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

Megalith

Megalith

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Amazon has introduced a new payment plan for big-ticket gaming PCs and components. Instead of a single payment, customers have the option of splitting a purchase into five monthly payments (e.g., get a $2,000 PC with five monthly payments of $400). “No finance charges, no interest or hidden fees, and no credit check or application required."

The obvious upside to this is that buying an expensive PC or PC parts is less intimidating for anyone who can make the monthly payments. That's an immediate advantage over other retailers who will require all the money up front, thus causing the buyer to purchase it on credit which could eventually lead to paying some interest.
 
I will never understand those who finance luxury items. If you can't afford it outright, and you don't need it, don't get it.

Yes I understand there are other reasons to use this service, good on Amazon for offering it. Undercutting the CC companies now.
 
Everything is Amazon. Like the movie The Dictator. Replacing a bunch of words with Aladeen.

Husband: How are the Amazon's today?
Wife: They are fine, one caught an Amazon and I took him to see the Amazon, and the Amazon said the test came out Amazon.
 
That_Sound_Guy said:
I will never understand those who finance luxury items. If you can't afford it outright, and you don't need it, don't get it.

Yes I understand there are other reasons to use this service, good on Amazon for offering it. Undercutting the CC companies now.
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I agree with you, but if Amazon is giving you a free loan, it makes sense to use their money and let your money continue gathering interest/dividends/etc.
 
That_Sound_Guy said:
I will never understand those who finance luxury items. If you can't afford it outright, and you don't need it, don't get it.

Yes I understand there are other reasons to use this service, good on Amazon for offering it. Undercutting the CC companies now.
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For some purchases I agree with you but I can see instances where this would be a benefit. Say you have a 4-5 year old system and you are saving up for a rebuild and something major craps out. Sure you can ebay an old mobo but wouldn't it be better to just build the new system now and be able to pay it off over time?

I take advantage of pay over time stuff on occasion as long as I can pay it off with no interest.
 
That_Sound_Guy said:
I will never understand those who finance luxury items. If you can't afford it outright, and you don't need it, don't get it.

Yes I understand there are other reasons to use this service, good on Amazon for offering it. Undercutting the CC companies now.
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Interest-free loans? I commonly use these types of arrangements because it keeps my money working for me. I never get into a position I couldn't simply write a check to clear, but yeah...using someone else's money for a period of time - for free - has value.

The trouble comes in when someone is in beyond their means. It's probably, being honest about it, what the companies are counting on.
 
That_Sound_Guy said:
I will never understand those who finance luxury items. If you can't afford it outright, and you don't need it, don't get it.

Yes I understand there are other reasons to use this service, good on Amazon for offering it. Undercutting the CC companies now.
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This is how you test the limits of how far you can go.....Amazon is pushing the limits of how big it can get and its torpedoing everyone on its way there. They literally are becoming a giant (scary) company.....they are plowing everyone over on the way there.
 
SomeoneElse said:
This is how you test the limits of how far you can go.....Amazon is pushing the limits of how big it can get and its torpedoing everyone on its way there. They literally are becoming a giant (scary) company.....they are plowing everyone over on the way there.
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Isn’t capitalism grand? /s
 
That_Sound_Guy said:
I will never understand those who finance luxury items. If you can't afford it outright, and you don't need it, don't get it.

Yes I understand there are other reasons to use this service, good on Amazon for offering it. Undercutting the CC companies now.
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hmmm? I can make between 5-15% ROI on an investment of $5000-6000, meanwhile slowly pay off a 0% loan over 36 months while that income compounds. I will never understand people that don't understand investing and finance...

Edit: and pay the bare minimum until the total is due - again as long as you can afford it. I honestly arbitraged a HELOC when the market bottomed with an ROI of nearly 4% over the life of the loan. (arbitrage is taking a loan to make an investment for those not in finance)
 
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Pretty cool all though it's still far cheaper to build your own and easy at that. I guess the added benefit might be warranty or support and easy return if it doesn't work.
 
