC price is so low that it isn't worth financing from their perspective. They probably sell the same amount of PCs when they don't offer financing so offering financing doesn't boost sales at all.
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post #4 of 17 Old 05-09-2007, 02:47 PM
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PC profit margins are abysmal. the term is almost an oxymoron. Micro Center added TV's to their product mix in order to raise overall profit margin. This is ironic, as TV's profits margins are the lowest of any product in the A/V world. Interest rates are up, so giving free financing, which isn't free for Best buy, is not worth it. Lew
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post #5 of 17 Old 05-09-2007, 05:07 PM
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this is worth repeating to get the word out

the best buy financing (as well as most other places) are scammy. if you don't pay the whole thing off by the end of the 'free 12 month period' they charge you [retrospectively] full interest on the entire 12 months.
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post #6 of 17 Old 05-09-2007, 08:52 PM
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Quote:
Originally Posted by icecow View Post

this is worth repeating to get the word out

the best buy financing (as well as most other places) are scammy. if you don't pay the whole thing off by the end of the 'free 12 month period' they charge you [retrospectively] full interest on the entire 12 months.

Nothing scammy about it. They tell you that up front, in the ad, and on the bill.

Next PC push is about 3 weeks away - "dads and grads". You should see some 12 - 24 month financing.

But one thing you ought to know -

Best Buy let's you "stack". So, if you buy one item that qualifies for 24 months (digital camera, microwave, dishwasher) and a computer on the same reciept - you get 24 months on the entire purchase....


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post #7 of 17 Old 05-10-2007, 04:21 AM
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Quote:
Originally Posted by icecow View Post

this is worth repeating to get the word out

the best buy financing (as well as most other places) are scammy. if you don't pay the whole thing off by the end of the 'free 12 month period' they charge you [retrospectively] full interest on the entire 12 months.


How is that "scammy" [sic]? If the consumer is too stupid to read the T&C's then it's their own damn fault! Whenever I use those 0% deals I always make sure it's paid off a month or 2 early just to ensure that I don't get hit with the interest if something goes wrong with a payment, otherwise 0% deals are awesome. You're basically using their money to finance a deal while collecting interest on your money.
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post #8 of 17 Old 05-10-2007, 05:13 AM
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Quote:
Originally Posted by bac522 View Post

How is that "scammy" [sic]? If the consumer is too stupid to read the T&C's then it's their own damn fault! Whenever I use those 0% deals I always make sure it's paid off a month or 2 early just to ensure that I don't get hit with the interest if something goes wrong with a payment, otherwise 0% deals are awesome. You're basically using their money to finance a deal while collecting interest on your money.

Ditto. We've used these deals on:

2 bedroom sets
2 leather couches
2 leather easy chairs
1 leather automan
1 TV with a mounting stand

Lets say your purchase costs you $2,200 and you have 24 months of free interest. Pay $100 per month and you are done 2 months before the deal is up.

It is actually a win-win. Cash flow issues mean that I wouldn't make the purchase otherwise--I just don't have all the money up front. So the store makes a sale and I get to pay only the purchase price, all be it over a period of time. The credit company is betting that a certain percentage DON'T pay in the time allotted.


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post #9 of 17 Old 05-10-2007, 05:35 AM
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That's a sick mind you have justifing preditory behaviour. So it is, I believed the same think in my high school days through my early 20s: if they can't read the terms and ask the basic quesions f' them. Now, perhaps, karma has turned on me. When I get a bank account the teller speaks in length about stuff that profits them, and when I ask basic questions about the account so i can be diligent they simply don't know (they act like i'm the first person to ever ask), or they give me a deceptive answer that sets me up for a fine, which I almost always detect. The small print of terms is so often written in a way designed to confuse and tire the eyes of even smart people. It's a little known fact that about 75% of all banks profits are from fines. That should outrage you.

I was wrong to think that way in high school, and you are wrong now. You say screw them? If these tactics would be unfair to use on mentally handycaped people they are also unfair to use on the uneducated, dim-witted, and or special cases (like imigrants).

