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Financing floors



If you are considering financing your new floor, I suggest you read this article. There are many companies out there today who offer long term financing. Companies Like Wells Fargo, GE Consumer credit, Citi Financial and more. All of these companies charge the retailer a percentage for offering you special financing. I'm sure you have seen offers that range from 90 days to over two years. There is no charge from the credit companies for offering 90 days sames as cash. There is a slight charge for offering six months, but it is not enough to worry about. The retailer will most likely absorb the cost of these two terms, however they will not absorb the cost of long term financing. The finance company will allow you to make payments over the terms, or you may choose no payments and elect to pay the entire balance at the end of the financing period. Waiting till the end to pay is to risky. I suggest that you go with the monthly payment option.

The problem with financing a floor, is that the interest rate the finance companies are charging the retailer could be tacked onto your bill with out you knowing about it. It is hardly interest free and will most likely cost you much more than you should be paying. You can expect pay an additional 10 percent or more, if you choose long term financing (usually more than one year). The next problem I see with financing a floor more than 90 days or six months is that your floor could show significant wear in a very short period of time. For instance, carpet will mat, crush and stain in a relatively short period of time. Do not under any circumstances finance a polyester carpet for more than a year. Polyester carpet does not hold up very well and will not perform long term. In essence your carpet could be worn out before your even finished paying for it.

If you choose to finance your floor, I would suggest asking the retailer what the interest/discount rate the consumer credit company is charging them for being able to offer you long term financing. I would ask for two quotes, one with financing and one without. The retailer may or may not choose to give you this information. If possible, consider paying cash for your new floor. If you do choose to finance the floor just make sure your floor will last longer than the financing.
12-24 months same as cash financing sounds good, but in reality it can cost you thousands more. Also, if you do decide to finance your purchase and don't pay of the entire amount within the specified time period, you may be charged in upwards of 23 percent on the original loan. So before you finance your new floor take some time and think about your options. You may find paying cash is the best way to go.
I hope this article was helpful and I hope you are able to save money because of it.
Sincerely,
The Floor Man
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