What card would you arrange financing to buy?

[Rhotchkiss]

Here is a real life example. This card came up in REA. It was expensive. I did not have the liquidity, but I had the net worth, to buy it. I borrowed (at less than 1%), against assets and bought the card. I let that draw stay outstanding for a while. Then interest rates started to go up, so I paid off the draw over a few months. Just because you borrow to buy something does not mean you cannot afford it. It can mean you would rather not liquidate an asset to buy another asset, or it could be an arbitrage-like move (if I feel the card will go up more than the interest I pay), or the loan can be a bridge to get into an asset.

I understand this card is a bit of an extreme example, but it’s all relative. The example is just as applicable to someone who really wants a $5000 card as it is to someone buying a BN Ruth or a 33 Goudey Ruth PSA 9.

I fully agree with everyone that you should not buy something you cannot afford - that goes for everything, not just cards. But borrowing to buy a card is not necessarily a bad move or the signal of an inability to afford something.

[G1911]

Originally Posted by Rhotchkiss

Here is a real life example. This card came up in REA. It was expensive. I did not have the liquidity, but I had the net worth, to buy it. I borrowed (at less than 1%), against assets and bought the card. I let that draw stay outstanding for a while. Then interest rates started to go up, so I paid off the draw over a few months. Just because you borrow to buy something does not mean you cannot afford it. It can mean you would rather not liquidate an asset to buy another asset, or it could be an arbitrage-like move (if I feel the card will go up more than the interest I pay), or the loan can be a bridge to get into an asset.

I understand this card is a bit of an extreme example, but it’s all relative. The example is just as applicable to someone who really wants a $5000 card as it is to someone buying a BN Ruth or a 33 Goudey Ruth PSA 9.

I fully agree with everyone that you should not buy something you cannot afford - that goes for everything, not just cards. But borrowing to buy a card is not necessarily a bad move or the signal of an inability to afford something.

Fair point, you can arrange deals to leverage assets or take out loans to buy things you can't afford with cash. I should have included the obvious caveat that it is not a good idea to buy things you cannot actually afford in the literal sense of what you actually have on hand. Spending more money than is in your bank accounts on a card at market value (as the OP stipulates, not some fantastical scenario where one is going into debt to get a card they can flip at an immediate big profit) is not responsible. I get that we all love cards here and many have a vested interest in continued value lifts but this is not fiscally responsible. I can see going into debt for a home, but a baseball card? I guess I'm more scared of losing my stability than everyone else here.

[Wanaselja]

Originally Posted by Rhotchkiss

Here is a real life example. This card came up in REA. It was expensive. I did not have the liquidity, but I had the net worth, to buy it. I borrowed (at less than 1%), against assets and bought the card. I let that draw stay outstanding for a while. Then interest rates started to go up, so I paid off the draw over a few months. Just because you borrow to buy something does not mean you cannot afford it. It can mean you would rather not liquidate an asset to buy another asset, or it could be an arbitrage-like move (if I feel the card will go up more than the interest I pay), or the loan can be a bridge to get into an asset.

I understand this card is a bit of an extreme example, but it’s all relative. The example is just as applicable to someone who really wants a $5000 card as it is to someone buying a BN Ruth or a 33 Goudey Ruth PSA 9.

I fully agree with everyone that you should not buy something you cannot afford - that goes for everything, not just cards. But borrowing to buy a card is not necessarily a bad move or the signal of an inability to afford something.

Totally agree. I own a small business and just bought a nice low grade Green Cobb to finish my HOF portrait set. I took an interest free “loan” from my business to pay for it and will deduct that loan amount from my year end bonus to pay it back. I have a wife, a 4 year old and another on the way and wouldn’t jeopardize our financial security for a card but have no issue borrowing from my business and deducting it from my bonuses if it’s the right card.

[Casey2296]

Originally Posted by Rhotchkiss

Here is a real life example. This card came up in REA. It was expensive. I did not have the liquidity, but I had the net worth, to buy it. I borrowed (at less than 1%), against assets and bought the card. I let that draw stay outstanding for a while. Then interest rates started to go up, so I paid off the draw over a few months. Just because you borrow to buy something does not mean you cannot afford it. It can mean you would rather not liquidate an asset to buy another asset, or it could be an arbitrage-like move (if I feel the card will go up more than the interest I pay), or the loan can be a bridge to get into an asset.

I understand this card is a bit of an extreme example, but it’s all relative. The example is just as applicable to someone who really wants a $5000 card as it is to someone buying a BN Ruth or a 33 Goudey Ruth PSA 9.

I fully agree with everyone that you should not buy something you cannot afford - that goes for everything, not just cards. But borrowing to buy a card is not necessarily a bad move or the signal of an inability to afford something.

Thanks for posting that Jackson gem Ryan, haven't seen it in awhile. I'm assuming if you were to sell that card today the gains would far outweigh the 1% interest you paid on your line.