Getting a Loan to Buy a Firearm?

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Have I ever gotten a loan "for" a firearm?
no.

Have I ever gotten a loan and used the money (or part of it) for a firearm?
Yes.

I took out a personal loan in order to get the cash to get an Auto Mag. While I did have a steady income, I was still essentially living paycheck to paycheck, and lay-away was not an option.

After 10 years of searching, I found one that I could get, but needed a lump of cash several hundred $ more than the value of the car I was then driving. And, the window of opportunity was limited.

While I cannot recommend going into debt, there are times in life when it can be worth it. That loan was paid off decades ago, I still have the gun, and have had the pleasure and enjoyment of owning it the whole time.

If the gun (in this case the big Barrett) is current production, and you can reasonably expect to live long enough to save up for it, its more sensible to do that, than go into debt.

Of course, that also assumes you will be able to get one, once you have saved up the money. And that the price will stay close to what you get saved. Its really frustrating to see a gun you are saving up to buy double in price while you are saving for it...

On the other hand, if you can afford the extra cost of the debt, why not get it now?

(yes, I am evil...)

 

[Brotherbadger]

Stay out of debt. If you can't afford it now, put it on layaway and pay for it regularly until you can take possession. That's how we did it in the old days to buy things that we couldn't afford. It locks in the price and there's no interest to pay on.

Bingo. Most LGS around me will have a layaway plan. If you can't afford it in one chunk, pay it off bit by bit. If your LGS doesn't have a plan, then just save up the money yourself. Don't take out a loan though.

 

[chiefr]

Be careful when disclosing what you purchase, some companies would never let you borrow if they had knowledge you were purchasing firearms.

I do like to use my CC on firearm purchases because of the protection given if your purchase has a problem. Had to contest a purchase years ago and the CC company saved me near a grand. Not a firearm however.

 

[4V50 Gary]

haven't read or listened to The Richest Man in Babylon, have you?

It's a horrible idea.

Layaway is better. If it's going to take you less than two and a half years to pay off the loan, put the gun on layaway instead. Pay regularly and it'll be yours with zero interest paid in less than two years.

Let me make this easy for you: Richest Man in Babylon, audio version on YouTube

 

[vito]

I guess if all of my guns were stolen or lost, and I lacked the cash to buy just one gun for home and family defense, then yes, I would use a loan or credit card to do it. But once I have a gun that I can use to safeguard my family, and carry in a holster or pocket if needed, everything else gun-related becomes a luxury. And over the years I learned the hard way that getting into debt for anything other than necessities of life is a bad decision. As a few others have stated, after many years of worried nights and days over the amount of debt that I was in I paid off everything (other than my mortgage) and have slept better ever since.

The only thing I like better than guns is motorcycles. The last two bikes I have owned I paid cash up front and that's the only way I will buy one in the future as well.

 

[Wishoot]

NEVER!

I avoid debt if at all possible. Additionally, I have too many other things in my life that cost money and they trump buying a nice firearm.

 

[JWT]

Never have borrowed to buy a gun and likely never will. If I don't have the available funds to get one it waits until I do. I just don't like being in debt.

 

[buckhorn_cortez]

I avoid debt if at all possible.

Good idea unless you can use it to your advantage.

...in general the cost of money is too high.

Not if you look around, and for specific items it makes more sense to finance than pay cash. John Deere tractor - 0% interest for 36 months - making financing free and allowing me to purchase the tractor over time.

Ford Taurus SHO - 1.9% for 48 months. I could have paid cash for the SHO, but that makes no sense since I would have to take the $42K cost out of an investment paying 7%. If you deduct the 1.9% loan cost over 4 years ($1649) from the 7% generated over the same time, I'm making 5.1% on the $42K (about $9,000) over the time period instead of 0% with the one-time payment that would be made to "stay out of debt."

If you can find a good financing deal, it can pay to use other people's money.

 

[Tucker 1371]

On the other hand, if you can afford the extra cost of the debt, why not get it now?

I can definitely afford it. No wife, no kids, no car payment. Just car insurance, rent, and utilities (which I have saved $400 on) and cell phone.

My credit history is kind of brief, NFCU cut me a good rate (7.5%, the lowest possible on a personal loan) because I have paid off two auto loans through them in under 2 months. I don't make a fortune by any means but being a single guy with my level of obligations I have mostly disposable income.

I'm a really hard person to talk out of a bad idea... I'm mostly curious to see if anyone else has done this and how/if it worked out for them. Not saying I can't be swayed because I am somewhat on the fence about it, mostly keeping a .50 BMG fed. I am learning reloading from a buddy (I'm going to wait until I am confident in my .308s and .45s before I even attempt .50, don't worry.) so after my initial ammo stock that is how I plan to feed it.

I just don't want to have tons of obligations one day down the road, get hung up in a mortgage and bills and wish I would have bought myself a few more toys in my single days. I figure I can always sell the rifle if I ever get in a hole, which will hold it's value better than a lot of things people buy on credit. I have emergency funds set aside that I can dip into as well if need be.

