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Just bought a new couch [0% interest on purchase]

Posted: Thu Jun 25, 2015 12:33 am
by Goal33
I just bought a new couch from J.C. Penney... It was 60% off, and then 15% off with a coupon, and another 10% off for opening an account. Total was about $950 after it was all said and done.

The new card that I charged it on for the 10% off deal comes with 36 months of 0% interest financing. I feel silly financing a couch for 3 years that I could easily just pay for in cash right now (which is what I intended on doing before the 10% off aspect). Now, I'm debating if I'll just pay off the entire thing in the first bill or ride it out with low monthly payments. Obviously it's a small decision... but I'm curious what other BHs would do.

Re: Just bought a new couch [0% interest on purchase]

Posted: Thu Jun 25, 2015 12:52 am
by BL
Be sure to read the fine print! Also don't use the card until you have paid it off, or you might be paying interest on that. I would pay it pretty soon since you can.

Re: Just bought a new couch [0% interest on purchase]

Posted: Thu Jun 25, 2015 12:55 am
by island
Gotta love a deal right? I'd pay it off and be done with it.

Re: Just bought a new couch [0% interest on purchase]

Posted: Thu Jun 25, 2015 1:33 am
by David Jay
Pay it off.

Re: Just bought a new couch [0% interest on purchase]

Posted: Thu Jun 25, 2015 5:31 am
by Bacchus01
I think most will say pay it off. What's the marginal value of your time each month to deal with the payment?

On the other hand, I would not pay it off. I always take advantage of these deals. But when I do them, I immediately set it up to autopay each month and set it and forget it with equal payments.

Re: Just bought a new couch [0% interest on purchase]

Posted: Thu Jun 25, 2015 6:08 am
by tim1999
If I were getting 5% interest on my money in the bank, I'd just make the 0% payments on the couch. But in reality I'm getting like .05% in my checking account due to today's rate environment, so I'd just pay it off now.

Re: Just bought a new couch [0% interest on purchase]

Posted: Thu Jun 25, 2015 7:27 am
by FreemanB
Cherokee8215 wrote:If I were getting 5% interest on my money in the bank, I'd just make the 0% payments on the couch. But in reality I'm getting like .05% in my checking account due to today's rate environment, so I'd just pay it off now.
Even at 5%, this purchase would still be less than $45/year difference, not nearly enough to justify the extra hassle of worrying about the payments, IMHO. OP, I've used similar deals in the past, but generally only when the purchase was large enough that I couldn't pay it off at once through normal cash flow.(In other words, I'd have to dip into savings or some other account outside of my normal expense funds) In those cases, I'd use the 0% deal, but I'd generally pay if off within 2-3 months(As soon as possible, again with normal cash flow) and not bother with trying to drag it out for however long the 0% deal lasts.

Re: Just bought a new couch [0% interest on purchase]

Posted: Thu Jun 25, 2015 8:16 am
by nordlead
Personally, I'd setup an auto-pay for the minimum, and then have it pay the balance on the 35th month (just to make sure there are no stupid rules that kick in and cost me interest on the original balance).

If that wasn't an option (for whatever reason), I'd go for pay it all now as it isn't worth it for another monthly responsibility.

EDIT: I also wouldn't have opened the CC for 10%, but instead I would have bought gift cards for ~17% off with a 2% CC, and then paid that off right away.

Re: Just bought a new couch [0% interest on purchase]

Posted: Thu Jun 25, 2015 8:19 am
by Angelus359
Autopay it down in 2 years. Use high interest returns of some form.

Re: Just bought a new couch [0% interest on purchase]

Posted: Thu Jun 25, 2015 8:27 am
by dbCooperAir
Keep life simple and pay it off, its just 36 more transactions you need to keep track of.

Re: Just bought a new couch [0% interest on purchase]

Posted: Thu Jun 25, 2015 8:50 am
by Crimsontide
Life does not have to be this complicated. Its a couch... pay it off.

Re: Just bought a new couch [0% interest on purchase]

Posted: Thu Jun 25, 2015 9:20 am
by Hug401k
nordlead wrote:Personally, I'd setup an auto-pay for the minimum, and then have it pay the balance on the 35th month (just to make sure there are no stupid rules that kick in and cost me interest on the original balance).

If that wasn't an option (for whatever reason), I'd go for pay it all now as it isn't worth it for another monthly responsibility.

EDIT: I also wouldn't have opened the CC for 10%, but instead I would have bought gift cards for ~17% off with a 2% CC, and then paid that off right away.

I need a new couch. How do you get a gift card for 17% off? That's new for me.

Re: Just bought a new couch [0% interest on purchase]

Posted: Thu Jun 25, 2015 9:35 am
by nordlead
Hug401k wrote:
nordlead wrote:Personally, I'd setup an auto-pay for the minimum, and then have it pay the balance on the 35th month (just to make sure there are no stupid rules that kick in and cost me interest on the original balance).

If that wasn't an option (for whatever reason), I'd go for pay it all now as it isn't worth it for another monthly responsibility.

EDIT: I also wouldn't have opened the CC for 10%, but instead I would have bought gift cards for ~17% off with a 2% CC, and then paid that off right away.

I need a new couch. How do you get a gift card for 17% off? That's new for me.
There are various websites that buy/sell gift cards and currently JCPenny is hovering around 17% off. Some offer 100 day guarantees, others offer other features. I personally used cardpool for a few purchases, but you can find other websites through giftcardgranny. I've done multiple transactions with no problems.

If you go this route, only buy the gift cards you need at the time, and then make the purchase ASAP. This reduces the chance that someone drains the gift cards after they are sold, which increases the hassle for you. I figure between the 100 day guarantee of cardpool, and my CC I have nothing to worry about since I make my purchases within a few days of receiving the cards (electronic or physical). Also, make sure what you are buying is something you don't intend to return.

One other downside, is that none of them will sell you electronic gift cards until after you buy a physical gift card and they mail it to you.

But, not to sidetrack this thread, if you want to talk about it more possibly make a new thread to get more input on buying discount gift cards.

Re: Just bought a new couch [0% interest on purchase]

Posted: Thu Jun 25, 2015 9:35 am
by surfstar
I signed up for a store card to get an extra rebate during my last tire purchase for my car and my mom's.
Comes with 6mo 0% financing. I setup auto payments to have it paid off in 5. Won't have to look at it again. Could have paid "cash", but gotta go with the best deal.

Use their money - setup an auto pay and move on :D

Re: Just bought a new couch [0% interest on purchase]

Posted: Thu Jun 25, 2015 12:44 pm
by Gropes & Ray
I recently bought about $2500 worth of furniture on credit. I could pay it off today, but I also got 0% financing (which you had to use to get free shipping and there was no cash discount). The only complicating factor is that different amounts are interest free for different periods. So part of it is interest free for 12 months, part for 36 months and part for 6 months. It's enough of a pain in the ass that I'll probably pay back the 6 month portion immediately, and pay the rest over a year. The 1% interest I get in savings will net me <$25.00... :|