Would a bank loan me money to buy a piano?

[bob3.1415926]

I'm (hopefully) starting a new job soon, for which I'm going to have to buy a car, and since I know the bank will definitely lend me the cash for this, I was thinking about asking them to (significantly) increase the size of the loan, so I could buy a really good upright (I've outgrown the cheap thing I currently practice on).
I know some music shops do finance deals, but I thought going through a bank I could get a better interest rate.
Comparing it to a car, the piano will really hold its value well, compared to the financial hemorrhage that is a car. But will the bank do this? Has anyone else borrowed to buy?

[allthumbs]

bob pi

I don't see why they wouldn't loan you the money if you have a good credit rating.

After all, Banks are in the business of making loans.

You could always tell them, if they ask, that you want to put an addition in the house, just don't elaborate as to what you are referring to!


Cheers

allthumbs

[kamike]

Typically banks will not make a loan on a piano.   Most (not all) do not have the interest or background to properly evaluate the value of a piano.   A bank would have a difficult time reselling a piano if a borrower were to default on a loan.   Most banks see musical instruments as a general PITA. 

Most piano stores are hooked up to other sources of financing who are familiar with pianos and who are in the business of making loans for musical instruments, in general.  Interest rates will vary.  You will need to have respectable credit scores and an income. 

You should seriously consider a credit union instead of a bank.  Credit unions are much more willing to consider shareholder's loan requests, and the interest rates and terms are better than a bank's, generally.

Good luck.   

[quantum]

Our bank granted our family a loan for a 6 ft grand.  We also belong to the credit union right across the street from the bank, and this was a backup in case the bank did not grant the loan.   We were prepared to haggle, but didn't really need to.

Then again it might be different where you live.  I live in Canada.

[bob3.1415926]

Thanks v much for all the advice. I live in the UK, my credit rating is fine, and providing I get this job (final stage interview next thurs - eek) I will have a fair income.
I've never heard of Credit Unions before. According to wiki, we do have them in the UK, and I gather they're some sort of mutual, sounds a lot like a building society. But I will investigate this further.
Many thanks again.

[knabe31]

If you own property you can get a home equity loan. Basically a line of credit based on the equity value in your property that you can use for your needs. Of course you must own property to do this!! I have used mine to do many remodeling projects around the house and I did buy my grand using the home equity loan. Hope this helps. Good luck with the job.

[andyd]

Yes, banks are not interested in what the loan is for, just your salary and outgoings. 
I got one from the Nationwide (the last true building society?)simply because it offered the lowest interest rate at the time - I had to join and open a current account with one pound.  Amazed really that the three banks I was already with couldn't offer me a better deal.

[richard black]

Come on, banks are falling over themselves to lend money at the moment. And it's perfectly true, on the whole they couldn't care less what they're lending it for because small loans are usually 'unsecured' - that is, they're not underwritten by the value of whatever you're buying. All the bank will care about is whether you seem like the sort of person who can pay the money back, so they'll be interested in your income and regular outgoings. I borrowed several thousand UK£ to buy my current upright when I started my first full-time job many years ago and all it took was one 5-minute meeting at the bank.

And yes, a bank loan is almost certainly going to be significantly cheaper than finance from a piano dealership.

[leahcim]

All the bank will care about is whether you seem like the sort of person who can pay the money back

Really? Have they started doing that again? They must be getting worried

[thalbergmad]

All the bank will care about is whether you seem like the sort of person who can pay the money back, so they'll be interested in your income and regular outgoings.

Well, they used to be but since 99% of unsecured loans are now granted/declined via computer generated credit scoring and your average Branch manager could not lend you 50 pence unless the "computer said yes", most banks at branch level are only interested in hitting their monthly targets and would view a customers ability to repay as a possible inconvenience.

A colleague of mine once arranged a £20,000 loan for an 83 year old woman who was on a pension of £120 per week. When i complained about the pure stupidity of it, i was advised that i had not authority to reverse a computer generated decision.

Anyway, back to the original question, a bank will lend you money to buy anything. Some 15 years ago i was approached by a customer wanting to buy a piano for £22,000. It took me some time to convince my imbecile manager that such a large amount of money could be spent on a piano. I forgave him his ignorance as he was actually born in Sheffield.

If you are in the UK, get a loan now rather than later. I feel rate rises are on the horizon.

Thal (Ex Bank employee)

[richard black]

Some 15 years ago i was approached by a customer wanting to buy a piano for £22,000. It took me some time to convince my imbecile manager that such a large amount of money could be spent on a piano.

You see, this is where the Internet is so useful. Nowadays you would have spent about 30 seconds directing him to some piano showroom's web site and job done!

[thalbergmad]

Indeed, it would have been easier.

As it was, the silly old git rung up Chappells and asked in his broad Yorshire accent if it was possible to spend 20 chuffin grand on a piano.

I expect they were amused by the call.

Thal

[bob3.1415926]

Awesome. I did my undergrad in Leeds, and often miss that Yorkshire touch. I can just hear the call:
"Ey-up, is that Chapels? You'll think I'm right daft, but I've got a fella 'ere 'ose claimin' that one o' them pianas is gonna cost 'im twenty chuffin' grand."
Thanks for the advice though, if I get the job, I'll move as quickly as I can on the loan.