Flex Pay: Six Flags enters the loan business.

On this Labor Day, Six Flags has announced “Flex Pay” as a new option for visitors to pay for purchases of $49 or more. Technically a “loan,” Flex Pay installment plans come with an APR of up to 36% based on purchasers credit score/history.

You can read the details here:

https://www.sixflags.com/flexpay

I saw that and assumed it was just something I'd missed. I believe it's just partnering with a credit provider.

https://www.upgrade.com/flex-pay/

I'm curious how it works - I'd presume Flex Pay pays Six Flags a percentage of the amount owed (like, 95%, say) and takes the credit risk? And then charges interest to the buyer based on creditworthiness.

Monkey beat me to it, but whoa are the Kings Island fans pissed.

They seem to have taken offense to now having to pay interest for a "pay over time" option, and one that now includes some level of credit verification (I'm unclear if that was involved in the prior "payment plan" that CF or SF offered.

The Facebook group has lit up with people posting about this. They were hoping for an AF1 announcement, and well, that's not what they got on Labor Day.

Oh dear—first the meal plan, now this. My heart breaks for those self-entitled Kings Islanders!

All jokes aside, you should avoid those Facebook groups. Independent studies have shown you lose a few brain cells every time you sign in.

So this move has eliminated the “free” monthly payment plan for everyone, and replaced it with one that includes a credit check and potential APR.

Many consumers chose this former option because hey why not, a 0% interest loan gives you more cash flow flexibility. But most chose this option out of necessity- they didn’t have that kind of money up front for four-ish season passes with add on plans. Allowing the cost to be broken up for free had the benefit of a second purse phenomenon, where pass holders on payment plans spent more in the park because they mentally accounted for those costs separately than the initial commitment.

This move will decrease total units sold and decrease deferred revenues. I’m not saying that is a terrible thing for nerds/fans, who generally want them to stop giving away the gate. But it is a big risk for a company trying to generate growth and avoid bankruptcy.

They are partnering with credit providers:

https://www.upgrade.com/fle...y/lenders/

FAQs notes this:

Down payment may be required. Actual terms are based on your credit score and other factors and may vary. APRs range from 0% to 36%. Minimum $49 purchase required. Not everyone is eligible. Loans made through Flex Pay by Upgrade are offered by these Lending Partners.

And its not technically a loan. It is a loan. In the FAQs:

Is this an installment loan?

Yes, all loans through Flex Pay are installment loans, which means you repay the loan over time with a set number of scheduled payments. Some plans include interest while some are interest-free. Your payments are the same amount over the life of the loan, and you can pay off your loan at any time without paying a penalty or fee.

So have they done away with the membership option then? Who would sign up for this if those still exist? Who would sign up for this if they can save $99 and just buy the pass?

I always figured the memberships would eventually replace the old monthly payment option for passes, but it appears they've replaced it with this turd sandwich.

Frankly, I don't understand the move. It targets people that are probably not that financially savvy and attempts to take them for a ride. It's administered by a third party meaning Six Flags probably won't see much of the revenue that the APR and fees generate. It's essentially a payday load for an amusement park trip.

The people that can't afford to pay for their cheapo passes out of pocket are certainly not going to be big spenders once thye arrive at the park.

The race to the bottom continues. This company is, unfortunately, still lost.

It's most likely a move to reduce administrative burden from inside SF. and probably reduce headcount of whomever had to track, reconcile, and screw with people who missed their monthly payments. Throw that to a 3rd party, let them do the credit checks and collections (that's what they're good at), and reduce friction on SF's side of the house.

Yes, it will hurt those of lower means. It may be a sacrifice that SF is willing to make. No polite way to discuss the pros/cons of actively encouraging or discouraging clientle with less means, so I won't