Layaway question. Would you?

mojorizn · December 1, 2003 2:16PM

Coin company A has a 1909-S Lincoln in raw MS63 for $290. They also have a layaway plan where 20% down and four additional monthly installments gets you the coin.

Coin company B has a 1909-S Lincoln in raw MS63 for $240 but has no layaway plan.

If you're on a tight budget but have been waiting for a nice MS '09-S, would you take company A since it is presently the only financially feasible solution, or do you wait and save at the risk of missing the coin?

Mojo

fountainheadgold · December 1, 2003 2:17PM

Yes take the layaway.

Bubblehead · December 1, 2003 2:19PM

I've had to do the lay-away routine myself. Go for it. It's only $50..
You'll kick yourself later on, maybe....

mojorizn · December 1, 2003 2:19PM

That's the direction I'm leaning.

Mojo

Placid · December 1, 2003 2:19PM

Most layaway plans do not offer any return after you pay and get the coin. And a raw coin I would be careful unless I knew the seller well or could still get a return if I didn't like it in hand.

XpipedreamR · December 1, 2003 2:20PM

It depends on how much you want the coin. I'd probably do the layaway.

mojorizn · December 1, 2003 2:22PM

I've purchased from both sellers before but have never used the layaway option. Part of me cringes to pay what is essentially a $50 finance charge.

Mojo

Veridicus · December 1, 2003 2:24PM

I'd wait if it were me.

Dog97 · December 1, 2003 2:25PM

<<<do you wait and save at the risk of missing the coin?>>>
Don't worry, there'll be another one. It's not like it's a 1-of-a-kind coin.
Paying on a raw coin for 4 months that may turn out to be overgraded or cleaned and returned as soon as you see it isn't something I would do.

foodude · December 1, 2003 2:25PM

Whcih coin is nicer? Maybe the $290 coin is $50 nicer to you, and the layaway feature just becomes a bonus.

Placid · December 1, 2003 2:26PM

<< <i>I've purchased from both sellers before but have never used the layaway option. Part of me cringes to pay what is essentially a $50 finance charge.

Mojo >>

Not really as one might be worth $50 more than the other unless you are saying its the same coin and to use the layaway it will cost more.

Robgetty · December 1, 2003 2:27PM

If you are on a tight budget, then the difference between $240 and
$290 is a significant one. Save up the money; if the Company B
coin is still there; great. If not, another 1909-S will come around
fairly soon; it isn't a coin that you will never see again if you don't
jump now.

mojorizn · December 1, 2003 2:31PM

No, not the same coin. And Dog brings up a good point, although I'm not too worried about purchasing raw coins from either dealer. But tying up my funds for 4 months doesn't thrill me.

Mojo

DCAMFranklin · December 1, 2003 2:45PM

What Dog said.

1957joe · December 2, 2003 1:56AM

buy the coin, NOT the PLAN

coinguy1 · December 2, 2003 2:02AM

Save your money - plenty of others will come along.

It's a BAD deal to pay an extra $50 (or slightly more than 20% more) for four month's float. That amounts to an exorbitant annualized rate of interest!

mgoodm3 · December 2, 2003 2:27AM

It depends on how badly you want the coin now. As several have said. it's not an uncommon coin and more will probably come along.

MacCoin · December 2, 2003 2:34AM

Good God all my keys came from the layaway plan

I got to stop weekly to pay for the key and brows in the bargan baskets for cheap cirulated typpes.

SethChandler · December 2, 2003 2:38AM

Unless you REALLY know grading, make sure the coin is in a PCGS/NGC/ANACS slab first, above everything else.

Seth

mojorizn · December 2, 2003 8:15AM

Thanks for all the input guys!

Mojo

Pushkin · December 2, 2003 8:21AM

Suggest you follow Dog97's and Coinguy1's advice - both are very good observations based on intelligence and experience.

mojorizn · December 2, 2003 8:25AM

I'm gonna go with Dog on this one. Now if it were a '09-S VDB I wouldn't have a choice. That one will be a layaway, and no, I wouldn't trust myself to buy THAT one raw.

Mojo

Tsimmerdown · December 2, 2003 8:33AM

Looking at it from purely a financial standpoint, figure out your cost of borrowing $240, and if it's less than $50, then choose that method. For instance, if you have a credit card with 10% APR, the interest would be 24 dollars to pay that coin off, and you could take a whole year. If you pay it off in 4 months, that's principle x interest rate x 4/12 = 240 x .10 x .33

I don't have a calculator in front of me.....

You could reverse the equation, work backwards and figure out what that $50 difference in layaway policy will cost you in terms of annual interest and compare it that way to the APR on your credit card.

Be responsible, pay off the coin in 4 $60 monthly payments on your credit card (plus interest), and you'll save yourself some money.

If I did my reasoning correctly, that is the cheapest method (ASSUMING your interest rate is only 10%)

Layaway question. Would you?

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