How do they do it? There's a furniture outlet (Levins') that is advertising a
sale with no money down, no interest, no payments until 2007. How do they do
this?
I've heard that on some of these deals that advertise "No Interest until 2007"
have you pay just the principle. The interest accumulates and is due in one
lump sum when the time comes.
But if the ad is correct for this furniture sale, no money exchanges hands for
three years.
What's in the fine print? What's the gimmick?
BTW, La-Z-Boy is offering the same sale.

"TOM KAN PA" > wrote in message
...
> How do they do it? There's a furniture outlet (Levins') that is
advertising a
> sale with no money down, no interest, no payments until 2007. How do they
do
> this?
> I've heard that on some of these deals that advertise "No Interest until
2007"
> have you pay just the principle. The interest accumulates and is due in
one
> lump sum when the time comes.
> But if the ad is correct for this furniture sale, no money exchanges hands
for
> three years.
> What's in the fine print? What's the gimmick?
> BTW, La-Z-Boy is offering the same sale.
>
>

Not really a gimmick, but read the fine print. Usually on offers like this
is if you haven't paid the full amount at the expiration date they will
charge you the full interest amount you accrue between now and 2007. If
paid in full before it's a very good deal.

Chris in Pearland, TX

On 26 Dec 2003 18:52:32 GMT, c (TOM KAN PA) wrote:

>How do they do it? There's a furniture outlet (Levins') that is advertising a
>sale with no money down, no interest, no payments until 2007. How do they do
>this?
>I've heard that on some of these deals that advertise "No Interest until 2007"
>have you pay just the principle. The interest accumulates and is due in one
>lump sum when the time comes.
>But if the ad is correct for this furniture sale, no money exchanges hands for
>three years.
>What's in the fine print? What's the gimmick?
>BTW, La-Z-Boy is offering the same sale.

Read that fine print carefully. I'll bet the interest rate is well
over 20%, and it accumulates from the moment of the transaction. If
you don't pay off the loan before 2007, you're hit with three years'
worth of interest all at once. Still look like a deal to you? They
(Levitz, La-Z-Boy, whoever) either get the full payment in less than
three years, or they get that whopping interest payment if you wait
too long. There may be enough procrastinators out there paying that
awful interest that these companies don't much worry about "giving"
you three years without payments.

-A

"TOM KAN PA" > wrote in message
...
> How do they do it? There's a furniture outlet (Levins') that is
advertising a
> sale with no money down, no interest, no payments until 2007. How do they
do
> this?
> I've heard that on some of these deals that advertise "No Interest until
2007"
> have you pay just the principle. The interest accumulates and is due in
one
> lump sum when the time comes.
> But if the ad is correct for this furniture sale, no money exchanges hands
for
> three years.
> What's in the fine print? What's the gimmick?
> BTW, La-Z-Boy is offering the same sale.
>
>

I have done this once or twice. The way it works is you sign up for a
special credit card with very high interest rates and late fees. If you make
your full payment on time, all is fine. If not, that high interest rate and
late fees kick in for the entire period and you are socked for a lot of
penalties. I figure the big profit they make on the many people who are late
more than makes up for the people who are on time. I make sure to send my
payment by certified mail so they cannot pull any bullshit on me.


--
Peter Aitken

Remove the crap from my email address before using.

"TOM KAN PA" > wrote in message
...
> How do they do it? There's a furniture outlet (Levins') that is
advertising a
> sale with no money down, no interest, no payments until 2007. How do they
do
> this?

They can do it because there are plenty of uneducated people. Miss a
payment or don't pay off the balance and you are hit with interest from day
one. The interest rate can be as much as 28% if you default.

The people that can least afford it are the ones that don't understand how
it works and will be paying full price plus whopping interest for furniture
that is almost worn out.
OTOH, if you are diligent about paying your bills, you can take advantage of
long term payments at no added cost.
Ed

http://pages.cthome.net/edhome