Cyclone Posted February 15, 2012 Share Posted February 15, 2012 That's three posts in a row where you have chosen to pretend that the person to whom you replied said exactly the opposite of what they actually said, and then argued that they were wrong. That's either deliberate lying, or a complete inability to read. Either way it's pointless trying to debate with you. As far as I can see L00b is correct. Link to comment Share on other sites More sharing options...
vinyl Posted February 15, 2012 Share Posted February 15, 2012 What's the legislation that governs this? I would imagine it is the trades description act. If you offer interest free credit the law would require you to be charging credit and cash customers exactly the same amount. Link to comment Share on other sites More sharing options...
Cyclone Posted February 15, 2012 Share Posted February 15, 2012 So you can't offer a discount for cash, but you can just offer that customer a discount (knowing that they intend to pay with cash anyway). Link to comment Share on other sites More sharing options...
L00b Posted February 15, 2012 Share Posted February 15, 2012 They get the cash straight away when you take out credit, just not directly from the customer. And, more often than not, a commission from the lender (and/or employer, when the lender is the retailer/a subsidiary thereof). Which is why most retailers (esp. chain ones) have grown pushier (and/or throw in extra goodies) for credit agreements and don't particularly relish cash. Slightly different situation with small independents, who still value the 'fluid' nature of cash transaction (nudge-nudge, wink-wink). Don't ask me how that works when the CA is @ 0%, but there you go. Link to comment Share on other sites More sharing options...
MonkeyLover Posted February 15, 2012 Share Posted February 15, 2012 I would have whacked the whole lot on my credit card (which offers 1% cashback), and then paid the credit card off in full when the bill comes. Simples! Link to comment Share on other sites More sharing options...
vinyl Posted February 15, 2012 Share Posted February 15, 2012 I would have whacked the whole lot on my credit card (which offers 1% cashback), and then paid the credit card off in full when the bill comes. Simples! Its not really worth the effort though as taking up "free credit" allows you to stick your money in a high interest account like Shawbrook which will give you 4.8% each year. It isn't really a contest is it? Link to comment Share on other sites More sharing options...
vinyl Posted February 15, 2012 Share Posted February 15, 2012 And, more often than not, a commission from the lender (and/or employer, when the lender is the retailer/a subsidiary thereof). Which is why most retailers (esp. chain ones) have grown pushier (and/or throw in extra goodies) for credit agreements and don't particularly relish cash. Slightly different situation with small independents, who still value the 'fluid' nature of cash transaction (nudge-nudge, wink-wink). Don't ask me how that works when the CA is @ 0%, but there you go. That sounds highly unlikely. Link to comment Share on other sites More sharing options...
L00b Posted February 15, 2012 Share Posted February 15, 2012 That sounds highly unlikely.What does? That the credit agreement is at 0% (subject of the thread)? Granted a CA is never going to be 'solely at 0%' (if e.g. repayments are missed or the term of payment exceeded, expect punitive/usury/'Crazy George'-like % in the small print - goes without saying). The point about commission-driven CA rather than cash stands, however - how many times have I argued/discussed the point with sales persons (a bit like the OP, before I understood how to use it to advantage - per your earlier "4.8%" reply), I don't actually care to remember Link to comment Share on other sites More sharing options...
Cyclone Posted February 15, 2012 Share Posted February 15, 2012 And, more often than not, a commission from the lender (and/or employer, when the lender is the retailer/a subsidiary thereof). Which is why most retailers (esp. chain ones) have grown pushier (and/or throw in extra goodies) for credit agreements and don't particularly relish cash. Slightly different situation with small independents, who still value the 'fluid' nature of cash transaction (nudge-nudge, wink-wink). Don't ask me how that works when the CA is @ 0%, but there you go. I suspect that a large portion of customers don't pay it off before the 0% ends, and the company then makes a lot on the remaining balance. Link to comment Share on other sites More sharing options...
willman Posted February 15, 2012 Share Posted February 15, 2012 A cash purchase means the store has all of your money now, and can earn interest on it for the next four years. That's just one, hugely obvious, reason why the goods should be cheaper if you're paying in cash. There may be others. So is buying with 0% finance. The store get paid in full, just like you paying with a credit card. They should all attract a discount if paying in full if that is the case.There is no reason why cash should attract a better reward,in this scenario. Link to comment Share on other sites More sharing options...
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