Quote:
Originally Posted by sn_85
I'm a firm believer in buy once cry once but with delayed gratification. Save up and pay cash for the rack or use a CC to buy it and pay it off at the monthly statement. There's no point in financing a $1000 roof rack and that's probably a bad way to go about earning credit. Unless it's a mortgage, car, or major home renovation I don't see the point of financing the little things in life. To be frank, and not trying to be an a-hole since we all come from various backgrounds and financial situations, but if you have to finance a $1000 roof rack and can't pay outright for it then you simply can't afford it.
Right on. And with the demand and lead times you guys have it doesn't make sense to offer a financing option if you're the ones taking a penalty on it.
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I agree completely on the "only finance the big things" part. I've also got an 800+ credit score, so it's not really about building credit for me personally, either. Personally, I'm coming more out of the place of if there's an opportunity to spread payments on something out with no interest, that leaves me with more cash for other things.
All I was getting at is that other retailers in this same industry (car aftermarket) use Affirm, or something similar, to great success because it entices the people who otherwise wouldn't make a purchase on something they don't really need to go ahead and make that purchase at low, or more often than not, zero interest. A sale, even if the supplier takes a small hit on using a 3rd party service, is still better than no sale at all. It's the same kind of idea as whether or not businesses accept Amex. The one's that don't say it's because Amex has higher fees, which is true. However, that's eliminating a percentage of customers who now go elsewhere to use their Amex card.
TLDR: The availability of easy low/no interest financing is another variable that e-commerce stores are going to have to account for going forward to stay competitive.