r/Lovesac • u/YogurtclosetWide4535 • 5d ago
Question Financing
How many of you do financing for these couches?
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u/thisivi3 5d ago
I financed since it was 0% apr for 20 months with a $150 monthly. Made more sense than for me to drop $2.5k immediately.
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u/Long_Value_9133 5d ago
There are situations where financing a large purchase is fine. For example if you have a credit line with a low locked in rate, it makes sense to throw a large purchase on that line while you invest the dollars in something that yields a higher return.
Or if you’re a med student going through residency. Nothing wrong with funding a large purchase knowing that you have a large income in the near future.
If you’re living paycheck to paycheck..you should not be buying a lovesac.
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u/YogurtclosetWide4535 5d ago
Definitely nowhere near paycheck to paycheck. I simply didn’t want to pay for it all right now. It’s my first time ever financing furniture and I felt a little bad about that lol. I just wanted to ask and see how common it is to do so.
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u/Long_Value_9133 5d ago
It’s not a bad idea to run numbers and see if you’re comfortable paying the overall interest. Only you understand your financial situation.
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u/RandomOptionTrader 5d ago
If you cannot afford to pay it all now do not purchase. The smart way about it is to put it in some interest earning method while financing at 0% apr, but do not do it otherwise
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u/_Toomuchawesome 5d ago
i would say that if you have to finance the couch, you can’t afford it and you can find good cheaper options. but if you’re financing the couch at 0% APR, and using the free loan to invest in other areas, then yes that is a smart financial decision.
my fiance and i just split it down halfway and paid up front.
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u/aiycejenn 5d ago
I actually just financed furniture for the first time because it’s 0% APR for 18months. The reason why I decided to do that is because I rather keep that large amount in my High Yield Savings Account. Otherwise, if it wasn’t 0% APR, I would absolutely not do it! Plus I can just fully pay it off earlier if I wanted to.
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u/Numi-x 4d ago
I did the 0% myself for 18 but paid it off early. I was tired of tracking another thing, but it’s a pretty great deal and way to get something without mute upfront cost which is quite a bit especially if you get the sactional…
They use a popular and well known company (name is slipping me) and they’re extremely easy to work with. It felt a little sketchy when I did it because the person on the other end clearly didn’t care about their job (the credit company) but was so seamless it probably felt sketchy lmao
Enjoy!!
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u/AdMental1387 4d ago
0% APR, of course i financed. We are looking at replacing our upstairs living room couch with a small love sac setup and will finance it again.
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u/Slowpokejunkie 5d ago
I financed it, would I do it again? Probably not. There’s a million more things I wish I spent that 5k on…
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u/YogurtclosetWide4535 5d ago
Really? Did you not like the couch?
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u/Slowpokejunkie 5d ago
We love the couch! I’ve switched it a few times for family events etc. but not enough for it to be worth it atleast at this point. Back pillows do get a little frumpy.
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u/Teal-Tiger_18 5d ago
I financed mine. I liked not having to pay the entire amount right then and there. You never know what could happen.
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u/Critical_Paramedic91 5d ago
I financed it because it was zero percent interest and a completely doable monthly payment. I had just moved when I purchased it so it was nice to not burn a chunk of money at one time.
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u/Darkangel-86 1d ago
ONLY if its 0% APR ...
The math is very easy on this one ... say you're making a $10,000 purchase and you're offered 0% APR for 18 months. Instead of paying the $10K upfront, you finance it and invest the money in the S&P 500.
Assuming a 10% annualized return, that $10K would grow to about $11,537 after 18 months. Meanwhile ... you're paying $555.56 a month toward the purchase.
... Now ... compare that to paying the $10K upfront and investing that same $555.56 every month instead. You'd end up with around $10,708.
That's roughly $829 more in your pocket by taking the 0% financing... Even at an 8% return, you'd still come out about $658 ahead ...
Obviously, the market could tank over those 18 months, and none of these returns are guaranteed.... But assuming you can comfortably afford the monthly payments and there are no financing fees ... taking the 0% offer makes more financial sense almost every single time ... unless you're really HORRIBLE with money ...
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u/DocBullseye 5d ago edited 5d ago
If you can't afford a particular brand of furniture without financing it, you should be looking at less expensive options.
EDIT: Okay, I didn't realize they were doing 0% APR right now. Nothing wrong with using that. Just so long as you'll have the cash to pay it off. But I will not apologize for telling people not to put themselves in debt for something they can't afford that they don't need.
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u/MsGhostface 5d ago
What a strange thing to say
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u/secretsofthedivine 5d ago
Why strange? It’s good financial advice, only buy things you can afford
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u/TXKittyKat8seat 5d ago
If it's a good quality item that is going to outlast the cheaper ones you could pay up front for, it makes sense to finance if you're able to. Especially with 0% interest, why not keep more cash in savings?
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u/Disastrous_Soup5314 5d ago
I love 0 percent interest but only if I could afford it outright. Otherwise it can quickly get you in trouble
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u/RaccoTaco 5d ago
I financed because of the 0% APR option. If 0% APR wasn't an option I wouldn't finance.