We’ve all been there. Where, you might ask? Scrolling through our favorite resale website when up pops that rare bag. You know, the limited edition one you’ve always wanted, or the one that got away from you all those years ago. And even though you know you were “just looking,” how can you possibly pass it up?

Or what about that rare deal you find. That diamond in the rough? You tell yourself that opportunities like this don’t come around often, as the tiny little pay with affirm logo teases a low monthly payment.

To Finance or Not to Finance

Recently I started exploring Chanel Bags on the resale market, as I want to get an idea of what price points are for certain styles and what I’m actually looking for. Do I want to buy something that’s super vintage (think 90s or early 2000s Chanel), or do I want a gently-used bag from the last few years? I came across a multicolor patchwork Chanel Flap Bag on The RealReal, in nearly perfect condition. I was seriously tempted by the option to use affirm or afterpay, but then I thought better of it.

Four years ago, we covered the relatively new phenomenon of having the option to finance your luxury purchase. At the time, affirm had been popping up across fashion e-tailers for only a little over a year when its competitor afterpay came up, allowing customers to split purchases into 4 monthly payments with a 0% interest fee, always. Now, there are more options than ever, with companies like PayPal and Klarna offering buy now, pay later options.

When we first broached the topic, we wanted to know if you would ever consider using one of these up-and-coming options. Four years later, they’ve tempted me, and I want to know if any of you have actually used a pay-later option. Did you regret it?

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Sara
Sara
1 month ago

Finance things that are necessities such as your car or your home. If your only option to buy a luxury bag is by financing it, you probably shouldn’t buy it.

Irene
Irene
1 month ago

So I’m guessing that all of you who are telling people “if you have to finance it, you can’t afford it”,
don’t have a Nordstrom card, Saks card, etc..?
GTF out of here. The utter snobbery and “key board elite status perpetrating” on this bog is a joke .
So am I to understand that everyone just drops 2k plus right out of checking every time they buy an expensive bag?
I use Klarna , affirm , and pay plans ALL the time.
Why? Because I don’t want to see a huge deduction out of my account. I use my weekly “extra spending money” on these type of items. I budget it out without having to touch my savings.

Yamaliz
Yamaliz
30 days ago
Reply to  Irene

Thank you👏👏👏and I also can afford to buy them at the moment.

Yamaliz
Yamaliz
30 days ago
Reply to  Yamaliz

And I own my houses and cars !

Shartelle
Shartelle
1 month ago
Reply to  Irene

You sound like the perfect customer for the banking industry. 👀

Irene
Irene
30 days ago
Reply to  Shartelle

Sounds like you don’t own your own house or car? The “banking industry “ is good for those..
but perhaps your unfamiliar with that.
yeah, I’m a good customer for them, but not the credit card companies. They don’t have a chance to collect too much interest on my behalf. Klarna and affirm don’t charge interest though. They take installments interest free.

Heather Tweedy
Heather Tweedy
1 month ago

I have used the interest free option a few times recently since my savings account is paying over 4% right now. I set aside the cash and it grows (albeit just a little) while I pay the bag off for no additional cost.

I would never buy a bag if it meant paying interest on the purchase.

Preppie
Preppie
1 month ago
Reply to  Heather Tweedy

Same, I have done it twice with zero interest. I would never pay interest to finance a bag, but why not at 0% when I am getting a return elsewhere.

Gayle
Gayle
1 month ago
Reply to  Preppie

Exactly the same thing my mom taught me.

Rania
Rania
1 month ago

I would only buy now and pay later for essentials that I would need to survive such as shelter, food or health care. No luxury item is worth jeopardizing my financial well-being, even a holy grail bag. Desires come and desires go, but not massive debt. So no , I would never do it and would never recommend it either.

Fabuleux
Fabuleux
1 month ago

Most Americans are completely financially illiterate and this trend is all about pushing people to overspend by giving them the illusion they can afford these goods. These “zero” interest payment companies get a big cut from brands—up to 8% according to a recent NPR story,

malina
malina
1 month ago

Sounds like you’re promoting financial irresponsibility. 🤷🏾‍♀️

Jerri R
Jerri R
1 month ago

If the one special bag that gives the buyer immense happiness, and such buyer is financially sensible otherwise, I don’t see why not.

Sam
Sam
1 month ago

I have, in the past, only to establish a credit history. I utilized the 4 month option with zero percent interest. Money was withdrawn, monthly, from my bank account until the balance was paid. I didn’t go into debt to pay for the bag and never would.

Joan
Joan
1 month ago

If you have to pay for a luxury bag in installments, you can’t afford it. It’s that simple.

Sam
Sam
1 month ago
Reply to  Joan

Speaking only for myself this is not true. I had the money set aside in my bank account, but to establish a credit history I paid in installments. Once, my credit history was established I never paid anything in installments.

Jerri R
Jerri R
1 month ago
Reply to  Sam

Uh context? You know they are not talking about people doing it strategically, like you, rather about people who cannot afford to pay in one sum.

Sara
Sara
1 month ago
Reply to  Sam

But that means you didn’t HAVE TO pay in installments. You made a choice do this so you could establish credit history. Not the same thing.

Sam
Sam
1 month ago
Reply to  Sara

Whatever my reasons for choosing to pay in installments it is still paying in installments. This can be seen from many different viewpoints, not just what you are describing. In other words, people pay in installments for a variety of reasons. See above: “Heather Tweedy” and “Preppie”. I’m done discussing and explaining this to you and other’s.

psny15
psny15
1 month ago
Reply to  Joan

Agreed –

Emily
Emily
1 month ago
Reply to  Joan

If you have to pay for a house and car in installments, you can’t afford it. It’s that simple.

Jennyfur
Jennyfur
1 month ago
Reply to  Emily

The irony is lost on the replies 🙄

Fabuleux
Fabuleux
1 month ago
Reply to  Emily

This is the dumbest comment I have ever read on PB. Are you really comparing the need for housing and transportation to… a purse? Get real. 🙄

Jenn
Jenn
1 month ago
Reply to  Emily

Lol not you comparing a frivolous purchase to a necessity. Big eye roll.

Aspen
Aspen
1 month ago
Reply to  Emily

A bag isn’t going to keep you warm at night on the streets. Don’t try it.

ladyet
ladyet
1 month ago

I have never but the unsolicited advice in the comments certainly wouldn’t encourage anyone who has to be forthright about their spending habits.

GG Pastel