Purchasing Coins on layaway?

I’ve done it a little a couple times. Usually with me it was half up front and half in 30 days

 

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I talk about things I know about. I listen when I don’t. There are certainly some advantages of doing layaways, but I don’t necessarily think we should promote it to young collectors.

 

A collector buddy of mine recently told me about his first coin purchase on layaway. It was a St. Gaudens $20 gold piece, priced at $60, back in the 1950's. He was struck by its beauty. He dutifully brought weekly payments to the kindly owner of a local coin shop; this, having earned most of the money by shoveling snow. When he brought it home, he tucked it away. He was fearful of telling his Dad how much he spent on a coin. He still has that coin, today, housed with his type collection of gold pieces.

 

I was coming at this from the opposite direction.

I can't think of many better ways to instill conservative, pay-as-you-go personal finance principles in a teenager. Making regular payments until the bill is paid and the prize is finally his fosters a work ethic, goal-setting, and financial self-discipline.

I know if my son had come to me when he was 16 with a similar plan, I would've endorsed it — with the caveat, as noted before, that the retailer's layaway terms don't carry exorbitant service fees or cancellation charges.

 

I get where you are coming from. I hate being in debt. I hate owing money. But if I need a payment plan, I try to make it as short as possible to get myself out of the hole. Longer payment plans mean that I will have to constantly worry about getting a payment in each month for a long time, and that can tie up a collection easily.

Long credit plans over time look attractive because of the small monthly payments, but it is very easy to dig yourself into a hole if you abuse a layaway system. Most young people are not very financially literate, so they do not realize that when it is too late. @CoinBlazer seems wiser than most his age, so I doubt he would bite off more than he can chew.

 

I think there are pros and cons to this. Make sure it’s in writing and that there’s some sort of agreement on what happens if you end up $10 short (does the seller keep all the money you put in?) otherwise, if it is your money, I think it could be a good way to pay for something you like. Make sure it’s worth what you’re paying. Do a little (or better yet a lot of) research before entering into the agreement. Good luck!

 

As with all payment plans, get a written document signed by both parties - make sure all contingencies are covered to your satisfaction before signing and take a few good photos of the layaway coin - good luck

 

I would stay away from that type of buying unless you really know them as I have seen this happen a coin collector picks out a coin to put on layaway then when its paid for they receive one that is not the one they were expecting save your money and get the coin that appeals to you the best for what you can afford

 

Years ago, I had a local dealer that did not care to do layaways. He would just hand you the coin and tell you to bring it back or pay him later. He built a lot of trust with his customers. I told him once that I thought he was crazy. He said he probably is but he had never lost a cent. That was a different time.

 

Heck yeah. Doesn't strain the budget. Go for it

 

I did it with Mint Products take your time plan once so far. 10% down & pay as much as you want, every month, until the purchase amount is reached. You can get a full refund up until the purchase price is met. If the price changes when you reach the original price you’ll either be charged the lower price or pay the difference if the price is higher.

No fees for using the service & once I paid the amount I got my bullion coin. Coin was in great condition. I’ve been buying from this dealer for years!!