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Apple IIgs · Jul 23, 2006, 08:45 PM

Hello all,
I've been batting around the idea of retiring my Powebook G4 550Mhz (with a non-charging battery and broken hinge) and getting a Macbook 1.83 or 2.0Ghz. Anyway, my question is what do you folks think about financing a laptop? CompUSA has a 24 month 0% financing storewide deal and I'm thinking that would work well in spreading out the $1K+ bill over 24 payments. My only qualm about it is of course by the time I pay the thing off (2 years or less later) the laptop will have depreciated considerably. With no interest on top it's not as bad of course. I'm just curious what you folks think about it. Financially I could afford to pay it within a month, but I have other things pressing right now that would probably be better to put more money towards.

Thanks for answering,

ducatisteve · Jul 23, 2006, 08:51 PM

I don't see a reason why not to. it's 0%.....just don't miss any payments and get it done in 2 years!

imitchellg5 · Jul 23, 2006, 09:03 PM

I would do it if I was short on money.

Apple IIgs · Jul 23, 2006, 09:05 PM

Of course there's no rebates to be had at CompUSA rather than buying online...and then there's taxes... Though even with taxes I think a 1.83 would be like $50 a month. Hrm...

twil13 · Jul 23, 2006, 09:19 PM

Go for it! You will love the new notebook, and as long as you pay it off before the 2 years are up you will be fine.

hickey · Jul 23, 2006, 10:05 PM

I bought my computer when it was already 2 years old, and its been rock solid since. Go for it.

fox-orian · Jul 23, 2006, 10:20 PM

I bought my MacBook through a student loan --- since I am a college student.

I paid EXACTLY $1400 for my macbook configuration with student discount applied. I'm going to be paying this loan off while in school. If I dont, I'll have to start paying it back after I graduate. I figure this: the $1400 is only a few pennies added onto the cost of the rest of my schooling. My macbook will pay for itself over this time in the classroom. I think I have a rate of 8% or something.... I forget.

Honestly, I don't see why its not a bad thing. You'd pay extra over time, sure, but you would never notice because it won't be a $1400 blow ALL at once to your wallet.

I say do it, man, and dont skimp on the extras!! -- the 1.83/2.0 deal is up to what you think you need -- but Get a nice bag! [most bags are cheaper online rather than the apple store.] Get a Mini-DVI cable! Get a bluetooth mouse! [maybe]

Apple IIgs · Jul 23, 2006, 11:03 PM

Well with the 0% financing there is no extra over time for sure... as long as it's paid within 24 months. I've just never financed (interest or not) a computer before. Sure i've done 0% interest on other things like 52" HDTV, Washer Dryer, lawn mower (thank you Sears for all those heh). Again my only question is I guess the longevity of this release.... all be it I'm typing this message on a powerbook G4 550 which I've had for more than 2 years, but of course it's quite outdated now as far as full functionality with modern day web technology. So, will I feel like I'm kicking myself in the future for still having to lay down cash on a computer that (maybe) close to less than 2 years from now will be outdated tech...that I still will be not "owning". Ok so I guess I'm over analyzing the whole thing. I just am not the type of guy to throw money at something without truely feeling confident that I am getting my full money's worth (in this case in the long run).
feh.

BikerJonTN · Jul 24, 2006, 04:52 AM

If you want to purchase a MacBook at this point in time, then taking a 0%, 24-month loan to pay for it instead of using cash is like money in your pocket. Why? Firstly, 0% interest is the same as paying cash since you never pay any extra over the principle cost of the product. Spreading your payments out over any length of time is always easier to handle than paying the entirety all at once. If you have problems managing bills and knowing your monthly limits, then I suggest making your payments automatic through your bank or credit card services. More importantly is the fact that the 0% loan leaves all of your cash in your control to invest it elsewhere while you make your payments. Put the cash into a short-term time deposit with your financial institution. A well-known bank currently offers a 4.5%, 2-year certificate of deposit (CD).

Let's look at a specific scenario. Say the absolute cost of the MacBook after all taxes and fees and what have not is $1,200.00, and you decide to take the 0% loan and pay the balance back for the full two years. First, you will spend exactly $50.00 each month paying the bill. Lets also say you initially put the $1,200.00 into the aforementioned CD. Over 24 months, the CD will be valued at approximately $1,310. When you cash in the CD, you will have, essentially, reduced the cost of the MacBook to $1,090.

