How to Finance a New Digital Piano
In 2006 Forbes ran an article about the world's most expensive musical instruments. Pianos were never mentioned. The stars of the article were centuries-old Stradivarius violins that cost millions of dollars. While you may not be shopping for a violin, you are looking for an instrument that, with regard your personal financial circumstances, may prove just as expensive. For that reason, think of your new digital piano as an investment, just as impresarios do when they shop for rare violins.
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Instructions
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Finance the least amount of debt possible. Investigate and review digital piano brands. Discover which model holds its value longest, offers you the best trade-in value and assures quality engineering. Compare brands like Casio, Korg, Kurzweil, Moog, Rhodes, Roland, Wurlitzer and Yamaha. Pick an affordable model to limit the amount of cash you're financing, particularly if you're still working on your keyboard skills.
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Ask the shopkeeper from whom you plan to purchase your digital piano about a "rent with an option to buy" and "one-year-same-as-cash" plans (no interest if paid off in 12 months). Ask your retailer about self-administered plans and don't be afraid to negotiate for better terms.
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Apply for a manufacturer-financed interest-free plan. Ask your retailer if the brand of digital piano you're interested in buying offers this type of arrangement, so you don't pay any interest.
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Use an interest-free credit card to finance your new digital piano. Ask for a discount based on immediate payment, especially since using your card to finance your piano represents a cash transaction to the music store.
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Use the low-interest, secured line of credit you typically reserve for house repairs or making major purchases. Open such a line of credit if you don't already have one. Avoid higher interest rates using this credit line. Check with your accountant -- if you have one -- before you select this option. Inform yourself fully before making a decision.
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Tips & Warnings
"Rent with an option to buy" plans are often self-administered by piano stores and don't carry high interest rates. Musical instrument retailers offer "one-year-same-as-cash" plans when they're eager to move merchandise off the floor and make room for new inventory.
Amadeus Pianos, a northeast piano chain, offers rent-with-option-to-buy programs that convert six months of rental fees into a down payment. South Carolina's Rice Music offers an equity-building payment plan that extends to 48 months.
Local piano dealerships may not disclose company-financed options because they benefit more from holding loans themselves.
Yamaha has partnered with a financial company to offer a zero percent payment option for its digital pianos via a "Yamaha Music and Sound" credit card.
Assuming you qualify for a year or more of interest-free payments with Discover, MasterCard, VISA or another card, this option is ideal if you're confident you can pay off the instrument by the time the terms of your agreement end.
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