Did/do you take out a LOAN for your HT wants?

[Johnny Vinyl]

People go to the bank for a loan or run up their credit credits for all kinds of purchases. I've done the same in years gone by (currently CC debt-free, but have a car loan), but I've never ever purchased any of my HT equipment on credit. I've always paid cash.

However, what would be wrong to go to the bank to borrow $5,000-$10,000-$15,000 for a kick-ass system that you will enjoy for years and years to come? I personally think it's a much better investment than any car, yet we don't give it any consideration. Loans are for major car/house/education purchases, but rarely for entertainment. Why is that?

What's your opinion on this and how have you paid for your HT gear so far? Woud you consider taking out a loan to get that next great set of speakers? Or mono-blocs?

John

[Beta Man]

1) I have paid for all of my HT "stuff" in cash

2) A car is RARELY an "Investment" You'd be better of spending the money on a home theater.

3) Finally free from car payments on 2 cars..... both with good blue-book values and less than 60K miles. I'm a happy man!

[Steve]

I bought my last 2 TV's on credit, but everything else was paid for outright. I doubt I'll ever do the credit thing again. I have been known to sell other items I already owned to fund HT items though.

[Fors*]

Originally Posted by John72953

People go to the bank for a loan or run up their credit credits for all kinds of purchases. I've done the same in years gone by (currently CC debt-free, but have a car loan), but I've never ever purchased any of my HT equipment on credit. I've always paid cash.

However, what would be wrong to go to the bank to borrow $5,000-$10,000-$15,000 for a kick-ass system that you will enjoy for years and years to come? I personally think it's a much better investment than any car, yet we don't give it any consideration. Loans are for major car/house/education purchases, but rarely for entertainment. Why is that?

What's your opinion on this and how have you paid for your HT gear so far? Woud you consider taking out a loan to get that next great set of speakers? Or mono-blocs?

John

I think it starts and ends with upgraditis. I work for a bank as a commercial loan paralegal, and this kind of purchasing could create a never ending cycle of either refinancing(which will never get you out of debt) or some how rationalizing that taking additional loans is OK for future purchases (like a line of credit would do for you). I have seen it with cars, homes, etc.....HT is no exception. Buyer beware when it comes to financing this kind of thing!

[Rblu-Dblu]

I just applied for a credit card with 0% interest for a year so I can buy a Pioneer 151!!!

[Beta Man]

Originally Posted by fireman325

I bought my last 2 TV's on credit, but everything else was paid for outright. I doubt I'll ever do the credit thing again.

if they are "interest free" offers..... then I'm all for it...... I wouldn't pay extra for something I couldn't afford though (in regards to T.Vs etc. )

[Steve]

Originally Posted by Beta Man

if they are "interest free" offers..... then I'm all for it...... I wouldn't pay extra for something I couldn't afford though (in regards to T.Vs etc. )

They were both interest free offers. I would have never even considered it if they weren't.

[crazyBLUE]

My Home Theater was all bought with cash ! LITERALLY !!!!!!!!!!!

[Johnny Vinyl]

Originally Posted by forsberg21

I think it starts and ends with upgraditis. I work for a bank as a commercial loan paralegal, and this kind of purchasing could create a never ending cycle of either refinancing(which will never get you out of debt) or some how rationalizing that taking additional loans is OK for future purchases (like a line of credit would do for you). I have seen it with cars, homes, etc.....HT is no exception. Buyer beware when it comes to financing this kind of thing!

I agree with you 100%. I personally think that saving for your toys and paying cash is the best method and one I'll continue to follow.

John

[Beta Man]

[JasonR]

All cash, except for my receiver and TV. 0% interest payroll deduction on those, my boss is pretty good to me.

We try and only use credit for business expenses (that are reimbursed immediately) and emergencies.

[JJ]

JJ=

Height: 6'2"

Age: 23

Debt: $0 (car paid, full scholarship, credit cards always paid in full)

HT Purchases: In Cash

Credit Score: Damn good

Comparison to peers: Depressing - I know way too many people my age already thousands of dollars in debt, and not even because of college tuition. Besides, a popular thing amongst minority youths these days is to claim to be 'broke' - recession or whatever. Where?!

