OT - No payments until 2007

[TOM KAN PA]

This is off topic, but I figure there must be some readers in this group that can answer my question. How do they do it? There's a furniture outlet (Levins') that is advertising a sale with no money down, no interest, no payments until 2007. How do they do this? I've heard that on some of these deals that advertise "No Interest until 2007" have you pay just the principle. The interest accumulates and is due in one lump sum when the time comes. But if the ad is correct for this furniture sale, no money exchanges hands for three years. What's in the fine print? What's the gimmick? BTW, La-Z-Boy is offering the same sale.

[0tterbot]

advertising a

i always thought it was that the company was big enough to carry the debts for a while. *however* - that's when it was only "no payments for 6 months"-types of things. 3 years is a bloody long time(!!)

hopefully someone knows... it is very curious. kylie

[Dawn]

The shop makes their money by charging over the odds for the goods. The finance company make their money by charging exorbitant interest rates to the ones that forget or can't make the payments or don't make a payment on time.