Own home: interest rate development / interest rate / interest rate increase / conditions

Cool, your text is full of insults, but calling me provocative.

My argumentation cannot be brilliant because I haven't provided one at all. Your explanations about Ikea are of course very objective, basically you get the best kitchen there – everyone else is stupid if they don't buy the standardized stuff there.

And nothing is increased with a 0% financing – you just assume that. But that is wrong – and with that your house of cards simply collapses...

But I don't want to preach to you – everything is exactly right as you explain it.

and who then pays for the 0% financing if it was not factored in beforehand? who bears the risk that the customer might not be able to pay after 10 installments? both cannot possibly be free of charge. I don’t need to be lectured on this, the market economy forbids giving anything away for free. anyone who believes that a 0% financing is really a gift also believes in Santa Claus.

Shall I tell you a secret? Who pays for that? The one who pays in cash and does not use the financing

And of course also the financer - but calculated with a smaller share.

who believes that a 0% financing is really a gift also believes in Santa Claus.

uhmm
Since both cash payers and financers all pay this surcharge, the 0% financing is at least partially a gift for the financer.
Actually, it is silly not to make use of the 0% financing, because even with available capital the money is better invested with interest.

PS: Lexmaul79 was faster

The assumption is based on the logical attempt that someone, somewhere must pay after all, so the interest must be added to the product price. In fact, "money" is currently so incredibly cheap that it can be very lucrative for the retailer to boost sales promotion by offering interest-free installment loans. This way, entire inventories of goods, which would actually need a price reduction, can be cleared out, for example. It can really be tested almost everywhere.

By the way, even regular loans with negative interest can actually make sense in certain constellations. Some banks already have models for this in the drawer, even if hardly anyone there really wants that.

Zero-percent financing is not a new phenomenon, so it has nothing to do with the current developments at the ECB. On the contrary, zero percent financing used to be much more attractive. (no matter whether I saved on construction interest or invested the money at 3% overnight money interest.)


Your example with the inventory would theoretically have to be interpreted differently. The retailer/manufacturer reduces the price (e.g. due to overproduction/new models, etc.) and then adds the financing costs again. Ultimately, you end up with the old price. Nevertheless, the customer also pays the financing costs here because the value of the goods has decreased.