Should You Buy Appliances On a Payment Plan?

Buying appliances for your home can be a significant investment, and sometimes the upfront cost of these products can be a financial burden. In such situations, payment plans may seem like an attractive option to ease the financial strain.

However, before you decide to buy appliances on a payment plan, it's important to consider various factors and evaluate whether it is the right choice for you. Together, we will explore the pros and cons of buying on a payment plan, discuss key factors to consider, and provide helpful tips to help you make an informed decision.

What Is a Payment Plan?

A payment plan, also known as a financing or installment plan, allows you to purchase an appliance and pay for it over a set period, typically in monthly installments. In other words, instead of paying the full amount upfront, you make regular payments until the total cost is covered. This option can be beneficial for individuals who don't have the immediate funds or budget to fully purchase appliances at the moment.

What Are The Benefits Of a Payment Plan?

Benefits Of a Payment Plan:

• Convenience: Buying on a payment plan allows you to bring home the appliance you need without having to save up for the entire amount. It provides flexibility and convenience, especially when you require the appliance urgently.

• Spread Out Payments: By opting for a payment plan, you can distribute the cost of the appliance over a longer period, making it more affordable in the short term.

• Building Credit: Consistently making payments on time for your payment plan can contribute positively to your credit history and potentially improve your credit score. This can be beneficial for future credit applications, such as loans or mortgages.

• Access To Higher-End Options: Payment plans often provide access to higher-end appliances that may have been financially out of reach if you had to pay the full amount upfront. This allows you to enjoy the benefits of more advanced features and technology.

Payment Plans: Tips & Things To Consider

Things To Consider:

• Interest Rates: Interest rates play a significant role in the overall cost of buying on a payment plan. It's crucial to understand the difference between annual percentage rate (APR) and simple interest.

APR includes additional fees and charges, while simple interest is calculated solely based on the principal amount. Compare the interest rates offered by different payment plans and choose the one with the lowest rate.

At DeWaard & Bode, our 12-month financing option offers no interest if you pay in full within those 12- months.

• Payment Terms: Understand the duration of the payment plan and calculate the monthly installments to ensure they fit within your budget. Be mindful of any penalties for missed or late payments.

• Total Cost: Consider the total amount you will pay, including interest and fees, and assess whether it aligns with the value of the appliance. Sometimes, the cost of buying on a payment plan can exceed the original price of the appliance.

Tips:

• Read The Fine Print: Carefully review the terms and conditions of the payment plan, including interest rates, fees, penalties, and any additional obligations.

• Negotiate: In some cases, you may be able to negotiate the interest rate or terms of the payment plan. It's worth exploring this option to potentially secure more favorable terms.

• Evaluate Your Needs: Determine the appliances you truly need and prioritize them based on their importance. This will help you allocate your budget more effectively.

Should You Buy On a Payment Plan?

While this is a personal choice, here are a few recommendations to help you determine when it's a good idea to buy on a payment plan.

• Immediate Need: If you require an essential appliance immediately and do not have the funds to purchase it at the moment, a payment plan can be a reasonable option.

• Low-Interest Rates: When payment plans offer low-interest rates or promotional periods with zero or low interest, it can make financial sense to take advantage of these offers.

When Is It Not a Good Idea To Buy On a Payment Plan?

• High-Interest Rates: If the payment plan comes with exorbitant interest rates that significantly increase the total cost, it may be wiser to explore alternative options.

• Budget Constraints: If taking on a payment plan would strain your budget and potentially lead to difficulties in meeting other financial obligations, it may not be the right time to buy on a payment plan.

Flexible Financing For Your Dream Appliances!

At DeWaard & Bode, we offer flexible appliance financing options, such as 48-month financing and 12-month financing payment options, to ensure you are able to get the appliances you love. Our 48-month plan has a special rate of 0% APR for Tempur-Pedic and Serta iComfort mattresses. Additionally, our 12-month plan offers no interest if paid in full within 12 months.

What are you waiting for? Stop by our appliance stores near you, located in Bellingham and Burlington, Washington, to shop for the best home and kitchen appliances. You can browse our extensive inventory of washer and dryers, refrigerators, ovens, dishwashers, and more from top brands like Beko, KitchenAid, Best, and JennAir.

While shopping, feel free to ask one of our product experts about our financing options for eligible purchases. We look forward to helping you build your dream space!