NCL hurting for bookings/cash flow? 0% APR offer

[J0Y0US]

Uplift isn't giving 0% APR away for nothing so that means NCL is picking up the tab.

 

Do we see a lessening of demand in the rest of 2023?

 

Saw other late 2023 deals even from DCL if I am not mistaken as well.

 

Possibly on the backside of the large surge in demand with more ships launching across the big brands tipping the balance of supply vs demand? 

 

Does a 0% APR also show that NCL is buying in to less people having disposable income as inflation outpaces wage growth and individuals have used up the surplus they accumulated during the pandemic? 

[9tee2Sea]

I don't understand all your financial verbiage, BUT, here is my reasoning in laymen's terms.  With 0 % APR, people can pay for a more expensive cruise ( using a big deposit) than they normally would.  Make monthly payments ( without Interest fees of upto 28%).  As long as the cruise has not been paid off at final payment, one can cancel and get a refund ( either a credit back to the charge card, or FCC).

[J0Y0US]

15 minutes ago, 9tee2Sea said:

I don't understand all your financial verbiage, BUT, here is my reasoning in laymen's terms.  With 0 % APR, people can pay for a more expensive cruise ( using a big deposit) than they normally would.  Make monthly payments ( without Interest fees of upto 28%).  As long as the cruise has not been paid off at final payment, one can cancel and get a refund ( either a credit back to the charge card, or FCC).

 

This is for Q4 2023 cruises so you would already be inside the window where you can't cancel from my understanding. 

 

So anyone booking would be going on the cruise. 

[shof515]

uplift is a third party and has no connections with norwegian. think of uplift as those stored based credit card that you see if your favorite store. 

 

uplift is using this 0% apr to try to get people to use this service to pay for a cruise. very similar to the ads you see in the store that say save xyz amount of money on your first purchase if you sign up for the store credit card 

[davencl]

Except this really isn't 0% APR.  The headline may say so but the  terms listed on NCL's site say "Based on a purchase price of $2,000.00 you could pay $165.57 today, followed by 12 monthly payments of $165.57 at 15% APR. APRs range from 0% to 36%. Down payment may be required. Actual terms are based on your credit score and other factors and may vary."

So may be 0% APR if credit score is 800+ but could be as high as 36%.

[graphicguy]

32 minutes ago, shof515 said:

uplift is a third party and has no connections with norwegian. think of uplift as those stored based credit card that you see if your favorite store. 

 

uplift is using this 0% apr to try to get people to use this service to pay for a cruise. very similar to the ads you see in the store that say save xyz amount of money on your first purchase if you sign up for the store credit card 

True.

 

The credit card company is hoping most will not take advantage of the 0% interest and end up paying the BIG interest charge over a long period of time.

 

This has been going on forever.  This isn’t anything new.  

 

NCL isn’t the only company partnering with a bank/credit card company to do this.  Lowes is constantly sending me 0% offers on their big ticket items like appliances and tractors.

 

Best I can tell, NCL cruises are sailing at capacity.

Edited September 19, 2023 by graphicguy

[carohs]

Credit card companies, banks, and other lenders make big $$ from consumer loans. It's typically not the consumer that pays their monthly payment on time, every time within the 0% lending window they make money from; it's the consumer who ultimately pays the late fees or accrued interest rates because life happens where they make the most money. 0% offers are generally attractive to those who don't otherwise have the means for the purchase (read: consumers who are not able to put $X into savings or pay for something outright) and are more likely to default. Consumers who don't find 0% interest attractive are otherwise lured by cash back, points, etc. There will always be offers regardless of economic trends. 

[laudergayle]

2 hours ago, davencl said:

Except this really isn't 0% APR.  The headline may say so but the  terms listed on NCL's site say "Based on a purchase price of $2,000.00 you could pay $165.57 today, followed by 12 monthly payments of $165.57 at 15% APR. APRs range from 0% to 36%. Down payment may be required. Actual terms are based on your credit score and other factors and may vary."

So may be 0% APR if credit score is 800+ but could be as high as 36%.

And, Uplift is considered to be a consumer finance company which at least one of the credit bureaus, Experian, will lower your credit score even if you make all payments on time.

[laudergayle]

7 minutes ago, carohs said:

Credit card companies, banks, and other lenders make big $$ from consumer loans. It's typically not the consumer that pays their monthly payment on time, every time within the 0% lending window they make money from; it's the consumer who ultimately pays the late fees or accrued interest rates because life happens where they make the most money. 0% offers are generally attractive to those who don't otherwise have the means for the purchase (read: consumers who are not able to put $X into savings or pay for something outright) and are more likely to default. Consumers who don't find 0% interest attractive are otherwise lured by cash back, points, etc. There will always be offers regardless of economic trends. 

You have clearly stated why your credit score will get dinged.  Thank you.

[carohs]

4 minutes ago, laudergayle said:

You have clearly stated why your credit score will get dinged.  Thank you.

Surely you don't mean my credit score 😆

[laudergayle]

2 minutes ago, carohs said:

Surely you don't mean my credit score 😆

Sorry…🤣🤣🤣🤣

[ICutTheCheese]

You are making a lot of assumptions.  Many businesses offer 0% APR from time to time.  Car dealers do so a kot abd they are making record profits,   Just anoterh sale by NCL is all.

