|
Post by thebigcrabcake on Jan 27, 2023 23:29:39 GMT
There is no such thing as a Lionel Credit Card...Not yet anyway. But it's not a far off possibility. The latest Catalog has some exciting trains displayed. A complete passenger train set (not including than Ready-to-Run sets) will set you back $2,000.00-$3,500.00. That's way over most of our budgets and is high enough that we might not be able to save up in time for delivery. Most are BTO with limited extras ordered by the retailers. Once delivered to stores, there may only be a six months window to purchase a set. That means that in 18-24 months from now, they will be gone and only available at a premium on the secondary market.
The only way many of us will be able acquire a set before they're gone is to pay with a credit card and then make payments to Visa, etc. at 18%-24% interest. When Lionel realizes that they've pushed prices high enough and also closed the window for purchase. They are bound to realize it's time for The Lionel Credit Card for anyone who buys direct from Lionel. Their risk would be lower than Visa because they would be financing at retail but only at risk for the wholesale value of the trains. It's an easy moneymaker.
By raising prices and limiting supply, Lionel has inadvertently created an opportunity to make big bucks on financing. Just ask GMAC Credit and Ford Motor Credit. 3-5 years from now we'll pull this thread up and I'll add the following post: "I told you so." What do you think? Emile
|
|
|
Post by david1 on Jan 27, 2023 23:41:20 GMT
I think that you just may be right.
Dave
|
|
|
Post by curtis on Jan 28, 2023 0:04:14 GMT
Couldn't agree more. Since they are posting a $4500.00 Big Boy Set I can't see how it can be purchased except on a CC. And they wonder how people get to be over extended!
|
|
|
Post by Adam on Jan 28, 2023 0:40:55 GMT
Would this require more of a Lionel Mortgage?
|
|
|
Post by rockymountaineer on Jan 28, 2023 1:40:59 GMT
Nice idea, Emile. But it's gonna be a steep price to pay, when buying direct from Lionel AND paying over time at 20%+ interest.
Two "big ticket" data points to consider:
(1) Today Lionel announced its uncatalog'd 2023 Locomotive Year, as they have for the past two years. This year it's a cool Lionel Lines paint-scheme Dreyfus J3 for $1,700 MSRP... exclusive to Lionel's webstore. Not sold thru dealers. The webstore ONLY sells at MSRP (or above), except for an occasional coupons if you know the ropes and tricks to use them successfully. And yet another negative is Lionel wants you to pay UP FRONT IN FULL to reserve products... for stuff that's often at least 12 months away... sometimes 18 months.
By the way... in comparison, Charles Ro is selling the catalog'd Dreyfus J3 steamers at $1,420 on early-buy with no deposit down. So why would I wanna let Lionel hit me with a $300 premium, credit card interest AND payment in full up front? That's a pretty steep price to pay for convenience sake.
(2) Same is true with Lionel's Big Boy Vision Line Super Set carrying a $4,500 MSRP. Ro has it for $3,750 on early-buy... a savings of $750 (or almost 17% discount -- roughly the same percentage off the Dreyfus J3 loco's). The credit card might be enticing to some folks, but not at the premium price penalty of $750 up front, PLUS the cost of interest over time, AND THEN a whopping payment in full up front.
Bottom line... there are no free lunches in life. Paying MSRP... getting hit with interest charges... and full payment up front are triple-whammies for me. They're deal-breakers.
This year none of these big-ticket items are calling my name. The 2023 Locomotive of the Year had me thinking -- but only for a second or two. But after I saw the price differential between the dealer pricing for other Dreyfus J3's and what Lionel wants to sell their "exclusive offering" for, I quickly bowed out. So the Lionel Credit Card would not be for me. I'd prefer to pay cash upon delivery OR use a credit card with a 0% interest for 12-18 months.
|
|
|
Post by thebigcrabcake on Jan 28, 2023 3:25:05 GMT
Would this require more of a Lionel Mortgage? Yes. Future catalogues will include a Loan Application.
|
|
|
Post by madockawando on Jan 28, 2023 11:20:59 GMT
Given that there is such a long lead time between when a product is announced and it’s delivered a lay a way program where you pay in installments before the train is delivered is a great idea. Mr Muffin has this program and it works well.
|
|
|
Post by madockawando on Jan 28, 2023 11:30:11 GMT
Nice idea, Emile. But it's gonna be a steep price to pay, when buying direct from Lionel AND paying over time at 20%+ interest.
