Any Experience With Payment Plans?

[Wings of Obsidian]

Hello all my fellow SS.org peeps!

I have been thinking aout making a big purchase lately on buying some new gear and getting either a Kemper or an Axe-Fx. Just about there, but I just was wondering if any of you guys had any experience with using a payment plan to buy gear from sites like Sweetwater or American Musical Supply?

Any experience, tips, or feedback you would like to share?

 

[Drew]

I thought you could only buy an AxeFX direct from Fractal?

IMO, if it's one of these "no interest" things, keep in mind that it's usually no interest for a promotional period, but interest accrues quietly in the background, usually at an above-market rate, and if you don't pay it off in full by the end of the period then all that interest hits at once. Bad idea.

It's likely a better idea just to wait until you have the cash in hand, and buy then.

 

[Wings of Obsidian]

I thought you could only buy an AxeFX direct from Fractal?

IMO, if it's one of these "no interest" things, keep in mind that it's usually no interest for a promotional period, but interest accrues quietly in the background, usually at an above-market rate, and if you don't pay it off in full by the end of the period then all that interest hits at once. Bad idea.

It's likely a better idea just to wait until you have the cash in hand, and buy then.

Exactly my fears man. They let you sign up for a longer payment plan than what the advertising promotional price is. (For example, a 8 month payment plan, while in the meantime they are running a 5 month promotional thing for zero interest...but they don't tell you it's only 5 months...then BAM! It hits ya in the end.)

I was just curious...

 

[celticelk]

I've used the 4-payment plan through zZounds a few times and been satisfied with the experience. I think they charge a small fee up front to use it, and then you need to make a payment every 30 days, which you can schedule in advance using their website. You can make payments as early as you like, if you've got the cash in hand. I think it's a little harder to get into trouble with that arrangement than with the "pay within 6 months or we hit you with the accrued 20% interest all at once" offers.

 

[JoshuaVonFlash]

Lol dude what is that picture from I keep randomly seeing it but don't know where it's from

 

[Kristianx510]

With zzounds there's no interest, and the whole process is painless and easy! I recommend that site to pretty much everyone, and since you said you're considering a kemper. I'd say order it from there.

 

[Captain Butterscotch]

I'm doing a three payment thing with Sweetwater since I purchased Omnisphere. They're super easy to work with and it's been smooth sailing.

 

[Wings of Obsidian]

I thought you could only buy an AxeFX direct from Fractal?

Indeed you are correct my good sir! Unless you count Ebay as an alternative...

...speaking of Ebay, anyone had an experience with their Bill Me Later system? Is it like a payment plan or like a credit card (just without the physical plastic card)? I'm assuming the interest rates on Bill Me Later are astronomical?...

 

[Axe Cop]

I've used the American Musical payment plan a bunch of times. It's completely seamless process.

 

[celticelk]

Indeed you are correct my good sir! Unless you count Ebay as a alternative...

...speaking of Ebay, anyone had an experience with their Bill Me Later system? Is it like a payment plan or like a credit card (just without the physical plastic card)? I'm assuming the interest rates on Bill Me Later are astronomical?...

It's more like a credit card. I used it for my last guitar purchase, but only after thinking *very* carefully about whether I would actually be able to pay the whole thing off within the six-month grace period before all the deferred interest comes roaring back in, and I'm not yet sure whether the anxiety about that will prevent me from using it again.

 

[Wings of Obsidian]

It's more like a credit card. I used it for my last guitar purchase, but only after thinking *very* carefully about whether I would actually be able to pay the whole thing off within the six-month grace period before all the deferred interest comes roaring back in, and I'm not yet sure whether the anxiety about that will prevent me from using it again.

See, that is the thing with me. However, I actually already have majority of the cash for my Axe or Kemper purchase set aside and saved (but I have some upcoming large bills that will hinder my continued saving for the next two or three months.).

If I choose to go with AMS, Zzounds, Sweetwater, or Ebay (Bill Me Later), whatever option, I KNOW I will pay it off in the allotted amount of time for my plan whether it is three months, five months, six months, etc... I just don't want to be hit with interest out of nowhere for no reason... (I thought interest was only supposed to incur and collect if you MISSED your payment time or went over the alotted amount of time/months.) It seems like credit companies and such are good with that nowadays. (The whole "interest out of nowhere" thing, I mean.) <.<'

 

[Triple7]

I've done it through AMS twice now and never had any issues.

 

[Hyacinth]

I'm currently paying off a Mackie HD1221 from Zzounds and so far so good.

 

[vick1000]

You pay a one time fee (like $20), and the payments come from your credit card. So it's up to how you pay off the payments to the card that determine the final cost. But you can usually find much better retain prices on the gear they offer the payment plans on, at places that don't offer them.

 

[vick1000]

See, that is the thing with me. However, I actually already have majority of the cash for my Axe or Kemper purchase set aside and saved (but I have some upcoming large bills that will hinder my continued saving for the next two or three months.).

If I choose to go with AMS, Zzounds, Sweetwater, or Ebay (Bill Me Later), whatever option, I KNOW I will pay it off in the allotted amount of time for my plan whether it is three months, five months, six months, etc... I just don't want to be hit with interest out of nowhere for no reason... (I thought interest was only supposed to incur and collect if you MISSED your payment time or went over the alotted amount of time/months.) It seems like credit companies and such are good with that nowadays. (The whole "interest out of nowhere" thing, I mean.) <.<'

If you look at most credit card agreemants, they can review your account at any time (which means your complete credit rating/history), and change your limit or interest rate on a whim.

 

[GunpointMetal]

I've bought two guitars and some recording gear through AMS with their 3 and five payment plans and had no issues what-so-ever, but those aren't really the same as the higher dollar payments.

 

[Drew]

With zzounds there's no interest, and the whole process is painless and easy! I recommend that site to pretty much everyone, and since you said you're considering a kemper. I'd say order it from there.

You know, I looked at the Zzounds plan after reading this thinking there must be a catch, and it's actually not all that bad. They charge you an up-front processing fee, but it's modest - on the $800 strat I was using as a test subject, it was $5.95 up front for four payments of $200 (so, one of $205.95, and then three of $200), or $14.95 for 8 payments of $100. Technically, that is sort of like paying interest up front, but annualizing $6 of "interest" on a $800 purchase accrued over four months gives you ann annual rate of about 2.25%, and $15 of "interest" over 8 months for a full year gives you about 2.8%. That's quite reasonable, better than most credit cards for a similar period.

The only real catch is that to go ahead with this, you have to authorize them to run your credit. If you have bad credit they can deny you, and this will likely show up as an inquiry on your credit report, so it's a bad idea to buy a guitar on a Zzounds payment plan if you're about to finance a big-ticket item like a house or car.

 

[protest]

Not sure if someone else mentioned this, but most interest free payment plans accrue interest throughout. If the item is not paid off by the end of the promotional period you get hit with all the interest.

 

[GizmoGardens]

Bill Me Later hasn't done me dirty yet and I use them for most of my bigger purchases. I usually get 6-12 months with no interest depending on the purchase, but it's great if you don't have a big wad of cash lying around. I used them 2 months ago when my laptop shit the bed, so now I'm paying them a couple hundred a month for 6 months and I got a brand new beast of a laptop.

 

[troyguitar]

I have used the zzounds and AMS ones, like Drew said they charge a processing fee which equates to a very low interest rate. Never had any issues with it.