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

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


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 ........
 
According to the article, a big negative is the small selection of PC parts you can choose from. Why limit choice?

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.
 
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.

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


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.

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.

Because you’re effectively getting free money.

Its not "free money," its borrowed money...
 
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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 ........
Dumping inventory maybe? Who knows. Amazon is a pretty smart company they like to move products and quickly.
 
Its not "free money," its borrowed money...

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.
 
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.

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)
 
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.
 
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.


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

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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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.
 
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".

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

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..
 
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According to the article, a big negative is the small selection of PC parts you can choose from. Why limit choice?

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

Smurf on!
 
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 at the end of the week, but you paid $0 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.

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?
 
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 at the end of the week, but you paid $0 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.

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

*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?
 
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.
 
*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 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 fee.

Did you not see my comments about opportunity cost?

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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