Outlook: Get my rookie card now!

[liquidice]

0% financing, and no payments for a year. I only use that at my local ABC Warehouse, and only if I need something right away. Probably won't use it again, but did on my plasma, receiver, and PS3. All paid for within a couple months regardless of year financing. Actually improved my credit score. My next purchase for new mains will be done online, paid for immediately.

[Slec]

I bought my first LCD on credit (3 yrs no interest). I haven't paid it off yet, but its no interest. I'm using their money so I call that square. For all of my other home theater purchases the money was in hand prior to purchase. I might have bought my front speakers on credit but my work bonus came through within 30 days so it wouldn't count because I knew the money was coming.

:looking for JJ's rookie card:

I'm trying to figure out what I can sell to fund my next upgrade.

[crazyBLUE]

Originally Posted by Slec

I bought my first LCD on credit (3 yrs no interest). I haven't paid it off yet, but its no interest. I'm using their money so I call that square. For all of my other home theater purchases the money was in hand prior to purchase. I might have bought my front speakers on credit but my work bonus came through within 30 days so it wouldn't count because I knew the money was coming.

:looking for JJ's rookie card:

I'm trying to figure out what I can sell to fund my next upgrade.

Is that CRAVING that bad Slec !! UPGRADEITIS !!!

[rded]

My current gear has been paid with cash. Although I have to admit that I'm working weekends just to support my addiction Truth be told, one of the biggest reasons that I was able to afford all this crap is also due to the fact that we haven't really travelled overseas in the last 1 1/2 yrs- we just took short vacations locally(in U.S.), not long and extravagant ones. MOREOVER....its also nice to know that my dealer has no problems with me doing a 90-120 day installment plan I can smell the Dynaudio C2s now. Ehem, don't tell my wife that, ok?

EDIT: as far as my tv and entertaiment center, I used to buy from a manager at CC and he gave me close to 35% off on both of them. Maybe I was one of the reasons why CC went down the craphole.

[Slec]

Originally Posted by crazyBLUE

Is that CRAVING that bad Slec !! UPGRADEITIS !!!

I made the mistake of listening to speakers over the weekend. The money I have squirreled away right now is rainy day money, and down payment on a new car in 6 months or so. don't want to touch that. Plus I'm saving up for a trip to the UK with the wife in the fall. too much I want, not enough cash.

When my wife returns, the upgrade-itis will subside, she has that effect on me

[DIY_HD]

Credit used wisely is a good thing. Short-term debt for things that you will buy anyway, and especially if you get a good deal, is not a problem. When I say short-term, I mean a couple of months, not years. I bought my HT stuff on a credit card, but paid it off in full when I got the bill.

CrazyBLUE is anything but crazy. Paying with greenbacks is a wise and beautiful thing. However, if you know you will be able to pay it off within a month or two, what's the harm in that? How does the saying go? Life's short, eat dessert first. Who can deny that Blu-ray is dessert?

I would avoid borrowing long-term for large purchases except when absolutely necessary. Such as, when your car dies and the repair costs exceed the value of the vehicle. In that case, you borrow to get another car.

Actually, you will probably enjoy your HT equipment longer than a car, but still, do you actually NEED an HT?

As I'm sure Forsberg will agree, you should avoid borrowing on depreciable items (those that go down in value). That is, a car that is a collector's item would not depreciate, and would therefore be a good investment worth borrowing for. Same thing for an HT. I think the general consensus is NO, avoid borrowing for HT equipment.

[repete66211]

I bought my first HDTV on store credit interest free. Everything since then has been cash on hand or cash soon to be on hand. I'm a tight wad, which would explain my HT setup. I hate debt so much I'm willing to settle for mid-tier stuff.

The value of a car depends entirely on where you live. It's much more valuable where no mass transit is available. I require my car to make a living. HT is a luxury item.

[saprano]

I paid for all my stuff on credit, even the ps3. i wont be doing that again though, the only thing thats going on credit this time is the tv. i mean really, who pays $5000 in cash for something? unless you have the money up front i guess. i will be paying $1000 cash up front though. everything else im paying strait up cash, receiver, speakers, cables, everthing.