LMFAO at financing making everything expensive

07-20-2020, 09:37 AM

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#1

rectifryer
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LMFAO at financing making everything expensive

and people eating it up

We got people financing $30k UTVs for 10-20 YEARS (srs)

We got people financing $4k guitars for 5 years (LMAO)

We got people financing $1.5k phones for 2 years (IDC you're an idiot if you do this)

We got people financing $90k F350s for 8 years that they drive to an office job making $60k/yr

And last and not least

We got king tier mother fuk ballz idiots who take out six figure student loans for something other than MD

People have no effing idea how financing screws up the supply/demand ratio, how it ONLY drives up costs. It only makes things more attainable for the consumers getting loans at the start of the cycle, but we have stabilized now. Everything requires a loan for the avg consumer.

Think about that. Nearly any purchase over like, $2k requires a loan for the avg consumer.

Brahs, that's fukked.

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07-20-2020, 09:38 AM

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#2

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07-20-2020, 09:42 AM

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#3

EnforcerOTF
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why put all your cash up front if you can get 0% apr most things?

idiot alert

'oohoo i OWN my car bro, it might be a 1996 toyota accord se r-type camry and cost me $400 i OWN it bro, it breaks down every 16 miles and i cant drive it for 8 months out of the year because it cant handle rain or snow but bro its mine. lol @ u financing a new car for 0% apr just lol"

is how you sound

07-20-2020, 09:43 AM

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#4

TypeNirvash
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Financing didn't make everything expensive.

This type of financing was the result of everything becoming expensive.

07-20-2020, 09:44 AM

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#5

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07-20-2020, 09:47 AM

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#6

trufflepigg
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money is cheap right now, op. Why would you pay for something straight up when someone will take on the entire liability on your behalf for a small interest fee.

07-20-2020, 09:49 AM

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#7

doza808
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that's why i budget to buy things up front. car dealerships are shocked when i walk in and be like "i'll take that lol. cash"

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07-20-2020, 09:50 AM

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#8

Coldsloth
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Originally Posted By EnforcerOTF⏩

why put all your cash up front if you can get 0% apr most things?

idiot alert

'oohoo i OWN my car bro, it might be a 1996 toyota accord se r-type camry and cost me $400 i OWN it bro, it breaks down every 16 miles and i cant drive it for 8 months out of the year because it cant handle rain or snow but bro its mine. lol @ u financing a new car for 0% apr just lol"

is how you sound

Yeah sometimes it makes sense. Bought an Echelon bike for 1400 and did 0% for 6 months. Have to have some discipline and not do that chit all the time though.

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07-20-2020, 09:51 AM

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#9

JerryAtrix
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Originally Posted By doza808⏩

that's why i budget to buy things up front. car dealerships are shocked when i walk in and be like "i'll take that lol. cash"

They also get kick backs for financing through specific lenders, so you also cut into their cheese by doing that sometimes.

07-20-2020, 09:52 AM

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#10

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07-20-2020, 10:00 AM

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#11

newbuck
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Why wouldn’t you finance a phone, usually no apr, have buy one get one deals and if not you can upgrade in the meantime

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07-20-2020, 10:03 AM

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#12

jeshelton
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Originally Posted By rectifryer⏩

We got people financing $90k F350s for 8 years that they drive to an office job making $60k/yr

LOL'd when I saw Ford Raptors withbi-monthlypayments on the landing page to keep the sticker shock off the radar.

1000$/mo for a half ton Ford truck LOOOOL

445/340/545

07-20-2020, 10:05 AM

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#13

Brosnbroccoli
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Ehh... I financed my phone for 1 year and saved $100 on the total cost compared to buying it outright.
Financing a phone where I’m at doesn’t cost anything. If a phone is $1200 and you finance it over a year it will be $100 a month for a year.

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07-20-2020, 10:08 AM

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#14

Austanian
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Originally Posted By EnforcerOTF⏩

why put all your cash up front if you can get 0% apr most things?

idiot alert

'oohoo i OWN my car bro, it might be a 1996 toyota accord se r-type camry and cost me $400 i OWN it bro, it breaks down every 16 miles and i cant drive it for 8 months out of the year because it cant handle rain or snow but bro its mine. lol @ u financing a new car for 0% apr just lol"

is how you sound

Can pretty much guarantee the cost of GAP is out earning your interest gains. Particularly if you are keeping the money liquid as you should be if are taking the zero percent on a depreciating asset.

07-20-2020, 10:11 AM

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#15

78novacaine
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Originally Posted By newbuck⏩

Why wouldn’t you finance a phone, usually no apr, have buy one get one deals and if not you can upgrade in the meantime

This. I could have easily paid for my phone outright but with 0% apr there is no reason to not pay monthly instead. Other than my house and truck that's the only thing I have "financed" and $0 CC debt though.

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07-20-2020, 10:12 AM

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#16

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Originally Posted By newbuck⏩

Why wouldn’t you finance a phone, usually no apr, have buy one get one deals and if not you can upgrade in the meantime

I bought my phone outright (google pixel 3a) and I'm on an unlimited prepaid plan. I saved so much money by doing it this way

07-20-2020, 10:14 AM

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#17

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Originally Posted By TypeNirvash⏩

Financing didn't make everything expensive.

This type of financing was the result of everything becoming expensive.

This op.

I have been looking at newish runners and yes, I could go buy it in cash, but why put such a big hit against myself when borrowing at these rates (800+ credit) is appealing?

