Finance and buying a guitar

[Malmucci]

Ok, this may not be the coolest thread ever on a guitar forum. But I guess there are a lot of adults here as I am. I'm 26, I have a steady job, I've bought a house and I'm still just as crazy about guitars as when I was 18.

The thing is I have a lot of bills to pay compared to back then. What are your thoughts about buying guitars on credit, I mean paying a monthly fee instead of paying up front the whole amount. I'm GASing for a new Musicman and I guess I could afford it, but I think it would be nice to have some money on my account in case of some crazy bills.

I've never bought guitars on credit, so what are your thoughts? Do you pay the whole amount, or do you have great experiences with credit etc.?

 

[Metropolis777]

Make sure you have the money on hand just in case. But, if you can finance it on 0% interest and you're good with your money , do it! 0% interest is free money.

 

[Malmucci]

Yeah I know... I'm just asking because I see some people here on the forum with A LOT of expensive guitars. Did you save up for all of them, or did you buy some of them on impulse with credit?

 

[tommydude]

Paying with cash is the ideal situation.

GC is offering 12 months 0% interest on their credit card, but the interest rate skyrockets if not paid on their specific conditions.

Personal credit + credit history are a touchy topic, so only you can judge if you would be responsible enough to pay-off a new guitar by using a credit card.

As a fellow home owner, my advice......Have money ready for the unexpected items that ALWAYS pop-up!!

 

[jzeijen]

My motto is: if you can't afford it, don't buy it. I have never bought something on credit. If I want it, I have to save money for it. That's why I didn't have a real 'expensive' guitar until I was over 30. But that is just my take on it...

 

[Jack FFR1846]

I was looking at an old, expensive guitar back in the winter. It was in the GC vintage section in Boston and $9k. I had the money for it but my job was in a hairy situation (I've actually taken a new job since). My wife asked me "if you lose your job tomorrow, are you going to need that $9k guitar? I didn't buy it. I've sold off some guitars (and bought others) since, but none that expensive (one Music Man in a trade).

 

[Malmucci]

Thanks for all the advice fellow forumers. I guess the buy now pay later thing is just too good to be true, even with 0% on their cards. A lot of my friends have bought several guitars and amps this way, so I expected that many of you had done the same thing. I was a bit curious.

jzeijen, please sell me your al hh roasted maple hehe that sounds too good to be true

 

[dannymusic]

sell plasma

 

[Benji Peterson]

I pay cash for mine but get the best possible deal every time. I decide a price in my head BEFORE I pull the trigger and use cash to negotiate. My last two jp's that I've bought I paid hundred less than the advertised price (even for new) but only because I could walk away if the deal wasn't right. I've never sold one of my ebmm guitars but am very comfortable with how much I have invested in each one and the same goes for my other hobbies. They have the potential to be investments if your costs in them are right and you choose carefully. I generally look for rare colors and options. One of my considerations for a JPXI over a JPX is they seem more popular in the market and hold their value better. Ive seen many used JPX in the @$1600 range used but I've never seen a JPXI go for less than $2000. Even used. I can always flip a guitar or other hobby item rather quickly and never lose cash and more times than not come out ahead. I never buy junk and barter whenever I can. Like my dad always taught me,
"CASH IS KING".

 

[jzeijen]

jzeijen, please sell me your al hh roasted maple hehe that sounds too good to be true

Sorry, that's not gonna happen.. still my nummer one

 

[Dr.Strangenote]

I've done it, and regretted it. Many times I get bitten by the bug and spend days/weeks/months to go the distance to acquire that one guitar. I've had tons of guitars in my collection, but really only need my main "few". I (really) only need 1, my #1 JP6. But who are we fooling? GAS sets in, and if a credit card is handy and it's there, that #1 guitar at home, made it's way to #2, and the cycle is repeated. When the heavens shine the light down from the gallery wall, thoughts start racing. We've all been there and temptation either gets us, or doesn't. The "cash is king" rule is the key. I do my best to not use credit at all, on anything. But that's just me..

 

[mikeller]

OK - here is the way I deal with this stuff. I use credit and credit cards, but I never carry balances. I only purchase what I have or will have the funds available when the billing arrives and pay it in full every time. There are some good perks to using credit cards (dividends, freebee's, air points etc), but NONE of them are worth having if you are paying 20% interest on a credit card.

As someone pointed out - Guitar Center has very good terms.

I advocate the use of credit is good, but only if you able to never carry balances...

 

[aleclee]

Cars and houses are the only things I've bought on credit. For me, credit cards are a payment mechanism, not a financing option.

 

[yellowv03]

I have done some dumb things with credit cards in my younger days. Now if I want something i don't buy it unless I can afford to pay cash for it.

 

[roburado]

Those 0% interest deals are very attractive, but if you miss one payment (you forget, you were flossing your cat, whatever), that interest accelerates big-time. Plus, I think you end up paying all the interest you would have owed had you not gone for one of those 0% interest deals. I say save. I bought my first Music Man with an amp like that, and, yeah, I missed a payment. Bad experience that I won't repeat. I got in trouble around that time with credit. I'll never do it again except for cars (and I'm debating doing that in the future) and houses.

 

[Jimmyb]

Credit?

No.

No no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no!

Noooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo!

(I'm not a big fan of credit, can you tell?)

 

[TSHOW]

I can tell you that many of us have bought on impulse....and credit.....However, staying liquid and buying only what you can afford is the best way.........but, I just took 6 vacations and bought 6 guitars since October...........So, don't listen to me......I have a 18 month plan to pay off a bunch of debt!! Good Luck!! The American way is to satisfy your desires immediately....

 

[Metropolis777]

If you set up auto payments on those 0% cards, divide whatever the cost of the guitar was by the promo period (usually 6 or 12 months) and then set a monthly payment for that amount, you'll avoid the traps.

 

[ACELUEK]

I waited until I had the money.. None of mine were bought on credit..

 

[tonelover]

I use my credit cards, but only when I am 100% confident that I can pay the balance in four months or less. And while I have that balance, I don't use the card to buy ANYTHING ELSE until that purchase is paid off. It is far too easy to dig too large of a hole otherwise.