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Forum topic by TheLarc posted 02-23-2015 01:18 AM 1945 views 0 times favorited 18 replies Add to Favorites Watch
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TheLarc

10 posts in 1274 days


02-23-2015 01:18 AM

Topic tags/keywords: woodcraft financing tablesaw

I was in my local woodcraft this weekend and noticed they are now offering financing for purchases through Wells Fargo. Has anyone else seen this or used this feature for purchasing larger tools? I’m thinking it could possibly be a nice option instead of tyi up so much liquid income like 3k on a table saw all at once.


18 replies so far

View Kazooman's profile

Kazooman

628 posts in 1417 days


#1 posted 02-23-2015 02:13 AM

Basic advice: Don’t.

View buster09841's profile

buster09841

16 posts in 761 days


#2 posted 02-23-2015 02:30 AM

i have never done it through woodcraft but it is probably similar to other store cards

some thoughts…

see if there is an interest free period and divide the payment up evenly for the number of months with no interest and see if you can swing it.

if no free interest period check to see the interest rate…if it is higher then say 11-12% just consider using your own credit card to fund the transaction since a typical credit card will be between 8-18% annually…it if you have to pay interest to someone might as well get some points from it (assuming its a points card)

lastly having alot of open cards with no balances on them can actually hurt your credit score because you have the ability to spend all the money, key word is ability there…

i could say lots more but it bores most people haha….and i probably over think these things anyways.

i would check on the first two things i said and if they fit and work out i say why not.

i charge everything but always make sure that i have the cash to back it up, basically if i can’t afford it before charging it i won’t buy it, in other words i don’t buy it unless i have the cash…charging it just gives me points for later use. and since i pay off my balance each month i pay no interest and hold my cash in accounts that pay me interest for an extra 30 days.

again sorry for the tmi and blabing but those are my thoughts.

View Gixxerjoe04's profile

Gixxerjoe04

835 posts in 1041 days


#3 posted 02-23-2015 02:40 AM

I’ve never seen it in my woodcraft but I was wondering why they didn’t, business wise it’s a smart idea for them I’d think. If I were them I’d def offer 0% financing for a certain period of time, would probably help with sells. I’d love to buy a bunch of stuff they have haha, of course even with financing, depending on how it is percentage wise and all that, I wouldn’t do it unless they had a 0% time period and I’d know I could pay it off in that time period.

View TravisH's profile

TravisH

452 posts in 1400 days


#4 posted 02-23-2015 03:26 AM

I am in the if you can’t pay cash for it then you don’t need it camp.

View Dark_Lightning's profile

Dark_Lightning

2635 posts in 2574 days


#5 posted 02-23-2015 03:46 AM

If I buy a tool at Woodcraft or Rockler (or other wood boutique or BORG), I use my AMEX or pay cash and I pay the AMEX bill in full when it comes. When I worked as a mechanic (mid-70’s until ‘84), I had a charge account with the Snap-On tool salesman. That was as close to drugs as I want to go. I’d be right there when the truck pulled in, to get tools that I found that I needed during the time from his last visit. While I needed tools to get the job done, charging them and then trying to pay them off was a painful process. Nothing like the right tool for the job, though. If I got a discount for using that Woodcraft account, then I would do it. But I would still pay the bill in full when it came. It took awhile for me to get through to my wife that the credit cards have to be paid when the bill comes. Otherwise, we would be living beyond our means, and bankruptcy is a real specter when that happens. Our financial adviser encouraged us to go on cruises every year last April when we had our financial status reviewed. The reason we have the money and I could retire at the age of 62 is because we didn’t go on cruises and/or otherwise squander my hard-earned money, but plunked it into my stock savings plan. It hasn’t been easy, though, because I want this money to last the rest of my life, which may be as long as 30 more years.

-- Random Orbital Nailer

View soob's profile

soob

223 posts in 673 days


#6 posted 02-23-2015 04:29 AM

Some folks brag about buying their Snap-on tools with cash. What they don’t realize is that they’re getting taken even more than the folks who buy on credit, because the financing charge is built into the outrageous price of the tools.

Fortunately the store credit folks aren’t quite the extortionists that Snap-On and company are. But they don’t offer credit because it’s a good deal for you. They expect to make money off it somehow. But that doesn’t mean you can’t come out ahead if you’re smart and disciplined. As a general rule, though, if you can’t pay cash for something other than a car or a house, you shouldn’t try to finance it, especially with a balloon payment type thing, six months no interest, etc.

