Purchasing Coins on layaway?

For a teenager on a student's budget it's a fine idea . . . as long as you do your homework and know you'll be getting the coin at a competitive price, and without significant service or cancellation fees attached to the deal.

Layaway isn't debt. For all practical purposes, it's the same as saving until you can buy it.

 

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A layaway is basically a contract obligating you to pay for an item and is no different in that regard from a credit card. The only difference is that you do not immediately take possession. If you default, there are also penalties and what not.

 

Layaway is vastly different from a credit card.

With a credit card you borrow someone else's money to make a purchase.

With layaway, you save your own money to make a purchase.

Yes, if you back out of a layaway agreement, there could be a cancellation fee, restocking fee, etc., but that's not a given. Layaway terms vary greatly among retailers.

Responding to this for the benefit of the OP, not to ignite an argument.

 

No argument intended. A credit card is credit extended by a third party. A layaway is effectively store credit; thus, still a debt obligation.

 

About 15 years ago, I put a $1200 coin on layaway with an eBay seller who still operates today. I put $100 down. After a month, I backed out in order to buy something else. I never even asked for a refund. Ate the loss and marked it up as a lesson learned. I still think about that "purchase." And I haven't made that mistake again.

 

I would find out what happens if you miss a payment due date. And ask if you change your mind about the coin can you use the funds to purchase another coin?

But with that being said I would save up until you can pay cash for it.

 

It actually sounds like a very bad idea to me. No offence, but considering your age and coin experience I would NOT do it.

That’s what I would do in your position:
1) save enough money
2) search for the “right” coin
3) ask your parents if they’re ok with you spending that much money on a coin
4) ask an experienced CT member who knows the series well, if he/she thinks that particular coin would be a good purchase
5) think about it again

...

6) if you’re absolutely sure, then (and only then) buy it

 

No it’s not. You spend money which you don’t have, so it’s not the same.

 

I’ve done this 4 times, and I knew that I would have the money to the dealer within 3 months. I explicitly say when I will pay and how much at each payment. They were all coins which would not be easily replaced if they got away. I make sure I don’t buy anything for my collection in the meantime. It takes a lot of self control, but it is worth it.

 

No offence taken

 

Have you ever made a layaway purchase? Do you know how it works?

 

I have a few yes.

 

Personally, I feel that to do this right, a lot of work needs to go into it, when you can simply just save the money. Heck, you might have enough money after a few months and be able to buy it outright depending on how well you save. The only downside is the coin may sell between now and the time you get the money.

 

That was directed at micbraun. Seemed like maybe he didn't know how layaway works.

 

Which is really the best argument the OP has for putting the coin on layaway, particularly if it's coin that doesn't surface on the open market very often, or the dealer is offering it to him at a substantial discount (unlikely I suspect).

If it's a readily available coin that he could be certain to find on fairly short notice and at a similar price, then there's really no advantage in layaway versus just saving his money until he has enough to buy one.

 

I'd say it would have to depend on how unique the coin is and how badly you want it. Most are right, it's not a good habit to get into. You'll train yourself to do it more and more. If it's something like a rare battle creek morgan star toner that's one of a kind that you have to have, that's one thing. If it's a common $5 gold piece, there's no point really. Depends on what it is.

 

Paypal Bill Me Later is basically a 6 month interest free layaway that I bet gets used heavily here.

 

I don’t think it’s a good idea for a coin. I wouldn’t do it and would just save up for it. Since you are 16 and old enough to work, maybe ask if they need help around the shop after school or on weekends and you can earn the cash needed and perhaps get an employee discount. Good luck. TC

 

I’ve done it for a few coins over the years when something on my long time want list becomes available through my local dealer. I’d rather not ever do it honestly, but if my dealer buys something for me that’s on my want list and I can’t do it all at once I’ll do it. Especially when I was collecting early proofs, sometimes they were pretty steep coins and he’d let me pay over time if I had to.

 

I've already tried that approach. Insurance/ Security won't let anyone "work" there, without being 18 and having a full on back ground check. I have a job anyway