Purchasing Coins on layaway?

My LCS offers layaway on coins over $100
minimum 10% down and then that same amount per month until paid off.
Example- $175, 17.50 down and then 17.50 per month for another 9 months, but I could probably pay double per month.

I'm considering going this way for higher end purchases.
Sounds like a good idea?

 

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I bought my first high end coin like that. I was a poor fourteen year old newspaper thrower. Fortunately the guy at the little coin shack liked me. I was wanting a worn out half eagle so bad. He let me give him a few bucks each week. I think it is a fine way to purchase.... With two caveats.

1. Do not go in like some folks do with credit card fever and overdo things. We been taught a bad thing in recent years about available credit and having all you want now. Be very judicious.
2. Read the fine print. Make sure you won't have any sort of financing fees attached. I had an employee that was so proud of the TV he was paying ten bucks a week for. Until I did the math with him and showed him he was paying five times what the TV was worth when all was done.

 

I have considered this option for coins a couple of times, but I always choose against it. Basically, you are taking out a loan to buy the coin, and I really hate to go into debt to buy a coin. There are very, very few coins rare or special enough to take that sort of financial risk.

If you don't have the money now, save some more. If that coin gets away, there will probably be another one soon that you like just as much.

 

I wouldn't do it personally. I would just save up until you can afford to buy it. It would be small but you would be getting a little interest on it from the bank instead of none paying every month.

But the biggest reason why I wouldn't especially not over several months, if that shop closes down your money is all gone.

 

If I can't afford it outright, I don't buy it.

This philosophy has served me well and has kept me from buying coins that I can't actually afford. Once you start down the road of really high end coins you may not be able to turn back and soon cheaper coins may seem, well, cheaper and less interesting. Then you buy another really expensive coin to scratch that itch and so on and so on.

For me, a hobby is never worth going into debt. I've never found debt fun.

 

When a person saves the money to buy something, they appreciate it that much more. I have a separate savings account that I use for this very thing. Throw so much into it every month, you'd be surprised how quickly it builds. When you find a coin you want, you can purchase it outright.

 

Nah...do it. Since it is zero interest, you have a guarantee that the coin will be there in 9 months.

 

This. Only pieces that are irreplaceable or close to it warrant exploring credit.

 

What if an emergency comes up and his emergency fund isn't enough? If he buys a coin outright, he can quickly sell it. If on layaway, he is stuck with money tied in the coin but not possession or ownership of the coin.

 

This is also a valid point. In this market shops can go bankrupt or otherwise go under producing a nightmare scenario.

 

I've done it and it's enabled me to slowly collect some very nice coins. Obviously don't overextend yourself and be reasonable. Also keep in mind that whoever you're dealing with is accepting some risk also.

 

What if the Dealer dies, or suffers disease and the family takes over. BE Sure to get it spelled out in writing and photo the coin with the agreement. Jim

 

With no interest, it sounds like a great way to get a coin that would otherwise be unaffordable to pay out all at once. I’ve never done this myself, but I would in the right circumstance.

 

Absolutely essential advice: if you are going to pursue something like this, get the terms clearly spelled out, written down on a document that you both sign, and keep a copy. (Given that you are a teenager, you should absolutely have your parents involved and sign this document as well - this is a serious financial commitment, and you shouldn't enter it lightly).

That being said, I realize that you are somewhat young. That coin you see in the case might seem like exactly what you want right now. But, think about how much your tastes have changed in the past 10 months. 10 months from now, are you still going to want the same coin? There's a good chance you won't. Committing to something like this is a risky affair.

 

I will add that if you are buying certified coins, the service and serial number should suffice for most purposes.

 

As a teenager he is unable to sign a legally binding contract himself as it is not an essential item. The parents have to sign to make it valid

 

I won't go into debt for any reason. I save until I can just buy it. No need for taking any risk.

 

It depends on his age. Several decades ago the age to contract was 21, but it is now 18 in most jurisdictions. At that age, I would never take on debt for a luxury item. There are more important things like college tuition and girls.

 

Teenager means under aged. 18 and 19 year olds are adults

But I'm just a troll so what do I know

 

Bad idea. My feeling is if they provide zero interest, they are likely to add more to the purchase price. They do this automobile and furniture purchases.