I agree with all you say, but I don't see the connection between paying front up or in installments.
A decent laptop can be bought on craiglist or similar websites for 150/200$, and you can get a decent mid tier laptop from few years ago, a smartphone would be half of that.
Thus, where's the jump to buying a brand new computer in installments?
>Thus, where's the jump to buying a brand new computer in installments?
Sometimes you're "forced" to it. Me, a third-world student, buying a laptop expecting the thing to last at least 7 or 8 years before it becomes obsolete. Now, you have to drop something around 1000 USD when your monthly income from being a cashier at the local supermarket is 250ish.
Also (you can, but) you wouldn't be buying used because there are plenty of scammers around, no warranty in used electronics, and with such a large investment (4x your monthly salary) you become REAL risk-averse real fast. What do you do? You go to an appliances store and buy your new laptop in 18-24 instalments, with a 12-month warranty (or even more if the extra price for the extended time is worth it/low enough).
Guess from where I'm typing this and if there are any instalments left? :D
> I don't see the connection between paying front up or in installments
Paying up front typically means deferring the purchase until you can afford the full cost. If it takes you a year to save up for the car/laptop/washing machine then that means a year of dealing with the more expensive alternatives. In many cases those costs exceed a the interest on the loan, making it a financially sound decision to purchase the item in installments.
> A decent laptop can be bought on craiglist or similar websites for 150/200$
In my experience a craigslist computer is a crap shoot that is an irresponsible purchase unless you are experienced at repairing computers and keeping them going past end-of-life. The risk is just too great that it will not function or meet your needs which is not something you can afford. I'm not saying everyone needs the latest top-of-the-line MacBook, but the vast majority of people are better off buying refurbished and/or mid-level models that are not more than a few years old instead of a $150 craigslist special.
Ditto with cars. Unless you know what you're doing, trying to depend on the absolute cheapest car from craigslist will end up being far more expensive in terms of time and money than just getting a decent used car in the first place.
A decent laptop can be bought on craiglist or similar websites for 150/200$, and you can get a decent mid tier laptop from few years ago, a smartphone would be half of that.
Thus, where's the jump to buying a brand new computer in installments?