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Amazon starts no-interest payment plan option for Kindle Fire HDX tablets

Written by Andre Yoskowitz (Google+) @ 15 Dec 2013 13:57 User comments (10)

Amazon starts no-interest payment plan option for Kindle Fire HDX tablets In an effort to boost sales of their Kindle Fire HDX, Amazon has begun a new partial money down, no interest financing option for the tablet line.
Here's how it works:

Make your first payment at checkout to get your new Kindle Fire HDX. Pay the remaining balance in 3 equal installments every 90 days.

No interest
No finance charges
No hidden fees
No credit check or application required

To get started, click on the button below. Add any eligible Kindle Fire HDX or Kindle Fire HDX 8.9" tablet to your cart. At checkout, we'll charge 25% of the device price, plus any applicable tax and shipping charges in full. The remaining balance will be automatically billed to your credit card in three equal installments every 90 days.


If you fail to pay off the balance, Amazon will deregister the device and block all content you have paid for, including your Kindle books, Amazon music and more.

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10 user comments

115.12.2013 15:32

This is lame. They may not do credit checks but obviously this can't cater to those with no credit or bad credit. You MUST have a credit card, and they charge you 25% of the device down which can be a lot pending on which device you get. Those who have credit will likely opt for something else entirely. I just don't understand who this caters too? Someone who's almost maxed out their credit but has just enough to want a kindle...

215.12.2013 18:50

Originally posted by Mysttic:
This is lame. They may not do credit checks but obviously this can't cater to those with no credit or bad credit. You MUST have a credit card, and they charge you 25% of the device down which can be a lot pending on which device you get. Those who have credit will likely opt for something else entirely. I just don't understand who this caters too? Someone who's almost maxed out their credit but has just enough to want a kindle...
I can almost bet that you could use a debit card attached to your account to pay for the device. They don't have to have a credit check because the use of the device is collateral for the interest free "loan".

315.12.2013 19:43

"I can almost bet that you could use a debit card attached to your account to pay for the device. They don't have to have a credit check because the use of the device is collateral for the interest free "loan".

(Shrugs), not about to try it myself, already got myself a new cell, that's good enough for me. If others can find a deal with that, good on them I guess.

416.12.2013 0:06

and how many people are just going to use a pre paid visa jailbreak the thing and tell amazons book store to go jump off a cliff

516.12.2013 6:52

Reading some of the comments, I think, some might try to jailbreak the thing, but the target consumer, in my opinion, are the ones that normally would not buy such a product given the price point. I think it is smart strategy on Amazons part, to gain some of those people as well. The only downside issue I can see, is purchasing of apps and/or books. I cannot see them selling that many products, if they are going after people that need to stretch out payments.

617.12.2013 0:45

There is no such thing as zero interest.

717.12.2013 6:19

Originally posted by Azuran:
There is no such thing as zero interest.
its got my wondering if its same as interest free here.$800 item at just 24 payments of $80 or something similar

custom built gaming pc from early 2010,ps2 with 15 games all original,ps3 500gbs with 5 games all original,yamaha amp and 5.1channel surround sound speakers,46inch sony lcd smart tv.

817.12.2013 16:25

Originally posted by Azuran:
There is no such thing as zero interest.
Well if you pay full price it is $229. If you use payment option it is 4 payments of $57.25. 229/4=57.25.

I wanna devise a virus and bring dire straights to your environments. Crush your corporations with a mild touch, trash the whole computer systems and revert you to papyrus - Deltron 3030

917.12.2013 16:51

Originally posted by klassic:
Originally posted by Azuran:
There is no such thing as zero interest.
Well if you pay full price it is $229. If you use payment option it is 4 payments of $57.25. 229/4=57.25.
No.

If an interest rate of 0 is stated in a finance agreement interest must be imputed. For most companies the risk free rate of return is the going rate of T-bonds (although some wealthier companies may use a higher rate because they can reliably and consistently earn a higher rate of return) For our purposes let's say 2%. We'll also stick with simple interest since using present value techniques on a loan term of 1 year or less is immaterial.

$229/1.02 = $224.51

So Amazon will report sales of $224.51 (implied fair market value) and interest revenue of $4.49 on each kindle sold.

Of course they don't tell you any of this because then they would have nothing to advertise.

Edit: Numbers are not exactly correct because I forgot to subtract the initial payment and reduce the % based on the life of the loan, but the point is still the same.
This message has been edited since its posting. Latest edit was made on 17 Dec 2013 @ 17:28

1017.12.2013 18:37

Originally posted by xboxdvl2:
Originally posted by Azuran:
There is no such thing as zero interest.
its got my wondering if its same as interest free here.$800 item at just 24 payments of $80 or something similar
Yep.
It's call it:
Layaway.- is an agreement in which the seller reserves an item for a consumer until the consumer completes all the payments necessary to pay for that item.

No-Interest is a "miss-type" 'cos the use of a C.C.
I guess the name for this "New Agreement" is call it: Auto-Layaway !?
This message has been edited since its posting. Latest edit was made on 18 Dec 2013 @ 20:10

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The rule above all the rules is: Survive !
Capitalism: Funnel most of the $$$ to the already rich.

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