View Redoak49's profile

Redoak49

1951 posts in 1453 days


#7 posted 02-23-2015 01:03 PM

A Snap-on tool feels so good in your hand. It is kind of like a LN plane. Both the Snap-on and LN feel good in your hand but a Craftsman and Stanley will get the job done.

View soob's profile

soob

223 posts in 673 days


#8 posted 02-23-2015 04:06 PM

Hand planes are used for squaring and finishing wood, where appearance and precision really matter. You can’t say the same for mechanicing tools. I’ve never been all that impressed with Snap-On or other truck brands (other than some specialty tools). Their stuff is more expensive because of the business model, like a used car dealership with low credit standards. Why do the cars cost twice the bluebook? Because they’ll loan you money to buy them when no one else would. It gets them around usury laws.

View TheLarc's profile

TheLarc

10 posts in 1274 days


#9 posted 02-23-2015 10:06 PM

Thanks for all the response – I am more on the side of looking at it if there is a zero interest period, I was hoping possibly someone has gone through it and have any insight on their offers.

The guys at my local woodcraft didn’t know much about it off hand and couldn’t find their paperwork on it. I think that would be the only benefit. If there is interest I might as well just use my American Express and get Skymiles for it and just pay it off each month as we always do. I am looking into to order a Sawstop PCS and possibly a larger Powermatic bandsaw and jointer among some other things and thought that if it were possible to spread it out over 12 months of no interest I’d much rather take that route then tie up liquid income.

The only debt I carry is a mortgage, and that is only because it is at 2% rate. Instead of cashing out a fund and paying the house off, I’d rather have that liquid income making much more than the 2% interest I’m paying on my mortgage. I was thinking on a smaller scale that instead of spending 3-10k of savings at once why not take it at no interest for 12-18 months which breaks down to an amount that I can cover based on regular paychecks.

I just hate touching any savings or investments for large purchases – I did the same thing when I ordered all new viking appliances and got a Zero interest for 24 months on them.

View soob's profile

soob

223 posts in 673 days


#10 posted 02-23-2015 10:35 PM

I am a cheapskate so I would buy something like that from an online retailer that doesn’t charge sales tax in my state. I imagine that they’re all drop-shipped anyway, so it doesn’t matter who you buy from.

View waho6o9's profile

waho6o9

7174 posts in 2041 days


#11 posted 02-23-2015 10:43 PM

My Woodcraft doesn’t offer this financing option.

View TravisH's profile

TravisH

452 posts in 1400 days


#12 posted 02-23-2015 11:13 PM

The zero interest..invest thing is great but in reality the bulk that use it pay interest in the long run and never invest anything.

View soob's profile

soob

223 posts in 673 days


#13 posted 02-23-2015 11:23 PM

For whatever reason they no longer do the “no payments for __” promotions. That means you’ll have to mail in a minimum payment every month, even if there’s no interest. If you miss one, you get dinged with huge late fees. It’s not worth the hassle unless it’s a lot of money.

View bonesbr549's profile

bonesbr549

1176 posts in 2532 days


#14 posted 02-23-2015 11:32 PM



For whatever reason they no longer do the “no payments for __” promotions. That means you ll have to mail in a minimum payment every month, even if there s no interest. If you miss one, you get dinged with huge late fees. It s not worth the hassle unless it s a lot of money.

- soob

Many years ago I got into trouble with a credit card. I got out of trouble and swore I’d never run a balance again. Thank god in 25 years, I’ve been able to keep that promise. I do however use my discover to buy everything so I get the cashback which last year was 1500 bucks. I’d run my mortgage payment through if could. However I pay the balance in full every month! I’ll never make int payment s again if i can afford not to.

If you want to do the 6 months same as cash, and can shop online, PayPal is a great choice. I’ve done several of those. Again, pay it off on time or you will pay dearly.

-- Sooner or later Liberals run out of other people's money.

View TheDane's profile

TheDane

4997 posts in 3128 days


#15 posted 02-23-2015 11:32 PM

We replaced our HVAC system last fall ($9K) ... the contractor offered 1 year, ‘same as cash’. It turned out to be a Wells Fargo Visa account. We have to make a minimum monthly payment, and so long as we pay off the balance before the year is up, there is no financing charge.

It helps for cash flow management purposes, but if you mess up, the finance charges are huge.

Caveat emptor.

-- Gerry -- "I don't plan to ever really grow up ... I'm just going to learn how to act in public!"

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