Financing a big tool purchase

[atgcpaul]

I WANT a Grizzly jointer-planer combination machine. I pay off my credit card each month but this one is too much to pay all at once. I could, but I'd rather not. I also don't want to pay any credit card interest. I have bought big ticket items (wife's engagement ring, road bike) using the seller's no interest financing and paid it off before interest kicked in. Grizzly doesn't have that option.

It seems like I could get one of these credit cards that have 0% interest for 12 to 18 billing cycles and pay it off before the offer expires and then cancel the card. Seems too good to be true, though. Am I missing something? Wife is actually OK with this purchase (since we have mostly separate finances).

http://www.creditcards.com/top-credit-cards.php

Thanks,
Paul

[vaking]

I WANT a Grizzly jointer-planer combination machine. I pay off my credit card each month but this one is too much to pay all at once. I could, but I'd rather not. I also don't want to pay any credit card interest. I have bought big ticket items (wife's engagement ring, road bike) using the seller's no interest financing and paid it off before interest kicked in. Grizzly doesn't have that option.

It seems like I could get one of these credit cards that have 0% interest for 12 to 18 billing cycles and pay it off before the offer expires and then cancel the card. Seems too good to be true, though. Am I missing something? Wife is actually OK with this purchase (since we have mostly separate finances).

http://www.creditcards.com/top-credit-cards.php

Thanks,
Paul

Grizzly says that the jointer is discontinued and no longer available, it might solve your problem.

[atgcpaul]

Doh! I just got my Grizzly Christmas flyer, too! If not Grizzly, it may be the more expensive Jet. Same question applies. Any real gotchas with these CC deals as long as you stay ahead of the end date?

[twistsol]

Read the fine print carefully. Some may have an annual fee or a cancellation fee, some will change up the payment due date so they switch to the gotcha interest rate if you aren't precisely on time. Most are fine, generally, they're counting on you running up a balance that you will eventually pay interest on.

You are a credit card company's worst nightmare. A customer that doesn't pay interest or late fees is not a profitable customer.

[Bill in Buena Park]

Paul, as a devotee of Dave Ramsey, I'd recommend that if you don't have a pressing need to have it now, use a "sinking fund" approach - set aside the money for it as if you were paying a CC bill, and then buy it when you have all the cash.

[atgcpaul]

Paul, as a devotee of Dave Ramsey, I'd recommend that if you don't have a pressing need to have it now, use a "sinking fund" approach - set aside the money for it as if you were paying a CC bill, and then buy it when you have all the cash.

Yeah, the "urgency" is kind of gone now since the one I originally wanted is no longer available. I'll start this route today while I research another combo option.

Paul

[alpha]

You are a credit card company's worst nightmare. A customer that doesn't pay interest or late fees is not a profitable customer.

Not exactly true. The retailer still pays the credit card company a percentage for the transaction. They are happy either way.

[cwsmith]

I can't offer a solution for your discontinued item purchase, cash or otherwise.... but keep looking.

As far as paying for whatever, I'm a firm believer in saving for it first (I didn't know anyone had an actual label for that, like "sinking fund") Hey, money comes too hard just to give it away to some creditor.

I didn't get a credit card until the mid-80's and then, and ever since, it's always been a no-fee card. We use it for just about everything and pay the balance off every month. Surely the credit card company must make money off my purchases otherwise they wouldn't be renewing me every few years and I wouldn't getting other offers throughout the years.

CWS

[twistsol]

Not exactly true. The retailer still pays the credit card company a percentage for the transaction. They are happy either way.

Having worked in Finance at American Express, the transaction fee barely covers the cost of transactions. The main reason the AMEX fees were traditionally 1% higher than all other cards was because other than the annual fee, Amex typically doesn't have other charges

[poolhound]

Paul, not sure if you were looking at the 10 or 12 inch but the 12" still shows as available

http://www.grizzly.com/products/12-Jointer-Planer/G0633

BTW why the combo are you looking to save space? I think you said you have a planer so why not look out for a CL deal on a used jointer, there are usually quite a few for sale.

