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(CTV News)   'Extended warranty'? How can i lose?   (toronto.ctvnews.ca) divider line
    More: Stupid, Money, Debt, Interest, Finance, Payment, Allison of Brampton, CTV News Toronto, form of a promotional offer  
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3755 clicks; posted to Main » on 19 Oct 2021 at 11:38 PM (5 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



32 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2021-10-19 8:53:14 PM  
TFA has absolutely nothing to do with extended warranties, subby, which aren't always a scam.

TFA is about people who think "rent to own" as an approach to buying household appliances and equipment like stereos, televisions, and computers is ever anything *but* a scam.
 
2021-10-19 11:40:43 PM  
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2021-10-19 11:42:29 PM  
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TWX
2021-10-19 11:44:54 PM  

Pocket Ninja: TFA has absolutely nothing to do with extended warranties, subby, which aren't always a scam.

TFA is about people who think "rent to own" as an approach to buying household appliances and equipment like stereos, televisions, and computers is ever anything *but* a scam.


Yeah.  Layaway can sometimes work if one is trying to buy something whose lifespan isn't measured by obsolescence, but short of most mortgages and some auto loans, it's generally a raw deal to receive-first an pay-later.

My biggest complaint with layaway, which requires one to pay first over installments, then receive the item, is that it means one cannot save up money to purchase unless the money is encumbered.  This shows a lack of discipline and basically means trusting someone else to hold one's money in advance and actually provide the item at the end.  It also requires that whatever one is buying to be worth having so many months later, which is a problem for computers particularly and for electronics generally since advances will either render the item closer to being obsolete before it's finally received, or will make the price for the item be lower at that future date if one had just saved one's money one's self.
 
2021-10-19 11:44:58 PM  
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And......scene.
 
2021-10-19 11:46:45 PM  
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2021-10-19 11:48:31 PM  
A Missing Crayon Could Bee Anywhere
Youtube H8nCRpZreZc
 
2021-10-19 11:48:40 PM  

Pocket Ninja: TFA has absolutely nothing to do with extended warranties, subby, which aren't always a scam.

TFA is about people who think "rent to own" as an approach to buying household appliances and equipment like stereos, televisions, and computers is ever anything *but* a scam.


Yep.  A friend of mine inevitably manages to damage his electronics and need an extended warranty.  They've absolutely saved him a fortune.  As for financing always being a scam, though, eh.  Couple years ago I financed a $4000 gaming rig, knowing I'd be able to pay it off within a year, and did.  There was interest involved, but not exploitative, and it got me what I wanted in a time frame during which I could most appreciate it.  My experience has been that if they're up front in calling it a loan, they're probably not sharks.  If they're calling it "financing," beware.
 
2021-10-19 11:52:00 PM  
My cousin took 5 years to pay off a $3000 used Hyundai. He could've easily paid it off, but he was giving all his money to his cheating girlfriend.
 
2021-10-19 11:55:45 PM  
Well duh. Always read the Ferengi print. If you can't, have someone read it to you and then smack you upside the head with it when you're still considering the loan.
 
2021-10-19 11:56:49 PM  
indianz.comView Full Size

Loans that go up to 360% APR? How can I lose?
 
2021-10-20 12:09:20 AM  

MythDragon: [indianz.com image 545x409]
Loans that go up to 360% APR? How can I lose?


Can I pay her in warm slightly used blankets?
 
2021-10-20 12:19:07 AM  

MythDragon: [indianz.com image 545x409]
Loans that go up to 360% APR? How can I lose?


Yikes!  I'd call them.....scalpers....
 
2021-10-20 12:22:30 AM  
Those who understand interest, earn it.  Those who don't understand interest, pay it. Moon Yu, Art of Finance
 
2021-10-20 12:31:12 AM  
At least it was a solid piece of technology that will still be top of the line for years.
 
2021-10-20 12:33:03 AM  
Extended warranties?  Rent to own?  Layaway?

Looks as if the lady in the article took out a loan with deferred payments and interest, then failed to repay the loan before the promotional period ended, resulting in a shiatton of interest.

I bought replacement windows for my house using a similar loan.  While reading through the paperwork, it stated that the interest rate would jump to 28% at the end of the promotional term (24 months) if not paid off in full, and that they would retroactively apply that rate against the principal balance during the promotional term, too.  Holy farksticks.  I paid that loan off two months early just to ensure that no hiccup would delay paying it off in time.
 
2021-10-20 12:34:02 AM  
I got a voice mail from one of them today about 15 minutes after I got a call from the auto shop where I had dropped off my car earlier.

I guess the disadvantage of paying a seemingly reputable auto shop is that I'm not sure if they're charging me a fair price and going to do the job right unlike being sure that if I pay some extended warranty scammer far too much money I will definitely be ripped off.

The auto shop is the one I'm really not entirely sure of. I actually think they'll do okay, but those flakes gave me a price that got my senses reelin'.
 
