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Discussion in 'Other Guitars' started by Jam Handy, Oct 17, 2020.
Justify to whom?
A timely question. Of course not everybody can afford to spend thousands on a guitar, even if they want to. Still, you don’t necesarilly need to be loaded to be able to prioritize spending a lot on a guitar. For most of us, it would mean sacrifising something else though.
To their self. Unless it is an act of collecting it would be hard to justify a guitar costing several thousand dollars. Would playing it sound several thousand dollars better than say a one thousand dollar guitar?
Parallel idea is if I buy a power drill for $100, it does what I need. It gets the job done. I could spend $300 on a power drill, but it won't get the job done better in any significant way.
Or with a half way decent line of credit.
I see it as a simple matter of personal choice.
I carry $15k of replacement value coverage on my gear. That's very rough estimate of what it would take to replace it new or in kind condition used. In the current market several items may be worth even more than I've estimated.
I like the variety of owning and playing many different guitars from my earlier years vs one or two top end Fenders or Gibsons or a PRS. If I ever get tired of the variety I may sell them in exchange for one or two high end models.....or not.
My motto has always been a variation on that one JG Wentworth espoused in it's advertising. "It's your money. Spend it however you like".
buying music equipment on credit is an absolutely 'no go' for me
In my defense being that "financial guy" who loves working with OPM I only do it when I'm offered 0% interest extended financing on something I didn't want to pass up usually due to it's price. I've been doing it for many years and with a half dozen different online dealers. Few offer the kind of discounting that was done in the past any longer and have replaced it with the 0% financing instead.
For instance. My ES339 P90 Pro was a STOTD from Musician's Friend priced at $350 vs $499 new apparently because they were closing out the wine red finish so I jumped on it quick and used the 6 mos 0% interest deal they also offer.
Two summers ago American Express offered me a card with 0% interest for 18 months and a $300 credit on my account if I charged more than $1000 within 3 months. I used it to buy my Kiloton Bass and used Robert Cray Strat effectively reducing my out of pocket costs on those two by $300, paid off the card in a little less than the 18 months allotted, then cut up the card. I didn't need it.
In virtually every case I've paid off any 0% interest purchases within the allotted time or earlier. IMHO using 0% credit lines on certain purchases is fine if it's managed well enough. Just stick to the same parameters you use when paying in cash and always pay off the balance within the interest free period of time.
Sadly, not everyone is as disciplined as you are.
Let me add to the above by saying if someone can use cash to leverage a far better deal and they have the cash available that's the way to go and what I've typically done when buying used gear locally or on Ebay or via Reverb.
But in many cases dealers no longer offer any kind of discount for cash vs using their financing. Depending on the terms a buyer can typically save anywhere from 9% to as much as 24% of the purchase price using their credit terms vs a personal line of credit. If you're buying at a sale price or before a known price increase (hello Fender) the savings can be even greater if you can take advantage of it.
Using both allows me to keep my cash reserve available for those local or online buys through a private seller. It's just has to be managed well is all. If someone can't do that and has a tendency to go overboard or over budget then don't do it.
it is not about the 0 or more % interest,
if you or any other guy get a brand new guitar via credit - and you have to sell it a few weeks later cause of some other bills to pay - you will loose money. You get less $ than you've to pay for the credit.
I'm doing it the 'oldfasioned' way
filling up the war-chest - then looking for the deals
works pretty good for me
Yeah, if I don't have the money for something in hand it doesn't get bought. Cars and houses are notable exceptions.
Like I said. It's all about managing the debt.
If someone buys a piece of gear on credit in lieu of paying bills that will come due soon IMHO that's not good debt management. If he's forced to sell quickly to pay those bills he's gonna lose money no matter how it was paid for.
If it was bought on 0% interest credit he'll still need to eventually come up with the capital or income to pay off the balance when due or before the higher interest kicks in. The moral of this story is don't buy gear with the mortgage or rent money or any other funds, or credit, that will soon be needed elsewhere.
But I respect those who will only buy for cash as well. Like most everything in life these are among our personal choices. No way is any better than the other as long as it fits with someone's philosophy of doing it.
Do you often do injustice to yourself? I certainly have not.
In my case, it might. I don't need a a 200sq.ft. house with a yard and RV parking. I don't need a luxury car, but I don't feel any guilt in having them. I would find it extremely impertinent if asked to "justify" them.
As a matter of convenience. As investments cars a a money pit. Houses can be a good nest egg but of the three I have owned and sold two were actually money losers.
House is different. You need a house, you need space to keep your stuff. You need a place to call home.
You rockin' one of those "tiny houses" or did you miss a "0" ?
Agreed. None more so than a brand new one. I've always bought used. It gives the truly bad cars time to weed themselves out and for folks to post complaints about the rest, giving me data to farm.
Agreed. It can take a while sometimes, but my “toys” are paid with cash. That way, if something comes up I can sell them quick for cash.