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  1. Join Date
    Apr 2007
    Posts
    154
    #31
    Quote Originally Posted by j_avonni View Post
    Yeah! There's no such thing as 0%.
    There is, granted you can make the payments on time. If you're bad at that, then it's in your best interests to stay away from these loans, since it's people that DON'T pay on time (and subsequently get f'd in the a by gigantic APR's) that subsidize the 0% loan for those that do, and get 0%.

    However, CC's that offer 0% APR for, say, a year are pretty much standard practice in the US. There's no risk unless, as I said, you don't intend on making payments on time. With autopay and other electronic measures, that's really not very difficult to accomplish these days.

  2. Join Date
    Oct 2002
    Posts
    3,790
    #32
    to answer boybi's question - NO, they don't have risk.

    OT
    in the point of view of a seller (although I don't deal with electronics pero I have the hand in pricing the goods we sell), we can really manipulate how much the SRP would be.

    we import our goods and give a "transfer" price to our distributor that is much, much lower (obviously) than SRP. AND if the distributor sells more, we also give them another discount which we call REBATE (given only after hitting a certain volume of sale). We can further ofter a discount if they pay cash or at a lesser term (we call Term discount). If this is all factored in - it is anywhere between 30 to 100% of the SRP (depending on product)!

    As such the Distributor can always go lower (if they chose to) than the SRP if one pays them cash. But the merchant (o dealer or retailer) will not be able to offer that (unless they are also given the same term discount by the distributor).

    So it's a matter of strategizing the SRP pero at the end of the day the gross profit (GP) of the distributor is almost always fix, merchant always variable, importer always fix (unless he is also a merchant or nagreretail siya - he will have a very high profit).

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Are there risks to merchants on 0% installments?