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#211774 - 03/14/05 11:41 AM What's the interest rate on a piano loan?
Mikester Offline
1000 Post Club Member

Registered: 05/17/04
Posts: 1254
Loc: Minneesooota
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!

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#211775 - 03/14/05 11:48 AM Re: What's the interest rate on a piano loan?
Palindrome Offline
3000 Post Club Member

Registered: 12/22/01
Posts: 3910
Loc: Chicago, IL USA
Think about a home equity loan if this option is available. Right now that's costing me 4.75%.
_________________________
There is no end of learning. -Robert Schumann Rules for Young Musicians

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#211776 - 03/14/05 12:01 PM Re: What's the interest rate on a piano loan?
Mikester Offline
1000 Post Club Member

Registered: 05/17/04
Posts: 1254
Loc: Minneesooota
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 \:\( )

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#211777 - 03/14/05 12:21 PM Re: What's the interest rate on a piano loan?
jon-nyc Offline
2000 Post Club Member

Registered: 02/09/05
Posts: 2022
Loc: the left bank -- of the east r...
So Mikester - you going for the rebuilt B????
_________________________
If you don't talk to your children about equal temperment, who will?

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#211778 - 03/14/05 12:43 PM Re: What's the interest rate on a piano loan?
Mikester Offline
1000 Post Club Member

Registered: 05/17/04
Posts: 1254
Loc: Minneesooota
I'm still planning on making a trip to the East Coast piano dealers. But the high rates are a little bit worrisome. I might not get a piano after all. \:\(

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#211779 - 03/14/05 12:47 PM Re: What's the interest rate on a piano loan?
gryphon Offline
Yikes! 10000 Post Club Member

Registered: 08/09/01
Posts: 11678
Loc: Okemos, MI
That's probably a decent rate for a "piano" loan through a dealer. But home equities are 5%-6%. I have a line of credit at 5.5%, and as Pal stated his is under 5%.
_________________________
"If we lose freedom here, there's no place to escape to."
MSU - the university of Michigan!
Wheels

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#211780 - 03/14/05 12:48 PM Re: What's the interest rate on a piano loan?
BruceD Offline
Yikes! 10000 Post Club Member

Registered: 05/26/01
Posts: 17671
Loc: Victoria, BC
Mikester :

http://www.piano4u.com/piano_financing.htm

Some dealerships will arrange financing through Allegro Acceptance, which is a company that finances musical instrument purchases.

I'll let you know later on today what their rate is; it may be lower than what you were quoted.

Regards,
_________________________
BruceD
- - - - -
Estonia 190 in satin ebony
Writing from Paris until 15 May, 2014

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#211781 - 03/14/05 12:53 PM Re: What's the interest rate on a piano loan?
Rich Galassini Offline
8000 Post Club Member

Registered: 05/28/01
Posts: 8977
Loc: Philadelphia/South Jersey
Mikester,

Many customers of mine are going fr a home equity loan. It is cheaper, can be longer term, and has tax advantages. As Bruce mentioned, Allegro is good, but they can't beat home equity rates.

My 2 cents,
_________________________
Rich Galassini
Cunningham Piano Co.
Phila, Pa.
Dir. Line (215) 991-0834
rich@cunninghampiano.com
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#211782 - 03/14/05 01:12 PM Re: What's the interest rate on a piano loan?
Linda in PA Offline
500 Post Club Member

Registered: 08/01/02
Posts: 767
Loc: PA - USA
As Mikester noted, he doesn'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.

Good luck . . . Linda

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#211783 - 03/14/05 01:51 PM Re: What's the interest rate on a piano loan?
BruceD Offline
Yikes! 10000 Post Club Member

Registered: 05/26/01
Posts: 17671
Loc: Victoria, BC
Mikester :

OK, you can forget Allegro Acceptance. I just checked and was surprised to find that their APR was 13.99%. Surely you can do better than that.

The only reason I had any dealings with them is because they offer a 90-days-same-as-cash option which I was able to take advantage of.

Regards,
_________________________
BruceD
- - - - -
Estonia 190 in satin ebony
Writing from Paris until 15 May, 2014

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#211784 - 03/14/05 01:52 PM Re: What's the interest rate on a piano loan?
Axtremus Offline
6000 Post Club Member

Registered: 08/29/03
Posts: 6150
Don't Panic![/b]

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.

Good luck. \:\)
_________________________
www.PianoRecital.org -- my piano recordings

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#211785 - 03/14/05 03:30 PM Re: What's the interest rate on a piano loan?
Steve Cohen Online   content
Yikes! 10000 Post Club Member

Registered: 05/26/01
Posts: 10344
Loc: Maryland/DC/No. VA
Ax, which piano manufacturer offers 0% financing? And what dealership offers 2% fro the 1st year...?
_________________________
Piano Industry Consultant- http://www.linkedin.com/pub/steve-cohen/6/b92/b80

Consultant & Contributing Editor - Acoustic & Digital Piano Buyer

Jasons Music
Maryland/DC/No. VA
Since 1937.

www.jasonsmusic.com
My postings, unless stated otherwise, are my personal opinions, not those of my clients.

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#211786 - 03/14/05 04:07 PM Re: What's the interest rate on a piano loan?
mamma2my3sons Offline
500 Post Club Member

Registered: 10/17/03
Posts: 746
Loc: Midwest of the great USA
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.

