Five Years, No Deposit, Interest Free. Minimum Purchase $1500 @ Bing Lee

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Bing Lee

• 

  spacecowboy on 15/08/2011 - 23:05

  '…fees, and charges apply and are available on application'

  In other words, they will charge you an Establishment Fee, typically around $50. Then a monthly Statement Fee, probably $3 but could be more. These are standard charges on these kind of retail store credit agreements.

  So $50 + (60 months @ $3 each) = $230 in fees & charges over 5 years.

  I don't know, does $230 extra in fees & charges on a $1500 purchase seem like a good deal to you?

• 

  quickling on 16/08/2011 - 08:30

  $230 on $1500 over 5 years is only 3% interest a year. That's a good deal. :P

  • 

    spacecowboy on 16/08/2011 - 22:56

    Or your could pay cash, & get a discount of at least 10%. And not be in debt at all…

• 

  joannatan on 16/08/2011 - 09:35

  +1

  if you put higher online saver account, let said 5%/pa =1500 * 5% = $75 - taxable income 30% =nett $52.5
  cost on the first year $50 + $3*12 = $86
  $86 - 52.5 =nett loss $33.5 for the first year

  second to 5 year=
  cost $3 * 48 = $144
  income $52.5 *4 = $210

  nett income = 210 - 144 = $66

  total nett income after loss on the first year $66 - 33.5 = $32.5

  $32.5 / 1500 = 2.1% return for 5 years. if you spread in the lifespan of the loan 2.1%/5 = 0.42%/pa

  do your math properly mate.