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AvidCollector

AvidCollector

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On eBay I've seen some HT's I've gotten behind on collecting. I see an option that you can pay a designated amount over 12 months. Has anyone done it before? I feel mixed about it because I don't want the seller to feel like they're being robbed or something.
 
My gut reaction is that this is an invitation to rip off a buyer. Do you get the item up front? Are you paying PayPal or the the seller? What's the interest rate?

If it's a layaway style deal I'd avoid it like the plague.
 
ali032373 said:
My gut reaction is that this is an invitation to rip off a buyer. Do you get the item up front? Are you paying PayPal or the the seller? What's the interest rate?

If it's a layaway style deal I'd avoid it like the plague.
Click to expand...

That's what I thought too. I believe paying the seller through PayPal. One of them I was looking at was $32 for 12 months.
 
Then that's not so bad. The risk is then transferred to the seller who is out the item and now may not get his/her money.

So then my thought is what's the interest rate the seller gets for taking this risk. How much more are you paying when you buy over time versus when you buy outright?
 
Its like a credit card without the card. Pay Pal credit used to be called Bill Me Later. You pay for your item and the seller gets full payment immediately and you receive your item and then have 12 months to pay with no interest. After that the interest rate is pretty high (maybe 29%) and is just like carrying a balance on your credit card. Its good for people who can pay an item off in a few months so they avoid the interest but bad if you buy something you can't pay off before the interest kicks in.
 
ali032373 said:
Then that's not so bad. The risk is then transferred to the seller who is out the item and now may not get his/her money.

So then my thought is what's the interest rate the seller gets for taking this risk. How much more are you paying when you buy over time versus when you buy outright?
Click to expand...

I'd end up paying at least $39 more by the time it's paid off. Item is $345.00 plus free shipping- in total it would end up being $384, that would be in seller's favor. It would be cheaper to buy it outright. :lol
 
It's an interest free loan. Great for big ticket items- tv, furniture, etc.

Is the interest retroactive after 12 months if you don't pay?
 
DerMann said:
Its like a credit card without the card. Pay Pal credit used to be called Bill Me Later. You pay for your item and the seller gets full payment immediately and you receive your item and then have 12 months to pay with no interest. After that the interest rate is pretty high (maybe 29%) and is just like carrying a balance on your credit card. Its good for people who can pay an item off in a few months so they avoid the interest but bad if you buy something you can't pay off before the interest kicks in.
Click to expand...

If you go that route you may as well just charge it to a credit card and make payments that way.
 
316what said:
The full price is paid to the seller by Paypal. Then Paypal charges you an interest rate to pay on it monthly like a credit card.

Just another way for Paypal to get some $$.
Click to expand...

DerMann said:
Its like a credit card without the card. Pay Pal credit used to be called Bill Me Later. You pay for your item and the seller gets full payment immediately and you receive your item and then have 12 months to pay with no interest. After that the interest rate is pretty high (maybe 29%) and is just like carrying a balance on your credit card. Its good for people who can pay an item off in a few months so they avoid the interest but bad if you buy something you can't pay off before the interest kicks in.
Click to expand...

Well that makes me feel a lot better. :) Thanks for the info on that guys. This sounds a little bit more viable too. I was worried they would be getting the increments-but I WILL BE PAYING PAYPAL INSTEAD. I see.
 
I've used it a number of times. I limit myself to one item per 6 to 12 months and pay it off on time. I've occurred no interest at any point. It's really handy and the only thing you need to watch for are the thirty dollar late fees. Still, you can avoid that by setting up automatic payment.
 
AvidCollector said:
What do you mean?
Click to expand...

They're basically loaning you money at no cost for 12 months. For example if you put it on a credit card, that's basically a loan gauranteed by the credit card company. In exchange, they charge you interest. They give you money in exchange for the your promise to replay the money plus interest.

Here, they're just giving you money. He interest only comes in if you're late or take longer than 12 months to pay.

They make money off the seller through the PP fees. That's who's carrying the load on this.
 
I'm not sure why there's any confusion here. This is like every other credit card company with a "no interest" plan. Sellers aren't carrying the load. They're paying paypal fees for the permission to sell and that changes nothing about the sellers experience. Just like any other credit company paypal credit hopes the buyer will purchase more than they can handle and end up paying the interest as well.
 
RiggsMcClane said:
I've used it a number of times. I limit myself to one item per 6 to 12 months and pay it off on time. I've occurred no interest at any point. It's really handy and the only thing you need to watch for are the thirty dollar late fees. Still, you can avoid that by setting up automatic payment.
Click to expand...

Thanks for the tip. :)
 
RiggsMcClane said:
I'm not sure why there's any confusion here. This is like every other credit card company with a "no interest" plan. Sellers aren't carrying the load. They're paying paypal fees for the permission to sell and that changes nothing about the sellers experience. Just like any other credit company paypal credit hopes the buyer will purchase more than they can handle and end up paying the interest as well.
Click to expand...

I was confused as I haven't done the pay later option before :)
 

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