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How do you pay for new?

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We use a credit card for everything. Not because we're borrowing (the account has a zero balance at the end of each month), but because it protects us against fraud, makes returns a non issue, no risk of walking around with cash, etc. But most importantly, points and miles! I can't even tell you how many miles and points we accumulate running every transaction, every day throughout the year through the credit card.
Same here, basically every dollar our household spends goes onto our CC in order to reap all of the rewards. We get literally thousands of dollars back in rewards via either airline miles or straight up cash back.

The 'I only use cash so I'm not subject to fraud' people don't make any sense to me. My credit cards provide a path of recourse if there is an issue with a vendor. My Sapphire card provides tons of buyer protection AND credit monitoring and identity protection.

There also seems to be a weird perception that using credit cards means you carry a balance and incur interest. We simply pay the balance each month. There is absolutely no downside, and IMO missing out on these benefits is financially unwise. This of course assumes that you can practice self control and use a CC only for things you'd purchase regardless of method.

As you may have guessed from that rant, the bikes that I've purchased new from a shop were purchased using a credit card, ha.
 

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The Original Suspect
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The last bike I purchased (in February) I used a credit card that gave me 5% back so it made the deal I got a bit sweeter! I also paid it off before the billing cycle ended as to keep my utilization low and not affect my credit score.
 

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since 4/10/2009
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There also seems to be a weird perception that using credit cards means you carry a balance and incur interest. We simply pay the balance each month. There is absolutely no downside, and IMO missing out on these benefits is financially unwise. This of course assumes that you can practice self control and use a CC only for things you'd purchase regardless of method.
When I was young, I had a credit card for emergencies. Making a purchase on it meant that I carried a balance because I couldn't afford it otherwise. It took a long time and a lot of discipline to pay that stuff down. But I did.

It's not only self control that allows one to not carry a balance on their cards. That's part of it, but if you're poor, it's a LOT harder to accomplish and things I wouldn't think about as emergencies now would set me up for years of CC payments.
 

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Let's do the math....I buy a new $3k bike every 3 years.
But every day I come in and drink two of their craft beers. At $1.50/beer, that's $21/week, $1092/year, or $3276 every three years.
You could say that they pay me back in installments.
$1.50 for a craft beer? Around here it’s more like $5 for a pint, and we have lots of breweries.
 

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When I was young, I had a credit card for emergencies. Making a purchase on it meant that I carried a balance because I couldn't afford it otherwise. It took a long time and a lot of discipline to pay that stuff down. But I did.

It's not only self control that allows one to not carry a balance on their cards. That's part of it, but if you're poor, it's a LOT harder to accomplish and things I wouldn't think about as emergencies now would set me up for years of CC payments.
Totally understand this, and I was in a similar position when I was younger. This is a much bigger conversation, for sure.

My point was that if you're spending the money anyway- whether on regular monthly expenses, or on occasional large purchases like a bike- it makes better fiscal sense to put those purchases on a CC with a good rewards structure. I just can't imagine giving up that free money.
 

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since 4/10/2009
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My point was that if you're spending the money anyway- whether on regular monthly expenses, or on occasional large purchases like a bike- it makes better fiscal sense to put those purchases on a CC with a good rewards structure. I just can't imagine giving up that free money.
I'm very glad that I'm able to do this now. In fact, doing so has improved my credit score massively.
 

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Here's a more fun question: What's the most expensive thing you ever bought for CASH. I've bought a few used cars/trucks for $10-15K cash, but never more bills than I could stuff in my pockets. Somebody here must have done one of those scary briefcase-full-of-money deals like we see on TV.
My house... though it was a massive bank draft (I did ask to do it with bills but the lawyers said no.)
 

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OOOOOOOh Gee Are Eee
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I also use credit cards and pay them off every month (and try to maximize rewards to a small extent). But I struggle a bit recommending other people use them because the card companies are so exceptionally good at getting the better end of the deal.

If you are good at managing your finances, credit cards are fantastic. If you aren't, they are best set aside for emergency purchases because it's super easy for a $2000 bike purchase to set someone back $2500 or more in a hurry. Then while you are paying it down over a couple months, you pay interest on all your purchases for that time.