Joust said:
Interest-free loans? I commonly use these types of arrangements because it keeps my money working for me. I never get into a position I couldn't simply write a check to clear, but yeah...using someone else's money for a period of time - for free - has value.

The trouble comes in when someone is in beyond their means. It's probably, being honest about it, what the companies are counting on.
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This is of course the intention, because if you don't meet the payment agreement all of that 0% "disappears". But see above, it makes little to no sense not to take the 0% if you can afford the product.
 
Good now i can buy 32 gig of ddr4.

Still its about time, 6-12 months same as cash for appliances and lawn mowers have been going on for decades.
 
Where was this when I wanted to get my 1080 at the beginning of the month? Of course that $560 video card is now $520. Go figure. Just don't get on my case over 1¢.

That_Sound_Guy said:
I will never understand those who finance luxury items. If you can't afford it outright, and you don't need it, don't get it.
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¯\_(ツ)_/¯ . The 1080 card I got is strongly under the luxury item category. While I would have not minding getting 0% interest for a few months, when the credit card bill came earlier this month, I paid it off... in full. I sacrificed so much in order to get my debts cleared out and debt free. Let me enjoy a luxury item every month. I'm already a good boy and am ahead of schedule in my retirement saving.
 
Time is a component of wealth. It's not about how much you can spend or earn, it's the rate that's important.

You may not be able to afford a $20,000 vehicle now, but you can over the span of 8 or 10 yrs.

That's because you get to leverage your future income in addition to your available funds. With discipline and proper planning, interest free financing allows you to afford more. Just be careful about what you buy...
 
article said:
The downside is that Amazon's program isn't flexible. It's five fixed payments and that's it. Amazon will presumably charge the attached debit or credit card each month and then it's on you to have the money. If it results in overdrawing your bank account, that's your problem
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Amazon still gets their money, even if you don't have it.
 
Krazy925 said:
They don’t do a credit check?

What happens if you default?
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It uses a credit card on file.

"You're US-based, you have an account that's more than a year old, you have a credit card linked to your account, and you have a good payment history. Further, not everything qualifies for the program; only certain products are applicable."
 
nightanole said:
It uses a credit card on file.

"You're US-based, you have an account that's more than a year old, you have a credit card linked to your account, and you have a good payment history. Further, not everything qualifies for the program; only certain products are applicable."
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I see this as being rich for scamming; but I’m sure amazon has put safeguards in.

I might use this for my new build, I definitely qualify. Thanks!

PS I too pay my bills monthly and understand finance before anyone tries to jump in.
 
nightanole said:
Good now i can buy 32 gig of ddr4.

Still its about time, 6-12 months same as cash for appliances and lawn mowers have been going on for decades.
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Well I have a $10k home theater that is 36 months 0%. Money is set aside to pay for it when it comes due in sometime 2019 or 2020, but right now I'm paying $48/month. It's silly to not take it if you have the cash! I haven't used cash or debit in years cause the rewards are worth it and just have a planned payment schedule in which everything gets payed off. Went to Vegas first class and stayed at Aria in the skylofts with points last year. Only thing that sucked about that trip is I left up $100 and last time I stayed at Aria I hit the big small all twice - once for me and once for a gentlemen that gave me $500 for hitting it for him lol.
 
Krazy925 said:
I see this as being rich for scamming; but I’m sure amazon has put safeguards in.

I might use this for my new build, I definitely qualify. Thanks!

PS I too pay my bills monthly and understand finance before anyone tries to jump in.
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Yea it would be an entirely different scenario if you had to apply for "amazon credit" and link your checking account. That would be extending a line of credit. This is more along the lines of using your existing credit.
 
SomeoneElse said:
This isn't capitalism its corruption.....capitalism like democracy is a great idea but when left to do unethical/corrupt practices it turns out bad for everyone but those on top.
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Right, because all the poor people in the first world with smartphones, TVs and supermarkets full of food of all kinds (and generous food stamp programs paid for thanks to CAPITALISM) is such a bad thing.

