Want to get a new computer, but cannot afford to pay for it all at once? There are many ways to get this thing done. Which method you use depends on many factors: Which kind of computer you want, what you want your computer to do, your financing options, and who you want to buy it from.

Right now is a great time to buy a computer. There are several reasons for this. The first and biggest factor is Microsoft’s recent release of Windows 7. Usually, a new operating system from Microsoft is good for computer sellers a new version of Windows usually requires newer, faster and better hardware to work right than the previous version needed. This time is different. Windows 7 has basically the same hardware requirements that Windows Vista has, meaning there is no real pressure to buy a new desktop or laptop. There is no advantage for the consumer to doing so.

The recession we are in also contributes to keeping prices down. Computer manufacturers have a huge amount of excess capacity, and survival depends on keeping costs down and market share up.

Of course, the holiday season is a big consideration. Retailers are competing like starving wolves for the consumer-electronics dollar.

Another factor in low computer prices and the increase in financing options is market saturation. Because so many people in America (and worldwide) have computers, manufacturers and retailers have to be creative in order to sell to what could be called the sub-prime computer market. These are people who are new to the market, or have poor personal credit.

The computer market itself is also changing. Just as second-car markets and second-TV markets have evolved, so has the second-computer market. A home’s second computer is usually portable, a laptop or a Netbook, connected to the first (base) home computer via a wireless network. The second-computer market is well established. It could be said that the third-computer market is emerging; technology improvements in wireless phones causing smart phones to become the family’s newest computer devices.

All these factors together make the computer purchase market the buyer’s oyster.

Next, we will look at specific examples of how computer sellers are packaging payment options (and increasing profits) to the new computer market.

When it comes to offering new payments, there is always a catch. The first hook retailers try to set is, Let Us Be Your Bank. For example, Amazon.com is offering 6-month and 24-month interest-free financing when you use your Amazon.com Store Card. The new thing about the Store Card is that it is not just a Visa or MasterCard with Amazon’s logo on it; the card is proprietary to Amazon. Of course, the Amazon.com Rewards Visa is also available. Computer manufacturer-retailer Dell has a similar kind of program.

This payment marketing serves the computer sellers in several ways: Not only does the company earn interest on your purchase; the company keeps its retail price levels up. Financing anything has that indirect affect on the pricing of any product, because it changes the unwary customer’s focus from total product cost to cost per month, allowing retailers to inflate prices.

Payment marketing also allows the retailer to clear old inventory. For example, Dell is offering an Inspiron laptop for $549 on its website. A quick look at the computer’s specifications shows that, except for its Windows 7 operating system, it is a two-year-old computer. A computer that old should not sell for more than $399. However, you can “buy it for as little as $17 a month!” With interest over three years, those cheap monthly payments cost you over $800.00.

Another advantage payment marketing gives the retailer is up sell potential. The above example gives Dell the opportunity to sell upgraded hard drives, DVD drives, and random access memory. It also lets them sell Microsoft Office and other software products that are not included in the low, low starter price.

While this may seem unfair, the programs that sell to people with credit problems are even worse. The products such specialty retailers sell are even older, have fewer features and smaller software bundles, and end up costing even more than those of retailers like Dell and Compaq.

If you need or want to pay for your computer over time, here are some pointers. First, do your research. Figure out how you will be using your computer, and what hardware and software you need for that use. That way you will not buy more or less computer than you need. Second, think total cost, not cost per month. Third, check the financing terms. Dell, and other better retailers, will allow you to pay off the computer early with no penalty. Run from any company that will not let you do this. Fourth, make your payments on time and above the minimum amount. This will help avoid triggers that cause your interest rate to go up.

A little wise shopping can help you get low monthly computer payments, and keep them low.

This post is tagged with: compaq, dell, financing options, low monthly computer payments, payment options, sub-prime