Financing an expensive piano?

[blu217]

How have those of you who've bought pianos from $10k and well beyond  managed the financing?

I was in a piano shop a few months ago and asked the salesman; he suggested it's much like buying a new car and that many customers finance them with down payments.

I'd be interested to learn how the piano buyers on the forum have managed the considerable expense of purchasing a grand piano--savings, loans, windfalls... just wealthy as all get-out?

[kamike]

Very good question.... one that I had awhile back. 

We bought our grand  partially with a private loan and with our own savings.. 

Most higher-end piano dealers have some sort of financing available, usually from a lender who specializes in instrument financing.  Financing a very high-end piano is more difficult than financing a cheap one, for reasons I never could get anyone to answer.  The piano dealer had it's own "special" financing through a local load company.  The grand piano was too much of a bite for them, and they were hesitant to finance it

We checked out lots of sources - our bank (Wells Fargo) made all sorts of loans for everything else that you could imagine, except musical instruments.  Go figure.   You would think that a high-end grand piano would be a really low-risk proposition - but I guess bankers have problems envisioning just how they could get a return on their investment in a piano..

Then there are credit cards, if you have a high enough limit - at usually really high interest rates.  Forget that.

I ended up working out a deal with a private party - we had a formal promissory note drawn up and signed, complete with a payment schedule.    It's a win-win situation.  They get more interest than they would with a mutual fund or bank account or most stock dividends, and the interest rate  is still much lower than that of the piano store's financing company or that of credit cards or private bank loans.

[faustsaccomplice]

I bought my piano on financing at a dealer.  Remember that they are very motivated to sell to you and will do what it takes to get the money.  This dealership, which is actually a very reputable NYC showroom cosigned the loan for me, enabling me to the the piano I wanted. 

There's always a way to get money.  Just be sure you can come up with the payments every month, which is much harder if you're a pianist.

[teresa_b]

It took a couple of steps for me.  I bought (in 1981 when I was making like $25,000 a year) a used 1934 Steinway M for $5500, and had to finance that over 3 years. 

In 1997 I found a wonderful new Steinway B on sale (ha!) for $41,000.  (The retail list price was at that time around $52,000)  They gave me $10,000 for trading in my old M.  I made a small down payment, and had to finance about $30,000.  They approved it through the dealer.  It's paid up!

Good luck--
Teresa

[pianistimo]

does the dealer offer just as competitive rate as the bank?  e-loan has been the way we purchased a home.  they were quite competitve at the time.  recent car purchase was through credit union.

but, as mentioned, i don't know what they say when it comes to piano.  guess it might matter as to your relationship with the bank and your track record of paying.  all i know, right now, is that keeping your credit score good is very important in terms of the rate you have to qualify for now. 

i keep writing the score places and getting things corrected.  it's surprising how long they let some things go - and they promise to take off completely paid things (6 years ago ) but unless you write and tell them 'do it now' ...they'll sit on it and forget.  thankfully our score should change this summer as we've paid off some more bills.  it's a slow process when you have a family.

just school clothes set us back again.  whatever the older daughter gets - the younger tries to keep up with.  i told the youngest that i was going to sew her school clothes - but she cried like the oldest - so i gave in.  i might take the clothes and make an up to date pattern and make more.  they don't want unstylish clothing.

[gfiore]

 Many people take home equity loans for the low interst rates, and the tax deduction. If you have enough time in, a loan from your credit union will always be less interest than a bank loan.
 Tell your kids what our mother used to tell us when we were younger. " If you don't like your clothes, you don't have to wear anything at all, but you will wear what I buy you". "If you don't agree with that, then buy your own".

[pianistimo]

yes.  the credit unions are really great!  we did take out a home equity and it was pretty smooth.  surprisingly smoother than the bank loan offers.  we asked one bank for a home equity and after 15 years there was this hidden balloon payment.  we said, no thanks, and went looking elsewhere because what we asked for was a 30 year fixed.  maybe it doesn't exist - but we got a better deal thru the credit union and they were more honest.

about the school clothes.  boys are easier to pull one over on.  i pretty much did all my sons school clothes shopping until he was in 8th grade.  he never really cared about styles  - but i would get him stylish stuff as well as just play stuff.  but, girls.  girls are another story.  you give them an inch and they take a mile.  let them shop once for something for themselves and they're hooked.  my daughter takes about 2 hours in limited too - and comes out delirious.  i don't know why i couldn't sew them just as well.  (*i am going to take the style of clothes and copy it for a couple more of the ones she wears a lot of).  girls also have this problem that if they wear something two days in a row - they think it's bad.  boys on the other hand - you have to remind that the shirt smells and they need to change it.