Talk Dr. J and I out of doing something stupid.

I know, this could have endless possibilities.

Anyway, I got an e-mail from Lowes for 10% off an appliance purchase on EnergyStar appliances. Dr. J and I have been thinking of replacing our stove and fridge for a couple of months now since they're both about 30 years old. The fridge is just too big, and the stove has begun to cook unevenly. We were going to do this with our tax refund but let's face it, 10% is a huge chunk of change.
Keep in mind, this is all nil if we can't get 0% financing for 18 months.

Here are the pros:
Stove is cooking unevenly
Saving $ by buying now
We may also get a tax credit by updating our appliances before Dec. 31st.
Dr. J would love new shiny things for his kitchen. Not expensive new shiny things, but frugal, energy-efficient things.
Our tax return will easily cover our purchase.
Free delivery and pick up is still included.

Cons:
Credit card debt. We only wanted to spend about $1,000 (if that's even possible). If we stretched it out over the whole 18 monthts thats $30 per month per person.
We'd probably have to put off a real vacation next fall. That's okay with me though if it puts us on the path to redoing this house.
Did I mention credit card debt? The Lowes card is in my name.

 

Wait, I'm confused a little.

Do you mean that your tax refund will cover the entire amount, and that you can get 0% financing on it until then?

In that case, go for it.

If not, then you have to calculate if the remaining interest you'd pay in repayment is more or less than the savings from the sale, the improved energy efficiency and tax credit from buying it a few months earlier.

Either way, doesn't sound that stupid to me.

 

Go on ebay and buy a coupon for another 10 percent off.
You'll pay less than 10 bucks and save huge.
http://cgi.ebay.com/2-LOWES-REAL-LOWES-COUPONS-10-OFF-01-20-2011-/280601832096?pt=US_Gift_Certificates&hash=item41552c2aa0
They'll send you a pdf. you can run off and print out...
If they tell you that you can't use the coupon and get the 10 percent off on appliances, tell the salesman that you're walking out unless he gets approval from his manager. Lowe's appliance guys are on commission and make damn good money; Ms. Slappy's BIL is a zone manager at Lowe's and makes as much as the appliance salesmen -- and works far harder.

 

Also, Lowe's might also give you 10 percent off your first purchase with a Lowe's card -- if you apply instore. check when you go in.

 

I already have the card, so the introductory 10% coupon is long gone.

Rick, when you have a Lowes card they offer 0% financing for 18 months on appliance purchases. I'm just not sure they offer it with this deal.

Since I've been doing pretty well with paying of my credit card debt, I'm just a little gunshy about putting such a big purchase on my card -- even if we can pay off the balance with our tax returns.

 

You say you've been doing well paying off your credit card debt. But do you still have some debt? If so, your equation would have to include the interest you're going to continue to pay on that while directing the money to the stove instead. But generally speaking, isn't living with a zero balance on your credit card the first and most basic recommendation in personal finance?

 

OK, You're still getting 10 percent for the appliances and 10 more for the discount coupon I linked to -- or walking and taking it to Home Depot, where they'll accept the lowe's coupon and give you 10 percent for opening the account. At least the Lowe's salesman will hear that...

 

I've never met a refrigerator that was too big.

 

Dear Farmer J: Refrigerators last a long time. Stoves, too. They are capital equipment, so to speak. So short-term debt (if indeed the tax credit will allow you to pay off all or most of it, we're talking maybe six months worth) for long-term use is sound financial practice. Your home is the factory of your life, as it were. Letting the factory deteriorate for fear of debt is not good business.

 

Thanks for all the feedback. I went in today and found out the financing was only for six months. I was kind of relieved to tell you the truth. I think we'll save up the money first and make it a cash purchase -- or at least more of a cash purchase.