Golf Club Financing

After reading about TM making financing available for golf clubs…it kind of got me to thinking. One of my other passions is firearms, and I own a couple of high end 1911's (wilson combat and a customized Colt). I had to scrimp and save and budget and wait to get exactly what I wanted.

Recently, Wilson Combat started a financing program for their products…and I imagine it will make purchasing their products a little easier and allow for the 'I want it now' to take over.

To get to the point, I have to ask, why has it taken golf so long to get to this? I recently bought a washer and dryer and had the option of dropping a couple grand on the purchase and putting a crimp in my cash flow and savings/emergency fund…or I opted to use a 12 months, same as cash program and I paid the purchase off in 9 months…no interest.

I would love to go and get fitted for a set of Miura Baby blades, custom ground wedges, etc., the whole custom thing from start to finish, but dropping that kind of coin in one fell swoop…yeah, kind of jacks with the monthly cash flow, and putting it on a credit card with interest is not the smartest financial decision…however, using someone else's money for 12 months…yeah, I could do that.

Do your local shops offer any sort of financing that way or is this even done? I see it done for other products…why not golf?

I don't understand why you would need to finance golf clubs. They're a small expense compared to everything else in golf, like lessons, green fees, range card, costumes, whiskey, and par mates.

I don't either...but Taylor Made is offering it.

At the same time...if I had the choice of dropping the coin on a set of high end irons or using the old 12 months no interest...I would do the latter and hold onto my cash.

Golf clubs should be a discretionary purchase in my opinion. Only buy them if you can afford them, they should not put a dent in any finances or cash flow. I may sound old school in that opinion, but I cannot imagine someone really financing a set of clubs. In fact, I was quite disgusted that TaylorMade came out with the program, it only helps them, it really does nothing for the person other than put them in debt that they don't need.

Probably going to hear it about this post!!

Sounds like a hassle, have to apply and then even more junk mail and phone lists you get on

I don't either...but Taylor Made is offering it.

 

At the same time...if I had the choice of dropping the coin on a set of high end irons or using the old 12 months no interest...I would do the latter and hold onto my cash.

Which can be a good option for those that are able to control their finances. Trust me the banking industry knows that most are not! It is a very small percentage of people who actually pay off the loan in the given amount of time whether it be 6months or 12 months. Financing is the number one money maker for banks. I can tell you that in due time cash money will not be the banks business most of the majors are already starting the process of eliminating it. So every person like you who pays off the loan in 12 months there are 25 that won't and thats where they are making their money PLUS!

Golf clubs and other golf related expenses are usually spent from disposable income so financing isn't really needed. Most People can live without golf clubs but can't live without their cars (if public transit isn't an option) and their appliances (gotta have a fridge) so retailers and dealers will make it very easy for them to acquire it.

I guess the biggest issue is someone is going to pay 9.99% on their clubs, which they paid at full price. By the time they pay them off 12 to 18 months later they will be lucky if their clubs are worth half of what they originally paid for them.

I guess the biggest issue is someone is going to pay 9.99% on their clubs, which they paid at full price. By the time they pay them off 12 to 18 months later they will be lucky if their clubs are worth half of what they originally paid for them.

Financing a luxury product in a luxury hobby sounds like a terrible idea. Even worse when historically the prices fall 50% or more after one season (less than a year). Finance what you need if necessary and stay disciplined. Golfer's don't need brand new top of the line golf clubs, especially when eBay and BST have so many great options available. Financing things one doesn't need is a lifestyle that often leads to financial run. Save the money and buy the clubs in 9 months once the price drops.

It as also is a way for them to keep prices up since they will try to get suckers to focus on a lower monthly payment

Since the average age of a golfer is creeping upwards it might be lower but I can bet you a good portion of new club purchasing are going on credit cards that have a rolling balance. So for some people this actually might be saving them money (minus the zero trade in return). Everyone keeps saying if you cant afford it dont buy it, which is a great idea and one I tend to agree with but lets be honest, with debt rates constantly going up that's just not happening. (hell look at the housing crisis)

Since I am from Canada, Golf Town would be wise to do a program such as this with a third party except do leasing (future financing) which would allow customers to return the clubs for the newer version and it would feed golf towns preowned program. Little risk due to third party leasing, you get the first sale and you increase the chances of golf town getting the preowned sale.

At the end of the day you can already finance any thing why not offer this and get a piece of the pie? its a great move by TM and at 9.99% for relatively low amounts its a cheap(er) rate.

Inflation, dudes. It's accelerating and the prices of things are going to go up, golf equipment possibly at a faster rate because of the demographic of the consumers. I think PXG has tested the waters of the high end of the domestic market and is realizing there is a lot more demand in that range than maybe all of us initially thought. Now that the industry knows people have no qualms about dropping 3 stacks on an iron set and 5 bills on a driver, they have to make it so that people who can't afford those clubs, now can (in a manner of speaking).

Because, people absolutely LOVE buying $h!t they can't afford. It's basically our national pastime. The ratchet effect, keeping up with the Jones's, just purely being controlled by marketing, whatever you want to call it. We will finance anything and everything that they don't have cash for. The average US household has $16k in credit card debt. I'm not saying it's financially prudent, but it's what we do.

