0% financing my ass!

1. 2018-07-24 at 1:03 AM UTC

   #1
   

   Bologna Nacho African Astronaut
   I have often wondered how banks and finance companies could afford 0% financing. I always thought that those with awesome credit benefited off the backs of the Joe Schmoe's of the world. While that may be somewhat true, it's not the case where I work. We offer 0% financing but the finance company charges us 15% in order to charge 0%. This causes us to add 15% into the sell price of our product. This is happening everywhere. If you have a loan at 0% for 5 years, chances are you paid the interest up front. Clever marketing indeed.
2. 2018-07-24 at 1:05 AM UTC

   #2
   

   Cootehill African Astronaut [my unsymmetrically blurry oregano]
   15% is a lot of interest.
3. 2018-07-24 at 1:11 AM UTC

   #3
   

   Bologna Nacho African Astronaut
   15% up front is not as bad as 15% compounded though.