Rolex as collateral

[piratepress]

I can't see doing this, but it looks like it's gaining popularity:

http://www.msn.com/en-us/money/compa...wsG?li=BBnbfcN

[enjoythemusic]

As the interest rate on said loan is ????

Bet you it is well over 10% (even this 'high wealth factor' of collateral), which is insane for anyone to enter into said contract (unless your life depends on it).

As for gaining popularity, imho don't believe everything you read as no sane businessperson who knows math/finances would enter into a 'pawn shop type' agreement UNLESS they truly knew without any doubt the profit on the other side would be 'worth it'. Sounds like creative financing of known value material items, so yes a bit interesting.

[breitlings]

Originally Posted by enjoythemusic

As the interest rate on said loan is ????

Bet you it is well over 20%, which is insane for anyone to enter into said contract (unless your life depends on it).

As for gaining popularity, imho don't believe everything you read as no sane businessperson who knows math/finances would enter into a pawn shop agreement UNLESS they truly knew without any doubt the profit on the other side would be 'worth it'.

It's actually less than unsecured, or that's the pitch. I worked with a company that pioneered this sort of secured high end loans on the internet. Perhaps ironically the founder didn't pay me and skipped out on his bill.

[enjoythemusic]

So what's the ave %? Is it below 8% given Fed Fund Rates being 1.5%.

[tomchicago]

It was good enough for Charlie Babbit in Rain Man.

[breitlings]

Originally Posted by enjoythemusic

So what's the ave %? It is below 8% given Fed Fund Rates being 1.5%.

It's been a while since I was in that field. I will say the guys that operate there are sort of, more or less, pawn brokers, even though they message to a higher end clientele. So I'm sure it will take some wheeling and dealing. If I recall correctly it was significantly less than unsecured rates.

I would actually welcome someone like Bob's into this arena, as the guys I worked with put me off to the whole industry.

[enjoythemusic]

Thanks for your reply and comments, very interesting indeed. Creative financing takes on many forms. Was very curious about actual interest rates, because when i hear the word 'pawn'..... yet if lower than unsecured as you said... interesting. Thanks again or posting.

[RolexNorth]

Nothing new here, people have been pawning their jewellery for money for years. That's why there's so many pawnshops in Vegas.

[breitlings]

Originally Posted by RolexNorth

Nothing new here, people have been pawning their jewellery for money for years. That's why there's so many pawnshops in Vegas.

at its core business model you are right except the guys I worked with would like loan against million dollar paintings. I don’t know what would happen if you brought a multi million dollar painting to a pawn shop but I imagine nothing good

[drmizzou]

On that note, would anyone here buy a Rolex from a Vegas pawn shop!? Do they guarantee authenticity and a clean watch - meaning it’s not stolen? How would one go about verifying these things?

[Yobber76]

Makes for a good TV show, but not a good business decision. People pawn things out of desperation; they need money right now and have no credit. There's always a better way.