The costumers that are too stupid.. are now the bank tellers, and the employees in best buy who routinely (illegally) misinform customers and set them up for expensive failure. Best buy likes their employees to act illegally, it's big money, otherwise they would put up a minimal amount of resources to keep the employees in line. It's common sense that is not the case just from observing the high presure sales enviornment in BB. The employees are 'kites'; if ther is a successfully lodged complaint they cut the string: fire the employee.

Just because idiots are a dime a dozen doesn't mean you rape them for every penny you can get from them; it will destroy the society you have to live in.

btw, I have no problem paying off deals like that either (though I never seem to use them), but just know if everyone payed it off on time the deal would go away, it would not be sustainable. You (and me) in fact are a welfare recipeint funded by the people who typically the poorest people in the nation, the ones you are calling stupid. I do deals too, but i feel a little ill when I do. The choice posed to me is: overpay or underpay--you choose. I underpay, but I'm not in denial that the poorest people are subsidizing my choice.

I think you are ignorant of how preditory big business is. here's just one meesley example (you may or may not have known about) of how bad big business is. i read 20 min ago (I already knew this, some of these stories repeat over and over, it was also true last year, but i bet over 95% of people don't know this:
The great oil robbery.
http://www.populistamerica.com/the_great_oil_robbery

blah blah blah
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post #10 of 17 Old 05-10-2007, 05:35 AM - Thread Starter
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Quote:
Originally Posted by Bigjohns View Post

Best Buy let's you "stack". So, if you buy one item that qualifies for 24 months (digital camera, microwave, dishwasher) and a computer on the same reciept - you get 24 months on the entire purchase....

Wow, I didn't know that. Not that I don't trust you, but I'll have to look into this some more.

I know about the retroactive interest. I've used the deal twice in the past and I have paid them off in plenty of time. As someone above said, I want to do it because I know that I'll pay it off in time and 0% is a great thing to take advantage of.

nearlygod


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post #11 of 17 Old 05-10-2007, 05:43 AM
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I agree that predatory lending practices (such as the ones having folks lose homes right now--ARM loans that start at an insanely low rate but balloon after a few years of payments are a good example) are despicable. However, the agreements--at least the one's I've signed--for 0% on consumer goods are pretty clear in the language what is going to happen. Just this past weekend I took advantage of one of these deals and CC and the sales person even said, "Remember, to avoid interest charges for the 24 months you need to pay off the credit in that period of time."

Just my lousy $0.02 worth (plus interest)


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post #12 of 17 Old 05-10-2007, 06:17 AM
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Well, experiences vary I suppose. I can talk about mine. His comment triggered me because I happened to try an experiment about this exact issue, i believe I wrote about it here before even.

I went to about 4-5 best buys in a 2 month period and asked employees how the 0% financing worked. Sometimes I acted like a simpleton(sp ) who just wanted the terms explained to me, other times I grilled them on questions that any business-minded person would ask yet noone seems to know anymore, other times I'd ask a question I already knew the answer to like, 'so I can not pay for a year, then start making payments and get the first year free of interest? (there answer was always yes, the real answer is no). They misinformed (or lied? ignorance?) to me 100% of the time. it was amazing. in the end I wanted to take 2x4s to all their heads, which I admit is a flaw in my charactor.

The point of the experiment was to get all information verbally. I guess it really about the lives of people who don't or can't read. If can't read, but is diligent enough to ask 5 different best buy workers, what would they conclude? They would conclude the wrong answer.

I'm sorry to sound so goody shoes (few would describe me that way) but these stupid people need to be accomodated even though they are stupid. Maybe I'm stupid too because I'm having a tougher and toughter time sorting through terms these days. The fact is many people can not read or find reading very frustrating.

Either way I'm right because with existing laws most these people who don't read are still victims because they ask the employees what the terms are and are misinformed, which is illegal, but sadly these customers hold the burden of proof at that point.

