One thing I've noticed is that several forum members do not like using PayPal to complete transactions. It's understandable due to their 2he Amendment stance. So what if there was another way to finance a firearm purchase? What if you could get a 12-36 month loan, secured by the firearm itself, at a lower interest rate than with your credit card? Basically it would like getting a car loan, but for a gun instead of a car? Let me know if you would ever use such a service if were available and why or why not?
- Thread starter walters900
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Can we call it a home loan , put interest at 1 point over prime and get a deduction for buying said fire arm?
Home 'protection' loan.
I can see the potential for use in this type of system. Repo could be tough IMO though...lol
Personally, no I wouldn't use it. If I don't have the cash to buy something, I don't buy it.
For whatever reason, this makes me think of SnapOn tools. SnapOn will extend credit to anyone with a job and they don't charge interest
. Look at all the tools they sell to primarily guys who can't afford to be buying them.
For whatever reason, this makes me think of SnapOn tools. SnapOn will extend credit to anyone with a job and they don't charge interest
. Look at all the tools they sell to primarily guys who can't afford to be buying them.
If you have a long term relationship with a bank, credit union etc., you could probably pull if off. A solid history of borrowing/repaying loans goes a long way. To specifically request credit for a firearm purchase is out of the ordinary, but, in reality, no different than financing a boat, ATV, cycle, or anything else considered a leisure product.
A lot will depend upon the credit officer you've approached. Some will think it's cool, others not. Due to firearms having a notorious reputation for losing value, expect a request for additional collateral, like a clear car title that has a higher value than the firearm. Banks like cars, they are easy to track, have a fairly steady rate of depreciation, and are hard to sell without that title. Firearms, not so much.
The bigger question is this: do you want to go into debt for a gun? Most new firearm purchases are financed with the sale of already owned guns that can be sold. What do you have you don't need/want/use anymore? My safe has a lot of excess that could be disposed of to make room for one high grade stick with a optic.
I have made optic purchases using a C.C., that's how the first S&B ended up on the .308. If this is a route, give yourself X number of months to pay it off, divide the purchase by that X, and make that payment every month, dependent upon budget. Requires discipline.
Another question only you can answer. If you have to borrow funds to buy a leisure product, do you really need it, or can you really afford it?
That's up to you.
A lot will depend upon the credit officer you've approached. Some will think it's cool, others not. Due to firearms having a notorious reputation for losing value, expect a request for additional collateral, like a clear car title that has a higher value than the firearm. Banks like cars, they are easy to track, have a fairly steady rate of depreciation, and are hard to sell without that title. Firearms, not so much.
The bigger question is this: do you want to go into debt for a gun? Most new firearm purchases are financed with the sale of already owned guns that can be sold. What do you have you don't need/want/use anymore? My safe has a lot of excess that could be disposed of to make room for one high grade stick with a optic.
I have made optic purchases using a C.C., that's how the first S&B ended up on the .308. If this is a route, give yourself X number of months to pay it off, divide the purchase by that X, and make that payment every month, dependent upon budget. Requires discipline.
Another question only you can answer. If you have to borrow funds to buy a leisure product, do you really need it, or can you really afford it?
That's up to you.
NPB,
I agree with what you're saying, completely. I suppose a loan though, would be more palatable to folks that live in a location where the cost of living is generally lower (and hence, median salary is lower). I suspect this is why Mile High now has a financing service for their AI's (or any high dollar purchase).
Case in point. I ran into Gossett6mm at a match in NM a few years back (he used to shoot at our club before he EAS'ed out of the Corps) and him and his wife and I were talking about something, and a Ford Raptor came down the road. I remarked something to the effect of "nice truck". And G6mm's wife mentioned "Yeah, when we lived in SoCal they were everywhere, but now that we're back in X (midwest), you never see them; which is ironic. Because where we live now, you actually can use them to their potential, whereas in SoCal most of them never saw dirt roads, much less anything 'off road'. The issue is that in the rural midwest, there aren't as many of six digit salaries to support the purchase of $70k pick up truck."
I think the same thing applies to the purchase of high end firearms, optics, etc.. Some folks just need a path to get there, since the local economy just doesn't support the ability to easily fork over that amount of cash in one instance. The market sees a need, and a solution arises...
That being said, saving up is doable, but as you stated, it takes some discipline and patience to get there. Patience (unfortunately) is something that this current younger generation lacks (for the most part) in spades. I don't mean that necessarily as a ding to the millennials (every generation has its primary flaws), only that IMHO, that is one of their more obvious hindrances.
