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Just wondering!
#1
Why is it appliance center always use the 0% installment terms to attract customers?
But if you tried to examine well, The price of the item is much higher when you avail it in installment terms compared to buying it in cash basis. Have anyone notice it also?
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#2
(01-18-2018, 10:01 PM)mar06 Wrote: Yeah that kind of thing exist. I have try that before when we get that kind of thing. First we thought that they will use zero percent installment and after we examine that there is so change in which the price will immediately get bigger. It's so awful for me.

So in short, the 0% installment terms is a scam. Making it sounds like you purchased the item with no interest, but in reality the interest is already merge into it's price.
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#3
(01-18-2018, 11:49 PM)JB Fernandez Wrote:
(01-18-2018, 10:01 PM)mar06 Wrote: Yeah that kind of thing exist. I have try that before when we get that kind of thing. First we thought that they will use zero percent installment and after we examine that there is so change in which the price will immediately get bigger. It's so awful for me.

So in short, the 0% installment terms is a scam. Making it sounds like you purchased the item with no interest, but in reality the interest is already merge into it's price.


It's not always a scam. But in most cases it is. You just have to compare prices at different retailers and you'll get the whole picture. When you think about it, it doesn't make sense for a product to be cheaper or at least not more expensive when you pay in installments over a long period of time, compared to if you pay in cash right away. Merchants just use this trick to make it sound like it's a good deal and trick people into thinking they're lucky. Still though, I have seen products with no hidden interest rate, but it's really rare. Maybe the store was just trying to get rid off them quickly!?
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#4
(01-19-2018, 12:52 AM)chikatilo Wrote:
(01-18-2018, 11:49 PM)JB Fernandez Wrote:
(01-18-2018, 10:01 PM)mar06 Wrote: Yeah that kind of thing exist. I have try that before when we get that kind of thing. First we thought that they will use zero percent installment and after we examine that there is so change in which the price will immediately get bigger. It's so awful for me.

So in short, the 0% installment terms is a scam. Making it sounds like you purchased the item with no interest, but in reality the interest is already merge into it's price.


It's not always a scam. But in most cases it is. You just have to compare prices at different retailers and you'll get the whole picture. When you think about it, it doesn't make sense for a product to be cheaper or at least not more expensive when you pay in installments over a long period of time, compared to if you pay in cash right away. Merchants just use this trick to make it sound like it's a good deal and trick people into thinking they're lucky. Still though, I have seen products with no hidden interest rate, but it's really rare. Maybe the store was just trying to get rid off them quickly!?

Yeah. It's kinda like mind conditioning for the customers. Making them feel like they got lucky to avail this installment terms for 0% interest. But in the other side, Actually it is still somehow good for those who doesn't have enough savings or money to but the stuff they want or need.
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#5
Is this some kind of hidden hire purchase?Hire purchase is always expensive because remember that the company still has to make a profit. They still have to compensate themselves for the risk, they are taking on you.
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#6
I think it's a marketing strategy. It would be impossible to have 0% installment in all appliances using a credit card they just want to attract more customers to increase their sales. Customers would think that they're going to save lots of money but the truth is, there is still interest in it. People are aware of this kind of tactics but they still bite the 0% installment because they don't have a choice instead of using the cash they just going to swipe their credit card.
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#7
To be honest i've never tried both Gcash and Paymaya but from what i have heard from my friends who have tried using Gcash and Paymaya they all unanimously in favor of using Gcash. And when I ask them why they choose Gcash, the answer was it's hustle free, easy transact and low interest rate. So in short I may advise you to use Gcash in my point of view their company is more stable here in the Philippines than Paymaya which is I think new.
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#8
Thats what you call Marketing, Bro! Who wouldn't want O% interest plus flexible payment contracts? Marketers knew that a lot of people wanted to save as much as possible, but since not everyone isn't vigilant to distinguish which deal is real and which is not, a lot of shoppers are still becoming a victim of this 0% marketing strategy. But I am not saying this in general, of course there are shops that's offering 0% interests for real and with transparency.
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#9
Yes. I always notice it. They are using that as a marketing strategy to attract customers. they are using false advertisement to deceive customers in order for them to avail such loans, cards, and installments.
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#10
I don't think we have to blame them for any reason. The fact is that this is business and the added price to the cost of those products is the profit they make from doing such business. So, we really need to understand that and not think that they want to exploit the public. All we have got to do is have the belief that we can pay it off at the end and have that product to ourselves.
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