Amazon Now Lets You Finance Gaming PCs and PC Parts at Zero Interest

Discussion in 'HardForum Tech News' started by Megalith, Jul 24, 2018.

  1. Mugato

    Mugato Muh Feelz!

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    What? Can you explain?
     
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  2. IndyColtsFan

    IndyColtsFan Limp Gawd

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    It was explained earlier in the thread by a few different posters.
     
  3. bigdogchris

    bigdogchris [H]ard as it Gets

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    That's all this country needs is more people riddled with debt. GJ Amazon!
     
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  4. IndyColtsFan

    IndyColtsFan Limp Gawd

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    Meanwhile, savvy people like me take advantage of offers like this, credit card rewards, etc. and remain debt free.
     
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  5. alxlwson

    alxlwson You Know Where I Live

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    Interesting. I guess if it works, it works.
     
  6. Spun Ducky

    Spun Ducky Gawd

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    It gives me a warm fuzzy feeling about DDR4 prices that I can literally finance a 32gb set. lol
     
  7. lcpiper

    lcpiper [H]ardForum Junkie

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    You are essentially correct.
     
  8. lcpiper

    lcpiper [H]ardForum Junkie

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    Perhaps, but I do wonder why in this case, why would Amazon offer free loans?

    Maybe it's so they can slowly increase profit margins on PCs and components. Sure it's $20 more, but it's only $5 a month more ........
     
  9. Monkey34

    Monkey34 [H]ardness Supreme

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    To help move certain items that might be lagging in sales I would guess. I would think the sellers will pay for this (not that I've checked), and thus Amazon loses nothing by doing it.
     
  10. alxlwson

    alxlwson You Know Where I Live

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    300k Pascal parts moved since announcement.
     
  11. IndyColtsFan

    IndyColtsFan Limp Gawd

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    Link?
     
  12. alxlwson

    alxlwson You Know Where I Live

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    Lol, zing
     
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  13. SvenBent

    SvenBent 2[H]4U

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    If the loan is no fee and no interest there is good financial reason to do it.

    Let look at my bedroom setup. that a 5k dollars price tag. After some negotiations about the mattresses etc.
    I could pay those 5k upfront or I could do a 5-year loan not interested and no fees.
    I choose the later and instead use that money to pay of car loans or do extra payments on the house working down debt with a higher interest.

    You just have to take a look at the entire financial situation rather than just Loan are bad.
    The facts that some ppl todays still dont understand your money is best placed in the accounts with the highest interest rate is astounding to me.


    However creating debt just to get luxeries you can't afford in the first place. Will always be stupid
     
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  14. SomeoneElse

    SomeoneElse [H]ard|Gawd

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    Not sure what your point is here. I was defending capitalism but whatever.....I was referring to the fact that Amazon is crushing competition and putting people out of business but you can continue to rant on.
     
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  15. ZeqOBpf6

    ZeqOBpf6 Gawd

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    It annoys me that this kind of stuff isn't taught in school. This is the kind of stuff that actually matters to actual people in real life. Economics was an elective when I was in HS and most of the kids that were in my class were the kind that were obviously very sharp to begin with and going to go pretty far in life whether they took it or not.

    This kind of crap should be hammered in to every citizen of a capitalist society.
     
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  16. IndyColtsFan

    IndyColtsFan Limp Gawd

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    Lol, I thought maybe miners everywhere were taking another shot.
     
  17. JStamsek

    JStamsek [H]ardForum Junkie

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    That was my first thought. Plus fraud claims.
     
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  18. SomeoneElse

    SomeoneElse [H]ard|Gawd

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    Yes this is true to a certain extent, but they are banking on the fact that most people won't pay it off in the time frame give, this is the EXACT reason CC companies have 0% interest for certain purchases because they are placing bets on more people not paying it off so they can hit them with a slightly higher interest rate after the 0% period ends.
     
  19. exlink

    exlink [H]ardness Supreme

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    The difference is that you own the asset if you don't finance it. You could take that $2K computer and sell it back for some cash back. If you're financing it then you don't own it and still have to make payments on it...and good luck finding someone who will buy something you are still financing.

    Its not "free money," its borrowed money...
     
    Last edited: Jul 24, 2018
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  20. SomeoneElse

    SomeoneElse [H]ard|Gawd

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    Dumping inventory maybe? Who knows. Amazon is a pretty smart company they like to move products and quickly.
     
  21. GNUse_the_force

    GNUse_the_force Limp Gawd

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    It is actually but only when it's not 'Grand'. Il let you work that one out.


    Corporatism.
     
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  22. IndyColtsFan

    IndyColtsFan Limp Gawd

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    You’re not getting it. Do you know what interest is? ANY time you get a zero percent loan, you are getting free money from 2 different perspectives:

    1. You’re not paying a fee to borrow the money (ie, interest).
    2. Your money remains in the bank, investments, etc, earning money.

    Obviously you pay the principal back, but if you were going to buy the product in the first place, you were paying that regardless.
     
  23. lcpiper

    lcpiper [H]ardForum Junkie

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    I like you, you can see the obvious.

    And I'm not being stupid about this. There are many many people in this world who can't see things as clear and simple as this.

    I mean this as a compliment just in case you're unsure (y)
     
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  24. Kaitian

    Kaitian [H]ardness Supreme

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    You don't even have to do 5 months. You can do 24 months deferred interest on an Amazon store card provided you make the payments on time.
     
  25. lcpiper

    lcpiper [H]ardForum Junkie

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    Wait, is this deal solely for purchases made with an Amazon CC ?

    I had not thought of that and I better understand the reason for this move if it's correct.

