Piano sales contract
Regi Hedahl
I've got a buyer for a grand that I'm putting the final touches on. Not many people have the money to pay in full for a fully rebuilt piano. They buyer wants to pay monthly on a 2 year contract. Any of you do this kind of thing? If so, would you be so kind to share with me the written contract that you have them sign?
The buyer had intended to buy a new Yamaha C2 grand but that quickly changed when they got their hands on this piano. What sealed the deal was a side by side comparison between this piano and another piano with the famous name on the fallboard that costs a lot of money.
Regi Hedahl
Encore Pianos
I was a piano dealer for about 7 years, and I would be disinclined to engage in such a contract. If the buyer reneges on the contract with you, what PRACTICAL recourse do you have?
Don’t get me wrong, I financed many piano purchases for my customers. But that was through companies who do such consumer financing, and the contract was between the customer and them. I handled the paperwork and got paid in full for the negotiated price. If things went south between the buyer and the lender, that was between them and did not involve me.
It’s been over 10 years, so I don’t remember rates exactly. A rebuilt piano would have been financed at a higher rate than a new one (still considered a used piano by them). The interest rates are relatively high, in order to make a profit and spread the losses on bad loans.
You have no such umbrella, so your vulnerabilities are greater.
I would research companies that do consumer financing for piano purchases, such as Allegro Acceptance https://allegroacceptance.com/welcome.asp and see if you could establish a “dealer” relationship with them (that does not necessarily mean that you have to be a regular, new piano “storefront” dealer), whereby they could finance this purchase and future ones as well, and find out their rates. (I think somewhere around 12 to 13% for the consumer). If their answer is affirmative, then you can offer that to your customer. At that point you will find out whether or not the customer is attracted to you because it is a perceived “easy ride”, and how serious a buyer he really is.
I hope this is helpful.
Will Truitt
Ron Nossaman
finance company. The buyer arranges a loan with a finance company so the
seller is paid up front. Everybody should do their own job.
Ron N
AMari...@aol.com
Well said,, I was a dealer also and agree completely. you might consider taking credit cards,, easy enough with smart phones and such. Or suggest they try a cash advance. Its really tricky trying to repossess a piano should you have to.
I was a piano dealer for about 7 years, and I would be disinclined to engage in such a contract. If the buyer reneges on the contract with you, what PRACTICAL recourse do you have?
Don’t get me wrong, I financed many piano purchases for my customers. But that was through companies who do such consumer financing, and the contract was between the customer and them. I handled the paperwork and got paid in full for the negotiated price. If things went south between the buyer and the lender, that was between them and did not involve me.
It’s been over 10 years, so I don’t remember rates exactly. A rebuilt piano would have been financed at a higher rate than a new one (still considered a used piano by them). The interest rates are relatively high, in order to make a profit and spread the losses on bad loans.
You have no such umbrella, so your vulnerabilities are greater.
I would research companies that do consumer financing for piano purchases, such as Allegro Acceptance https://allegroacceptance.com/welcome.asp and see if you could establish a “dealer” relationship with them (that does not necessarily mean that you have to be a regular, new piano “storefront” dealer), whereby they could finance this purchase and future ones as well, and find out their rates. (I think somewhere around 12 to 13% for the consumer). If their answer is affirmative, then you can offer that to your customer. At that point you will find out whether or not the customer is attracted to you because it is a perceived “easy ride”, and how serious a buyer he really is.
I hope this is helpful.
Will Truitt
From: pian...@googlegroups.com [mailto:pian...@googlegroups.com] On Behalf Of Regi Hedahl
Sent: Thursday, September 12, 2013 9:20 AM
To: pian...@googlegroups.com
Subject: [pianotech] Piano sales contract
Encore Pianos
If consumer financing is available, that remains the better option. I never took credit cards the whole time I was a piano dealer. The credit card companies wanted 2 to 4% of the selling cost for the charm of washing it through. They are getting paid handsomely by the consumer and the dealer, double dippers. If I sold a piano for $20,000, that meant giving them $400 to $800 out of my profit. If you have been a piano dealer, you know how hard earned that money was. No need to involve the Greedyfocks Credit Card Company in the process. Consumer financing companies properly place all the cost on the buyer, where it should be.
You can ask them if they belong to a Credit Union. If they do, it is much cheaper money than anywhere else.
Will Truitt
Jon Page
David Boyce
Best regards,
David.
Douglas Gregg
I live in a small town which is a plus. However, most have gone to
folks I did not know. I have only had to take one back and he was
willing to forfeit what he had paid to that point as a rental payment
for the time he had it. It was amicable.
I do have a written agreement and I ask them to set up a direct
payment through their checking account so I get payments on time. I
feel that it is much better to get a piano out of my shop and get
payments for it than to have it taking up space. Also, I am glad to
have people with children who want to learn to play to have a good
piano now, rather than later.
Sure, it seems like I am acting as a bank, but who else will. Banks
are very tight with money these days and the home equity loan business
is pretty dead now. I continue to do such payment plans and it makes
for a good customer, I find. One customer has upgraded from a console
to a small grand-both on a payment plan.
I even let them name their terms. Most suggest paying more per month
than I would expect. I don't charge interest for the first year but do
for remaining years. This encourages them to pay up by the end of the
first year.
Doug Gregg
Classic Piano Doc
Joseph Garrett
I've been doing much the same for over 30 years. No problems come to mind. I do it for the same reasons you state. I tell them I've made a deal with the bank: they don't sell/work on pianos and I don't charge interest, (unless they are late with their payments.
I have one client, a professional musician/teacher/actor/voice over person. Never much money available, but needs a good piano that is in tune and works properly. She has been paying me with time payments for over 20 years. I get a check every month. It's $20.00 I don't have to bust my chops to earn...EVERY MONTH! Of course it is unusual, but it's worked for both of us. I tune the nice olde German Upright every 6 months. Fix whatever has come from undone and bill. (simple) We have become very good friends over the years, as well. I appreciate and it is reciprocated.<G>
Best,
Joe
-----Original Message-----
>From: Douglas Gregg <class...@gmail.com>
>Sent: Sep 12, 2013 7:01 PM
>To: pian...@googlegroups.com
Squares R I
gpianoworks.com