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I have done the 0% financing several times over the years for furniture and a bigscreen tv. But, I am disciplined enough to have it paid off before the end of the time period. If it's two years, I divide the total amount by 20 or 22 and pay that much every month. Works well for me. Lately though I've been just buying a piece at a time and paying cash. That works equally well. The stores bank on the possibility, and usually win, that the purchaser won't pay it off during that period and then get hit with a huge amount of back interest. So, to do it successfully, you have to have self-discipline!!
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I usually take advantage of 0% financing deals on larger purchases a couple times a year. Typically, they are on revolving accounts I already have open with major stores so I don't have to apply for new credit (Dell, Best Buy, Sears, Tiffany's, etc.). I have never been screwed over on it, but I am very careful to understand all the terms, not miss payments, and pay it off before the promotion ends.
As others have mentioned, sometimes prices will be inflated for people who do "free" financing. From the other 0% financing thread I mentioned:
Whenever I do 0% financing deals for purchases, I make sure I would get the same price if I were to pay cash on the spot. Usually, I act like I am going to pay cash, find out the price, and then inquire about any 0% deals. If they will give me 10% off up front for cash, that is a better rate of return than investing my cash in a CD or pretty much any vehicle!Comment
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