0% costs you more?????

eeyore87

As a retailer dealing with similar price ranges and offering 0% payment options, I know we cannot advertise different prices for 'interest-free' as this is classed as a charge for finance - we just have to factor it in to our prices and take the hit from the finance company.

When a customer has decided to go ahead with a purchase and it comes to discussing payment options however, I don't believe there is any issue with offering a slight discount for a full/cash payment.

blacksta

Eonel wrote: »

0% financing does cost the company money and is often built-in to the price of the product. They receive your money in the future (interest lost for them) + the chance that you do not pay it back + inflation degrading the value of money. You will find very often that anyone offering 0% will offer a better cash price today.

I am not sure you will get much empathy from Trading Standards. It is essentially the same situation as an insurance company adding 10% to your insurance policy for paying by installments. It just reflects the time-value of money.

The way to beat the game is to get yourself a 0% credit card and pay the cash price.

Could it have said it better.