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IS GUN LEASING IN OUR FUTURE?????????????????

Discussion in 'Uncategorized Threads' started by senior smoke, Feb 26, 2008.

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  1. senior smoke

    senior smoke Well-Known Member

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    HELLO:
    i was out at the waukesha gun club on sunday. One of the shooters asked me if i saw the thread on this web site about the cost of new perazzi guns? i said i did, and also asked him if there will be a time when the price is raised to the point that the majority of shooters could not afford a new gun? I said if that happens, used guns will be even more at a premium. he said maybe it will be like the price of new cars nowadays. he said the price got so high,a large percentage of people now lease their cars. so hears the question, could you ever immagine a time, where high priced guns could be leased like cars? little to no money down, spread over 24, 36, 48 months and beyond. the person leasing the gun, pays for any breakdowns, dings in the stock etc, before the gun is returned. when the gun is returned, you have a pre determined price to purchase the gun. if you want a new gun, you can lease a new one. if you decline, owner puts the used gun you just returned in the used gun rack. i know it sounds wierd. but how many of you back in the 1950's what have ever thought car prices, shot prices, gun prices, would be what they are today? what do you think?
    steve balistreri
     
  2. 100straight

    100straight Member

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    If you can afford to shoot at Waukesha Gun Club, you can afford a new gun!!!

    Shoot well and often (but hopefully not at those prices),

    Mark.
     
  3. Dennis DeVault

    Dennis DeVault Well-Known Member

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    The answer to the question is yes. We have been working with different people on the concept but have not yet found the right group of folks to make it happen. It is a very desirable concept and has both good and bad points. The good is it will eliminate the problems of getting rid of the gun to buy another, the down side is for those that do not take care of the equipment it may cost a bundle to turn the gun in at the end of the lease. I hope to have a leasing program available for our guns by the end of 2008.

    Dennis DeVault
     
  4. Ross

    Ross Well-Known Member

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    i don't know what i think about leasing guns, but the thought of leasing shells for a short time & then they can have them back kind of appeals to me. (LOL) ross
     
  5. chessney

    chessney TS Member

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    I like the idea Dennis. This is great for the guy that has to have the latest and greatest..Dennis do you have any idea on price for the monthly payments?...Ziggy
     
  6. Bubba

    Bubba Member

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    Seems like it would be more difficult to "Repo" a gun than a car. How would you keep a guy from selling what he didn't own? Guns don't have titles.
     
  7. JBrooks

    JBrooks TS Member

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    Leasing makes a lot of sense and were I a gun manufacturer or dealer it would be the # 1 priority in my marketing plan. Leasing can substantially reduce the entry cost of ownership while providing immediate cash flow to the dealer thereby lowering his inventory costs which will help keep the price of the guns lower.

    By example, let's take a $12,000 gun that is going to depreciate 30% over 3 years. You take $12,000 out the bank and buy the gun. You were earning 5% on the $12,000. Had it remained in the bank at compound interest in 36 months you would have had approximately $13,900. So, if you sold the gun at 70% of acquisition at the end of 36 months, your gun would have cost you $1,900 in lost interest and $3600 in depreciation for a total of $5500 divided by 36 months, or $153.00 per month cost of ownership.

    Let's say you lease the same gun with a 10% down payment. You have to pay the remaining $2400 in depreciation over the 36 months or, $67.00 per month. You also have to pay interest on the 90% of the value you financed. Let's say that interest is @ 10% on the remaining $10,800, or $1080 per year divided by 12 months = $90.00. Plus, you have to amortize your $1200 down payment over 36 months which equals $33.00 per month. Add back in your depeciation payment of $67.00 and your payment is $190.00 per month. Now, you also lost 5% on your 10% down payment which is about another $5.00 per month for a total cost of ownership of $195.00 per month. You are paying a premium of $42.00 per month because you didn't have $12,000 in cash in the bank.

    Unless of course you actually left $10,800 in the bank at 5% interest in which case you would earn about $1700 in interest divided by 36 months or $47.00 per month. $195.00 - $47.00 = $148.00 monthly cost of ownership and you still have $10,800 cash in the bank in case you need it.

    At the end of the lease, you hand the gun back to the dealer and he hands you a new gun to start the process again. You now have a new gun and the guy who paid cash has either an old gun or he has to go to the trouble to sell it and realize 70% of original value, net.

    The dealer now has a used, high grade gun that he can lease for substantially less because the cost is lower and the depreciation over the next 36 months will be far less than the original 30%.
     
  8. Shooting Coach

    Shooting Coach Well-Known Member

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    Many years ago, when the K-80 first came out, I financed one through my bank. I never noticed the monthly payment.

    The only fly in the ointment of leasing is returning a fine gun you are used to and shoot well for another, slightly different feeling gun you have to get used to all over.
     
