OT - No payments until 2007

[TOM KAN PA]

This is off topic, but I figure there must be some readers in this group that
can answer my question.
How do they do it? There's a furniture outlet (Levins') that is advertising a
sale with no money down, no interest, no payments until 2007. How do they do
this?
I've heard that on some of these deals that advertise "No Interest until 2007"
have you pay just the principle. The interest accumulates and is due in one
lump sum when the time comes.
But if the ad is correct for this furniture sale, no money exchanges hands for
three years.
What's in the fine print? What's the gimmick?
BTW, La-Z-Boy is offering the same sale.

[0tterbot]

"TOM KAN PA" <tomkanpa@aol.comic> wrote in message
news:20031226135422.08055.00001634@mb-m16.aol.com...
> This is off topic, but I figure there must be some readers in this group
that
> can answer my question.
> How do they do it? There's a furniture outlet (Levins') that is
advertising a
> sale with no money down, no interest, no payments until 2007. How do they
do
> this?
> I've heard that on some of these deals that advertise "No Interest until
2007"
> have you pay just the principle. The interest accumulates and is due in
one
> lump sum when the time comes.
> But if the ad is correct for this furniture sale, no money exchanges hands
for
> three years.
> What's in the fine print? What's the gimmick?
> BTW, La-Z-Boy is offering the same sale.

i always thought it was that the company was big enough to carry the debts
for a while. *however* - that's when it was only "no payments for 6
months"-types of things. 3 years is a bloody long time(!!)

hopefully someone knows... it is very curious.
kylie
--
www.rdj.com.au

[Dawn]

On 26 Dec 2003 18:54:22 GMT, tomkanpa@aol.comic (TOM KAN PA) wrote:

>This is off topic, but I figure there must be some readers in this group that
>can answer my question.
>How do they do it? There's a furniture outlet (Levins') that is advertising a
>sale with no money down, no interest, no payments until 2007. How do they do
>this?
>I've heard that on some of these deals that advertise "No Interest until 2007"
>have you pay just the principle. The interest accumulates and is due in one
>lump sum when the time comes.
>But if the ad is correct for this furniture sale, no money exchanges hands for
>three years.
>What's in the fine print? What's the gimmick?
>BTW, La-Z-Boy is offering the same sale.
>
The shop makes their money by charging over the odds for the goods.
The finance company make their money by charging exorbitant interest
rates to the ones that forget or can't make the payments or don't make
a payment on time.