MBP Purchase with Apple Finance

[displaced]

Hi everyone,

I'm seriously considering buying a MacBook Pro using Apple's financing service. Ordinarily, I'm not a huge fan of buying on credit, however my previous experience with Macs makes me pretty confident that I'm going to get many good years of use out of the machine. I doubt I'm going to feel like I'm still paying for something I no longer appreciate after 2 years! For reference, I've got an old slot-loader G3 iMac which is still going strong (and perfectly usable for the basics) after 5 years. And my year-old Mac Mini still amazes me (so much capability in such a small box!).

So -- I'd probably go for a MBP on finance, repaid over 2 years. Now for my questions...

Would I be able to apply for the finance in an Apple Store, with the intention of being able to go back to the store after approval and simply walk out with my new laptop? The stock 2.0GHz config is exactly what I want, so I've no need for any build-to-order options. Has anyone done the same thing? What are people's experiences with Apple Financial Services? I'm really just fishing for opinions/advice here!

Thanks!

 

[mmmcheese]

Hi everyone,

I'm seriously considering buying a MacBook Pro using Apple's financing service. Ordinarily, I'm not a huge fan of buying on credit, however my previous experience with Macs makes me pretty confident that I'm going to get many good years of use out of the machine. I doubt I'm going to feel like I'm still paying for something I no longer appreciate after 2 years! For reference, I've got an old slot-loader G3 iMac which is still going strong (and perfectly usable for the basics) after 5 years. And my year-old Mac Mini still amazes me (so much capability in such a small box!).

So -- I'd probably go for a MBP on finance, repaid over 2 years. Now for my questions...

Would I be able to apply for the finance in an Apple Store, with the intention of being able to go back to the store after approval and simply walk out with my new laptop? The stock 2.0GHz config is exactly what I want, so I've no need for any build-to-order options. Has anyone done the same thing? What are people's experiences with Apple Financial Services? I'm really just fishing for opinions/advice here!

Thanks!

I wouldn't buy a computer on credit myself. To me, there are only a few things worth going into debt for: education, a home, a car, etc. From your signature, it appears that you already have a couple of computers, so you don't really "need" one.

This is just me though. It is really up to you how you decide to manage your money.

 

[MovieCutter]

Not to mention you'll likely end up paying 20% interest on that. SO you figure over two years, you'd pay almost 1.5x what the computer actually costs. What I would do if you must buy a computer on credit and have 2 credit cards is purchase it on one, and transfer the balance to the other using a promotional 6-12month 0% APR balance transfer. That's what I did for my Quad. The computer cost me $4000 USD, purchased it on credit card A, transferred the balance to credit card B for $75 total (usually 3% of the balance to a max of $75) and paid it off over 6 months at 0%.

 

[technicolor]

Not to mention you'll likely end up paying 20% interest on that. SO you figure over two years, you'd pay almost 1.5x what the computer actually costs. What I would do if you must buy a computer on credit and have 2 credit cards is purchase it on one, and transfer the balance to the other using a promotional 6-12month 0% APR balance transfer. That's what I did for my Quad. The computer cost me $4000 USD, purchased it on credit card A, transferred the balance to credit card B for $75 total (usually 3% of the balance to a max of $75) and paid it off over 6 months at 0%.

Good advice.

If your credit is good enough for Apple financing, you should be able to shop around and get a better deal via a credit card.

My macbook pro is on 0% interest for 12 months card.

 

[treblah]

Would I be able to apply for the finance in an Apple Store, with the intention of being able to go back to the store after approval and simply walk out with my new laptop? The stock 2.0GHz config is exactly what I want, so I've no need for any build-to-order options. Has anyone done the same thing? What are people's experiences with Apple Financial Services? I'm really just fishing for opinions/advice here!

Thanks!

You can walk in, apply for financing and walk out with the machine. My Mom did when my sister and I got our iBooks (August '02).

 

[tobio]

I applied for the credit "just to see" if i could get it. When all the forms arrived I just didn't sign them and send them in. Instead I got a credit card with better interest and bought my powerbook on that.

The apple finance has a very high apr, and it doesn't actually come from apple (at least in the UK) but by MBNA bank. it is no different to just going to MBNA and asking them for a loan.

High APR loans and credit cards tend to be ones that "anyone" can get... If you have a clean credit history then you should really shop around for a better deal. If you have a shady credit history, and get accepted for the Apple Loan, it might be worth going with it as it would probably help get your credit rating back on track.

 

[displaced]

Thanks for the advice, everyone. I think I'll probably hold back a while. My credit's not too shabby... It's not worth taking the 14.9% hit just to expedite things. I can probably clear enough from my interest-free Royal Bank of Scotland card (MINT) in short order to go and get the MBP on that in a while.

(on a side-note, I'd had a Barclaycard with a stupidly high interest rate since I started university. I moved its balance to MINT and got interest-free on transfers and purchases for 18 months. That's nearly paid off now. But the cool thing was, when I phoned to cancel my Barclaycard, they matched MINT's standard APR, and said that if I transfered my MINT balance back to the Barclaycard after MINT's interest-free period ended, Barclays would give me another year interest free!. I think getting the MBP on the MINT once I've got the balance down enough will make more sense... I'll have over a year of 0%).

 

[asolipsist]

(on a side-note, I'd had a Barclaycard with a stupidly high interest rate since I started university. I moved its balance to MINT and got interest-free on transfers and purchases for 18 months. That's nearly paid off now. But the cool thing was, when I phoned to cancel my Barclaycard, they matched MINT's standard APR, and said that if I transfered my MINT balance back to the Barclaycard after MINT's interest-free period ended, Barclays would give me another year interest free!. I think getting the MBP on the MINT once I've got the balance down enough will make more sense... I'll have over a year of 0%).

Careful with the revolving debt, even if its 'interest free' for awhile, it could turn into thousands of pounds and some day the piper will come calling. Also, buying any depreciating asset, computers, cars etc with any kind of debt financing is generally a bad move. If you can't afford something that depreciates w/o taking on debt, you probably can't afford it.

 

[displaced]

Careful with the revolving debt, even if its 'interest free' for awhile, it could turn into thousands of pounds and some day the piper will come calling.

Amen

My credit limit on my card is barely enough to scrape to price of an MBP+AppleCare... and that's the way I like it. I generally use it for a single costlier-than-usual purchase, then it gets cut up, and then I use the interest-free period to get the balance down to 0. Rinse & Repeat. A direct debit makes sure I never miss a repayment. I've seen the nightmare scenario you describe happen to family members, and I'll never lose sight of the fact that credit most certainly isn't 'free money'.

Also, buying any depreciating asset, computers, cars etc with any kind of debt financing is generally a bad move. If you can't afford something that depreciates w/o taking on debt, you probably can't afford it.

I see what you mean, which is why I've been putting so much thought into this. The saving grace is that I've experienced the longevity of Macs. The 5 year old G3 slot-loader is on its last legs (CRT flyback is limping along), but it's been an amazing little machine. My Mac Mini's got a long future ahead of it, since it's not going to stop being good at what it already does. So depreciation isn't a huge worry.

Certainly food for thought though!