[J0Y0US]

3 hours ago, ICutTheCheese said:

You are making a lot of assumptions.  Many businesses offer 0% APR from time to time.  Car dealers do so a kot abd they are making record profits,   Just anoterh sale by NCL is all.

 

You mean car dealers trying to drawing in people when money is cheap not continuing to become less cheap? 

[fastpitchdad]

There are dozens of 20 month+ 0% credit card offers out there, why not just get one of those? 

[laudergayle]

1 minute ago, fastpitchdad said:

There are dozens of 20 month+ 0% credit card offers out there, why not just get one of those? 

@carohs clearly outlined why in post #7.  There are people who don’t get 0% credit offers.  Or they have zero credit cards…which they do exist.

[fastpitchdad]

2 hours ago, laudergayle said:

@carohs clearly outlined why in post #7.  There are people who don’t get 0% credit offers.  Or they have zero credit cards…which they do exist.

 

Anyone who can't get a 0% credit card offer won't qualify for the NCL 0% offer either. 

[carohs]

5 hours ago, fastpitchdad said:

There are dozens of 20 month+ 0% credit card offers out there, why not just get one of those? 

I would say chances are people may not be given enough credit to cover the entire cost of the cruise. 

 

More to the point, OP didn't ask about getting a loan. More of a conjecture whether the 0% Uplift offer was indicative of economic trends.

[phillygwm]

18 hours ago, davencl said:

Except this really isn't 0% APR.  The headline may say so but the  terms listed on NCL's site say "Based on a purchase price of $2,000.00 you could pay $165.57 today, followed by 12 monthly payments of $165.57 at 15% APR. APRs range from 0% to 36%. Down payment may be required. Actual terms are based on your credit score and other factors and may vary."

So may be 0% APR if credit score is 800+ but could be as high as 36%.

Ah, the fine print!

 

18 hours ago, J0Y0US said:

This is for Q4 2023 cruises so you would already be inside the window where you can't cancel from my understanding. 

This makes sense.  An empty cabin at sailing not only means no fare revenue, it means no add-ons:  excursions, additional premium meals, jewelry, etc.  So if a sailing isn't already at capacity, it will tend to be deeply discounted as the date approaches.  That's also why you see reduced/waived single supplement on some 2023 cruises.  If they can perhaps discount the base fare a bit less, it would potentially offset any cost NCL might be incurring for the service.

Edited September 20, 2023 by phillygwm

[graphicguy]

I got the NCL credit card.  Bought some much needed appliances.  Paid it off.  Got the OBC as a promo.  Matter of fact, I canceled the card after getting the OBC.

 

You can try doing that if you’re focused on getting a cruise credit card deal.

[D_And_K_gocruising]

LOL all I know it product we sell that the manufacturer offers 0% promo financing on (lawn and garden equipment) costs us between 3 & 10 % to offer that to the customer.   And since here you cant legally charge for fees like that, you have to make sure all that expensive stuff is listed as a "cash price" and they can inquire for financed prices.

[ICutTheCheese]

It amazes me that so many people have such little knowledge of finanical and marketing matters.  I can hardly wait for the  "The Sky Is Failing" post.

[RocketMan275]

3 hours ago, ICutTheCheese said:

It amazes me that so many people have such little knowledge of finanical and marketing matters.  I can hardly wait for the  "The Sky Is Failing" post.

Some people, like my ex-wife, simply don't care about finance charges. All she knew is that she wanted it and she wanted it now.  We can always charge it was her position.  

The best financial decision I every made was getting a new wife. 

[laudergayle]

10 minutes ago, RocketMan275 said:

Some people, like my ex-wife, simply don't care about finance charges. All she knew is that she wanted it and she wanted it now.  We can always charge it was her position.  

The best financial decision I every made was getting a new wife. 

Depends on what it cost you to get rid of your her🤣

When my kids were younger (as was I)…they would say…just write a check!  Little did they know, as a single mom, that’s how we lived.  Timing was everything…lol.  Sure couldn’t do that now.

 

[RocketMan275]

19 minutes ago, laudergayle said:

Depends on what it cost you to get rid of your her🤣

When my kids were younger (as was I)…they would say…just write a check!  Little did they know, as a single mom, that’s how we lived.  Timing was everything…lol.  Sure couldn’t do that now.

Getting rid of the ex-paid off quickly.  Two years later I had no debt and she was declaring bankruptcy.  

Watching the ex balance her check book was always a hoot.   She would open an account and within four months her check book was fouled up.  Her solution was to move to another bank

[laudergayle]

37 minutes ago, RocketMan275 said:

Getting rid of the ex-paid off quickly.  Two years later I had no debt and she was declaring bankruptcy.  

Watching the ex balance her check book was always a hoot.   She would open an account and within four months her check book was fouled up.  Her solution was to move to another bank

Lol…that’s my MIL. I now manage her finances.  She does that with doctors and dentists too…if they  don’t tell her what she wants to hear.