Look at what golf is like in Japan. It's an activity for mainly the wealthy (probably most non-US countries too). Now look at PXG, look at the Titleist Concept irons that sold out immediately that were just re-released, look at any $500 off the rack driver. We are halfway there. But there are a lot of people who will be left out in the cold (with no new TM driver boo hoo) who can't afford the new $800 driver in 2018, but they will have no problem financing it.

Haha anyways that's my financial forecast for the day

first let me say welcome to the wrx O P.

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I guess the biggest issue is someone is going to pay 9.99% on their clubs, which they paid at full price. By the time they pay them off 12 to 18 months later they will be lucky if their clubs are worth half of what they originally paid for them.

I cannot imagine a scenario where this is a good financial solution for any consumer.

<p>My opinion is of the contrary. Financing, from the point of view of the business, makes sense for the following reasons.

• Increase the availability of clubs
  
• Golf is expensive; decrease the barrier to entry
  
• Millennials aren't playing golf and a primary reason is because of cost. We finance everything else so why not clubs?
  
• For some, it's a lot easier to spend $50.00 a month, for 12 months, rather than $600 up front
  

Saying financing golf gear is ridiculous because you have to pay a little extra is like saying going out to eat is ridiculous because after you eat the food the value is gone. If you buy an M1 Jan 1 financed, you get to use it for an extra year versus saving for it. That extra year might be worth $95. Putting aside you guys making determinations of other people's financial decisions, you are making a basic financial error - you are not counting the use of the good during the financed period as value. If financing gets you a driver six months earlier than otherwise it very well could be a smart financial decision.

The reason it took so long is how hard they are to repossess. In virtually every financing industry the item (furniture, cars, TVs, etc...) is very difficult to move and relatively easy to sell (everyone has a TV). So if you don't pay the bill, its pretty easy to repossess the security (i.e. the car) and sell it. That doesn't exist in golf clubs.

But all of you saying its "not a good financial decision" miss the point. If you can't afford it today but you can afford the payments *you get to use it for six months* while you pay it off. That has value. Probably more than $90. For some its stupid, for some its smart. Like most things.

This doesn't even mention the value of a margin of safety. If you need cash because, for example, you live in a hurricane zone and might have to evacuate for $300 at any time, financing also makes sense in that context.

Most of the posts in this thread can be summarized as damn kids!!!! quit skateboarding on my sidewalk!!!!

For me the most interesting thing is the option TM is offering for buyers to trade in their clubs for new models after 12 months. For someone looking to do that, they basically pay a monthly fee to be able to trade up to new equipment every 12 months.

I think the interest rate is way too high to justify, but it could theoretically make sense if you are treating it like a lease and getting new clubs every year.

Your Wilson Combat will hold value at the completion of the finance terms whereas those TM irons will not.

So, Taylor Made wants to make even more money with a method that has been proven to work. Honestly, I really don't know why people are surprised.

I'm more surprised that someone in the golf industry took this long to do this...

<p>My opinion is of the contrary. Financing, from the point of view of the business, makes sense for the following reasons.

• Increase the availability of clubs
  
• Golf is expensive; decrease the barrier to entry
  
• Millennials aren't playing golf and a primary reason is because of cost. We finance everything else so why not clubs?
  
• For some, it's a lot easier to spend $50.00 a month, for 12 months, rather than $600 up front
  

While I understand and somewhat agree with your last point, shouldn't this hypothetical person reevaluate their priorities if they can't afford golf clubs in the first place? The reality is that golf is an expensive game and a luxury. If you've got to finance your clubs (regardless of whether that's on a CC or via TMAG's new program), paying interest on a luxury item seems nothing but detrimental to one's finances.

Not ranting at you, just thinking out loud.

So, Taylor Made wants to make even more money with a method that has been proven to work. Honestly, I really don't know why people are surprised.

 

I'm more surprised that someone in the golf industry took this long to do this...

From a business perspective, it's a win-win for TMAG. More debt is more money and more sales for them. For the consumer, there's no way this can be a good thing for about 90% of the people who are going to utilize it.

Saying financing golf gear is ridiculous because you have to pay a little extra is like saying going out to eat is ridiculous because after you eat the food the value is gone. If you buy an M1 Jan 1 financed, you get to use it for an extra year versus saving for it. That extra year might be worth $95. Putting aside you guys making determinations of other people's financial decisions, you are making a basic financial error - you are not counting the use of the good during the financed period as value. If financing gets you a driver six months earlier than otherwise it very well could be a smart financial decision.

 

The reason it took so long is how hard they are to repossess. In virtually every financing industry the item (furniture, cars, TVs, etc...) is very difficult to move and relatively easy to sell (everyone has a TV). So if you don't pay the bill, its pretty easy to repossess the security (i.e. the car) and sell it. That doesn't exist in golf clubs.

 

But all of you saying its "not a good financial decision" miss the point. If you can't afford it today but you can afford the payments *you get to use it for six months* while you pay it off. That has value. Probably more than $90. For some its stupid, for some its smart. Like most things.

