Pay outright or PayPal credit?

Hi everyone,
I want to buy a device on ebay that's currently £694, which is about 100 quid cheaper than in other stores. I have PayPal credit which offered me to either:
1. Pay in full and get 4 months interest-free payment.
2.Pay in installments for 12,7% APR. The lowest installment option, 33 pounds a month for 24 months would result in overpaying about 90 pounds for the device.
I personally prefer the second option as in my opinion money loses value all the time, and, for example, my employer increases my wage by about 400 pounds a year due to the cost of living increase, so for me, it will make sense to pay in smaller installments for longer, as the item almost ends up being cheaper (as I will have more money in 24 months).
This is similar to buying phones on a contract with a mobile provider, which makes sense cashflow-wise, but I'm curious to hear about your opinions/experience? Am I right in thinking that option two makes sense financially?
Thanks in advance for your reply!

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242
    First Anniversary Photogenic Name Dropper First Post
    Forumite
    Option one makes the most financial sense by a country mile.
  • Option one makes the most financial sense by a country mile.
    Would you be able to explain why, please?
  • [Deleted User]
    [Deleted User] Posts: 35,242
    First Anniversary Photogenic Name Dropper First Post
    Forumite
    Because you won't get anything close to 13% interest on your savings, while you're delaying paying off the finance.

    By paying in full (or the 0% deal), you pay the lowest possible price and can then rebuild your savings, earning money on them, instead of losing it via the expensive finance.
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