Bike Forums - View Single Post - method of purchase

07-25-13 | 08:49 AM

#55

merlinextraligh

pan y agua

Joined: Aug 2005

Posts: 31,809

Likes: 1,231

From: Jacksonville

Bikes: Willier Zero 7; Merlin Extralight; Calfee Dragonfly tandem, Calfee Adventure tandem; Cervelo P2; Motebecane Ti Fly 29er; Motebecanne Phantom Cross; Schwinn Paramount Track bike

Quote:

Originally Posted by i_live_in_sf

I think your math's a bit off here: Purchasing a $3k bike at 24% interest paid off over 12 months only pays a total of $404 in interest - or 113% of the total purchase price. A more realistic cc rate of 9% would only pay $148 extra over 12 months.

EDIT: Never mind, i saw that you qualified that number with: depending on how long you take

The 24% is realistic for 0% deals. That's part of the problem. Most people can probably get a 9% rate, and many even lower. The 12 month deals have the absurdly high rate on the back end, and no one objects to it because they intend to pay it off in the promotional period.

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