Klarinet Archive - Posting 000632.txt from 1998/09

From: Bill Hausmann <bhausman@-----.com>
Subj: Re: [kl] Buying Clarinets on Time
Date: Thu, 17 Sep 1998 22:41:31 -0400

At 08:46 AM 9/17/98 -0700, Kevin Fay wrote:
>Rent to own is a great plan for a beginner who may or may not buy the
>instrument. For artist level instruments--where the purchaser KNOWS that
>they will buy and keep the horn--it's not so good from an economic
>perspective. The typical plan calls for the buyer to pay the full retail
>price, which if recast as street price + interest @-----.
>Economically, you're not renting the horn, you're renting the store's money
>to buy the horn--and the store will charge a much higher rate of interest
>than a bank....
>The bottom line is that it's cheaper for you to borrow the money from a bank
>or other financial institution and pay the street price. It's often better
>for the retailer, too, because he or she won't have to borrow the money
>while selling to you--reducing their profit. They can even stock another
>horn that they can sell to the next person.
>
All true. It costs a lot of money to administer that contract for three
years, send out bills for late payments, plus the cost of money, etc.
Still, it is more profitable than NOT selling someone an instrument. It is
much more economical, and we prefer it, if you simply finance the purchase
through your local bank, and let THEM deal with the payments! We even help
you do that.

Bill Hausmann bhausman@-----.com
451 Old Orchard Drive http://www.concentric.net/~bhausman
Essexville, MI 48732 http://members.wbs.net/homepages/z/o/o/zoot14.html
ICQ UIN 4862265

If you have to mic a saxophone, the rest of the band is too loud.

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