Vendors Offering Financing - Do You Support It?

[Copingwithpods]

I think it is great. People have a right to be able to buy things they can't afford right away.

I wish they had Lamborghini Aventadors with no money down zero interest and $199 per month financing.

 

[CodyBot]

I think it is great. People have a right to be able to buy things they can't afford right away.

And we are very lucky that collectively all of those people’s decisions don’t effect the rest of us whatsoever.

 

[CodyBot]

I wish they had Lamborghini Aventadors with no money down zero interest and $199 per month financing.

That would be a steal on any car! Sign me up! But like I said, our aquariums are aquariums. At least a Lamborghini serves a practical purpose. Gets chicks attention. I’m still using my acropora collection as a pick up line but it doesn’t seem to be working.

 

[Copingwithpods]

Haha you know what I mean. I was thinking of something that most of us would probably look of as completely unnecessary and just something that the other person liked. Definitely not something worth going in debt for. Plus, I don’t even know what kind of maintenance those suckers need. Maybe all they eat is super expensive, rare berries. Literally no one, including biologists, knows!

I have a neighbor that would rather have the latest and greatest upgrade for his car than pay his rent so yes I know exactly what you mean. Our hobbies should absolutely take a backseat to everything else in our lives. I have a second hobby rc cars that takes a backseat to just about everything lol.

 

[CodyBot]

I have a neighbor that would rather have the latest and greatest upgrade for his car than pay his rent so yes I know exactly what you mean. Our hobbies should absolutely take a backseat to everything else in our lives. I have a second hobby rc cars that takes a backseat to just about everything lol.

You’re in luck. Affirm will come to the rescue soon!

 

[Viking_Reefing]

This is just going to drive the costs up for everyone else. And I completely disagree with people comparing this to cars, home appliances, etc. We have aquariums. If you’re financing an aquarium then I don’t know what to tell you. I know this hobby is more of an obsession than a hobby for most of us, but what if you knew someone that couldn’t afford a pet emu, so they financed it. You’d look at them like they’re crazy.

The emu part made me laugh out loud. The wife wondered what the heck I was doing in the bathroom that was so funny.

But I completely agree. Financing anything related to a hobby, especially things that will depreciate quickly is...really not a good idea.

Finance your house, if your lucky it will even appreciate over time and save up for the rest. If you’re not able to save up the money you have no business buying it anyway.

Now from a vendor standpoint financing is great! You’re getting more customers to spend more money than they would have otherwise.

 

[Marquiseo]

For those that dont know, Affirm, Bread, Klarna, Samsung Credit and many more store financing are classified as Consuner Finance Accounts (CFAs). They are classified as such due to high interest rates to high risk consumers and will remain on your report for 10 years. These types of account can impact you when you apply for certain loans from banks. Banks will see this when assessing risk.

If your credit score doesn't matter to you now, this is a minor issue and a major issue later. If it does, hopefully you find this information valuable.

For more info, google Consumer Finance Accounts.

 

[TrevorHorn19]

Yes financing allowed me to get into the hobby and buy the tank I want until I got to a point in my life where I could fully fund everything myself. Without financing a lot of people wouldn’t be able to start up this hobby the right way.

 

[mkwarner77]

Big time money trap that people get into all the time. What happens to your tank when the payments for the expensive corals and fish you bought become to high, because you got to wrapped up in the "dream tank" and made emotional purchases. Then the interest balloons. Suddenly you have to choose between needed food and supplies to keep the tank healthy or your credit score. People will drop out of the hobby after driving the prices up even further than they are.

 

[EMeyer]

This is just going to drive the costs up for everyone else. And I completely disagree with people comparing this to cars, home appliances, etc.

Anyone who purchases a new car is making a purely aesthetic decision to have a fancy shiny car with that new car smell. Then they go and finance it, and no one criticizes them despite paying hundreds of dollars a month for many years, including a large chunk of interest.

For a totally frivolous, unnecessary purchase. A $2k used car does everything just as well as that $20-$30k new car. Except look shiny.

Same thing. And to be clear, its their money so I'm making no criticism of their decision other than to say that both the aquarium and the shiny car were equally luxury purchases.

 

[fish farmer]

Anyone who purchases a new car is making a purely aesthetic decision to have a fancy shiny car with that new car smell. Then they go and finance it, and no one criticizes them despite paying hundreds of dollars a month for many years, including a large chunk of interest.

For a totally frivolous, unnecessary purchase. A $2k used car does everything just as well as that $20-$30k new car. Except look shiny.

Same thing. And to be clear, its their money so I'm making no criticism of their decision other than to say that both the aquarium and the shiny car were equally luxury purchases.

I disagree. A cheap used car around here probably won't pass inspection due to being a rust bucket. If you're buying from a private sale which is the cheapest, you probably won't have any extended warranties you would get from a dealer. It's pretty much rolling the dice hoping the transmission doesn't drop out of it.

Granted I'm sure I got fleeced when I purchased a new pickup truck, but I didn't have any problems with it until it hit 80,000 miles and that was brakes. If the tranny hadn't failed at 150,000 it would have been worth about $3000, but was starting to rust....I sold it for $300.