Two "big ticket" data points to consider:
(1) Today Lionel announced its uncatalog'd 2023 Locomotive Year, as they have for the past two years. This year it's a cool Lionel Lines paint-scheme Dreyfus J3 for $1,700 MSRP... exclusive to Lionel's webstore. Not sold thru dealers. The webstore ONLY sells at MSRP (or above), except for an occasional coupons if you know the ropes and tricks to use them successfully. And yet another negative is Lionel wants you to pay UP FRONT IN FULL to reserve products... for stuff that's often at least 12 months away... sometimes 18 months.
By the way... in comparison, Charles Ro is selling the catalog'd Dreyfus J3 steamers at $1,420 on early-buy with no deposit down. So why would I wanna let Lionel hit me with a $300 premium, credit card interest AND payment in full up front? That's a pretty steep price to pay for convenience sake.
(2) Same is true with Lionel's Big Boy Vision Line Super Set carrying a $4,500 MSRP. Ro has it for $3,750 on early-buy... a savings of $750 (or almost 17% discount -- roughly the same percentage off the Dreyfus J3 loco's). The credit card might be enticing to some folks, but not at the premium price penalty of $750 up front, PLUS the cost of interest over time, AND THEN a whopping payment in full up front.
Bottom line... there are no free lunches in life. Paying MSRP... getting hit with interest charges... and full payment up front are triple-whammies for me. They're deal-breakers.
This year none of these big-ticket items are calling my name. The 2023 Locomotive of the Year had me thinking -- but only for a second or two. But after I saw the price differential between the dealer pricing for other Dreyfus J3's and what Lionel wants to sell their "exclusive offering" for, I quickly bowed out. So the Lionel Credit Card would not be for me. I'd prefer to pay cash upon delivery OR use a credit card with a 0% interest for 12-18 months.
This is the fourth year that Lionel has offered the on line exclusive Locomotive of the Year. They sell out every year and the fact that Lionel continues to offer them show that the program is a big success for them. I would buy one but they require O-60 curves. I would love to see a Lionel Lines SD70ace offered as Locomotive of the year.
|
|
|
Post by thebigcrabcake on Jan 28, 2023 16:57:10 GMT
DON'T LEAVE HOME WITHOUT IT!
|
|
|
Post by Adam on Jan 28, 2023 17:36:21 GMT
Very funny and creative! Did you make that Emile?
|
|
|
Post by madockawando on Jan 28, 2023 19:39:42 GMT
DON'T LEAVE HOME WITHOUT IT! I don’t think it’s very funny at all. To imply that it is stupid to spend money on trains or to spend money on Lionel in particular is a poor way to promote the hobby. Why would anyone who is thinking about joining the hobby be encouraged to do so after seeing this cartoon?
|
|
|
Post by Traindiesel! on Jan 28, 2023 20:19:18 GMT
What’s in your wallet??!!
|
|
|
Post by ptc on Jan 28, 2023 20:24:49 GMT
I have an idea as well. Lionel does a lay-away program. No exposure or risk for them.
|
|
|
Post by phil55 on Jan 28, 2023 20:33:34 GMT
That's funny! Soon we'll need a second mortgage to buy toy trains!
|
|
|
Post by thebigcrabcake on Jan 29, 2023 3:26:29 GMT
DON'T LEAVE HOME WITHOUT IT! I don’t think it’s very funny at all. To imply that it is stupid to spend money on trains or to spend money on Lionel in particular is a poor way to promote the hobby. Why would anyone who is thinking about joining the hobby be encouraged to do so after seeing this cartoon? It's Satire! Intentional over-exaggeration of a point. That's how Satire works. LionCharge is NOT a real thing. I created the image to emphasize a point. I'm very confident that NO ONE who is thinking of joining the hobby would read this thread, see this satirical image and as a result decide to collect stamps instead. Hopefully they will understand the message that a certain segment of the hobby consists of very expensive trains and that not everyone is OK with the direction train prices have taken. No reasonable person is going to believe that this image carries the implication that ALL train purchases are stupid. That is not the implication. There is nothing wrong with spending money on trains. Financing a train purchase over time, on the other hand, is Really Really Stupid. Trains are not a necessity and generally decrease in value over time. They are great fun but they are a poor investment. Financing a large train purchase over time is fiscally irresponsible. I would never encourage a new hobbiest to over extend their finances just to start this hobby. There are plenty of low cost alternatives such as Menards that are better suited for new hobbiest.
|
|