GM and Ford - have tried this one for years - just another sign of troubled times.
Also - for anyone thinking about this idea - there is no such thing as a 'free lunch' - the price you are asked to pay already includes the 'cost' of the interest rate free period.
For any cash buyers - the best thing to do is factor in the NPV of the theoretical interest amount you will pay after 18 months and then SATRT the negotiations with this amount TAKEN OFF the RETAIL asking price today.
Remember though that such offers are a very bearish indicator about the product and company fiscal situation with bearish indicators about the future value of your purchase today.
Sorry to see this bit of gimmickery hit the MFD nmarket. Pretty much confirms to me that only the very brave should consider buying a new MFD back today.
Couple thoughts.
First "there are no free lunches" completely ignores efficiency:
1) While we are still offering everything from 12 to 60 month leases we are much more focused on this specific 18 month lease. This means faster and easier paperwork on our end which translates to less labor cost.
2) Instead of having only a few customers entering into leases we are scaling up the number of leases dramatically because of this offer. With higher quantity comes better terms.
Second, while any business savvy person knows buying in cash is the way to spend the least total money, there are many situations in which it's not "cheaper".
For those using a digital back as a professional tool the use of the back ought to be generating additional income, whether in landing jobs they otherwise might not have landed, or in justifying a higher rate than they might otherwise have drawn. In that case having to wait to accrue a certain lump of cash may mean a net-negative.
For those using the back as a serious hobby there is an intangible cost. Imagine you spend $X dollars/hours/favors-to-the-spouse to get to the top of a mountain in Istanbul and luck out with a once-in-a-lifetime rainbow/sunset/storm shot. Now imagine that you take the shot with a D300 rather than a digital back because you were waiting for the next digital back model, the next price drop, or to accrue a lump-some cash payment. It's unlikely in this situation that you'll be reassured by what you've "saved".
There is also the hassle of moving money around. Many of our customers have enough money to purchase but consolidating various accounts, cashing out semi-liquids like CDs or short-term bonds, is a major hassle and carries a lot of baggage. With the lease they can start shooting today without the hassle and is much much better than slapping it on a credit card. Peter, if I'm right you probably could tell me off hand the current value of every account in your control as well as your target liquidity and short/long positions and I bet you even take a certain pleasure in planning major purchases, ensuring that certain investments and positions can expire/consolidate/roll-over as needed to allow a certain cash payment. That's great, but not the norm.
Doug Peterson (e-mail Me)
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Phase One, Canon, Apple, Profoto, Eizo & More
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