Borrowing against graded cards

[vthobby]

You can actually sign up and have cards that you win on Ebay or any major auction house sent to the Vault right now BUT you can't send them cards yet from your personal collection. I'm not sure why that is but that is the latest from them.
I think they will be accepting more in mid 2019 from personal collections.

My opinion is that it is a brand new concept and they want to test it out slowly rather than having collectors sending them hundreds of graded cards at once.

Just IMO, thanks.

Peace, Mike

[Peter_Spaeth]

Originally Posted by vtgmsc

You can actually sign up and have cards that you win on Ebay or any major auction house sent to the Vault right now BUT you can't send them cards yet from your personal collection. I'm not sure why that is but that is the latest from them.
I think they will be accepting more in mid 2019 from personal collections.

My opinion is that it is a brand new concept and they want to test it out slowly rather than having collectors sending them hundreds of graded cards at once.

Just IMO, thanks.

Peace, Mike

So you buy a card for X, have it sent to PWCC, and they send you back half X which you now owe them on top of the X you just spent and you don't have possession of the card? What am I missing?

[oldjudge]

Originally Posted by Peter_Spaeth

So you buy a card for X, have it sent to PWCC, and they send you back half X which you now owe them on top of the X you just spent and you don't have possession of the card? What am I missing?

Let's say you want to buy $1500 worth of cards(a $1000 card and a $500 card) but only have $1000 now (but will have more to spend next month). You buy the $1000 card, pawn it to PWCC and get $500 to buy your second card. Next month when the money comes in you repay PWCC and get your card back. The concept seems good, however, the interest rate seems excessive.

[Peter_Spaeth]

Originally Posted by oldjudge

Let's say you want to buy $1500 worth of cards(a $1000 card and a $500 card) but only have $1000 now (but will have more to spend next month). You buy the $1000 card, pawn it to PWCC and get $500 to buy your second card. Next month when the money comes in you repay PWCC and get your card back. The concept seems good, however, the interest rate seems excessive.

At the risk of sounding very preachy, one should not make card purchases if one has to finance them, in my opinion. If things are that tight, suppose next month's money doesn't come in or you need it for something else? You're out big time in this scenario, you're out your $1000 card which was collateral. Or you borrow the $500 from someone else to repay PWCC and you're off to the familiar races.

[Peter_Spaeth]

Maybe PWCC can issue its own credit cards.

[chalupacollects]

Originally Posted by oldjudge

Let's say you want to buy $1500 worth of cards(a $1000 card and a $500 card) but only have $1000 now (but will have more to spend next month). You buy the $1000 card, pawn it to PWCC and get $500 to buy your second card. Next month when the money comes in you repay PWCC and get your card back. The concept seems good, however, the interest rate seems excessive.

Not really necessary as Paypal has a 6 month no interest deal they started that is part of your account - not a special... so buy an item for $1000 pay it off in 6 months and you are done...

[oldjudge]

So let me get this straight: Someone is making essentially a risk free loan (unless the sportscard market absolutely craters) at LIBOR +6-8%. Sounds like a good business to me. You have storage and insurance expenses and have to make sure that the SMRs are not overstated. Other than that seems pretty lucrative.

Jay

[sphere and ash]

Originally Posted by oldjudge

So let me get this straight: Someone is making essentially a risk free loan (unless the sportscard market absolutely craters) at LIBOR +6-8%. Sounds like a good business to me. You have storage and insurance expenses and have to make sure that the SMRs are not overstated. Other than that seems pretty lucrative.

Jay

Pretty lucrative, I agree—even more lucrative at PWCC’s rates. As someone who understands financial turbulence for a living, I would argue there’s nothing risk-free about it.