07-20-2020, 10:15 AM

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#18

doza808
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Originally Posted By JerryAtrix⏩

They also get kick backs for financing through specific lenders, so you also cut into their cheese by doing that sometimes.

i know. love it. most of them are sleeze bags anyway. their faces just drop after haggling and then telling them i'll pay everything up front. lol

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07-20-2020, 10:20 AM

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#19

blissful88
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In after delusional copecel misc

You finance things because you lack the funds

ergo;

you end up paying more than intended

This is why 90% of Muricels are in debt up to their eyes

If you own more than 1 credit card, I have some bad news for you

Spoiler!

you're poor boyo

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07-20-2020, 10:24 AM

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#20

rectifryer
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Of course some *******s don't get it. That's why the market works, who knew.

Do you understand that without financing most people can't afford a $1500 phone, so they may not be priced accordingly?

Interest rates are a separate argument that do not take into account the effects increased DEMAND has on PRINCIPAL due to loans increasing the attainability of said product. Eventually the product settles on a much higher price overall REGARDLESS of interest.

If you're seriously coming into this thread to argue you can get better returns from investments than the interest you're paying on you're loan, then you've missed the point entirely and I doubt you're that successful of investor.

I'm starting to see the Dave Ramsey side of things.Simple participation in the market is enough to inflate it at these magnitudes.

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07-20-2020, 10:30 AM

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#21

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I would complain about this, but I earn money based on selling properties so it's kinda hard. Hard Assets should absolutely have the ability to finance, but something like an education should absolutely not in my opinion.

07-20-2020, 10:32 AM

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#22

tx18133
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Originally Posted By blissful88⏩

In after delusional copecel misc

You finance things because you lack the funds

ergo;

you end up paying more than intended

This is why 90% of Muricels are in debt up to their eyes

If you own more than 1 credit card, I have some bad news for you

Spoiler!

you're poor boyo

I have multiple credit cards and it's not a mark of poverty. I get sign up bonuses from them, and 2.5% (minimum) cash back on purchases. Not to mention the convenience of charge back for fraud and being able to take an interest free loan every month.

I have spent time around poor people and poverty mindset is this:

- They spend only with debit cards because they can't handle the temptation to spend their credit card up to the limit

- The have a credit card from 2 years ago they they have a $5,000 balance on, and they make the minimum payment each month, in the meantime paying 25% APR on the balance. They do this because their even more financially retarded friend told them that it helps their credit score to make a big purchase and then pay it off slowly (it doesn't). I have heard this retarded myth from multiple people.

07-20-2020, 10:43 AM

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#23

low_clazz
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Originally Posted By doza808⏩

that's why i budget to buy things up front. car dealerships are shocked when i walk in and be like "i'll take that lol. cash"

they are not shocked, they're laughing at you.

even if you have the cash, always consider the benefits of using a loan in order to get a better deal on the car.

since dealers barely make anything on the car itself, they're more willing to negotiate or throw things in if they know you're financing (they make more money from the bank). You can always pay the note off a week later and it cost you nothing. It most likely will save you money.

07-20-2020, 10:54 AM

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#24

outfoxxed
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Explain to me why i would pay 1000 up front for my phone r when i can pay 1000 over the life of my plan?

If i buy a bond with the 1k, that's a free 25 bucks

07-20-2020, 10:59 AM

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#25

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Financing made me look like a tard when really everyone else was the tard.

A few years ago, I bought a brand new smartphone, then my uncle gave me his old one so I figured I'd sell my new smartphone. I had only had it for a month so I thought I was being reasonable trying to sell it for 75% of what I bought it for, IIRC $300/$400.

Turns out, everyone else had similar phones for "free" or $100 (financed over 2 years in either case) and $300 looked retarded to them.

07-20-2020, 11:01 AM

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#26

tunafishha
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Agreed brah. Here's a good article by the Dave Ramsey team about flipping house on credit vs cash:

https://www.daveramsey.com/blog/how-...t%20worth%20it.

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07-20-2020, 11:05 AM

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#27

HalfDragon
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Originally Posted By newbuck⏩

Why wouldn’t you finance a phone, usually no apr, have buy one get one deals and if not you can upgrade in the meantime

Because you could buy a perfectly fine older model phone for $200 and spend $20/mo on a 3rd party carrier like mint or altice. Instead of upgrading every 2 years and having a $100+/mo bill.

$80/mo savings doesn't sound like a lot but its like $50,000 saved over your adult lifetime which if invested in a Roth IRA is $515,000 tax free from age 18 to 59.5.

07-20-2020, 11:05 AM

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#28

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Its tough to pay for anything straight cash now a days. Even when you buy a car you still have to finance and then pay it off at one time via cash. Same with a house

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07-20-2020, 11:06 AM

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#29

pojo18
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yes, your egregious examples illustrate the idiocy of financing in a lot of situations.

However, financing is a necessity for most people. Many due to their own poor decisions, but for many its the only way due to larger societal/geopolitical influences.

Wages have been largely stagnant for nearly 50 years now, all while cost of living continues to increase. Economic inequality is prevalent at rates not seen since the 1920's.

Many Americans don't have $500 saved for an unexpected repair, let alone purchasing a $20k car outright, or even a $5k chitbox outright. Average yearly income is like ~$35k or some chit for an individual.

everyone on the misc has a liquid networth in excess of 7 figures though, so they don't see the larger picture. brb everyones lazy, brb everyone is an idiot (this is true for many , but certainly not all and explaining away the economic problems of todays society due to laziness or stupidity alone is a reflection of the ignorance and stupidity of whoever participates in such explanations)