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Sears is advertising their Winter Woodworking Event, which as far as we can tell is a no-interest incentive to load up your Sears card with more than $300 worth of gear, plus the added come-on of a 10%  cash-back rebate.  We’re wondering if financing tools like this is such a hot idea.

I can certainly see putting a tool on a card if you’ve got to have it to get the car running the next day — or if you just about have the money to buy that new hand tool set and want to pull the trigger a month early. But is loading up a balance a good idea, even with the promise of long repayment deals and discounts? Some folks might depend on this type of deal to get what they need, but I’m willing to bet they’re in the minority.

You tell us:  Is this a great plan or more of a budgetary sucker punch?  Let us know in comments.

Winter Woodworking Event [Sears]

 

13 Responses to Hot or Not? Financing Tools

  1. Shopmonger says:

    HOT!!!!!!!!!!!!!!!!!

    ………….. this is easy if you are smart about it….Ok so 10% back take this as a bonus to the program….

    So you take a $300 tool. and you get 12 month interest free (make sure that the interest does not accumulate or accrue during term)

    so you set up your online banking to make regular monthly payments at $25 per month…..

    and you get the bonus money back…..to make more tool purchases.
    I have done this on countless items, just to make cash flow and to get the nifty cash back offers

  2. Dan says:

    Ok, just like credit cards this sort of thing is great if and only if you are good about paying your debts down. Those who buy and then just pay minimums or put off paying, you know who you are, RUN AWAY from this sort of thing. Be honest with yourself before you buy.

  3. Stuart D says:

    Shopmonger,

    The 10% rebate is not contingent on using a Sears card or taking advantage of the interest-free promotion.

    This could be a good promotion, but I wouldn’t take advantage of it.

  4. duck says:

    Yeah the deal is as hot as bull s–t. Nothing like Sears having a 24% interest rate for all the junk from China.

  5. LABJ79 says:

    Hot for sure. It’s same as cash if you pay the balance of the card off before the 12 month mark. If you’re going to buy or need to buy some tools, do it with 12 months no interest. Of course, the attempt is to get you to put too much $$ on your card and for you to forget about paying it off, so the credit card company can charge that outrageous interest fee. I’ve bought many a tool using this method to my advantage. Budgets are good.

  6. Kurt says:

    Chilly. When I worked as an auto mechanic, I saw a few of my co-workers get themselves into trouble with the tool trucks do pretty much the same thing. They just had to have that shiny Snap-On/Cornwall/Mac/Matco monster box and fill it up with expensive tools. I had two regular size craftsman roll-arounds, one for electrical and one for mechanical, paid cash for both and bought tools as I could afford them, paying cash. Eventually I had a nice set and no debt.

    That said, if you have the discipline to take the full amount, put it into the bank, and pay out a bit each month, go for it. At today’s prevailing savings rates you will make 6 to 9 dollars on that $ 300.

  7. Turbobrick says:

    Hot, but only if you actually pay them back within the specified time frame. Remember that with many of these offers the amount of principal that’s not paid off at the end of the free ride will get slammed with finance charges for that entire 12-month period.

  8. Michael W. says:

    Cold – this kind of deal can be a problem if the tool “walks” from a jobsite. Nothing like paying for a tool you don’t have anymore. Cash is king when it comes to tools. If you “really” need a tool, you will come up with the money.

  9. duck says:

    The deal is on woodworking tools only and you must purchase more than $299.No payment no interest for 12months when you use your Sears credit card and the 10% rebate is a mail in rebate.

  10. JGD says:

    Is Sears going to be around in 12 months to honor warranties?

  11. kif says:

    Warm. When I worked in a garage, the Snap-On man floated me a zero-interest, off the books, line of credit. I guess a lot of snap-on guys will do that for you up to a point – then Snap-On’s credit gets involved. The terms are pretty casual, and the tools have the same warranty, so its all pretty safe. Some weeks he comes around and you’re flush with cash for some reason and you take a big bite out of the account. Sometimes you give him your lunch money and get by on a candy bar and a Coke. Sometimes you step off the truck with a few tools and get deeper in.

    Every time I pull out that socket set I think back to when I stepped off the truck with a shiny new set for ten bucks and a handshake. You feel like you got a lot of respect – more than you will get with your oil stained Cintas work jacket from other retailers on your way home.

    When you part ways with your employer however, and your tools are with you at home, he gets antsy.

  12. Baba says:

    NOT!

    Most tools needed for any job can be rented for any quick project you may have. Loading up a credit card for tools is just plain dumb. If you can’t afford it dont get it.

  13. MKram says:

    Replace ‘tools’ with anything you’ll finance except a house, car, or education, and it’s a good deal IF you beat the finance company at its’ own game. If you were saving for a particular tool & didn’t have the scratch to pay for it yet, but this offer puts it in reach a month earlier than you’d planned, perfect. Pay off the balance, you’re good to go. Most people with credit card debt need to look at how much interest and finance charges they paid in the previous 12 months and then see the tools they could have bought had they not given all that $ to the bank.

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