I agree with what you're saying, completely. I suppose a loan though, would be more palatable to folks that live in a location where the cost of living is generally lower (and hence, median salary is lower). I suspect this is why Mile High now has a financing service for their AI's (or any high dollar purchase).
Case in point. I ran into Gossett6mm at a match in NM a few years back (he used to shoot at our club before he EAS'ed out of the Corps) and him and his wife and I were talking about something, and a Ford Raptor came down the road. I remarked something to the effect of "nice truck". And G6mm's wife mentioned "Yeah, when we lived in SoCal they were everywhere, but now that we're back in X (midwest), you never see them; which is ironic. Because where we live now, you actually can use them to their potential, whereas in SoCal most of them never saw dirt roads, much less anything 'off road'. The issue is that in the rural midwest, there aren't as many of six digit salaries to support the purchase of $70k pick up truck."
I think the same thing applies to the purchase of high end firearms, optics, etc.. Some folks just need a path to get there, since the local economy just doesn't support the ability to easily fork over that amount of cash in one instance. The market sees a need, and a solution arises...
That being said, saving up is doable, but as you stated, it takes some discipline and patience to get there. Patience (unfortunately) is something that this current younger generation lacks (for the most part) in spades. I don't mean that necessarily as a ding to the millennials (every generation has its primary flaws), only that IMHO, that is one of their more obvious hindrances.
I can buy snap on with no interest? Link please.
Personally, no I wouldn't use it. If I don't have the cash to buy something, I don't buy it.
For whatever reason, this makes me think of SnapOn tools. SnapOn will extend credit to anyone with a job and they don't charge interest
The ultimate Homeowners insurance policy.
I am a bit rigid on this topic, admittedly. When I got out of the Army I didn't have shit, and we ran up a sizeable amount of credit card debt. After finally waking up, we buckled down and paid it all off in about 3 years. Took a lot of sacrifice, but was worth it. Since then, every purchase except one vehicle has been paid cash on the spot. We owe on our house and a car (which sickens me) and this allows us a certain amount of financial freedom. That, and growing up. Family is raised, and we live within our means. IMO, this is what most people should strive for. Once you can be happy with what you have, you win. Then, any money over your staple bills and a retirement account is like fuck you money.
IMO, the most important purchase is your first, which should probably be your home defense weapon. Most people can afford a $350 shotgun or a $400 used Glock. After that everything gets bought cash. I am an admitted gun slut. I have a safe full of shit I never shoot, and three or four more in the pipeline but everything gets paid cash or it doesn't get bought.
Guns are not food or shelter. They can wait.
IMO, the most important purchase is your first, which should probably be your home defense weapon. Most people can afford a $350 shotgun or a $400 used Glock. After that everything gets bought cash. I am an admitted gun slut. I have a safe full of shit I never shoot, and three or four more in the pipeline but everything gets paid cash or it doesn't get bought.
Guns are not food or shelter. They can wait.
You need to find your local snap on truck.
If youve got established credit you can get it. I get 0% for 18 months offers from Bank of America all the time. Check them out.
Thanks for the feedback, I guess, I'm looking to see if this would be a service that the market would use, is there a gap that this service could profitably fill.
This question is not so much for me, as it to see if there would be strong market for this type of lending as a replacement for credit cards or PayPal transactions.
No, it's a fair statement, I'm part of the millennial generation and we're pretty bad with that whole instant gratification thing.
Wouldn't there be a legal/liability problem with who actual owns the firearm?
How for the sake of all that is holy, did you conflate not wanting to give a % of a transaction to paypal with needing to finance the transaction. As far as using the firearm as collateral for a loan I think that is one of the dumbest things I have ever heard. The kind of people who pay their bills don't need a loan to buy a gun, and the kind of people who don't pay their bills are not going to meet you at the door and give you the gun. They will either sell the gun or keep it at a relatives house.
It's obvious a unregistered gun, as thankfully most are, would make very poor collateral. As has been mentioned, banks are usually happy to loan money on anything with a registered title they can secure. I do admit to looking at firearms that would probably require a mortgage on my house, but so far common sense (and my wife) have won out.
Here is the problem with "Alternative financing" options for specialty items.
Usually it eventually turns into a way to screw the buyers so the finance company can make some extra profits.
Nobody wants to lend you "free money" out of the goodness of their hearts, everybody wants to make their profit.
