Cash or financing a diamond?

[dmaillet]

During a conversation yesterday with my 3 sisters, I was surprised to hear that 2 of them actually thought financing a diamond (larger stones) was worth the additional fees to get the diamond they wanted. Curious to know how many others feel that way. I have several friends who have smaller, less perfect diamonds that they wish they had waited to get their ideal diamond rather than buying what they could afford with cash at the time, even if it meant paying on time.

Is it really more cost effective to buy a nice quality stone and pay a little more or buy something now with the hopes of trading up one day?

Thoughts?

 

[D&T]

nnnoooo... to financing

Cash only... or if you have a nice cc that does zero percent, pay off the balance before the term expire so there is no finance charge added (only if you are disciplined enough to pay it off before any term expires - you accrue interest regardless - and you must not be late on any payments or your term gets yanked from under you and you owe retro interest

).

My BIL financed a ring, and before they even paid off the ring, they got divorced

.

I would just get a nice ring on a cash budget now from a vendor that has great upgrade policy and down the road...upgrade.

 

[MichelleCarmen]

If you have a really secure job, possibly finance if instant gratification is necessary. It would be quite a shame if a person financed a $20K and then lost their job!

I guess people finance plenty of other unnecessary purchases - such as a Mercedes when an economy car will do instead, so possibly it''s not any worse than many other poor financial choices people make to have it all.

How old are you sisters?

 

[vespergirl]

My DH paid cash for my ring from a vendor that had a 100% trade up policy on their diamonds. So, he paid cash for the original, and when we upgraded the stone, he paid cash for the upgrade as well.

 

[FancyDiamond]

Cash, including the use of credit cards or financing but paying in full before any finance charges incur.

My view is that diamonds are luxury items which I buy them with excess money. By excess money, I mean any left-over money AFTER 1. I pay my mortgage/rents and essentials (such as food, transportation, utilities, and insurance) 2. contribute to (or max out) my 401K/IRA/retirement funds, 3. set aside 6-9 months'' emergency money, and 4. allocate 10% savings towards near-term large purchase (auto, home, education).

 

[Black Jade]

Date: 8/17/2009 4:16:32 PM
Author:dmaillet
During a conversation yesterday with my 3 sisters, I was surprised to hear that 2 of them actually thought financing a diamond (larger stones) was worth the additional fees to get the diamond they wanted. Curious to know how many others feel that way. I have several friends who have smaller, less perfect diamonds that they wish they had waited to get their ideal diamond rather than buying what they could afford with cash at the time, even if it meant paying on time.

Is it really more cost effective to buy a nice quality stone and pay a little more or buy something now with the hopes of trading up one day?

Thoughts?

Are your sisters married yet? If so, did your BILs agree with this? If they got married, are they STILL married?

You are not going to get too many on Pricescope who agree with this kind of thinking.

Buy what you can afford. Stay in the budget.

What Pricescope is useful for is that people will help you get the most beautiful stone you can WITHIN YOUR BUDGET. And there are lots of beautiful, less expensive stones out there (see the under 1 ct. thread in Show Me the Ring). The last thing anybody needs starting out as a newlywed is a big load of debt. Debt is not a good thing and in this current environment, people with debt are going to be in more trouble than in years past. Even as we speak, credit card companies are tightening up requirements and those with debt are not going to be able to get credit. YOur married friends are being very silly (if they are serious) too.

It''s never cost effective to buy something you can''t afford.

 

[D&T]

Date: 8/17/2009 5:05:41 PM
Author: Black Jade


It''s never cost effective to buy something you can''t afford.

100% agree with you there

 

[Richard Sherwood]

Debt is a tar baby. An insidious degrader of your life. Avoid it as much as possible.

A home mortgage, okay. Everything else, buy what you can afford. You''ll feel much better in the long run. After a while, you begin to hate those payments, and ask yourself "What was I thinking?".

 

[amyjokerette]

I would only finance with a 0% credit card and pay it off WAY before the interest rate ended. We are good at budgeting, so for us that works. For some, not so much. I would not finance a diamond and pay interest on it.

 

[neatfreak]

Date: 8/17/2009 10:28:15 PM
Author: amyjokerette
I would only finance with a 0% credit card and pay it off WAY before the interest rate ended. We are good at budgeting, so for us that works. For some, not so much. I would not finance a diamond and pay interest on it.

Ditto.

 

[oneandahalfrock]

Cash only... you''d be amazing what you REALLY end up paying with some of those interest rates...
The diamond just doesn''t sparkle as much when that monthly bill comes in.