2021-10-20 12:50:06 AM  
A few years ago when I was still married we bought a house. Turns out the furnace was busted oh, and we had to get a new one. The furnace guy offered is a financing plan, and tried to get us to focus on the monthly payments. But the interest rate was absurd, it was like 10% at a time when the bank was offering 2.1. If I had taken the proposed financing I would have paid almost twice the cost of the Furnace by the time it was done. Happily, we were able to just pay it off in one chunk because we had a bit of leftover money after buying the house. But not after the furnace and AC got replaced!

People selling you stuff an offering finances are often the worst conceivable way to pay for something. I could have gotten a credit card with a similar interest rate.
 
2021-10-20 1:08:56 AM  

Dinjiin: Extended warranties?  Rent to own?  Layaway?

Looks as if the lady in the article took out a loan with deferred payments and interest, then failed to repay the loan before the promotional period ended, resulting in a shiatton of interest.

I bought replacement windows for my house using a similar loan.  While reading through the paperwork, it stated that the interest rate would jump to 28% at the end of the promotional term (24 months) if not paid off in full, and that they would retroactively apply that rate against the principal balance during the promotional term, too.  Holy farksticks.  I paid that loan off two months early just to ensure that no hiccup would delay paying it off in time.


I guess one might say the payoff period was a limited window of opportunity?
 
2021-10-20 1:30:37 AM  
Allison said seven years ago the laptop had a purchase price of $723. She paid $23 per month for 90 months for a total of more than $2,000.

She was shocked to find out this year she still owed $397...

"So it was quite a surprising predicament for me. I thought how is that even possible? I've paid for this computer four times already," said Allison.


I can understand that these lenders target people with poor math skills, but... really?
 
2021-10-20 2:25:52 AM  

Prof. Frink: Dinjiin: Extended warranties?  Rent to own?  Layaway?

Looks as if the lady in the article took out a loan with deferred payments and interest, then failed to repay the loan before the promotional period ended, resulting in a shiatton of interest.

I bought replacement windows for my house using a similar loan.  While reading through the paperwork, it stated that the interest rate would jump to 28% at the end of the promotional term (24 months) if not paid off in full, and that they would retroactively apply that rate against the principal balance during the promotional term, too.  Holy farksticks.  I paid that loan off two months early just to ensure that no hiccup would delay paying it off in time.

I guess one might say the payoff period was a limited window of opportunity?


external-content.duckduckgo.comView Full Size
 
2021-10-20 2:47:30 AM  

cyberspacedout: Allison said seven years ago the laptop had a purchase price of $723. She paid $23 per month for 90 months for a total of more than $2,000.

She was shocked to find out this year she still owed $397...

"So it was quite a surprising predicament for me. I thought how is that even possible? I've paid for this computer four times already," said Allison.

I can understand that these lenders target people with poor math skills, but... really?


Maybe she should invest in some sort of equipment that can help her learn math, or at least do these sorts of calculations. Something to help compute, as it were. I have a 12 year old Dell, she's welcome to have it for $100 now, or a low payment of $99.99 a month for 12 months.
 
2021-10-20 3:03:51 AM  
I actually got a call last evening from a woman "who has been trying to reach me about my car's extended warranty".
FFS, this is a damn meme now!   Are people so stupid that this is still a lucrative scam?
I laughed at her and told her she needed new material.
 
2021-10-20 3:13:49 AM  
Just so I've got this right (it's late)....

...after 24 months @ $23/mo, she would have paid $552.  Meaning that during month #24, all she would have had to do is pay an additional $148 (or socking away roughly an additional $6/month during the duration), and she would have had the whole thing paid off with zero interest?  But then she kept up with the monthly payment for another 5 years?

I know the saying is it's expensive to be poor in this country, but that's just some farking stupid right there.
 
2021-10-20 4:27:37 AM  

Representative of the unwashed masses: MythDragon: [indianz.com image 545x409]
Loans that go up to 360% APR? How can I lose?

Can I pay her in warm slightly used blankets?


Awful
 
2021-10-20 5:07:48 AM  
If you're paying $23/month on a revolving credit account, you are ONLY paying the monthly interest.

If you're paying $23/month for 7 years and you don't notice your balance is unchanged, your inattention to detail is the reason these companies stay in business.

A lot of industries cater to the smart, savvy consumer BUT RELY on idiots and addicts for profits. Which one are you?

/That liquor store that sells lottery tickets?
//Probably 10 people keep that store open
 
2021-10-20 8:15:53 AM  
Back in high school, a friends' grandma bought him a TV for his birthday or Christmas.  One day, when he brought in her mail, he saw a bill from a finance company.  Turns out it was for his TV.  A little snooping and he realized she'd financed his TV and was making minimum payments.  He mathed it out and realized she'd be dead before she finished paying off that TV.  So he saved up and paid off the bill.