Just gross. It's happened to me even knowing it's an issue.
 

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I hope this thread stays free of insults now because it's getting interesting and I'd hate to cloase it.
 

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The 'I only use cash so I'm not subject to fraud' people don't make any sense to me. My credit cards provide a path of recourse if there is an issue with a vendor. My Sapphire card provides tons of buyer protection AND credit monitoring and identity protection.
I understand why people are cash only. It's simpler and easier to get your head around. You can't get tricked into a recurring payment you have to fight with someone to cancel or accidentally authorized excessive charges.

Most "Cash Only" people want their finances simple and that works for them.

Sounds like you run your finances similar to me and it's arguably the best way, but it also is a little riskier and if you have an extremely tight budget, things can go sideways fast.
 

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Big purchases - cash. My LBS gives us great deals. I return the favor by not making the owner eat the credit card fees.

Small purchases - credit.

I don't finance my purchases. But...I also haven't ever been offered 0% financing.
 

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Disgruntled Peccary
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After having to replace a couple cards in way too short a period due to fraudulent charges (and these were POS purchases, not internet), I went back to cash if at all possible. Then again, I spend a lot of time in places where cash is the preferred method of payment (or, the ONLY method of payment I can make).. so I'm just that guy that carries cash and a coin bag.

I wrote a check for the last vehicle I bought though, I'm not going to carry a briefcase.

My last bike was almost all mail order, as none of my local stores could get anything... several never even bothered to call me back about the parts I was looking for.
 

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I ask the vendor if I can get a discount for paying cash. Typically, they are willing to give a bigger discount than the best reward cards offer. I did the same with my business back in the day because cash in hand is a done deal and it eliminates the douche factor of people who like to scam merchants with the 'did not receive the package, it was damaged on arrival, etc' crowd. However this cash discount thing is changing as many banks have begun charging higher fees for businesses making cash deposits above daily or monthly limits. We are moving towards a cashless society where the primary alternative currency will be beer or sexual favors, which are universally accepted in my experience.
 

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Here's a more fun question: What's the most expensive thing you ever bought for CASH.
Actual greenbacks? That would be my first car. A 1974 Super Beetle for $2,500 that I bought in the early 1990s.

I've written bigger checks for things since then but mostly just use a credit card that I pay off every month. I like getting the dividend, frequent flier miles, etc.

One of my friends is a real tech junkie and does all of his banking through some online service that has no brick-and-mortar locations. He literally has no way to deposit or withdraw cash into or from his account.
 

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OOOOOOOh Gee Are Eee
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One of my friends is a real tech junkie and does all of his banking through some online service that has no brick-and-mortar locations. He literally has no way to deposit or withdraw cash into or from his account.
I have an online only bank and it works well, they give me a list of ATMs where I get fee free access to cash.

Most of the time I receive cash, I just spend it out until it's gone rather than deposit it.
 

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CEO Product Failure
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Tipping for repairs do you mean? I wouldn't tip for a new purchase of anything unless it took some extended level of effort for the shop to obtain it I guess.
Yes Beer and gift cards for repairs.

$100 tip for the new bikes. Bear in mind I've bought 3 bikes in the last 18 mos. Their purchase prices varied between $5k and ~ $10k each. IMO, there's nothing wrong with tipping the guy who assembled my dream bikes 1-2%. While his labor quality should remain constant and the tip is probably out of the ordinary, I do want to acknowledge that I value his work.
 

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OOOOOOOh Gee Are Eee
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We are moving towards a cashless society where the primary alternative currency will be beer or sexual favors, which are universally accepted in my experience.
As George Carlin says: Cash, Grass, or a Piece of Ass.

Don't think either of the 3 are going out of favor soon! Cash is less common than it was but still works.
 

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Credit cards are not necessarily bad, if you are strict to keep them paid off.

Some offer cash back, extra insurance, extra layer of security if an online purchase goes bad.

Key is, keep them paid off every single month. Always have an emergency fund in the bank in case your vehicle or furnace breaks etc.

Sent from my SM-G960U using Tapatalk
 
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