0% finance

[Floridatilly]

We recently purchased a new bed & mattress. It won’t be delivered until the end of September. On the day we bought it the sale guy was pushing 0% finance, saying that £2000 + was better in our bank account than theirs so to only pay a deposit.
We was not sure so we agreed to pay £500 (To get the order in) and will be going in next week to either pay the remaining balance or set up the 0% finance.

I just don’t know what to do. I can see the benefits of 0% finance but I do not like any kind of loans etc. I can not bare to owe money. We do not have any store cards or anything like that. We either have the money and pay for it or wait and save up for something.
So this is going against the grain for me, if that makes sense.
Do I want a extra payment going out every month for 20 months? Or do I want £2000 going out all at once?
The fact that we have a mortgage and car lease is bad enough.

What is the general thoughts on 0% interest purchases?
Financially wise, or financially wrong?
I have no clue 🤷

[Halowa]

A lot of these companies will not set up payment automatically but need you to pay them. The idea is that you don’t make them, spend the money and get to the end of the interest free period, then hit you with high interest rates.

If you pay, no issue. If you take out the IF scheme and something goes wrong, it belongs to the finance company and they will support you with issues.

[Smilesonfaces]

I always say to my husband that there is no such thing as interest free credit. The price of the product is inflated to cover the cost of the finance. We do occasionally take it out but only if I have been unsuccessful in getting a discount ! I make sure I know exactly when the payment period is up and pay a couple of months before. I don’t like credit either but if they won’t give a discount for cash I will take it. In the meantime put the money in a savings account or premium bonds and ensure you don’t forget the date it needs paying.

[Blue nose]

I always just pay unless something comes up we've not budgetted or saved for and need urgently.

I also buy on my credit card and then pay off.

Don't see the point in credit if it's not needed, interest free or not.

[dubletrub]

When interest rates where good in the banks I would use 0% interest if where I was buying from did it, and get the interest on my savings, they want you to take it as people do default or miss the deadline and then pay interest.
Now there is no interest in savings I would pay it all off, I am looking for a new bed and I will pay for it on my credit card and then pay it right off.

[Rac20]

If you have the cash already, I’d just pay it off. You could then put the money that would be going out every month (if you took the finance option) in to your own savings account and save up for something else.

[megaflyer]

It’s a loan and no way would I sign up for that - I owe any a penny and that’s the way it will stay until I die. Debt of any kind I am not comfortable with and if a sales person tried to push it on me I would walk out of the store and go elsewhere - its morally wrong.

[skalexander]

I am a “better in my pocket than theirs” kind of person, so would take advantage of the interest free credit. I have no issues about borrowing money in your situation, so long as I know I can afford to pay it all off.

That said, we bought a mattress a few months ago, and we bought it outright, as we knew we were selling our house and wanting a bigger mortgage, and I didn’t want any outstanding credit.

[Bozza]

The last time we were in a similar position, for the same items as it happens, I said I didn't want the finance and wanted to pay up front. I asked what they could do on the price for me doing that.

There's no such thing as free finance, the cost is built into the price, but they wouldn't budge and the price was the price.

Because of that I took the finance because, well, why wouldn't you?

[Waltdisnae]

If there is no discount for paying in cash I would, and have, take the interest free credit and bung the cash in premium bonds. You never know, it could fund the next Disney trip with your winnings.