Do You Buy Products On Installment?

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Many people buy products on installment and pay interest or EMI. For sellers this is really very profitable because they are going to earn interest from the product they sell with terms and conditions. But how much profitable it is for buyers? For emergency need the EMI (Equated Monthly Installment) is a good offer from sellers. Sometimes paying in installment is not a big pressure for a buyer and can easily pay from their monthly income or salary. So sometimes its a good deal.

Who likes to pay extra money when they can pay the actual price instantly. Honestly I'm with them who purchase products by paying fair price, no more and no less. Paying interest for products I purchase is something I personally don't want to allow and not yet tried. Once I bought laptop but I don't permission to withdraw enough cash from the ATM booth as there was daily limit and the shop didn’t allow me online purchase.

The shop offered me EMI but I didn’t allow myself and found another way to withdraw money and it was punching my card on punching machine. Finally I paid and avoid the EMI. See here I can wait too because the laptop was not my emergency need and I was forgetful about the withdrawal limit of my card in ATM booth for the day. But I'm not against of EMI specially when its an emergency need.

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As I said I always prefer paying the fair price and not support purchasing on installment so I suggest my friends if they can wait for a product they want to buy, try to avoid paying extra cash or money. Frugal try not to pay extra cash for the product they can buy later or can wait to accumulate the full price of it. But in business offering purchasing on installment is a great trick to make good profit and interest. As time is money so when a seller offering installment payment they can charge extra for that is very fair too.

This is a profitable for sellers and sometimes profitable for buyers too because they get enough time to pay doesn’t matter if they are paying some extra Interest. Most of the business now offering installment payment and this surely bring good profit in business beside that good chance for selling maximum products. Car, home, electronic gadgets and almost everything offering EMI or other installment payment facilities.

If buying products on installment doesn’t affect your personal finance then definitely you should go for it. But if you prefer not to pay interest and can wait to buy the product later then better you wait for some other offers when it may available in discount and you’ve no need to buy it having any installment offer. Installment is only profitable for buyers when the product is going to unavailable later or its an emergency. As a frugal I never support paying extra cash but as I said I'm not against it too.

Thanks For Reading

I've Published it before here: Do You Buy Products On Instalment?

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Installment is only profitable for buyers when the product is going to unavailable later or its an emergency. As a frugal I never support paying extra cash but as I said I'm not against it too.

Indeed, it is amazing how much extra money buyers pay when buying with an installment plan. Some even add service and admin fee charges. It is important to understand the options that are available from the seller before buying, especially when one cannot afford to make full payment.

Some sellers offer lay-by agreement" which lets buyers buy a product and pay for it in two or more instalments before taking it home. But the good side is that the buyer can now book the product and still buy it at the exact same price. The seller gets a guaranteed sale or can get a cancellation fee if the buyer decides to pull out. This means fewer products will stay longer than planned, and won't have to sell at a reduced price later to clear the stock.

Another factor to consider is that some sellers have an option for an interest-free period, which is the number of days or months (usually 3-6 months max) during which buyers won't be charged interest, and after that they get interest calculated on their installment. The term of that installment will determine the extra amount buyers get to pay. And one doesn't have to wait for the whole term to pay.

Some sellers can offer a 3-6 month interest-free installment period, a similar process used when borrowing with a credit card.

You are 100% right that the best option is to pay cash. If one has limited affordability, then one should ask the seller for the available payment plan to choose from, otherwise most just give the maximum interest by default.

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