Disclaimer: I am not a financial advisor and am not giving financial advice. I am merely sharing my views and methods I have personally used in the past. These may or may not work for you. Do your own research and never commit to a purchase or credit product that you cannot afford, or don’t understand.
OK, so you’re looking for finance for a gun purchase. You’ve found the gun you want, unfortunately a cash purchase isn’t possible, so how do you get the best finance for a gun?
First off, let me state that credit is only appropriate if you know how to, and are able to, manage it properly. If you have a poor credit record or history, not only will the options below unlikely work for you, it probably isn’t something you want to be toying with anyway – it’s best to stick to cash.
However, if you do have decent credit, let’s get into it.
Note: this method is applicable to the UK market and may not be transferrable elsewhere in the world, given the types of credit products offered. That said, hopefully it gives you a theory to explore if you’re living outside the UK. Additionally, I’m not telling you what you should do, I’m merely sharing examples of what I do.
Specialist finance offered by gunshops
Right, a lot of gunshops will offer finance on gun purchases. However, the interest rates charged on this type of credit are often north of 9% p.a. The terms will range from 12 – 48 months and will oftern require at least a 10% deposit up front.
Now, that’s not uncommon for finance. And if you think you’ll be able to pay off within a 12 month window, this may seem the most straightforward approach. If that’s you, get stuck in and go for it. However, if you’re like me and like to make sure your money goes as far as it can, then let’s have a look at option 2…
Personal loan
This is often overlooked as an option for gun finance. For a loan of a few thousand pounds (£), you can secure rates as low as 3.0%, a third of what specialist finance would offer you. Additionally, the process of applying for the loan can be done online and often you can have the money in less than 24 hours. You can also choose up to a 7 year payback period which brings your repayment down but BEWARE, you’ll pay more interest over a longer period.
Credit card
I don’t mean just swiping the gun into your credit card and then dealing with the payments and exorbitant interest thereafter. This method involves a nifty feature available in the UK market; the balance transfer. You can get these balance transfer cards, which allow you to shift a balance from another credit card to it.
Currently (at the time of writing) there are cards offering 31+ months at 0% interest, with an upfront fee of 3% or less. On a 31 month term, this is effectively under 1.2% interest per annum (excluding the impact of compounding). Beats paying 9%+ on specialist finance if you ask me!
Additionally, if your credit is good, you can often get a decision in principle on these without any credit file impact. If approved, you could have the application submitted and agreed within minutes.
What I would do (not financial advice 😉 ) is use my existing credit card to make the purchase so I secure the gun. Then use the new card to transfer the balance over and spread the cost over the duration of the 0% period. But, I always make sure the balance transfer card is approved BEFORE I make the purchase. Don’t jump the gun (ah-thank you!).
Where else can you finance your gun for around 1% per annum?
Cash
Boooo, spoiler alert. The BEST way to buy your gun is cash, obviously.
But if you can’t do that and as long as you can responsibly manage the above strategies, then that desired gun could be yours now. Often the perfect gun comes along (especially second hand) in the spec, condition and at the price that suits you. If you don’t have the cash immediately, the above strategies could help you secure that purchase anyway – plus nothing is stopping you from overpaying and clearing the credit early – in fact, that’s the OPTIMAL approach.
So, when would I use this?
If you’re starting out, please don’t go all out on a gun that you’re going to struggle to afford, even with the above methods. New shooters don’t need a Krieghoff K80, Blaser F3 or Perazzi High-Tech. That Beretta DT10 is beautiful and that Browning Ultra XS Pro might get your heart a flutter, but you’re not going to truly appreciate them at your level. It’s like getting your drivers licence and buying a Ferrari as your very first car. Even if you don’t end up crashing it, you’re never going to truly appreciate it until you have bags more experience.
Got loads of cash (then why are you even reading this)? Go to town, buy what you want, just remember; you also don’t want to be the shooter with all the gear and no idea. But…, you do you.
However, if you’re looking to step up to the better gun, or are starting out and looking for a good mid-range gun that will serve you many years and can’t buy it cash right now – have a think about the ways you could finance it creatively. The above might help give you some ideas.
Disclaimer: I am not a financial advisor and am not giving financial advice. I am merely sharing my views and methods I have personally used in the past. These may or may not work for you. Do your own research and never commit to a purchase or credit product that you cannot afford, or don’t understand.
