The Gold Standard - Loans w/cards as collateral

[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....

[1952boyntoncollector]

Originally Posted by 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....

as you said...cards are not like gold or silver and there can be a crash due to the economy or some other reason so isnt it the pawn shop you would be more worried about as they may of now gotten collateral not worth what their loan amount is?

[slidekellyslide]

Originally Posted by 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.

If you're not stereotyping then why mention that they are Italian at all?

Signed,
Dan BRETTA <---Italian

[Peter_Spaeth]

Originally Posted by slidekellyslide

If you're not stereotyping then why mention that they are Italian at all?

Signed,
Dan BRETTA <---Italian

Reminds me of the constant references to the Cincinnati Wagner guys as black. Yes, it's true, but why is it relevant?

[MikeGarcia]

....I love the smell of popcorn in the morning......

...

[PolarBear]

Originally Posted by Peter_Spaeth

Reminds me of the constant references to the Cincinnati Wagner guys as black. Yes, it's true, but why is it relevant?

Maybe I'm wrong but don't they themselves make it an issue by claiming "racism" because the hobby community won't recognize the card as real?

[Kevin.Shenker]

Originally Posted by slidekellyslide

If you're not stereotyping then why mention that they are Italian at all?

Signed,
Dan BRETTA <---Italian

Why even have to caveat the fact that you are not stereo typing. Your going to be perceived as doing so, or not doing so whether you do, or don't

As a non Italian I take offense to the fact that I may have to caveat every time I may or may not make a stereo type about Italians that some people, or all people may or may not take offense to.

[Exhibitman]

Oh, nevermind

[btcarfagno]

Speaking as someone who grew up in North Jersey and whose last name ends in a vowel, I can personally attest that the stereotype certainly existed at that time. As with all stereotypes, the actions of the few get painted by the broad brush, but to me, it is what it is. Beyond being a sterotype in my neck of the woods, it was moreso a badge of honor...sad though that may be.

Tom C

[slidekellyslide]

I honestly was not offended by what he wrote...I heard it a lot as a kid, and I still hear it today with people who think it's hilarious. I just think it's funny when people say they are not stereotyping after making an obvious stereotype.

Man that Asian lady sure is a bad driver...I'm not stereotyping because she really is Asian.

That is essentially what he said.

[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

[T205 GB]

I think for someone that has certain cards worth money that are not replaceable this would be a good option over selling them at a reduced price and regretting it later. At least this way you can get a few $$ for what you need and can pay it back over a few months rather than a payday loan at 20%+ per $100 due in 2 weeks or less.

[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.