 

[italquam]

I think financing is a good option and to use it with a means. Most people in the hobby are not rich and can afford to spends thousands. I am middle class and I have to buy my items one at a time and sometimes used as well. People who make comments that people shouldn't finance are most like people making money north of 6 figures and I am talking $200k plus or more. You have to remember us common folk also like hobbies and don't change equipment every six months when a new light comes out or a pump , we take care of our equipment and value it because we know we cannot always afford to go buy two new pumps for $900 .

I have used Affirm and I like it because I don't have to use a credit card and they are great at telling you when the money is coming out , after it comes out . Again I tried it on a small purchase to see how it is. Most of my stuff I buy used and I enjoy a savings and never have really had an issue buying used items.

 

[paraletho]

Sears became a financial institution instead of a retailer and I believe it is part of what killed them.

 

[EMeyer]

I disagree. A cheap used car around here probably won't pass inspection due to being a rust bucket. If you're buying from a private sale which is the cheapest, you probably won't have any extended warranties you would get from a dealer. It's pretty much rolling the dice hoping the transmission doesn't drop out of it.

Granted I'm sure I got fleeced when I purchased a new pickup truck, but I didn't have any problems with it until it hit 80,000 miles and that was brakes. If the tranny hadn't failed at 150,000 it would have been worth about $3000, but was starting to rust....I sold it for $300.

Youre free to disagree of course, but I've driven $2-3k used cars my whole life and never had 'the transmission drop out'. I find that most people who have a fear of used cars havent spent much time driving them.

New cars are throwing money out the window for shininess and new car smell. But I fully support everyone doing what they want with their own money!

I'm just calling out people who spend lots of money on purely luxury purchases but criticize others for doing the same Its all luxury.

 

[Stang67]

If your argument for financing is because it enables you to get something "now" that would otherwise have to wait and save up for you are in the wrong hobby. The "i want it now" mentality has no place here where the first thing we learn when starting is "nothing good happens fast". Patience. Use the time you take saving up the money to do your research so that when you do make that purchase you know its the right one. I personally hate the idea of financing anything if I don't have to. House, car yes duh. But if you don't have $$$ in the bank for a tank what then you really shouldn't be starting this as a hobby. Go find something cheaper to do.

 

[biggie4jets]

If you aren’t paying interest what does it matter if you finance or not? Even Amazon has no interest monthly payments when you checkpoint if you’re a prime member.

Also, if I’m buying anything these days it’s going on a CC to get those points.

I should also mention, you should be paying off your CC every month. You still get points and you still are able to have a debt free CC.

 

[fish farmer]

If you aren’t paying interest what does it matter if you finance or not? Even Amazon has no interest monthly payments when you checkpoint if you’re a prime member.

Also, if I’m buying anything these days it’s going on a CC to get those points.

I should also mention, you should be paying off your CC every month. You still get points and you still are able to have a debt free CC.

You are also showing lenders how you use credit, don't use credit ever then you are an unknown to lenders.

 

[Bruce Burnett]

Youre free to disagree of course, but I've driven $2-3k used cars my whole life and never had 'the transmission drop out'. I find that most people who have a fear of used cars havent spent much time driving them.

New cars are throwing money out the window for shininess and new car smell. But I fully support everyone doing what they want with their own money!

I'm just calling out people who spend lots of money on purely luxury purchases but criticize others for doing the same Its all luxury.

I agree but where they salt the roads many are rust buckets. Someone's choice of getting a new 60 thousand dollar pickup is their choice. I like to buy newer not necessarily brand new as they lose a lot right up front. Would I finance live stock no. Would I finance a $3,000 tank maybe. I can't believe some of the answers on here. If I use a credit card and don't pay it off right away then it is financed. If I can get 12 months no interest on a larger purchase then it is like saving up for 11 months. Fancy new cars, larger and new homes and aquariums along with any other hobby are all personal choice, so is how you pay for it. In most cases a home is one of the few things that are truly stable enough to finance but things happen major medical, becoming disabled, losing a job even dying. If we did everything based on what if this or that happens then why get out of bed. I have experienced being able to buy cash and being broke supply and demand sets prices not financing except automobiles. I would love a new pickup but not going to spend 80 grand and finance over 7 years. Besides I could not afford that monthly payment as I am disabled. I could afford to spread the payments of an aquarium over 12 months.

 

[Jedi Knghit]

Youre free to disagree of course, but I've driven $2-3k used cars my whole life and never had 'the transmission drop out'. I find that most people who have a fear of used cars havent spent much time driving them.

New cars are throwing money out the window for shininess and new car smell. But I fully support everyone doing what they want with their own money!

I'm just calling out people who spend lots of money on purely luxury purchases but criticize others for doing the same Its all luxury.

My experiences with $2-3K cars were never good. Cars are a necessity for most people, but I agree it is easy to cross the line into luxury territory. Most people buy the car they want, not the car they need. It's their choice and they are free to make it, but don't expect sympathy from me when you fall on hard times.

 

[Jedi Knghit]

If you aren’t paying interest what does it matter if you finance or not? Even Amazon has no interest monthly payments when you checkpoint if you’re a prime member.

Also, if I’m buying anything these days it’s going on a CC to get those points.

I should also mention, you should be paying off your CC every month. You still get points and you still are able to have a debt free CC.

The way you are using credit cards is fine. I do the same thing, except I pay it off more frequently. My concern is people buying luxury items they cannot otherwise afford.