companies that sells computers at $XXX/mth. their risks?

[PQpine413]

i see alot of info-mercials on TV where these companies sell you dell PCs for $XXX/mth.

what do they do to make sure they get their money? automatic credit card payments set up?
is paying less every month and more in the long run really that appealing for purchases that range from $500-$2000?

dont' really how these companies work and how they prevent frauds from people that buy their prodcuts and 'run away'

anyone have any experience or knowledge on this?

Thanks

[lapopal]

You're asking an odd question, why do you care if someone tries to defraud one of these companies or what their methods are to prevent that from happening?

If you want to lease a Dell, you call them or get the info online direct from Dell, the monthly option is listed on each computer they sell if its available under their leasing/finance program.

[grant]

why do you care if someone tries to defraud one of these companies or what their methods are to prevent that from happening?
Maybe he's just curious, what do you have against people learning things?

PQpine413, typically these computer companies have arrangements for a finance company to pay them immediately in full for each sale. So the finance company takes the risk of default.

The finance company ensures their profits through credit risk analysis & charging a high enough interest rate to cover their expected defaults, much like a credit card.

[PQpine413]

haha..sorry if my question came out weird
i'm just brainstorming business ideas and thought maybe leasing out performance PCs for whatever can be an idea

i'm not trying to 'run away' with a dell :twisted:

[grant]

Dell is large enough that they can have their own finance department. The smaller places "only $1/day!" use the services of a dedicated financing company.

Yes leasing or financing is very often desirable to businesses, it improves their cash flow and may have tax benefits since leasing is an expense whereas buying a computer is depreciable capital expense.

[PQpine413]

so i guess what is suggested is to go through a financing company instead of doing this in-house

any idea which companies do this?