Anyone use Rooms To Go ?

Their current deal is insanely good, no interest and no payments until 2007. It sounds almost too good to be true.

Whats the catch? Is it near impossible to qualify for that deal ?

The catch is that you'd probably get a 30% discount if you walked up with cash.

What do you mean "walked up with cash" ?

you mean youd get 30 % off the floor price if you paid right there on the spot with cash ?


comments please.

That's what it means. Those free financing deals usually aren't very free, especially where furniture is concerned.

i still dont quite understand what the walked upwith cash comment means. Does it mean:

1) They will take 30 % off the floor price if you pay right there in cash.

or

2) You are likely to save yourself about 30 % of the cost (over the long run) if you pay cash and do NOT do the no internet no payment till 2007 bullshl+

The other catch, btw, is that in 2007, when your first payment finally comes due... you're going to be charged 2 years of back interest.

how do you know this??? It says NO INTEREST until 2007. How do you assume that that means that the interest accrues all along, and THEN you get charged with it ?

The 30% is just an estimate, but yes, paying cash on the spot will net you a tremendous discount of the sticker price.

Also, Wildcat is right. You must make absolutely certain to pay off the bill before the two years is up. Even if they didn't charge back interest, you will still have to confront a 20% up front interest rate for the remaining balance.

so what would you do -

if you had $5000.00 in your savings acct and could buy a really really nice set of furniture, but by paying all up front would drastically slow down or halt other projects-

would you:

1) pay cash for it all
or
2) finance it and hope to have it payed off before they can sock you with the 20 % interest when 2007 rolls around

?

If I had the cash to buy the furniture I'd see what kind of price they'd give me for paying right now versus the price they're giving me for paying within 2 years... then see if it's better to invest that money for 23 months and 29 days or if it's better to pay it out now and get the better price for paying it all now.

Just because you finance doesn't mean you won't get a discount. I just bought a bedroom set last week (not from them) and they gave me a discounted price before asking me if I wanted to finance (2 or 3 years interest free, I don't remember). I opted to pay with my credit card because I don't need another loan account. My experience with furniture stores is you end up with an account/loan/"credit card" with some bank.

Usually with the interest free deals, interest acrues from the beginning, but is waived if you pay it off before the period is up. If you don't get it paid off during the interest free period, you have to pay the total accrued interest, as well.

9 times out of 10 this is generally the case. I have found some rare exceptions but they are few and far between.

we have bought several things from rooms to go with their deals and it is real...you will not have any interest or payments until the due date, and if the time comes in 2007 for you to start paying no interest accrues, they have very good deals....but the furniture isnt that great in quality.

Guns or butter?

I used the same deal a few years back. Was no payments and no interest until July 2005. I bought the couch back in 2003. If it helps, I had no job at the time (thanks to lay offs) and I still got approved on their credit card. Every month I got a statement saying how much I owed (but didn't ahv eto pay anything). Every month the 'due amount' was the same. Their 'fine print' was that the interest would not start accruing until July 2005. Whatever my balance was at that time is what the interest would start at - no back interest like I thought. Since I didn't have a job, I just waited until I got one - plus my income tax - and paid it off before 7/05.

Hope that helps!

Basically if you walk in with cash you have more haggling room than if you were to ask for their credit line. Furniture places are like car dealerships, just think of it that way.

Best of luck