When the dream of the house bursts

- On the topic of credit and what it is for:

Basically, it can work out well to finance consumption on credit. But unlike investments, there is usually no asset that could secure the loan in case of emergency. It is a pure bet on the future. It can work out, but it doesn't have to.

- On the topic of 0% financing

Normally, when financing "at 0%" through a particular bank, you also have to take out insurance that protects the bank against payment default. If you include this in the purchase price, 0% quickly becomes 1.x%. Banks do not offer such models out of kindness. Profits are made on the insurances.

- specifically regarding the example from

Taking out a consumer loan during the construction of a house for a needed car to protect liquidity (money was theoretically available) is a special case that cannot be compared to ordinary consumer loans.
I would not agree that, with the same argument, the wedding celebration is financed with 15k. Wedding celebrations have an economic residual value of exactly 0; the loan is purely secured by the hopefully rosy future. I find that a no-go (please don’t take it personally) and definitely not recommended to emulate.

In summary: Consumer loans create debtors but little to no assets on their balance sheet. With such debts, you expose yourself to the employer's mercy. Freedom is something else.
A (good) investment loan creates assets alongside the debts that can secure the debts in case of emergency. Of course, that depends on the marketability of the investment—let’s say the house.
That is also the reason why I (personally) would have fewer qualms about taking out a large loan to finance a residential property in a sought-after city location than a relatively smaller loan for a single-family house in a rural area. Properties in sought-after cities always sell in case of emergency.

Absolutely justified.

To my knowledge, Aunt was at a bank for years, it’s about potential follow-up business and the hope of catching a delinquent payer in the current times. In such cases, if the installment is not paid, the financing is often terminated immediately if payment is not made within 1-2 weeks. If no money comes in, it goes straight to collections. And my personal experience over the past years is that not paying installments seems to be the norm. Even if it is just late payments.

Rarely have I read such nonsense. A bank is never happy about delinquent payers. They mean effort, which costs money.

A bank always wants to have a business where the customer meets his obligations, meaning pays his installments on time.

There is also always the myth that a bank is happy if the property can be foreclosed.

Complete nonsense

Oops, so much new while I was writing...

- On the topic of discounts

I have still negotiated discounts in every furniture store. Only with certain brands it is not possible because it is prohibited by the manufacturer. Instead, I then take blankets and cushions that I like for free. I know it differently that you cannot haggle in large furniture stores.

Rarely have I read such nonsense. A bank is never happy about delinquent payers. These mean effort, which costs money.

A bank always wants a deal where the customer meets their obligations, meaning pays their installments on time.

There is also always the myth that a bank is happy when the property can be foreclosed.

Complete nonsense

So since you claim to be a banker, I don’t understand your statement. A debt collection company lives off buying delinquent monetary contracts and the associated surcharges that result from fee regulations and the like.

Since I unfortunately know what I’m talking about — installment not paid, loan terminated (I already mentioned that I have/had some debts) — I am 100% sure that this business practice is conducted this way. In my current job, it’s exactly the same.

The dealer pays a fee to the bank for the 0% financing to boost sales and to be able to offer customers expensive products at low installments. The bank, in turn, gets a new customer whom they can lure into follow-up contracts, so almost cost-free marketing. (By the way, this can be read on the Verbraucherzentrale website.) If the customer then causes costs, e.g., installment not paid, they terminate the contract and sell it to a debt collection company. The bank gets its money and loses the nuisance. The debt collection company demands payment, possibly through a bailiff.

So exactly where do you think I’m talking nonsense and rubbish here?

So since you claim to be a banker, I don’t understand your statement. A collection agency lives off the purchase of delinquent monetary contracts and the associated surcharges that result from fee regulations and the like.

Since I unfortunately know what I’m talking about, rate not paid, credit terminated (I already mentioned that I have/had some debts), I am 100% sure that this business practice is operated this way.
In my current job, it’s exactly the same.

The dealer pays a fee to the bank for the 0% financing to increase sales and to be able to offer customers expensive products with low installments.
The bank in turn gets a new customer that can be lured into follow-up contracts, so almost free marketing.
(By the way, you can read about this on the Verbraucherzentrale website.)
If the customer then causes costs, e.g. rate not paid, the contract is terminated and sold to a collection agency. The bank gets its money and loses the nuisance.
The collection agency collects the debt, possibly through a bailiff.

So where exactly do you think I’m talking nonsense and rubbish?

You basically wrote that a bank is happy that there are delinquent payers.

A bank is not a collection agency. Collection agencies buy claims at high discounts and collect them.

The bank always incurs a loss.

You’re talking nonsense, sorry, but no wonder you’re slaving away in a call center for 1,200 and aren’t ready to get out of your comfort zone.

You don't even need to try at the big furniture stores. They don't negotiate. It's different with smaller ones and car dealers. Of course.
You can't negotiate your teeth either. My husband needed a bridge... 4500€. Whether you pay in cash or in installments, they don't care.

Furniture stores, except for the big Swede, all have a bit of an Arabian bazaar vibe. Negotiating is always possible. I've never paid the listed price.

Nobody gives anything away for free.