Framed in a simple parable: you don't build a playground on the shore of a poisonous lake and put up a sign that says 'water poison, stay out'. If you are you are ruining people, and it's criminal no mater if the courts acknowlege it as criminal or not.
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post #13 of 17 Old 05-10-2007, 08:12 AM
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Quote:
Originally Posted by bac522 View Post

Whenever I use those 0% deals I always make sure it's paid off a month or 2 early just to ensure that I don't get hit with the interest

Over the years I've done the 0% interest thing many a time. In two cases, I never received the 12th bill in the mail. I keep careful track of when I have to pay the bill off to make sure I don't get hit with the interest. I ran down to the store to pay it off in person. Since then, I pay the bill off early, then call to verify my balance is zero.

The other thing you have to watch out for is how they apply your payments. For instance, if you buy something in January for 0% for 12 months, then buy something in June also for 0% for 12 months, make sure your payments are applied to your January purchase.
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post #14 of 17 Old 05-10-2007, 10:09 AM
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Originally Posted by NearlyGod View Post

Wow, I didn't know that. Not that I don't trust you, but I'll have to look into this some more.

No offense taken... I was a customer service supervisor at a best buy store. And, as a customer, I stack EVERYTHING that I can. Bought a computer (notebook) on the same reciept as a 61" tv. Got 24months on the whole deallio...
Quote:


I know about the retroactive interest. I've used the deal twice in the past and I have paid them off in plenty of time. As someone above said, I want to do it because I know that I'll pay it off in time and 0% is a great thing to take advantage of.

nearlygod

The retro-interest is disclosed all over the place, and on your bill even - if you look at your damn statement - it shows you when the next Promo plan is expiring!


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post #15 of 17 Old 05-11-2007, 11:43 AM
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Don't assume others have the same capacities as you, doing so is a limitation of your own capacity. I spend a lot of time seeing the poor as idiots too, but holistically it's obvious it is our duty to be bigger than that. And there is a reason they look so stupid overspending: there is a growing number of predator(sp) business models that feed on low educated/low income people. Please read this article. Even better, you can listen to it. There is an mp3 version of the article attached.

http://www.businessweek.com/magazine...n_id=rss_daily


more dime-a-dozen deception:

Wal-Mart: We Didn't Do Anything Wrong by Placing Non-Organic Foods Under Green Organic Signs. "Signs are Not Labels"
http://news.yahoo.com/s/usnw/2007050...MndykU3uyyFz4D
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post #16 of 17 Old 05-13-2007, 06:26 AM
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Quote:
Originally Posted by Ed_Gein View Post

Over the years I've done the 0% interest thing many a time. In two cases, I never received the 12th bill in the mail. I keep careful track of when I have to pay the bill off to make sure I don't get hit with the interest. I ran down to the store to pay it off in person. Since then, I pay the bill off early, then call to verify my balance is zero.

The other thing you have to watch out for is how they apply your payments. For instance, if you buy something in January for 0% for 12 months, then buy something in June also for 0% for 12 months, make sure your payments are applied to your January purchase.

Great input. For the big purchases, I often look for the 18-24 months of no interest payments as well. When I get the first bill, I set up the payment schedule in my online banking billpay to have it finish a month (or a couple weeks) prior to the end of the grace period. That way, it's happening automatically, the last payment amount gets specified in advance, and I'm not thrown off by a missing/late bill notice that wouldn't give me the time to pay it off. The monthly e-mail notices that accompany my outgoing payments keep me posted on my progress, and I'm in my account enough to notice if something hiccupped somewhere.

The only other thing I'd mention (may have been hinted at), is to always remember to base your payment sked (18, 24 mos, etc.) on the date you made the purchase, not when the first bill comes in. You could easily overshoot the promotion date by a month if you buy in November, but use December as your mental start time because that's when you got the first bill or the first bill gives a December or January due date. As another poster mentioned, the bill you get in the mail should have the promotion end date on it, but people can get busy and overlook it.
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post #17 of 17 Old 05-16-2007, 12:09 PM
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I'd like to see a BB employee hauled up to face judge judy:
http://www.youtube.com/watch?v=ZJDK6ctRjqw
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