 

This doesn't even mention the value of a margin of safety. If you need cash because, for example, you live in a hurricane zone and might have to evacuate for $300 at any time, financing also makes sense in that context.

 

Most of the posts in this thread can be summarized as damn kids!!!! quit skateboarding on my sidewalk!!!!

Comparing golf clubs to food is apples to a chair. Food you need to survive, you don't "need" golf clubs. You also don't finance food when you go out to eat, unless you pay credit card and don't pay off your credit card.

Yes, there is still some value to the golf clubs, but you could easily be under water on your golf clubs. I now have a new M1 driver which I'm paying interest on and is worth less than what I owe on it.

People who need the financing would be better off buying used.

If you finance golf clubs for 10% APR, you have the financial acumen/literacy of a 5 year old.

Regardless, its a smart business decision from TM. There is no morality involved here, just business. As long as the terms are completely clear and no one is being hoodwinked, TM has no moral or ethical obligation to look out for your financial well being. Hell, under our current administration, not even your financial planner has an obligation to look out for your financial well being.

Also, the American golfer is probably overall a great demographic to target. Easy prey. I'm going to assume that TM's target market overlaps significantly with your typical sports talk radio demographic. I sometimes listen to the commercials for the shear comedy factor. Scam after scam. Makes you smack your head and ask how people can be some dumb.

Saying financing golf gear is ridiculous because you have to pay a little extra is like saying going out to eat is ridiculous because after you eat the food the value is gone. If you buy an M1 Jan 1 financed, you get to use it for an extra year versus saving for it. That extra year might be worth $95. Putting aside you guys making determinations of other people's financial decisions, you are making a basic financial error - you are not counting the use of the good during the financed period as value. If financing gets you a driver six months earlier than otherwise it very well could be a smart financial decision.

 

The reason it took so long is how hard they are to repossess. In virtually every financing industry the item (furniture, cars, TVs, etc...) is very difficult to move and relatively easy to sell (everyone has a TV). So if you don't pay the bill, its pretty easy to repossess the security (i.e. the car) and sell it. That doesn't exist in golf clubs.

 

But all of you saying its "not a good financial decision" miss the point. If you can't afford it today but you can afford the payments *you get to use it for six months* while you pay it off. That has value. Probably more than $90. For some its stupid, for some its smart. Like most things.

 

This doesn't even mention the value of a margin of safety. If you need cash because, for example, you live in a hurricane zone and might have to evacuate for $300 at any time, financing also makes sense in that context.

 

Most of the posts in this thread can be summarized as damn kids!!!! quit skateboarding on my sidewalk!!!!

I wouldn't finance golf clubs, but this post is 100% spot on.

Saying financing golf gear is ridiculous because you have to pay a little extra is like saying going out to eat is ridiculous because after you eat the food the value is gone. If you buy an M1 Jan 1 financed, you get to use it for an extra year versus saving for it. That extra year might be worth $95. Putting aside you guys making determinations of other people's financial decisions, you are making a basic financial error - you are not counting the use of the good during the financed period as value. If financing gets you a driver six months earlier than otherwise it very well could be a smart financial decision.

 

The reason it took so long is how hard they are to repossess. In virtually every financing industry the item (furniture, cars, TVs, etc...) is very difficult to move and relatively easy to sell (everyone has a TV). So if you don't pay the bill, its pretty easy to repossess the security (i.e. the car) and sell it. That doesn't exist in golf clubs.

 

But all of you saying its "not a good financial decision" miss the point. If you can't afford it today but you can afford the payments *you get to use it for six months* while you pay it off. That has value. Probably more than $90. For some its stupid, for some its smart. Like most things.

 

This doesn't even mention the value of a margin of safety. If you need cash because, for example, you live in a hurricane zone and might have to evacuate for $300 at any time, financing also makes sense in that context.

 

Most of the posts in this thread can be summarized as damn kids!!!! quit skateboarding on my sidewalk!!!!

 

I wouldn't finance golf clubs, but this post is 100% spot on.

Really? You cannot afford $300 to evacuate for your life's safety, but willing to go into debt to buy golf club? Obviously, my opinion, but your priorities are very out of line if this is your thinking.

I learned a lesson the hard way about using credit. If I don't want to spend the cash to get it then odds are I don't need it. We use credit way to much in this country. 43% of Americans live check to check because of this type of stuff.

With the exception of vehicles and houses, I see no reason to buy things you don't have the money up front for.

Of course I learned that after spending my early 20's rolling in credit card debt that I'm still paying off lol.

Surely the better idea for companies like TM is a monthly fee - $100 a month (something like that) and get the latest and greatest every year - a loyalty program if you will.

Turn your old clubs in at the end of the year for a new set.....

9.99% APR promotions on certain purchases, including The Turn – TaylorMade Upgrade Program. The Annual Percentage Rate (APR) for standard, non-promotional purchases using Klarna is 19.99%.

19.99% interest isn't in anyone's best interest besides TaylorMade and Klarna.