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My current rate is 9.75%. But, if I want to loan $$ for my piano upgrade (to a 7' grand) I am being quoted at 10.9%. My loans are done through the dealer's affiliated bank (which is Great Western Bank). Is that pretty standard? Also what is the standard length of loan?

Loaning $44k for 10 years would result in payments for me at roughly $600 monthly. Is this pretty much the going rate? Thanks!

Holy moly! I just did a quick "loan calculator" calculation and the difference between a 10.9% rate and 4.75% rate came to $140 dollars monthly! Oh my ... I'm having second thoughts about financing such a sum of money since I can't qualify for a home equity loan (I don't own a home )

Creative credit card financing may be another option. Rates are fairly low on credit cards right now (especially for transaction-level promotional rates good for the life of the purchase) and credit card purchases are considered to be unsecured loans - no collateral needed! Mikester - I sent you a PM with info on this.

Hope you find a financial solution with which you are comfortable and that you have the opportunity to visit this area. There are many good dealers in the Mid-Atlantic/East Coast region.

You will likely not take out a loan of $40k. You're going to subtract the downpayment, subtract whatever trade-in value you got for your current piano, and use the rest as your principal amount to calculate your payment.

There are various very creative financing options out there that I have seen. A few examples:

1. Manufacturer financed 0% interest for one year. (You have to pay off everything in one year, or roll it over to some other debt facilities, such as those credit card balance transfer offers.)

2. Dealer financed 2% APR for first year, then 10% APR thereafter. (The trick is to pay off as much as you can in the first year, then roll over to something else.)

3. Straight financing -- that would be your 10% (+/- 2%) example. Still, after subtracting downpayment and current piano trade in, your actual loan amount shouldn't be that bad. With a bit of budgeting/spending discipline, paying the whole thing off in a few short years should be possible.

Lastly, think very carefully if indeed you can only be satisfied by spending $40k + trade. Not making judgment one way or the other, but after sampling a boat load of different pianos, may be there is a more economical yet unquestionably sufficient alternative that would present itself to you.

Yowser, that sounds high to me. However the rate is probably competitive in your area.

Although I'm not a proponent of any kind of debt, you may want to consider just putting it on a credit card. I know one of my credit cards only has a rate of 4%. Although 44K on a credit card may not fly.

Originally posted by Jeffrey: Mike - Why not stay with the piano you have? In general, debt should not be used to purchase a depreciating asset. [/b]

C'mon how many people do you expect to purchase an automobile with cash? Pianos too?

I'd be reduced to driving and playing a bucket if I had to do this. [/b]

actually - if you want a really good piano sometime in the future, the less you pay an institution in finance charges the more you will have available later to actually buy one, if you think in terms of total dollars.

apple - who's first piano cost 50 dollars, her second - $300, her third $1750, her fourth - $5000 and her fifth - quite a bit more.

_________________________
accompanist/organist.. a non-MTNA teacher to a few

I mean I would love to save up and pay for a $40k+ piano with cash, but unfortunately I don't think that's going to happen in the next couple of years. Especially now that I'm saving up to put money down on a home in the next year or two. Even then ... I mean, do people actually have $40k+ in liquid cash available? Well, I guess it's possible. If I save up for 7-9 years I figure I can probably have that sum of cash available, or immediately available by selling stock. I'm just a young gun!

Ahhh, I think I'll just wait to be able to pay straight up for a nice piano.

"C'mon how many people do you expect to purchase an automobile with cash? Pianos too?

I'd be reduced to driving and playing a bucket if I had to do this. "[/b]

Actually there are a few of us out here that pay cash for everything including vehicles (if we charge it, we pay it in full at the end of the month)

We owe for our house but that is a short loan. We really don't earn a whole lot either yet we have all the "toys" (even a lot in a lake/recreational community that we paid very little for as a foreclosure).

Of course the downside to refusing to "rent" a lifesyle (ie. live making payments on everything) is that we have to wait for things & what we have is rarely top of the line or even bought new for that matter!

Just about anyone can buy[/b] lots of things, but few seem to ever actually own[/b] them.

Just my own personal observations/philosophy. As in everything else, your own personal financial milage may vary. I also understand piano is a very personal purchase & sometimes one "needs" the best! Now back to your regularly scheduled program!

I completely agree. I think, for many of the people who are relatively new to the working world(aka. recently graduated), a lot of things are about "having" them without actually "owning" them. I fell into the trap of leasing a car. And I think this new shiny piano thing is another one of those things that it's good to wait for, in my case.

One thing that I think though, (and you may feel free to disagree with me) is that coming out of college and not being settled, renting may not be that bad compared to owning.

Originally posted by hgiles: Are you guys telling me that most people here touting their new Estonias, Steinways, Masons, etc. are buying them with cash?

I am a poor soul :-( [/b]

Well, not to get too personal, but, since you asked: yes and no, in my case.

I paid cash for my Yamaha U1 in 1999, (but it was only around $5000.00 at the time). Then, I used it as a trade-in on my Estonia 168 in 2000. The balance due on the Estonia 168 was financed through my bank.

In the meantime, I saved diligently so that when I was ready to trade in my 168 for the Estonia 190, I was able to pay the balance due in 90-days-same-as-cash. So, yes, I can say I paid cash for my new Estonia 190. It made quite a little dent in the budget, momentarily, but I own the 190 outright which is a wonderful feeling - all the more so because I am not a wealthy man, but I do try to live frugally and within my means.

Originally posted by hgiles: Are you guys telling me that most people here touting their new Estonias, Steinways, Masons, etc. are buying them with cash?

I am a poor soul :-( [/b]

I don't know about others. I have purchased a total of 3 grand pianos, all paid by cash. I saved hard for them. My first, an excellent Premier baby grand for $1700. My second, a rebuilt 1924 SS M for $9500 and my third a brand new Petrof III for slightly more. All paid by cash.

I bought my car with a loan because I got it at 0% interest right after 9/11 (and you can still get those loans). I paid cash for all three of my pianos, including the Estonia. And I'm not rich, despite what the Democrats think.

_________________________"If we lose freedom here, there's no place to escape to."MSU - the university of Michigan!Wheels

Congratulations Bruce D. on the 190! I assume this was announced this some time ago?

When the threads first started on the Estonia, with David Burton and others who don't seem to be around anymore, I remember your input on the 168 vs the 190. Many happy returns to you.

I think most forumites buying mid-tier and higher pianos are doing it while carrying a mortgage. Since the home equity loan interest is deductable, your usual 5% loan is more like 4% or less after taxes. I can say I bought our piano with cash, wire funds actually , but I can't pretend that my mortgage wouldn't be around 30k less if I didn't.

My mantra has frequently been "You can't miss what you never had". Partly untrue, I suppose, if you make a sport out of visiting enough high end piano stores. The pain of delaying such a purchase is usually worst the moment you decide not to buy. Since the quality margins get so thin as you get to 40k, why not consider something for 20-30?

I'm on both sides of this equation...you know yourself. It would seem that if you don't own a home, that might be a more reasonable priority. I regard homes as "piano containers" - permitting privacy and audience development.

As for cash versus credit - you have to know yourself. If you're an impulse person, you need to be careful - because there will always be more impulses. OTH if you want to do one crazy thing in your life, you could do worse than overbuy a piano.

FWIW, I bought a piano right after my divorce - wasn't the smartest thing to do financially - but it was an important thing for me to do - a signal of what I wanted for my future.