    Believe it or not, if this is the case, taking advantage of this interest free purchase would cost me money. I earn 2.5% cash back on all purchases with my current card, if I didn't use that card I'd loose out on it.

    Furthermore, if it drives new CC subscriptions for Amazon CCs, all the other shit people buy will still draw interest. And increasing the moneys Amazon is floating in credit actually allows Amazon to qualify for better rates as a lender service.

    So what if Amazon forgoes interest on a $1,000 video card, they earn interest on all the other shit you buy from them all year long. It's a win win for them, almost as good as a win win win, and far better than just a win :D
     
  26. Kaitian

    Kaitian [H]ardness Supreme

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    Yep, I have a $5000 credit limit with Amazon's store card and I noticed that they upgraded it to 24 months instead of 12 months last week. So you can hypothetically get a $3000 machine and pay $125 a month with no interest. The interest rate on either Amazon credit card or store card is horribly high. If they didn't do deferred interest, I wouldn't do it.
     
  27. Kaitian

    Kaitian [H]ardness Supreme

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    upload_2018-7-24_15-3-13.png

    So pay that thing in full within 24 months or you'll get owned on the interest.
     
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  28. lcpiper

    lcpiper [H]ardForum Junkie

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  29. exlink

    exlink [H]ardness Supreme

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    That's not free money. You are not earning more money just retaining what you would otherwise be spending. By your analogy anything that is on sale the price difference is also considered "free money" which it is not. I am completely "getting it".
     
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  30. Kaitian

    Kaitian [H]ardness Supreme

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    Exactly. Don't spend what you can't afford.
     
  31. Viper16

    Viper16 [H]ard|Gawd

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    I utilize the 0% interest for xx months as well, but I DO NOT buy anything I cannot pay for out of pocket at that moment without being hindered. I like to buy a new computer or upgrade every 5 years...I usually do a 12 month no interest and just pay it over those months. I dont take the hit up front, but can spread it out. Of course I make sure I have it in the savings to afford it and anything that were to pop up in emergency expenses.
     
  32. IndyColtsFan

    IndyColtsFan Limp Gawd

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    No, you’re not getting it. Interest is the money paid to gain access or to “purchase” (for lack of a better term) someone else’s money.

    Let me use another analogy. Let’s say you need to rent a car from Enterprise. The cost of renting the car is $200 for the week. Let’s say that they decide to waive the fee for the week and you’re given the car.

    1. You got the car for free. Yes, you have to return it (the car, aka the principal) at the end of the week, but you paid $0 (aka, interest) for the privilege.
    2. The $200 you would’ve spent is sitting in the bank and gaining interest. So you most certainly ARE earning more money by not spending what you planned to spend.

    Any time you save money on a purchase can be viewed the same way as well - you will have more money sitting in the bank collecting interest as a result. Purchasing something always comes down to an analysis of the opportunity cost of NOT buying the item - you may not be consciously aware you’re analyzing it in those terms, but rationale economic actors do use this analysis.
     
    Last edited: Jul 24, 2018
  33. GNUse_the_force

    GNUse_the_force Limp Gawd

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    What about houses and decent cars ( read: not a heap that will fall apart in an accident or need more work than the value of it ). If you could get a mortgage interest free your saying you wouldn't because you couldn't afford the ticket price ?

    I mean i agree in principle, I prefer to run on a low debt ceiling but still..
     
    Last edited: Jul 24, 2018
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  34. Paul_Johnson

    Paul_Johnson [H] Admin Staff Member

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    To limit Amazon's exposure to products where the default rate will still provide a viable business case.
     
  35. jfreund

    jfreund Gawd

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    Smurf on!
     
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  36. Joust

    Joust 2[H]4U

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    Use a bigger example to REALLY illustrate:

    You're making a $100k purchase. You have $100k in your pocket to make said purchase. You can fork over the $100k now and take home your purchase, or you can take home your purchase now and pay for it - still 100k - in a year.

    If you keep your 100k, you may still make use of it for the next year. You get returns on investments made with it, etc. If you pay now, you receive none of that, and have no use of the funds for the year.

    Make sense?
     
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  37. exlink

    exlink [H]ardness Supreme

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    That's not free money, what you are referring to is the concept of opportunity costs.
     
  38. IndyColtsFan

    IndyColtsFan Limp Gawd

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    *facepalm*

    When you don’t pay for the use of an item (see my car analogy), that item is free. If you went to Enterprise and wanted to rent a car for $200 for the week and they said “We are waiving the rental fee this week,” I promise you’d go home to the wife or call your buddies and say “Hey! I just got a free car for a week!” This Amazon loan is EXACTLY the same thing. When you pay NO MONEY to use a good or service, that good or service is FREE. In the case of a loan, the principal is the “good” and the interest is the usage/rental fee. I can’t make this any more obvious and neither can all the others in this thread who are saying the exact same thing, but they’re welcome to try.


    Did you not see my comments about opportunity cost?
     
  39. whatevs

    whatevs Limp Gawd

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    Nothing is free.

    This is only available because Amazon has used their market advantage to increase prices.

    First, prices were adjusted as if every item was using PRIME shipping.

    Now, prices are increased to allow free financing...

    Try to buy a simple pair of standard ear buds, everything is like $20. Soon it will be $30 for any $1 gizmo, to cover the "insurance" for the big purchase premium user class.
     
  40. exlink

    exlink [H]ardness Supreme

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    You literally are now saying you got the SERVICE or PRODUCT for free; not the MONEY. You are still only RETAINING your money, not EARNING any money for free.

    Free, by definition, is not costing or charging anything. That means you got the car rental service for FREE. The money you retained is not FREE as the money itself was not earned.

    Also, investments are NOT free. You are investing your money at risk; all investments come with varying degrees of risk where you can lose your money.
     
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