The Gold Standard - Loans w/cards as collateral

[pokerplyr80]

Originally Posted by conor912

It's an adjustable rate, depending on how many fingers you let them brake.

I'm seriously not sure what's sadder....the existence of such a service, the people who would use it, or the fact that they're being let to advertise on this board. This service being hobby-related is tangential, at best.

I can see how it could be beneficial to people in certain situations. Pawn shop loans have been around for a while and help those without the credit to obtain traditional financing.

However, I would think that if things are so tight you need to borrow against your collection it may be time to simply let go of part of your collection.

[conor912]

Originally Posted by pokerplyr80

I would think that if things are so tight you need to borrow against your collection it may be time to simply let go of part of your collection.

Ding ding ding.

[1952boyntoncollector]

You would think the loss you would take on ebay if have to sell quickly wouldnt be worse then the interest you have to pay..who knows.

[Peter_Spaeth]

I would guess the loan to value ratio isn't going to be terribly favorable to the borrower in this kind of situation.

[pokerplyr80]

Originally Posted by Peter_Spaeth

I would guess the loan to value ratio isn't going to be terribly favorable to the borrower in this kind of situation.

If I had to guess I would say 70-80% of VCP. Maybe less.

[Brian Van Horn]

This guy would have been the perfect pitchman. May he RIP:

[t206fix]

Sweet! I've got a ton of 80s cards I want to pawn off, I'll come back for them. ..I promise.

[marvymelvin]

Maybe they are good guys. There is a pawn shop close by me that is not sleezy or bad. But then there is "Family Pawn" down the street where the only "family" is the two Italian cousins behind the counter, and lots of other cousins beating payments out of customers. I am not stereotyping, because they really are Italian. But don't be fooled, there is nothing "family" about it.

I worry though, that despite good intentions to build a business, and offer pawn services here there might be some members who are a "bit" more addicted than others, and thus more apt to fall prey, all over a hobby, and cardboard nonetheless. As opposed to gold and silver etc, cards really are a "house of cards" when the economy is down with no physical value.

I will add my + 1 to the sentiment that there is more going that needs to be fixed in your life if you can't emotionally sell your cards outright if in debt or serious trouble. To each his own, but I don't quite understand the depth of despair I see on the board occasionally when someone is left without a certain card, because of a cancelled deal, or feels incomplete until they can add a certain card to their collection. It is sad really....

[bnorth]

Originally Posted by pokerplyr80

If I had to guess I would say 70-80% of VCP. Maybe less.

Unless they want to go out of business very quickly it will be less than half your guess.

I know nothing about the new advertisers. I do have 3 friends that each own(ed) a pawn shop with close to 50 yrs combined experience. They loan about 20-30% value and charge 1% interest per day. I am told if they loan a higher % of value the payments aren't made and they just bought store inventory. They say they want some stuff to sell but make most of their $ from interest. If they get stuck with something they can only sell it once but if they keep the pawn value % low enough they can resell(loan interest) it to the original owner many times. The 1% per day interest is pretty standard now days, it is what the large chain store pawn shops are offering on tv commercials.

[Peter_Spaeth]

Originally Posted by bnorth

Unless they want to go out of business very quickly it will be less than half your guess.

I know nothing about the new advertisers. I do have 3 friends that each own(ed) a pawn shop with close to 50 yrs combined experience. They loan about 20-30% value and charge 1% interest per day. I am told if they loan a higher % of value the payments aren't made and they just bought store inventory. They say they want some stuff to sell but make most of their $ from interest. If they get stuck with something they can only sell it once but if they keep the pawn value % low enough they can resell(loan interest) it to the original owner many times. The 1% per day interest is pretty standard now days, it is what the large chain store pawn shops are offering on tv commercials.

At least according to this source, there are usury statues in many states that restrict the rates pawnshops may charge. They are still ridiculously high, but in many states much less than 1 percent a day.

http://www.pawnshopsonline.info/stat...s-comparisons/

For example, New York is 4 percent per month.

New York

SECTION § 46. Rate of interest. Notwithstanding any general or special statutes, local laws and ordinances to the contrary, no collateral loan broker shall ask, demand or receive any greater rate of interest than four per centum per month, or any fraction of a month. Statute Reference

[pokerplyr80]

Originally Posted by bnorth

Unless they want to go out of business very quickly it will be less than half your guess.

I know nothing about the new advertisers. I do have 3 friends that each own(ed) a pawn shop with close to 50 yrs combined experience. They loan about 20-30% value and charge 1% interest per day. I am told if they loan a higher % of value the payments aren't made and they just bought store inventory. They say they want some stuff to sell but make most of their $ from interest. If they get stuck with something they can only sell it once but if they keep the pawn value % low enough they can resell(loan interest) it to the original owner many times. The 1% per day interest is pretty standard now days, it is what the large chain store pawn shops are offering on tv commercials.

That makes sense on the loan to value. I suppose someone is much less likely to let a card go when they've only received less than a third of what it's worth.

I thought pawn shop rates were typically about 10% per month.