What a stupid thing to say or even believe.
 
Id rather spend 500 bucks a month then dropped 2500 right away on a new laptop.
 
Dan said:
Id rather spend 500 bucks a month then dropped 2500 right away on a new laptop.
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If you can afford paying $500/month for a $2500 laptop why don't you just save for 5 months ahead of your purchase then buy it without any debt? Only reason to finance in this situation would be if you were in dire and quick need of a $2500 laptop.
 
According to the article, a big negative is the small selection of PC parts you can choose from. Why limit choice?
 
haste. said:
This is of course the intention, because if you don't meet the payment agreement all of that 0% "disappears". But see above, it makes little to no sense not to take the 0% if you can afford the product.
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It makes sense if you're wise enough to factor the payments into your monthly budget so you don't miss a payment. I do it all the time with Lowes and Home Depot for tools and materials for home repairs/projects that I can't afford up front. As for CCs; I don't charge more than I can pay off when it comes due. This is all after living expenses. Budgeting is a skill that few possess these days.
 
exlink said:
If you can afford paying $500/month for a $2500 laptop why don't you just save for 5 months ahead of your purchase then buy it without any debt? Only reason to finance in this situation would be if you were in dire and quick need of a $2500 laptop.
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but there's no negative to spreading the payments. I dont see the issue if you dont fuck up the payments. This is clearly a cash grab at people with no control. Miss a payment im sure they bang you.
 
mynamehere said:
It makes sense if you're wise enough to factor the payments into your monthly budget so you don't miss a payment. I do it all the time with Lowes and Home Depot for tools and materials for home repairs/projects that I can't afford up front. As for CCs; I don't charge more than I can pay off when it comes due. This is all after living expenses. Budgeting is a skill that few possess these days.
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You must be married ;) - I charge everything. The benefits of the rewards outweigh using cash or cash equivalents. I can be lazy though, was going through my finances the other day and realized that I waited two interest cycles to pay off a 16 day European trip which I got a 3 bedroom suite in Paris St. Germain for 3 days of it for my wifes birthday. First hit because I have automatic minimums setup to avoid a late payment and it was made the day after we got back and was on the Euro hangover - second is cause I'm lazy. Cost me well over $200 in interest... oh well, my fault.
 
So now I can order PC parts that I can't afford all at once and by the time I pay them off, they will be obsolete. Woohoo! ;)
 
yea interest free
exlink said:
Of course there is, you don't know what the next 5 months of your life contain. Unemployment? Medical bills?

If you can avoid the debt, why wouldn't you?
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same thing if you pay all up front. could spend 2k on a computer today and then end up in the hospital tomorrow. Sure that 2K would be awesome to have right now.

I see no problem splitting it up if they are letting me do it interest free. Have no problems taking advantage of that kind of thing on a lot of stuff.
 
I have an alternative proposal. I'll gladly pay Amazon MSRP now for a PC part that will eventually get back to that level.
 
Buy a pc with no interest in 5 easy payments? I don't buy no steenkeeng computers!
 
And when you don't make your payments, Amazon will send Digital Repo Men to hack "their computer," and hold your data ransom.

Don't be surprised of they install a back-door on all interest-free computers :D
 
Either it's a very select few products, or it doesn't work. We purchase around 8 to 10k a year on amazon with very few returns.... If anyone should have the option. Oh well... I looked out of curiosity.
 
mynamehere said:
It makes sense if you're wise enough to factor the payments into your monthly budget so you don't miss a payment. I do it all the time with Lowes and Home Depot for tools and materials for home repairs/projects that I can't afford up front. As for CCs; I don't charge more than I can pay off when it comes due. This is all after living expenses. Budgeting is a skill that few possess these days.
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It really is, Dave Ramsey needs to be given away for free to the masses.
 
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