Zero Percent Financing

Zero Percent Financing

Why Zero Percent Financing Is NOT A Good Deal

We notice this financing ploy advertised all of the time as we offer financing to homeowners across the Wasatch Front. On this page, we reveal researched and confirmed information as to why zero percent financing is not a good deal. This may be contrary to some homeowners beliefs.

On this page, we expose the truth about how this affects your financial well being.

Do keep in mind that these types of plans usually requires a shorter-term loan, which often require higher payments. This applies to home improvements, credit cards, auto loans and the like.

Zero Percent Financing Question

What Is A Zero Percent Financing Interest Free Introductory period

Sounds too good to be true? Beware as this is a financing option which is often used across the country to lure buyers into a low-rate deal. After signing on, the promotion period of the 0 percent option “expires” and the buyer is then switched to a different (higher) rate. The rate will increase once the introductory period ends. This intro period and the fact that their rate is going to go up is often hidden and not transparent to the public eye.

We hear of this happening to homeowners all of the time. They share their stories with us as a company who offers financing to homeowners. Below is more information on what to watch for and consider. Do this before selecting the company you want to work with and the financing plan.

cash vs credit price

Remember, Nothing Is For Free And By Choosing A Lower Rate, The Price of the Purchase Will Be Higher.

So think about this, when we get a credit card with high rewards, who pays for those reward points?

With a credit card, the merchant pays a higher rate for you to receive rewards. The zero percent offers, we are being sold, the person offering the 0 percent option, is charged a fee/percentage for offering the option. The merchant or business will most likely, in turn, add the cost onto the customer’s purchase. This is to offset the extra charges (include it in the purchase price).

This is also why we may have noticed in the past, there were different prices at the pump for cash vs credit card purchases. Credit card processors, as well as the credit card issuers, all charge a fee. This is how they make their money. Business are able to offer these appealing “deals” by charging a bit more for their products or services.

Time Clock

The Zero Percent Financing Time Option Has Passed

Good deals often have their thorns. Banks depend on us taking the bate on low rate offerings. Then when the rate goes up, they make extra revenue which more than makes up for the initial savings to the consumer. The old story that nothing is for free holds true.

With the zero percent financing and other creative deals allows them to make more money and stay in business.

Consumers are often surprised when all of a sudden the interest-free deal hits them hard in the wallet. That good deal didn’t end up ad good and it initially sounded. Then comes the realization that we’ve been taken advantage of.

Utah EZ Pay Financing

We End Up Getting Hit Twice From What Appeared To Be A Great Deal

1 You ended up paying a higher price for the product or service to offset the very low or zero rate. Had you not fell for the offer, you would have paid less for the same service.

2 Your low rate or zero rate period as ended and now you find yourself paying a higher rate. Again, this is how they make their money. This is accomplished using your personal credit and now you get to pay for it. So now you end up paying even more by accepting the offer.

Helpfull Financing Links

Look For Transparency In Financing With FULL Disclosure

Keemer Plumbing believes in just that! We offer honest financing options so you can get your plumbing work done without hidden surprises!

Take a look at out Utah EZ Pay financing. There you will see full disclosure and transparency on rates and fees. We are happy to answer any additional questions you might have!