Upcoming DUI Financing...pretty disappointed

[BobAtOdyssey]

I'm curious as to what you think financing is about...? Of course the hook is to get you interested with 12 mos same as cash, and if you are disciplined enough to pay it off within the year no problem! If you wait and get caught up in the charges, then you have fallen into the money-making effort of the finance company. My advice is to either get it payed off in a year, or visit your favorite lending institution for a lower rate and pay the charges to them instead.

 

[Super]

Thanks for all the replies. But I guess my main intent wasn't stated properly. I am fully aware of how same as cash works. And I am fully aware that it would be wise, if you use this offer, to have it paid off before the 12 months is up.

But, if something was to happen between purchase and payoff, and we all know that "stuff" happens, there is a 21 percent interest charge. With the Fed recently dropping the rate .75, and the possibility of more drops in the near future, it just seems a pretty high interest rate. I understand that it's "interest free" the first 12 months, but that's if it is paid in full before the 12 months are over.

It just seemed to me that a bit lower rate would induce a lot more divers to partake of the offer. And if there was a "stuff happens" incident, it would be a lot easier to handle.

Dive safe and have fun.

 

[Web Monkey]

But, if something was to happen between purchase and payoff, and we all know that "stuff" happens, there is a 21 percent interest charge. With the Fed recently dropping the rate .75, and the possibility of more drops in the near future, it just seems a pretty high interest rate. I understand that it's "interest free" the first 12 months, but that's if it is paid in full before the 12 months are over.

It just seemed to me that a bit lower rate would induce a lot more divers to partake of the offer. And if there was a "stuff happens" incident, it would be a lot easier to handle.

Generally, financing SCUBA equipment (or training or anything else) is a bad idea.

If you can't pay cash, you're better off saving up for it and paying cash at a later date. The only way any of the "free fianancing" deals is good for you is if you always have the cash ready to pay it off, but just like using their money for free for a while.

Same thing as credit cards. They're only good as long as they cost you nothing, or pay you back. If you actually need to use them because you don't have the money, you're better off waiting until you do.

As for the actual rate, the answer is "Because they can." If they could get more, they would. I belive 21% is some sort of limit, although I also seem to remember credit cards that had a default rate close to 30%.

Terry

 

[HowardE]

Thanks for all the replies. But I guess my main intent wasn't stated properly. I am fully aware of how same as cash works. And I am fully aware that it would be wise, if you use this offer, to have it paid off before the 12 months is up.

But, if something was to happen between purchase and payoff, and we all know that "stuff" happens, there is a 21 percent interest charge. With the Fed recently dropping the rate .75, and the possibility of more drops in the near future, it just seems a pretty high interest rate. I understand that it's "interest free" the first 12 months, but that's if it is paid in full before the 12 months are over.

It just seemed to me that a bit lower rate would induce a lot more divers to partake of the offer. And if there was a "stuff happens" incident, it would be a lot easier to handle.

Dive safe and have fun.

DUI has nothing to do with the rate. DUI just set up a deal with A finance company to allow people to have options.

The rate is determined by American General Finance. That's what they do. Go into Best Buy, Ultimate Electronics, or any furniture store. They don't offer 12 months same as cash, and then 6.9% interest; regardless of what the prime rate is.

 

[RJP]

It just seemed to me that a bit lower rate would induce a lot more divers to partake of the offer. And if there was a "stuff happens" incident, it would be a lot easier to handle.

Unlike a car loan or a mortgage this kind of program is "unsecured" in that they will not be able to repossess the drysuit and easily sell it to recoup losses if you default on the loan. Hence the high rate.

 

[Brewone0to]

Oh well. Whatever happened to the earlier words of my diving instructors..." Sure, diving is a little expensive at first. But once you've bought your own gear, it will last a long time and your costs actually decrease over time."

You should have asked him/her how much they
had invested, and what they were planning on next.

They were right about part of it though.
Because it doesn't get REAL offensively priced, until
you decide you want to dive in overhead environments.:11:

It's funny how over time you find yourself (attempting) to
justify single item purchases for more than you thought
you would ever spend on the sport.

My favorite is to see people's expression when
I tell them that my "flashlight" costs $1500.00.

Heck, One guy I work with said I was just plain nuts.
Until I reminded him of when he spent 6500.00
on an exhaust for "one" of his Hot Rods.
Then, at least he understands the pursuit.

I guess we all have our addictions.
This one is at least better for you
than some other things one could do.

 

[Web Monkey]

Whatever happened to the earlier words of my diving instructors..." Sure, diving is a little expensive at first. But once you've bought your own gear, it will last a long time and your costs actually decrease over time."

They're actually 100% correct. Now that I have my own stuff, local diving costs next to nothing. $20 for a few nitrox fills, maybe another $10 in gas, a few bucks for lunch, and I've got a whole Saturday worth of recreation.

Terry

 

[Gombessa]

They're actually 100% correct. Now that I have my own stuff, local diving costs next to nothing. $20 for a few nitrox fills, maybe another $10 in gas, a few bucks for lunch, and I've got a whole Saturday worth of recreation.

Terry

But some of us are addicted to new gear! Guess that's not DUI's (or anyone else's) fault.

 

[AUTiger]

21% is pretty typical when you start looking at in-store financing or store specific credit cards. Think Best Buy financing a TV or your Macy's card. This isn't unexpected. Why should they finance dive gear at lower rates than TVs and clothing?

David

 

[mike_s]

It's real good when you compare it to one of those "Rent to own" places.

Go see what they have for a "rent to own" price on a TV and compare your total payments over the defined period and what it would cost new at a normal store. You'll pay about 400% the value of the TV over the life of the "rent to own".