Much like the "free financing" many appliance stores offer, but forget to tell you if there is like $0.01 left at the end of the term or midway through a point where you are supposed to be half paid off suddenly you pay like 40% interest on everything from day 1 or such.
Auto companies often offer near free financing on cars, but that is when some models are not moving & they are using near free loan rate to push out inventory they don't want to be stuck with.
Many firearms sellers offer "layaway" which is pretty much like a loan but in reverse.
Due to the complexities and risks as well as federal and state laws, using the actual firearm as collateral is probably a non-starter, it would have to be a more standard general loan based on the person's credit, much like credit card loans as such.
For a big seller like Mile High, it might make sense to increase sales by offering some in house financing based on people's credit to get them to buy things a bit more expensive than they normally would have, and without having to discount prices as much. Their angle would be get more sales quicker at a higher price & that is their profit. So they don't have to resort to the tricks that some straight finance houses do to make their profits come in off "free" or low cost finance deals.
There probably would be a market if you wanted to set up a specialty finance house, the issue is how will you be making enough profits to pay the bills & what your expected losses will be etc. Also will you be able to be competitive with credit cards, as anyone that can pass the credit checks for financing a big ticket item is probably going to also have access to a credit card with that much room on it as well.
One line is that if you are working closely with the sellers, they can kick you back the 2% they would have to pay to a credit card company so that can be part of your profits & then you just have to see how much more interest you have to charge the buyers to make it worth your while, as well as cover your costs & losses & your cost of capital etc.
Usually it eventually turns into a way to screw the buyers so the finance company can make some extra profits.
Nobody wants to lend you "free money" out of the goodness of their hearts, everybody wants to make their profit.
Much like the "free financing" many appliance stores offer, but forget to tell you if there is like $0.01 left at the end of the term or midway through a point where you are supposed to be half paid off suddenly you pay like 40% interest on everything from day 1 or such.
Auto companies often offer near free financing on cars, but that is when some models are not moving & they are using near free loan rate to push out inventory they don't want to be stuck with.
Many firearms sellers offer "layaway" which is pretty much like a loan but in reverse.
Due to the complexities and risks as well as federal and state laws, using the actual firearm as collateral is probably a non-starter, it would have to be a more standard general loan based on the person's credit, much like credit card loans as such.
For a big seller like Mile High, it might make sense to increase sales by offering some in house financing based on people's credit to get them to buy things a bit more expensive than they normally would have, and without having to discount prices as much. Their angle would be get more sales quicker at a higher price & that is their profit. So they don't have to resort to the tricks that some straight finance houses do to make their profits come in off "free" or low cost finance deals.
There probably would be a market if you wanted to set up a specialty finance house, the issue is how will you be making enough profits to pay the bills & what your expected losses will be etc. Also will you be able to be competitive with credit cards, as anyone that can pass the credit checks for financing a big ticket item is probably going to also have access to a credit card with that much room on it as well.
One line is that if you are working closely with the sellers, they can kick you back the 2% they would have to pay to a credit card company so that can be part of your profits & then you just have to see how much more interest you have to charge the buyers to make it worth your while, as well as cover your costs & losses & your cost of capital etc.
I guess I'm wondering why collateral is even necessary? I mean, with a decent credit score, a signature loan is entirely possible. As for interest rates, I think that is more determined by market space. If there's only one company doing it, then they can charge whatever rate they want. But, if there are several, well, the free market will set that...
Personally, I think only the individual really "knows" whether they can afford the item or not. If they can't and do it anyways, then they deal with the consequences of being a debtor of ill standing. The individual take the risks and responsibility when doing this. Ain't freedom a wonderful thing?
Personally, I think only the individual really "knows" whether they can afford the item or not. If they can't and do it anyways, then they deal with the consequences of being a debtor of ill standing. The individual take the risks and responsibility when doing this. Ain't freedom a wonderful thing?
Sorry, didn't mean to offend. I was just curious if there would be a market for this service. Your right, repo would be quite difficult; that's something I had not completely thought through. Thank you for your feedback.
Good point, thanks.
I'm sure its a service some people would use, I mean banks look like they are doing pretty good. Hell, the town nearest to me has a population of 1,200 souls, and there are three banks in town, and its not because of any high paying jobs around either.
Oh yeah. All these moron 20 and 30 something's that have no clue how to budget money or create a savings would love a service like this so they could aquire more shit they can't afford. Not trying to be a dick..... and the comments on the Tool Trucks are spot on....but they usually have the ability to repo boxes easily.
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