Wanstalls Retail Store Now Offering Financing

The lack of knowledge of credit is baffling on this board. As someone above said, if you do not like it don't use it.

Interest rates are correlated to risk. Plain and simple. The higher the risk, the higher the rate the lender/investor requires. If someone lends money to a bank (I.e. put it in a GIC), it is guaranteed and for that they should expect to be paid a low rate (about 1.5% over one year). If someone lends money to a riskier company, say a mid size corporation, they should expect a higher rate. If lending money to a higher risk borrower on a higher risk asset (like a firearm) of course the rate will be higher. Why would anyone lend money to buy firearms unless they were compensated for the risk they are taking? Why would anyone feel entitled to a lower rate on a high risk asset?

People are not babies. They have free will to determine if they will use finance or not. Interest is the cost of money. The true north is strong and free which is why we have a capitalist system that allows free choice and free enterprise such as this. Gun owners of all people should appreciate that. At the very least, the fact that finance is becoming available to firearms shows that it is moving towards mainstream acceptance. There is finance for RVs, ATVs etc and now firearms. Gun owners everywhere should be happy.
 
Agreed! While I don't think I'd ever use it I think it's an awesome service that they are offering and it's not really that much different from any of the big box stores in house financing.
 
If this was available online (might be, haven't had a chance to read all the pages yet) I would definitely consider using it. Not that I need too, it's almost the same as putting it on my LOC or credit card and making payments against it. It's still an excellent idea!
 
To be clear, I don't have any "resentment" against the credit system.
What I don't like, it is the way of how they try to sell their money, by misleading advertising.
Their 6 months credit with 4.99% interest, it is actually carrying a 16% interest,
and the 12 months plan with 14.99% interest, it has a real interest of 27%.
If the advertising was presented with the real numbers, no problem, it is the customer decision.
But when you try to deceive your customers, this in my opinion, is a lack respect.
 
You can finance a mattress, why not a gun? I have several old well used guns. I have zero old well used mattresses. $90 bucks a check for 6 months for a $1000 gun doesn't seem high risk or a rip off,
 
Finally, you come up with right numbers!
Marketing department should have the finance lesson learned before they start advertising their product.
Do I get a discount, for warning you (and being an ...hole in some of the members opinion) ?
 
Tacticalcapital said:
2. The marketing department is getting a lesson in finance as we speak! .
Click to expand...
That should be interesting.

But don't feel to bad. Years ago I was spec'ing out the calculations for a mortgage calculator for a website and when I tested it against the banks' websites, one of the banks were calculating it incorrectly. If the banks can't get the mortgage calcs right, we can't expect a gun marketing dept. to know this stuff.

FWIW, I called the bank and told them their calcs were incorrect and told them where they were wrong. They didn't care, told me if I wanted a correct calculation to to call my local branch.
 
Amortization amount = (Loan amount x (yearly Interest/compounding periods per year)) / (1-(1 + yearly interest/compounding periods per year)^-(compounding periods))

Simple enough right? :) Also of note the $25 does not appear to be paid up front, but amortized in with the loan amount, for people checking this manually.

cataling said:
To be clear, I don't have any "resentment" against the credit system.
What I don't like, it is the way of how they try to sell their money, by misleading advertising.
Their 6 months credit with 4.99% interest, it is actually carrying a 16% interest,
and the 12 months plan with 14.99% interest, it has a real interest of 27%.
If the advertising was presented with the real numbers, no problem, it is the customer decision.
But when you try to deceive your customers, this in my opinion, is a lack respect.
Click to expand...

Wrong. You forgot to factor sales tax that is accounted for in the monthly payment (but not entered in the "loan amount") and the admin fee that is amortized in.

Take the Barrett @ 4249.99. Add 12% tax for BC and $25 admin fee, and the amortized amount is $4784.99 over 6 months.

Payment = (4784.99 * (.0998/12)) / (1 - (1 + (.0998/12))^-6) = 820.87. It clearly states on their site:

Monthly installments over 6 months @ 4.99%* or monthly installments over 12 months @14.99%
*APR [Annual Percentage Rate] 9.98%

Not 16%. The 12 month plan is as described, 14.99%.
 
TT_270wsm,
I have done my math twice after I called them, and before I posted here.
If you read all posts, you will see that in fact their math was wrong, and they admitted this.
Their last example it is correct. The preview one, what they quote me when I called them, and the calculator from the website was totally wrong.
 
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