How TV Financing Works in Canada

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There’s nothing better than curling up in bed with your favourite snack and binge-watching your favorite television show. In fact, the average adult Canadian spends over 23.7 hours per week watching TV – that’s almost three and a half hours per day!

Surprisingly, teenagers seem to watch much less television but still average around 11 hours per week. So what do you do if your television breaks? Well, it’s time to get a new TV. But televisions can be expensive. So let’s talk about tv financing. 

But before we do, let’s talk about televisions.

What does a new television cost in Canada?

Several different things can affect the cost of a television. These include the brand name of the tv, the screen size, and the resolution. The better the resolution, the larger the screen size, and the more well-known the brand name, the more expensive your television will be. 

While there are no detailed data on the average cost of television in Canada, we can assume that it’s pretty close to that of the United States. In the United States, the average cost of a television is around $400-$500.

But again, size and brand matter a lot. To be more specific, a 50-inch Samsung LED 4K Ultra HD HDR Smart TV costs about $848 CAD. A TCL TV of similar quality and size costs about $469 CAD while a Sony TV in the same range could set you back a thousand bucks.

With that being said, if you are looking to purchase a television with a screen larger than 55 inches, you should expect to pay a significant amount more – between $1000-$2000+ CAD.

Where can you get a new television in Canada?

There are numerous places that you can get a new television in Canada. Lots of big-name stores sell televisions – even Amazon. Other popular places to purchase a television in Canada include Walmart, Best Buy, The Source, Leons, The Brick, and Costco.

When it comes to buying a television, be sure to shop around. Big box stores put televisions on sale all the time, so rarely do you ever need to pay the total price for a tv. As long as you are willing to wait it out and shop around, there are some great deals out there. 

How to finance a television in Canada

Some people choose to pay for their televisions outright, while others prefer to finance them and pay them off over a longer-term. When you finance your television, you generally pay a monthly bill rather than paying for the entire bill all at once. There are several different ways that you can finance a television in Canada:

  1. Credit Card

We don’t ever recommend purchasing large items on your credit card, but if you can pay it off quickly, it can be an easy way to finance your television.

The main problem with credit cards is that they generally have hefty interest fees. But, if you have a credit card that offers points or other rewards, you could earn quite a few with a television purchase. 

  1. Line of credit

A line of credit is most often provided by financial institutions. In comparison to a credit card, the interest rates are generally much lower. You can apply for a line of credit for almost anything at your bank.

If accepted, you can use it and pay it off as you please. The main benefit of lines of credit is that they are re-usable. As you pay off your line of credit, the funds then become available again for use. 

  1. Personal loan

Your other option for loans is to obtain a personal one. Again, these are most often provided by your financial institution, but there are some online options out there too.

Personal loans are lower in interest fees than credit cards but usually higher than lines of credit. They are also different from lines of credit in that once they are paid off, you can’t reuse them. 

  1. In-House Financing

By far the most popular method of financing a television in Canada is in-house. This means that you obtain financing from the store that you are purchasing the television from. Most stores that sell televisions are large enough to provide financing options, though this is not always the case. 

How does In-house Tv Financing work?

In-house financing is a win-win for the retailer and the customer. The customer gets financing, and the retailer obtains their business. You’ll need to meet minimum requirements to be accepted for financing in most cases, but the requirements are usually pretty flexible. 

Once approved, you will get a store-based credit card that you can use to purchase your television. Most stores will also offer you deferred interest, meaning that you won’t have to pay interest on the card until the agreed-upon financing period is over.

Some stores will also offer you a grace period in which you don’t need to make any payments at all. You can often get financing for 1-2 years before you have to start making payments, but this will differ from retailer to retailer. 

Of course, once the financing period is over, interest will start to incur. It’s always in your best interest to pay off the financing before your grace period ends because interest can occur quickly on these types of cards. 

In-house financing doesn’t just work for tvs, it is also popular for tire financing and mobile financing.

Commonly Asked Questions about In-house Financing

  1. Do I have to make a down payment for in-house financing?

No. In most cases, retailers will not have you make a down payment to finance a television. 

  1. Does my credit matter?

Yes. When it comes to in-house financing, your credit matters. Retailers will almost always run a credit check before financing you for approval. Those with high credit will be approved for more, while those who have low credit may only be considered for lower amounts.

Furthermore, depending on how low your credit score is, retailers may find it too risky to provide you with a loan, and you may be denied altogether. 

If you have no built-up credit, it’s likely that you will still be approved for in-house financing for your television. For those who have no credit, in-house financing options are a great way to start building it. 

  1. What are the requirements for in-store financing?

Requirements for in-store financing can differ significantly from retailer to retailer. With that being said, most retailers will ask for the basic requirements of your personal information and some form of Government approved ID. The majority of retailers will also require a quick credit check before approving for in-store financing. 

Is In-store TV financing the best option?

In-store financing is a great way to purchase your new television, but it’s not for everyone. Let’s take a quick look at the benefits and downfalls of in-store financing to help you decide if it’s the right choice for you:

Benefits of In-store financing:

  • Delayed interest and monthly payments
    • Many retailers will allow you to finance your television with 0% interest and 0% down payment for a given period of time. If you don’t have the funds to pay back your loan right away, this gives you time to save them up.
  • Low requirements
    • Unlike some types of loans that have a long list of requirements to obtain, in-store financing is pretty flexible. As long as you have decent credit and proof of ID, you’ll most likely be approved for in-store financing.
  • Discounts and Rewards
    • There are dozens of brand-name stores that sell televisions in Canada. That’s good news for buyers because there’s lots of competition among retailers. And when there’s lots of competition among retailers, retailers are more likely to provide incentives to customers in the way of discounts and rewards. When you choose in-house financing, many retailers will provide you with the benefits that come along with them. 

Downfalls of in-store financing

  • Hefty interest rates
    • As mentioned above, most in-store retailers will provide you with 0% financing for a certain period of time. But if you don’t pay back the loan within that given time frame, interest can add up quickly. To avoid hefty interest fees, make sure you pay back your loan before your financing period is up.
  • Low Credit Limits
    • If you’re looking to spend a lot of money, in-store financing isn’t the right option for you. Retailers will often provide financing only up to a certain amount. So if you’re looking to buy a television, this is a good option. But if you’re looking to buy a television, a refrigerator, and a new couch, in-house financing may not be able to provide you with the funds that you need. 

In conclusion, there are lots of different ways that you can finance a television in Canada. With that being said, regardless of which type of financing you choose, you will eventually have to pay interest. For this reason, saving up money and purchasing a television outright is always the best option to avoid debt. 

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Kareena Maya

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Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.