alt Hacker NewsIsn't the 0% APR financing essentially just a sales expense? Even if people generally don't immediately roll into another 2-year agreement, the main reason zero-interest financing works for the sellers is simply that it makes it easier for people to spend money on expensive high-margin stuff.
Multi-year zero-interest loans are also commonplace in high-price, high-margin specialty retail: think La-Z-Boy, Sleep Number, home improvement, hot tubs, home gym equipment, etc.
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maxerickson • yesterday at 1:04 PM
Probably the better way to look at it is that the finance charges are built into the price.
They also charge heavy interest and fees to people who miss payments, but in this case that will be captured by Klarna.