[atgcpaul]

Paul, not sure if you were looking at the 10 or 12 inch but the 12" still shows as available

http://www.grizzly.com/products/12-Jointer-Planer/G0633

BTW why the combo are you looking to save space? I think you said you have a planer so why not look out for a CL deal on a used jointer, there are usually quite a few for sale.

The one I want, 634 (now the 634Z) has a spiral cutterhead. No, I don't work with a lot of figured wood, but just want to get as much as possible without looking back.

I have a Ridgid 13" lunchbox--gray, before they went orange. It's at least 10 years old, and I think 12 is a better guess. Can't remember. Anyway, it's served me well, but for how much longer? I want to step up to a beefier planer even though I'll lose an inch with the combo.

Being able to joint up to 12" would be great since a lot of the stock I use is 8"+. I have thought about getting an 8" jointer and doing it in 2 passes, but then I still don't have a beefier planer. I don't want to find space for a full size jointer and another full size planer.

I would sell the Ridgid and put my grinder on the flip top stand it shares with my Ridgid OSS.

I have trolled CL but I'm just not comfortable buying used, and then there's the hassle of making the deal and transporting it home.

[poolhound]

Gosh that 634Z looks like a nice setup. I see your rationale and that does make sense. I would love a 12" jointer as I have to make do with a 6" one and size my stock accordingly. I have often wondered about how easy it is to work with these combo units and whether the switching back and forth would turn out to be a pain or no problem.

If you do end up getting one I will be very interested in your experience.

[radhak]

You should be able to use a new credit card's interest-free-period without hurting yourself, if you are careful, just a bit:

a. if the card has an annual fee, don't take it. There will be such offers from others that don't have an annual fee.

b. once you do the transaction (ie, use it for a big ticket item), don't use the card for anything else till your 'loan' is paid off - just 'ice' the card, till the loan is repaid (because that interest? it applies to all the money you owe the company, and many a time you will start paying interest immediately if you use it for anything else)

corollary : sometimes you get good offers from your existing cards (in form of blank checks). You could use them too - but first pay off that credit card fully, and don't use it till you have that loan. Obviously this only makes sense if you have more credit cards that you need, else your only card could get stuck like this.

c. double check - many such offers have a 'minimum monthly payment' even if they don't say so clearly - ie, the fine print will. But they'll hit you with penalties if you miss it.

d. Be sure to pay off the whole thing a month before that honeymoon period expires. just to be on the safe side.

e. finally - don't cancel the card at the end. keep it away - an unused card adds to your credit worthiness (because your total credit limit is higher), makes you eligible for more such offers, whereas a cancelled card actually reduces your credit rating.

[capncarl]

Don't quote me on this, I can't seem to find my stack of woodworking mail. I remember seeing one of the tool co's, and I think it was Grizzley, that offered 0 down 0 interest for 3 yrs. It would be worth a call to their sales dept to see. As long as you don't default on one of these type loans it is great but if you miss a payment you are billed for all the interest. I bought my Gravely Zero turn like this, went in to pay cash for a residential mower and instead bought a commercial mower using their money.
capncarl

[atgcpaul]

I have often wondered about how easy it is to work with these combo units and whether the switching back and forth would turn out to be a pain or no problem.

A lot of the tool reviews put an emphasis on how easy it is to switch from jointer to planer mode. It's been a while since I last used a jointer to prep wood, but typically it's a one way operation for me. Joint a face, joint an edge square to the face, then plane to thickness, and finally rip to width. I typically try to surface all my stock at the beginning of a project because finding the same planer setting is nearly impossible. I would really only have to do the changeover once during a project. I think I read, though, that you have to remove the Grizzly fence (and find a spot for it) when you're planing, but the Jet's fence stays attached during the switch.

I think the biggest potential problem is the low planing height. My current planer setup has the boards clearing my TS top but these combo machines have the planer beds pretty low. I'll have to keep my shop even cleaner (tall order).