  9. sako2115

    sako2115 TS Member

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    That's why it pays not to change guns. "Buy all the Model 12's you can"...the Blues Brothers.
     
  10. phirel

    phirel TS Member

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    This strikes me as quite a novel idea. I would not be interested in leasing a gun, but I like new ideas. Could be a business opportunity for someone.

    Pat Ireland
     
  11. Dennis DeVault

    Dennis DeVault Well-Known Member

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    The question was, is it in the future yes. I see it everyday that many people cahnge guns more often that I change my socks. This type of program would be great for them. For the person that wants to keep the gun it will have a buyout in the end. As far as keeping the gun from being stolen, the deal on a gun is a much safer bet than a car. If you steal a car the BATF and the FBI do not knock on your door. Steal a gun different story. As far as the amount of shells put through one, good luck on mine. In 15 years of building our gun we have never replaced a firing pin, never broken a trigger part, and so on. On the new Infinity there is a future marketing move to offer a reward to the person that can finally break an Infinity firing pin from shooting. At 3/8" diameter and heat-treated tool steel that will be a task. The guns have to date survived 4 times having the choke tubes shot out of the end of the barrel with no damage to the barrel. I think we build a fairky good tank. The choke tubes blown out were another manufacturers tube that was not made for the gun.

    Dennis DeVault
     
  12. Big Heap

    Big Heap TS Member

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    Business opportunity! Call these guys and start your own gun leasing company.


    To put it simply, ColorTyme is here to help our Franchisees every step of the way because we have as much passion for the rent-to-own (RTO) industry as you do. We are driven by our company values – “People helping People” and are in this business to make the dream of ownership a reality.

    Led by an executive team with 50+ years of combined RTO experience, we help Franchisees with business plans and site selection as well as remodeling, lease negotiations, exterior signage, inventory orders and equipment specifications. And before their first ColorTyme store opens, each Franchisee has access to rent-to-own’s most comprehensive training programs.

    These programs have been invaluable, according to Franchisee Bruce Emory. “ColorTyme’s team and the entire Franchisee package have so much to offer: financing, inventory support, great pricing for a large selection of products and training programs that are some of the best in the business at every level.”



    For more information about opening your own ColorTyme franchise
    call Jim Deering at 1-800-411-8963.
     
  13. shot410ga

    shot410ga Well-Known Member

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    A lease is just a methode of paying the down payment on the back end, in lew of up front. Most people that lease a car; will at the end of the lease refinance the remaining value for 18 months, and end up purchasing the car. You could do likewise with a gun, milling machine, or horse.
     
  14. widomaker

    widomaker TS Member

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    How would you go about fitting the stock to you ?. Buy one of the adjustable ones to keep and just have some one put it on and take it off when you turn in the gun ? I'm 6'1" and had to have a Graco put on my Browning to lengthen it out as it was bashing me in the cheek when I shot it. I like the idea as I'll never be able to afford a K-80 or a Perazzi but would dearly love to shoot one some time.

    Martin 0765881
     
  15. BIGDON

    BIGDON Well-Known Member

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    Dumb!!!!!!!!!

    Don
     
  16. shannon391

    shannon391 Active Member

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    Be wary of the leasee That wants one day lease with one bullet.
     
  17. JBrooks

    JBrooks TS Member

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    We know BIGDON, but we love you anyway.lol
     
  18. Dennis DeVault

    Dennis DeVault Well-Known Member

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    I think this a great thread and it has given me great feedback. For widomaker, why should anything change. You would still be able to come here and get a custom fit stock as before. The beauty is with this type of plan, we can control the inventory and the resale value on all the guns. Since we make everything in our own facility including the wood it is not a problem to refit the gun to a new person if the gun comes back in and needs to be resold. A lease may be crazy but I was always taught that if you have money in an account working and making you money you do not touch that money for a luxury item, you work off someone else's pocket book. Only the future can tell what will be.

    Dennis DeVault
     
  19. widomaker

    widomaker TS Member

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    I guess my problem is that I'm just to new to know any better. When I got the Graco put on all I heard at the local club was that I ruined the gun by cutting the stock. Of course I didn't do it I had it done. So what your saying is that when you lease the gun you get a fitted stock and when you turn it in after the lease is up, if you do turn it in the next person gets a new stock and fitting ? .

    Sorry if it sounds dumb I'm learning as I go trial by fire ..

    Martin
     
  20. JBrooks

    JBrooks TS Member

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    First, if the stock is fitted and the gun works for you, you will re-lease or buy the gun at the termination of the first lease. You may lease a gun with a factory stock and then if you like it, add a custom stock onto the lease or lease a used gun but have it upgraded to a custom stock. Lots of flexibilty. Because there is little difference in actual dollars between the cost and the price of money in the $10,000 to $15,000 range compared to the margin that a manufacturer can create in a gun, a manufacture can create a very financially attractive lease program.
     
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