Vitamix Payment Plans: Sure, I’ll take free money

Think Vitamix machines are expensive? Well, adjusted for inflation, they’re the same price as they were in the 1930’s.

Crazy, right?

Still a brand new Vitamix is definitely an investment.

But here’s what’s great:

Now, more than ever, you can treat it like an investment. Just use one of the Vitamix Payment Plans on Vitamix.com/shop.

Depending on the terms, they can be an incredible deal.

So when are the Vitamix Payment Plans a good deal? Let’s talk finance for a minute. (I promise, it will be painless.)

Finance 101: How Paying Interest Can Make You Money

What happens when a bank lends you money? You pay interest, right?

Why must you pay interest?

The bank could have used that money for investments. Investments that make money (from the money).

So instead of investing that money in stocks, bonds, etc., the bank is investing in YOU. The bank’s return on investment is your interest payments.

Great.

Now that you have the banks money, what’s your goal? Invest the money in hope of getting a return.

If your return is greater than the banks (the interest you owe them), you make money. If it’s less, you lose money.

Here’s an example:

You borrow money from a bank at 3% interest to buy a house. If you, later, sell the house at a 4% return on investment, you’ve made money. You net 1% return on investment (4% – 3%).

Make sense?

What happens the bank instead lent you money at 2.5% interest. Now, when you sell, you net a return of 1.5% (4% – 2.5%). More money!

So is it clear that the lower the interest rate, the better the deal (and greater potential to make money)?

Great.

What happens if someone lends you money at 0% interest? This, my friend, is what they call free money.

So, what does all this have to do with the Vitamix Payment Plans?

Why Vitamix Payment Plans can be like Free Money

Vitamix offers payment plans for all purchases made directly from them (via their website or by phone).

Now, the terms of the Vitamix Payment Plans are subject to change.

(See current terms)

But, if there are no fees and zero interest, you should absolutely take advantage.

You’re essentially getting a 0% loan for free.

Why?

Let’s say you have $700 to your name. You want to get a Pro 750.

(Yikes, maybe you should wait to get your Vitamix.)

You have two options. Buy with:

1) No payment plan.

Make a one time payment of ~$680.

When the purchase is complete, you get:

• A Vitamix.
• $20 ($700 – $680).

2) Payment plan.

Make five equal payments of ~$120.

When the purchase is complete, you get:

• A Vitamix.
• $580 ($700 – $120).
• A promise to pay back the money Vitamix “lent you.”
• An opportunity to take that cash to the casino and turn it into $1,000. (Holy crap, don’t do that. Invest the money wisely.)

Bottom line: If the terms are right (no fees, no interest), you should absolutely do use the Vitamix Payment Plan.

When you Shouldn’t use the Payment Plan

There’s little reason not to use it. Here are a few:

• If you truly cannot afford a Vitamix.
• If you’re going to incur credit card interest from charging it. As a former CPA and finance guy, NEVER charge something on a credit card that you can’t pay off IN-FULL and on-time.
• If the terms of the plan aren’t favorable. As of today, they are.

If you aren’t sure, feel free to contact me.

Vitamix Payment Plan Options

Vitamix is piloting long-term payment plans. They’re still working out the details, so I’m unable to provide specifics.

But here’s the deal:

This pilot program is incredible. It lets you basically get the latest and greatest Vitamix delivered to your door for under thirty bucks.

If you visit Vitamix.com/shop, you should see a banner at the top for details.