As for extended warranties, I made out pretty well on those back in the day.  Bought one from Circus Shiatty with my first portable tape player.  Just before the extended warranty was up, the headphone jack started to get loose.  Went in and applied the original purchase price to one of the best players in the store and bought another warranty.  Rinse/repeat every couple years, moving to CD players.  Eventually, CD players were so cheap it wasn't sustainable so I traded the last one in for a boom box and dropped out of the warranty system.  So, for the initial investment plus $15-20 every couple years, I had great portable audio players.  But that was an edge case that I stumbled into when I was a kid.  Those warranties were useless for home electronics that sat on a shelf their entire life.
 
2021-10-20 8:49:00 AM  
If you must finance something you're almost always better off going through your own bank / credit union or even lending tree or a 3rd party lender vs going with the financing of the company selling the item, no-interest promotions notwithstanding. Most of the time, the company selling the item is getting a kick back from the bank issuing the loan and guess who is paying that kickback in the form of a higher APR?

I installed a fence around my property and it made more sense to finance it than pay out of pocket, the fence company worked with a 3rd party financing company with a 17.99% APR, I got a line of credit from my credit union for around 6.5% and paid it off in like 8 or 9 months vs 36.  Even the fence salesperson was like "Yeah, any bank or private loan is going to blow our financing out of the water".

I do take advantage of no interest promotions though, they are handy, but if you don't pay them in full by the end they will charge interest from day 1 and tack it all on.  Gotta be certain you can pay it off or be prepared to eat those costs.
 
2021-10-20 9:32:35 AM  
5 years ago I purchased a monitor for about 1000USD, I didn't have the money, but I wanted it now.

I also didn't feel like talking with the bank, who like, takes things seriously and stuff.

So, over 5 years, it would cost me a total of 3000USD! But I figured, that I wanted it now, and I'd just pay it off, as if it was a 12 month loan (you're allowed to pay more), meaning the interest rate would have been resonable.

I didn't of course. But my last payment it in 14 days, still use the monitor. Not sure if it was worth 3K USD though. It was actually, but paying it off over 1 year would have made it better.

/CSB bro. I disagreed about a debt I had, and went to court. The court found I were responsible for the debt (it involved me moving without cancelling my ADSL line), so out of spite, I said I could only afford 15USD a month.

This would not cover the interest, so it would grow indefinetly. I called the lawyers, and they said "Oh yeah, well we'll make it interest free". So, now I am repaying it superslow at 15USD a month, interest free. About 3-4 years left now.
 
2021-10-20 11:00:19 AM  

Wine Sipping Elitist: A lot of industries cater to the smart, savvy consumer BUT RELY on idiots and addicts for profits. Which one are you?


The schools really, really need to fix their damn math curriculum. We learned compounding interest in high school, but it was so sterile it just seemed like something you needed to learn for math class/standardized tests. I got a little book when I was a college intern, that actually had "this is how credit cards work" and that small change in approach made it a much more valuable lesson. ("If you had a $1000 balance and only paid the minimum, it would take this long and it would cost this much.")
 
2021-10-21 8:28:47 AM  

Ketchuponsteak: 5 years ago I purchased a monitor for about 1000USD, I didn't have the money, but I wanted it now.

I also didn't feel like talking with the bank, who like, takes things seriously and stuff.

So, over 5 years, it would cost me a total of 3000USD! But I figured, that I wanted it now, and I'd just pay it off, as if it was a 12 month loan (you're allowed to pay more), meaning the interest rate would have been resonable.

I didn't of course. But my last payment it in 14 days, still use the monitor. Not sure if it was worth 3K USD though. It was actually, but paying it off over 1 year would have made it better.

/CSB bro. I disagreed about a debt I had, and went to court. The court found I were responsible for the debt (it involved me moving without cancelling my ADSL line), so out of spite, I said I could only afford 15USD a month.

This would not cover the interest, so it would grow indefinetly. I called the lawyers, and they said "Oh yeah, well we'll make it interest free". So, now I am repaying it superslow at 15USD a month, interest free. About 3-4 years left now.


username checks out
 
2021-10-21 11:40:54 AM  

Thank You Black Jesus!: Ketchuponsteak: 5 years ago I purchased a monitor for about 1000USD, I didn't have the money, but I wanted it now.

I also didn't feel like talking with the bank, who like, takes things seriously and stuff.

So, over 5 years, it would cost me a total of 3000USD! But I figured, that I wanted it now, and I'd just pay it off, as if it was a 12 month loan (you're allowed to pay more), meaning the interest rate would have been resonable.

I didn't of course. But my last payment it in 14 days, still use the monitor. Not sure if it was worth 3K USD though. It was actually, but paying it off over 1 year would have made it better.

/CSB bro. I disagreed about a debt I had, and went to court. The court found I were responsible for the debt (it involved me moving without cancelling my ADSL line), so out of spite, I said I could only afford 15USD a month.

This would not cover the interest, so it would grow indefinetly. I called the lawyers, and they said "Oh yeah, well we'll make it interest free". So, now I am repaying it superslow at 15USD a month, interest free. About 3-4 years left now.

username checks out


Yeah, I learned it from reading his book. So many good tips.

I think I've managed to draw this debt out for 15 years, all the whilst annoying everyone and costing resources for everyone.
 
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