Property available - finance basic inventory?

Stay calm kaho674, no need to be so cocky right away. Until now, we were students and we really do manage to set up standing orders... good grief. As long as I’m still on mommy duty, we won’t be able to handle the monthly installments of the furniture store financing. My husband earns really well, but especially in the first year, neither special repayments can be made nor reserves built up. And now please don’t come at me with "then you shouldn’t build"... because we can build and we’re not doing badly either, quite the opposite. It’s just about the inventory or a few things. It’s about 20k... that we therefore "have no money" is a strange causal connection on your part. Still, thanks for your consideration... I think you are absolutely right when it comes to negotiating!

Just relax kaho674, no need to act all high and mighty right away.

But we are sensitive. I'm warning you in advance: I always talk like this - don't take it personally.

It's about 20k... that we "don't have the money" because of that is a strange causal connection on your part.

So the causal connection is this: If you had money, you wouldn't need a loan at all.

The real question is probably what term you get from the furniture store and what payments come out of that. With a home loan over 30 years, the additional monthly payment doesn't weigh that heavily. The 30-year terms probably won’t be available at the furniture stores. But the interest rates at the bank are certainly higher.

In the end, there’s no other way. You can’t sleep on the floor. So if the installments at the furniture store are definitely too high, only the bank remains. They will surely be happy and gladly give you the money.

How long is the term at such a furniture store, or can you not really say that in general?

Seven years ago, we renovated our first shared apartment and my wife had just tried to push a truck aside with her old Fiesta, so we had to arrange for a replacement. The cash liquidity reserve was thus depleted. (Rest was tied up in long-term investments). Nevertheless, we needed a kitchen. We then financed a showroom kitchen for as short a period as possible (1 year). I think it would have also been possible over 3 years.

@HilfeHilfe
I am responsible for the accounting of several car dealerships as well as for an ElektronikPartner store.
For us as dealers, it does not matter at all whether the customer pays cash or finances.
The only disadvantage is that we have to wait a little longer for the money with financing.
The financing costs are already added by the car manufacturer or the intermediary dealer.
Thus, both cash customers and financing customers bear the costs.

The only time we incur costs is when we deviate from the financing conditions.
Assuming the manufacturer offers 0% financing over 10 months and you want 0% financing over 24 months.

Does that mean the discount mentioned above for cash payers is not included? already mentioned something like that with cars.

Not that I know of. Discounts are more likely if someone buys bedroom, kitchen and living room furniture all at once. Possibly, financing through the bank could then be negotiated again.

For us as dealers, it is completely irrelevant whether the customer pays in cash or finances. The only disadvantage is that we have to wait a little longer for the money with financing. The cost of financing is already added by the car manufacturer or the intermediary dealer. Thus, both cash customers and financing customers bear the costs.

Honestly, I experienced it differently with our home furnishings. There was an additional discount for cash payment (which I honestly think is fair). However, that was a few years ago, maybe things have changed.

Again: I can largely understand the arguments of Lexmaul79 and kaho674. But: Many home builders/buyers need or want new furniture, even if it is just the new kitchen. Whether you always absolutely need it is another matter. When people write in the forum that they have €50,000 equity but only want to contribute €30,000 to keep the rest for furniture, no fuss is made about it anywhere. Just because the original poster does not have the equity in the form of cash, but in the form of the land, a huge discussion is sparked here and a problem is made out of it. If you extend this whole thing further, every home builder/buyer would have to include the money planned for furniture in the financing and instead aim for 0% financing at the furniture store. Whether that makes sense and the burden is still bearable must be decided by each individual.