Buy a mobile in installments without interest
Buying a mobile in installments without interest is something that has been possible for some time thanks to the fact that banks are now giving more loans to their customers. Because of this, stores also have agreements with banks to offer more financing options to their customers. That is why there are now many options available to buy a mobile in installments without interest. However, the truth is that what is actually sold as interest-free financing, is not so at all.
And it is true that we are not charged extra interest for the financing – but rather that we pay the same that we would supposedly pay for the mobile phone if we bought it in a single payment – the truth is that many of the financing offers without interest offered to us is with the launch price of the smartphone.
In general, all smartphones have a launch price that is usually higher than their price after just a couple of months, or even on the launch itself.
For example, the Samsung Galaxy S8 can be buy now for 650 euros. However, was launched for a price of 809 euros. That is precisely the price we will pay for the mobile if we buy it by paying it in installments without interest. It’s a price notably higher than the 650 euro.
Is it really an interest-free installment payment? If you buy the mobile for 650 euros with a credit card that charges you 24-25% interest, the price you will be paying is the same as for buying the mobile for 809 euros.
What does that mean? Which in many cases will even be better to buy the mobile with a credit card even if we are charged interest, if we are buying it cheaper.
However, financing without interest can be a good option if we want to buy the mobile when it is launched, because in that case it will be better to pay the mobile in installments, if it is the same price it would have if we bought it in a single payment.