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Leasing a shotgun

Discussion in 'Off Topic Threads' started by senior smoke, Feb 3, 2013.

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  1. senior smoke

    senior smoke Well-Known Member

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    Wauwatosa Wisconsin
    Hello:
    Since the early 1980's I have always leased my cars. I have never been the type of person who needs a big fancy car, or needs to impress people.

    I like a car that I do not have to pay for repairs when they break down, so basically I rent a car, or a fancing name, I lease cars.

    With that being said, shotguns for trap is different. There have been times in my life that due to inheritance I was able to purchase a brand new Perazzi Comp one for $650.00.

    But for the most part, I'm cheap, and I have always purchased Remington 870's, 1100's, Winchester model 12's, and Browning BT99's.

    I have to admit, it would be nice to someday own a Perazzi SCO trap gun, or a fancy Kreighoff, or possibly even a Seitz? All these guns are way over my allotted budget, but if I could only lease a fancy shotgun, with an option to buy, just like leasing a new car.

    If leasing a tournament shotgun with an option to purchase when the lease was over, would you consider it? The benefit would be, you would know if you could really shoot this particular gun, and you could shoot a gun that normally would be over your budget amount. If you could not shoot the gun real well, turn it back in, and lease a new model after the lease was over.

    I have no idea if leasing a tournament shotgun was ever done? As crazy as it sounds, at one time leasing a car was thought to be crazy at one time too. But with the cost of cars today, and the cost of guns, if leasing a shotgun with an option to buy was ever offered, would you possibly consider it?
    Steve Balistreri
     
  2. dmarbell

    dmarbell Active Member

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    1,572
    Steve,

    You finance everything you buy in life. There is a lost opportunity cost to every purchase. Let's say you buy a $12,000 trap gun that you want to shoot for 10 years, and predict it will be worth $6,000 at that time.

    If you have the cash in an investment yielding 4% taxable at 25% (net 3%), you would have had $16,127 in the account after 10 years. If you take the $12,000 out of the account, shoot it for 10 years, and you sell the gun for the $6,000, you'll have $6,000, so it cost you $10,127 in opportunity cost to shoot the gun.

    If you borrow $12,000 at, say, 4%, it would cost you $979.75 per year to amortize the loan down to $6,000 at the end of 10 years. If you took that payment out of the investment above (apples to apples?), it would cost you $11,232 out of the investment over 10 year (ending value $4,895 vs. $16,127). The extra cost comes from the 4% cost of the loan vs. 3% earnings on the investment.

    This gives folks a base to begin with. You can do your own lease if you have the account to take the payments out of, or values to borrow against (including the gun?).

    I've posted this idea before, and it wasn't well received. If a company offered it, I would consider a payment of about $100 per month vs. paying cash for a $12,000 gun.

    Note: the 50% net worth at the end of 10 years is an example. Anybody have some actual numbers to post, having bought a new gun and sold it some years later?

    Danny
     
  3. Voolfie

    Voolfie Member

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    Location:
    Wilmington, DE
    One problem with a true lease is that we're talking about a gun. Legally, when you lease a car, it remains the property of the bank. You can't do that with a gun.

    How would you feel about a deal like this: You pay for the gun in full in Feb./Mar. - say $12,000. You use it for the season and then in Nov./Dec. I buy it back from you for a price that reflects depreciation, wear & tear and of course a little something for me - say $9,500.00. Then, I perform maintenance on the gun, clean it up and you can then, in Feb./Mar. either buy it back again - this time for $10,500 with the same understanding that I'll buy it back at the end of the season. Or, you get another new gun with the same deal. If you like the gun you can opt to do this 'buy back' for several years.

    I'd be interested to hear what people think of something like that.


    J.F. Wolfington
     
  4. K-GUNS

    K-GUNS Member

    Joined:
    Jan 29, 1998
    Messages:
    628
    I'm in....I'll lease one. What dealer ? I'd like to try a Perazzi. Hal DuPont will let you try out a gun, it called a test drive. The lease could be a LONG test drive.

    crab.
     
  5. senior smoke

    senior smoke Well-Known Member

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    Both of you bring up some good ideas. We both know this will never happen. How about the guy who would lease a quality gun, then he needs the stock shortened, add's an adjustable stock, basically makes adjustments to the gun, but he doesn't own it?

    On the other hand, there would have to be something in the contract that says no work is to be done to this gun. Also, let say you lease a gun, and then the guy decides to sell or trade it in???

    How would any fellow shooters know the gun was leased, how would a gun dealer or store even know? As I am typing this, I see how such a lease on a gun could create a big can of worms for numerous people.
    Steve
     
  6. motordoctor

    motordoctor Shoji Tabuchi in Branson

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    ohio
    i thought about that deal before. With a car or a house it is really hard to conceal it and if it had to be repo'ed you know where the house is and probably can find the car because it has to have plates on it. With a good down payment it might work. The problem with a gun is as stated above. It can be moved around too easily. Look at the furniture rental companies. They figure that they get about three or 4 payments and if the item never gets paid for they have their cost maybe. might be harder with a gun. motordoc.


    Maybe work if the guy put a lien on the car or the house for collateral against the loan
     
  7. Traders

    Traders Well-Known Member

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    dmarbell,

    I think you financial analysis makes sense but doesn't account for the psychic value of owning a gun, almost any gun. My guess is that for most of the readers of this site that value far exceeds the monetary or intrinsic value.

    How else can one explain that most gun owners own many guns, many of which are relatively interchangeable in use?
     
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