I’ll admit in preaching to the choir that O-gauge model railroading can be an expensive endeavor. Newer, higher-end scaled products that can be either preorders or recent releases can cost many hundreds to thousands of dollars.
My time at the Milwaukee Lionel Railroad Club (MLRRC) in New Berlin, Wis., has garnered friendships with fellow members who bring in these aforementioned, premium models to run and enjoy. Let’s be clear, many of these folks are around my age of late 20s-early 30s, and aren’t made of money. However, their purchases (specifically locomotives) have manufacturers’ suggested retail prices which can stretch up to $2,000. What’s the secret? Is there really a way to buy new O-scale products without spending that type of money at one time?
Striking a conversation
When talking to some members, the keyword I found from them was layaway. According to the Corporate Finance Institute, “layaway is a purchasing arrangement where a retailer reserves and stores an item for a customer who has a predetermined period to pay for the item in full.”
When Lionel, MTH, Atlas or any other manufacturer announces preorders, or if a new product arrives in stores, members take reservations at their preferred dealer or hobby shop. To reserve a product, you usually make an immediate down payment. Based on a set deadline and offered flexibility, they would pay off set smaller amounts, usually on a monthly basis, until the remaining balance is fully paid off and the item can be taken home.
A mentioned go-to for many MLRRC members for recent releases is the nearby Sommerfeld’s Trains & Hobbies in Butler, Wis. This prompted a recent visit to the store and conversation with owner Jack Sommerfeld.
Preorders are based on the now-standard “built to order” request by manufacturers, with a commitment from customers after reserving their order within 30 days of product announcements. While remaining flexible in layaway plans, Sommerfeld encourages active payments in the next 6-12 months, up until the time of an item’s estimated arrival. “A lot of guys will come in and pay $150-200 a month until the items arrive so they don’t have an outrageous bill when they get here,” he said.
As a fun exercise, I then pointed to the displayed Lionel Legacy Strasburg No. 90 2-10-0 and asked Sommerfeld about payment options regarding this and other recent releases already on the shelf that weren’t reserved as preorders. “We can discuss what you’re capable of paying per month,” he answered. “If it’s a reasonable amount of time and you say, ‘I can give you $300 a month for the next six months on the No. 90,’ I will justify working with it.”
Now looking at a more broader perspective, high recommendations from the Classic Toy Trains team pointed me to Grzyboski’s Train Store. The family-operated business in Moosic, Penn., holds a strong online presence of O gauge trains.
While not a normal policy, layaway options are considered for reserved preorders by owner Joe Grzyboski III. In addition to monthly payments, he’s also open to a down payment with the remaining balance due upon a product’s arrival. “I never usually ask for money to be fully up front on an item not released yet,” as explained in a phone interview. “You can slowly pay it off until it’s paid up in full and when it’s released.”
In-stock products for the store are a case-by-case basis. If a certain item has been available for a while since its release, or it’s in multiple quantities, layaways can be brought to the table. Grzyboski prefers not to offer layaway for “hot” items that can be sold quickly at the store. “A lot of customers will use the credit card companies to let them finance the product and pay them off instead of us,” he said.
Advice given
Insight from the Milwaukee Lionel Railroad Club, Sommerfeld’s Trains & Hobbies, and Grzyboski’s Trains Store is greatly appreciated. From these conversations are lessons learned and advice to those looking at the idea of buying new O-scale trains without putting a dent in your wallet.
1. Build relationships
Layaway policies will differ between dealers or hobby shops you visit. Some might not offer alternative payment options, preferring the item to be paid in full first. Do not knock stores that prefer the full payment upon purchase. After all, it is a business, and they need to keep the doors open – physically and digitally.
I recommend building a relationship with your preferred dealer or hobby shop. Get to know the owners and staff, and let them learn about you as a customer. From there, the conversations can open up regarding payment options and whether layaways are offered.
2. Be fully committed
If layaways are available at a store of your choosing, and a new product or two catches your eye, ask yourself if you’re fully committed to acquiring them. Checking with your bank and credit card companies for confirmation on accounts and income is most helpful, while also analyzing your preference of want vs. need.
If you are committed, treat the payments as if you’re paying off a car. Remain active and keep track of your remaining balance and the item’s estimated arrival time – keep in mind that multiple preorders can arrive around the same time. You don’t want an outrageous bill, which can lead to either losing the items or falling into unnecessary debt.
3. Buy used
There is another option if a new product is out of reach, regardless of layaway payments. Look at the used market, especially with your preferred store, to see what they have. The oldies can still be goodies for enjoying O-gauge model railroading.