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#211787 - 03/14/05 05:00 PM Re: What's the interest rate on a piano loan?
Jeffrey Offline
2000 Post Club Member

Registered: 04/18/04
Posts: 2948
Loc: New York
Mike - Why not stay with the piano you have? In general, debt should not be used to purchase a depreciating asset.

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#211788 - 03/15/05 06:56 AM Re: What's the interest rate on a piano loan?
hgiles Offline
500 Post Club Member

Registered: 01/27/05
Posts: 736
Loc: Charlottesville Virginia
 Quote:
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.
_________________________
Haywood
-------------

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#211789 - 03/15/05 07:23 AM Re: What's the interest rate on a piano loan?
apple* Offline


Registered: 01/01/03
Posts: 19862
Loc: Kansas
 Quote:
Originally posted by hgiles:
 Quote:
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

love and peace, Õun (apple in Estonian)

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#211790 - 03/15/05 07:55 AM Re: What's the interest rate on a piano loan?
Stevester Offline
2000 Post Club Member

Registered: 10/04/03
Posts: 2851
Loc: New Jersey
I am in Jeffrey and apple's court on this one. Save your lunch money and find a good cash deal. They are out there I assure you.
_________________________
"The true character of a man can be determined by witnessing what he does when no one is watching".

anon

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#211791 - 03/15/05 08:04 AM Re: What's the interest rate on a piano loan?
hgiles Offline
500 Post Club Member

Registered: 01/27/05
Posts: 736
Loc: Charlottesville Virginia
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 :-(
_________________________
Haywood
-------------

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#211792 - 03/15/05 08:11 AM Re: What's the interest rate on a piano loan?
Mikester Offline
1000 Post Club Member

Registered: 05/17/04
Posts: 1254
Loc: Minneesooota
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.

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#211793 - 03/15/05 08:16 AM Re: What's the interest rate on a piano loan?
mamma2my3sons Offline
500 Post Club Member

Registered: 10/17/03
Posts: 746
Loc: Midwest of the great USA
hgiles said:

"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!

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#211794 - 03/15/05 08:32 AM Re: What's the interest rate on a piano loan?
Mikester Offline
1000 Post Club Member

Registered: 05/17/04
Posts: 1254
Loc: Minneesooota
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.

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#211795 - 03/15/05 08:55 AM Re: What's the interest rate on a piano loan?
BruceD Offline
Yikes! 10000 Post Club Member

Registered: 05/26/01
Posts: 17671
Loc: Victoria, BC
 Quote:
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.

Regards,
_________________________
BruceD
- - - - -
Estonia 190 in satin ebony
Writing from Paris until 15 May, 2014

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#211796 - 03/15/05 10:08 AM Re: What's the interest rate on a piano loan?
AndrewG Offline
2000 Post Club Member

Registered: 05/26/01
Posts: 2506
Loc: Denver, Colorado
 Quote:
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.

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#211797 - 03/15/05 11:08 AM Re: What's the interest rate on a piano loan?
gryphon Offline
Yikes! 10000 Post Club Member

Registered: 08/09/01
Posts: 11678
Loc: Okemos, MI
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

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#211798 - 03/15/05 11:16 AM Re: What's the interest rate on a piano loan?
jon-nyc Offline
2000 Post Club Member

Registered: 02/09/05
Posts: 2022
Loc: the left bank -- of the east r...
Gryph, if it makes you feel any better, I'm a democrat, and I don't think you're rich.

;\)
_________________________
If you don't talk to your children about equal temperment, who will?

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#211799 - 03/15/05 12:24 PM Re: What's the interest rate on a piano loan?
Chris W1 Offline
500 Post Club Member

Registered: 09/26/01
Posts: 915
Loc: Boston
Jeez, the stuff you miss around here \:\( .

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?

Chris
_________________________
Amateur At Large

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#211800 - 03/15/05 12:55 PM Re: What's the interest rate on a piano loan?
Karen Bretz Offline
Full Member

Registered: 12/17/02
Posts: 215
Loc: Anchorage, Alaska
If you can't buy a $44K piano with cash you have no business owning it. It's neither a necessity nor an investment.

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#211801 - 03/15/05 12:57 PM Re: What's the interest rate on a piano loan?
curry Offline
3000 Post Club Member

Registered: 08/17/02
Posts: 3769
Loc: Hamilton Twp, NJ
One thing to try. If you belong to a credit union, you can take a loan with very low interest rates.
_________________________
G.Fiore "aka-Curry". Tuner-Technician serving the central NJ, S.E. PA area. b214cm@aol.com Concert tuning, Regulation-voicing specialist.
Dampp-Chaser installations, piano appraisals. PTG S.Jersey Chapter 080.
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#211802 - 03/15/05 01:01 PM Re: What's the interest rate on a piano loan?
kluurs Offline
3000 Post Club Member

Registered: 05/24/02
Posts: 3739
Loc: Chicago
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.

Ken

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#211803 - 03/15/05 01:04 PM Re: What's the interest rate on a piano loan?
Mikester Offline
1000 Post Club Member

Registered: 05/17/04
Posts: 1254
Loc: Minneesooota
 Quote:
Originally posted by Karen Bretz:
If you can't buy a $44K piano with cash you have no business owning it. It's neither a necessity nor an investment. [/b]
There is a lot of truth here. Boy, I think I'm going to hold off until I pay off my current piano in cash (which will probably be in one year or two).

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