I'm seeing two or three Yes's and a LOT of No's so far... decisions...

 

[olddav]

I understand now, you want someone to tell you it's a good idea, so here it comes. "Borrowing money to purchase a rifle that cost $5.00 per shot is a good idea, don't delay and purchase two if possible"

 

[A400 Fan]

Can you afford to feed it as well as make payments? If you can, then have at it

 

[saitek]

loan to buy gun

i always say if you cant afford to pay for it with disposable cash income it's time to quit ,just like when racing car's if you need a loan to go racing it's time to quit ! just my opinion .

 

[stephen426]

How stable is your job? If you have to borrow money for toys, that probably does not leave much cushion if things go south. When it is all said and done, a .50 BMG is an expensive toy that has little to no practical use. With that said... If there was ever a time to do crazy and impulsive things, it is when you are single and have few obligations. Of course, this WILL set you back for a house and anything else.

 

[Nathan]

Tough question...I mean most/many of us think getting an auto loan is a good idea and it is sooooo easy for the loan to value ratio to be out of upside down. That said, I've never had a gun value go south.

I've never paid so much for a gun that it lost enough value shooting that I couldn't sell it for a profit in a couple years or so. Now, i do think I could loose up to 20% on a gun buy and more if customized or broken, but you know that.

So I wonder why so many think buying a gun on a low interest loan is such a bad idea, unless it creates a bad financial situation. Heck, I think gun stores buy on loan.

Edit: On a 50 bmg, I find the loan a bad idea because a person often thinks only about the gun. A $8000 Barrett needs optics $3000ish, Accesories $2000ish, ammo or reloading components $10000 to start??, reloading setup $2000 or so....basically, many of us could extend to buy the gun and be unable to use it. I've seen this. A 50 at a 100yd range wearing $300 glass in $50 mount, hurts to look at.

 

[Spats McGee]

No.

Do not borrow money if you can avoid it, least of all for something that you want but do not need. I'm speaking from experience here. I got myself into pretty big trouble with debt years ago, and I'm still digging my way out. Not that my experience makes me any more or less knowledgeable than the next guy about personal finance, but I'll never borrow another nickel for a non-necessity.

 

[aarondhgraham]

This is rather amusing,,,

This is rather amusing.

Not that the advice being given isn't good advice,,,
But most of the time we are the biggest bunch of "enablers" out there.

Usually we would all be chanting in unison,,,
Buy the gun,,, Buy the gun,,, Buy the gun!

My personal advice is,,,
Don't borrow money for toys.

But hey, this is America,,,
You are allowed to go to hell in a hand-basket of your own choosing.

It's a free country,,,
Do what you think is wise.

Aarond

.

 

[Robk]

The way I read this is as follows: You are most likely miltary(navy fed loan), you are single, younger than some think, have back up funds if need be and appear to be able to afford the loan, even if you just factor in the $400 decrease in monthly payments that you make. Not the worst position to be in IMHO. It is a toy and I personally (now anyhow) always pay up front, cash or credit card with cash in wait to pay the bill. But if I was younger, had few obiligations,was sure of my pay/work situation. Than I would buy a few toys before the real trapping of life take over like a house, wife, kids etc... Your choice though. As for the Barrett, nice firearm, but maybe a bit pricey. If you are looking for something a bit cheaper(may make it easier for you to stomach the payments) look into this,http://www.tactilite.com/. Very interesting. I personally like the side magazine loading version.

Good luck with waht ever you decide. But please do heed the advise laid out here about going into debt. Technically you are not in debt as long as you can meet your obligations.

Just my rant of hind site at my age.YMMV

 

[dakota.potts]

Why do you want a .50? If it's for distance shooting, you can get a savage set up for $500 that has been proven out to 1000 yards. Upgrade to a 30-06 and you can take most any game in the world with it. If it's for SHTF, there are plenty of battle rifles in large calibers that week do everything but anti materiel work, and even do some of that. You can have any of these with nice glass, bipod, ammo, and magazines for $2,000 and some for far less if you know how to stretch your money.

I guess what I'm saying is that I wouldn't take out a loan for something impractical that, in your case, will do 10% more for many times more cost. If you want to blow things up, get an SVD or other rifle in X54R and shoot explosive/incendiary ammo out of it. Probably be cheaper per shot...

 

[thallub]

My experience is somewhat like that of Spats. Went into debt up to my neck buying "stuff". It took 20 years to recover.

Don't take out a loan to buy superfluous "stuff".

 

[Tucker 1371]

Edit: On a 50 bmg, I find the loan a bad idea because a person often thinks only about the gun. A $8000 Barrett needs optics $3000ish, Accesories $2000ish, ammo or reloading components $10000 to start??, reloading setup $2000 or so....basically, many of us could extend to buy the gun and be unable to use it. I've seen this. A 50 at a 100yd range wearing $300 glass in $50 mount, hurts to look at.

It comes with a Leupold Mk4 for $8295, the loan is for $10k, I'm planning on buying about 500rds of ammo with the remainder.