The above scenario assumes you have $1,200.00 to place in financial limbo for 24 months while still making the monthly payments, but I don't feel this is an outrageous assumption. Alternatively, if you do not have the means to lock up $1,200.00 for 2 years, then place what money you do have into a liquid savings account (an account that can be withdrawn from at any time). The savings account will most assuredly offer a lower interest rate, but anything they give you is better than the 0% you're paying for the MacBook.

In summary: if at any time a consumer is offered 0% interest loans for the purchase of an item one would otherwise purchase with cash, then it behooves the consumer to take advantage of said loan and invest the money that would otherwise be spent immediately into a medium which provides the consumer with interest on the money. Taking the loan has an additional side effect of creating more loan history for the consumer which serves to increase the consumer's credit score (assuming no payments are late or the consumer doesn't default on the loan).

Apple IIgs · Jul 24, 2006, 11:25 AM

Hey now there's an enlightening proposition. Thanks BikerJonTN for giving the financial benefits to this deal.

Apple IIgs · Jul 24, 2006, 01:32 PM

Well...

it would be nice if any of the CompUSA's in my area had any in stock. The only model I can find in stock in the blackbook, which I don't really want to spend the xtra dough on to get black plastic. The guy at the store said it would be 10-15 days (might be a stock answer) before they will get any more in... well the 0% ends on 7/29 so that kinda shoots the whole idea down if they don't get anymore in by then.

masugu · Jul 24, 2006, 02:40 PM

Whatever you do....pay the loan off asap. I had freinds paying off a long dead / obsolete Mac way after college because they were short of cash and the loan kept a growin'....Hart to justify a long loan on something which obsoletes so fast....

BikerJonTN · Jul 24, 2006, 05:04 PM

Masugu, this loan won't grow. That is the nature of 0% interest. You pay nothing extra.

Apple IIgs · Jul 24, 2006, 05:30 PM

...nothing extra as long as you do pay it off during the 24 month term...

So now I'm wondering if I want this deal enough to want to spend $9 more a month to get the black macbook, since none of the white ones are in stock anywhere near me. Sigh...

BikerJonTN · Jul 24, 2006, 05:42 PM

Spending extra on something you don't need or want to lock in a lower interested rate is false economy. An extra $9 per month is $216 in total. You won't be earning that much in interest from any short-term time deposit over 2 years with the price of a MacBook.

You should ask CompUSA to place an order for the computer you want, and pay for it immediately (with the loan). Take delivery of the machine 2 weeks later.

Dork. · Jul 24, 2006, 06:07 PM

Originally Posted by BikerJonTN

Masugu, this loan won't grow. That is the nature of 0% interest. You pay nothing extra.

Most 0% loans (at least, the ones I've taken out) actually do keep track of interest during the 0% period, they just waive the interest if you pay it off during the allotted time. If you're late paying it off, even if you only have $50 left on the loan on the day the 0% offer expires, the normal interest rate on the loan applies and now you're liable for all the interest you would have paid over the 0% period!

I'm not sure if this loan is the same way, all I'm saying is to read the fine print!

gnomexp · Jul 24, 2006, 06:22 PM

I'm also in a tough pickle as to whether or not financing something is even worth considering. I'm 18, living on my college campus, and am about to start my first year of college. I need a portable, durable MacBook for class and research, but don't know if I'll still be in the green on normal expenses next month. I just know I should bank as much of my stipends for expenses (rent, food, etc.) for future months in case something happens. I should also wait for my new job to start in a few weeks to be sure that I pull enough cash to consider financing a MB.

I'll probably wait for my first paycheck AND my stipend checks to come in and pay cash outright. I'll probably pay my rent 6 months in advanced and rely on my paycheck for food.

Apple IIgs · Jul 24, 2006, 11:31 PM

Originally Posted by BikerJonTN

Spending extra on something you don't need or want to lock in a lower interested rate is false economy. An extra $9 per month is $216 in total. You won't be earning that much in interest from any short-term time deposit over 2 years with the price of a MacBook.

You should ask CompUSA to place an order for the computer you want, and pay for it immediately (with the loan). Take delivery of the machine 2 weeks later.

Yah, I was wondering if CompUSA will do something like this.. It would make sense that they would. I guess I'll have to give them a call or stop by and ask. Thanks for the commentary.

Apple IIgs · Jul 28, 2006, 11:17 PM

So, as of today, I am a 1.83Ghz Macbook (week 25 I believe) owner! CompUSA got some instock today (so much for 10-15 days). I went with the 24 month 0% interest financing and added the Apple Care plan.
Down the road I still plan on upping the memory and buying an external DVD burner. Anyway thanks for all the good pointers folks.