Advice about being paid in installments?
jonathanb
Posts: 3,753 ✭✭✭✭✭
I listed a $4000 group of 3 medals on eBay that didn't sell, but I've exchanged several emails with a potential buyer who has cash flow problems. He proposes paying me in installments, which is something I've never done before as a seller (or as a buyer, for that matter). In his words, he suggests "Are you game to take payments with you keeping the medals until paid in full?"
FWIW, my impression from his emails is that he's a generally good guy. He has a 9-year history on eBay, with a 600+ feeback rating and 100% positive. None of which really guarantees anything, but it's a whole lot better than seeing problems from the start.
I think I'm leaning towards accepting his installment payments. Is there advice from the board that I should consider before responding to him?
thx!
jonathan
FWIW, my impression from his emails is that he's a generally good guy. He has a 9-year history on eBay, with a 600+ feeback rating and 100% positive. None of which really guarantees anything, but it's a whole lot better than seeing problems from the start.
I think I'm leaning towards accepting his installment payments. Is there advice from the board that I should consider before responding to him?
thx!
jonathan
0
Comments
- Marcus Tullius Cicero, 106-43 BC
<< <i>Establish a clear time period for this installment plan. Three months, six months etc.. >>
I'd also require a certain amount that is non-refundable to the buyer ($100 or so) if they are later unable to pay all of the installments or if they change their mind. That should help ensure they will follow through.
Also, you should consider whether the prices on the items fluctuate frequently. If they do, and you give this guy 6 months, what will happen if the price 6 mo from now is $5000? What if it's only $3000???
Since they didn't sell on eBay at your original price, this is probably worth a shot as long as you keep the items until 100% paid.
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You keep the coin until the balance is paid in full, no refunds on a 2-3 month terms deal.
<< <i>
<< <i>Establish a clear time period for this installment plan. Three months, six months etc.. >>
I'd also require a certain amount that is non-refundable to the buyer ($100 or so) if they are later unable to pay all of the installments or if they change their mind. That should help ensure they will follow through.
Also, you should consider whether the prices on the items fluctuate frequently. If they do, and you give this guy 6 months, what will happen if the price 6 mo from now is $5000? What if it's only $3000???
Since they didn't sell on eBay at your original price, this is probably worth a shot as long as you keep the items until 100% paid. >>
It's a good idea to be protected against someone who wants to tie up the items but might back out of the deal if the market sours or they just stop making payments. I would suggest $1000 down payment (that's 25%) and the remaining $3000 paid in installments over 6 months at $500/month. If any payment is missed, he gets back half of what is already paid and the deal is off.
That is enough to probably ensure the deal will go through as planned. You don't want someone saying "This month I'm a little short, I can send you $200 and make it up next month" and dragging things out even longer. Worst case is you keep the $1000 down payment for your inconvenience. If the guy can't muster up $1000 on a $4000 deal, he needs to pass up that deal.
The down payment and non-refundable amount should be large enough to prevent a potential buyer from tying up the items for months and being able to bail out without severe penalty if the market sours before the deal is concluded. $100 is just not enough of a non-refundable amount.
I've seen layaway plans from some dealers who will cancel the deal and keep EVERYTHING paid so far if the payments are not made as agreed.
New collectors, please educate yourself before spending money on coins; there are people who believe that using numismatic knowledge to rip the naïve is what this hobby is all about.
Since you are dealing in a thin market it is tough to walk away from an interested buyer.
If you have no other option to sell these items for the money you wish, then maybe you have to follow through.
roadrunner
What is the possibility of the value on the coin going down before the installments are completed? Will the buyer have a backout plan?
Decide up front what is refundable and what is not refundable.
Keep the received funds in a separate account so you're not tempted to use just a little bit in case the buyer dies backout.
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It should help if a disagreement later leads to litigation.
S
FWIW, these are medals not coins, so there's not a whole lot of concern about price fluctuations. In fact, the only sort-of-close auction records I could find date from the mid 1990s. I plopped them on eBay to see if I could get a quick sale and not have to think about it any further -- which would have been nice, but I guess I can't have everything. I have other options for selling them. Still, it looks like I do have an interested buyer, so I don't have to look into other options if this works out. Bird in the hand, and all that.
I'll try to remember to post a follow-up when all is done.
thx!
jonathan