To finance or not

[brad4d8]

I financed one guitar. A near mint Artist Award (with a DeArmond 1100) showed up on Archtop.com the same time one of my cards had a 12 month no interest on new purchases. My savings account at the time was paying interest, so leaving the cash there, I effectively got the guitar at a small percentage discount. Otherwise, no, never financed a guitar in over 50 years of buying.

[warfrat73]

Really a lot of comments flirting with (some crossing the boundary) to being judgmental.

We can agree that it might be foolish to finance a luxury purchase like a high end guitar at a significant APR. But if somebody wants to carry a balance on their card to have something nice, it's really not any of our business.

If you've been in a position to always pay cash for your cars, good for you. What relevance does that have to this discussion? I got sick of driving an unreliable 20 year old car and took my good credit rating down to the dealership and financed a certified pre-owned. I work hard for it and I pay the bill every month.

[nostatic]

Originally Posted by warfrat73

Really a lot of comments flirting with (some crossing the boundary) to being judgmental.

We can agree that it might be foolish to finance a luxury purchase like a high end guitar at a significant APR. But if somebody wants to carry a balance on their card to have something nice, it's really not any of our business.

If you've been in a position to always pay cash for your cars, good for you. What relevance does that have to this discussion? I got sick of driving an unreliable 20 year old car and took my good credit rating down to the dealership and financed a certified pre-owned. I work hard for it and I pay the bill every month.

^^^ this. Often seems it is a contest for who pays the lowest price for something and/or who never finances anything, etc.

Life is short and you're dead a long time. Can debt be crippling? Absolutely. But used responsibly, it is a tool (as mentioned earlier) with associated risks. If one is willing to pay the opportunity cost to acquire something now rather than later, and the household is happy/healthy, I don't see much downside other than losing a membership in the "ca$h only club."

The catch is often the "responsibly" part. It can be easy for some to get in over their heads. But you also can get hit by a bus or drop dead from a coronary. Lots of ways for things to fall apart in life. fwiw I put everything on a card and pay the card off every month.

I also don't haggle much on instruments - if I want something, I decide what I'm comfortable paying and it either gets bought or not. I hate grinding - that is psychological energy and time that to me is a waste. I can always make more money, I can never make more time. YMMV

[tbeltrans]

Rather than responding to a specific post, these are my thoughts on discussing money and credit in a forum such as this (or most anywhere for that matter).

We often hear/read that credit card debt is a real problem for many people. Rather than speculating on why this may be the case, I am simply assuming that such reports have at least some degree of truth. If people who choose to live as debt free as possible were able to speak up (not just in these forums), maybe others would learn that there is an alternative to what they see many people doing by living beyond their means.

It doesn't have to be some sort of "contest" or negative judgement, but instead a sharing of good information. Also, in a forum without anything to communicate with other than words (i.e. facial expression, tone of voice, body language, and the immediate feedback loop of question/clarification), it can be al too easy to misread the intent of another poster.

In a forum that seems to stir up GAS, at least according to much conversation about the matter, maybe hearing/reading about people who choose not to go into debt could help to give another side to the constant discussion about the "hunt" and then the "acquisition", at least for those who would go into debt to participate.

Tony

[davenumber2]

I have a Guitar Center Gear Card. I pretty much only buy used and have 6 months to pay it off interest free. Have done it many times. I could have just paid cash in full but I have a thing about dropping a lot of money at one time. I have never paid a dime of interest plus I get money back in rewards. That’s free store credit for something I was going to buy anyway.

[Lillis]

I’ve bought a couple of guitars on interest free terms from Sweetwater in the last year or so. I set up automatic payments to ensure I pay them off plenty early. No regrets. (Loving the Gretsch and Tele)

[tbeltrans]

Originally Posted by davenumber2

I have a Guitar Center Gear Card. I pretty much only buy used and have 6 months to pay it off interest free. Have done it many times. I could have just paid cash in full but I have a thing about dropping a lot of money at one time. I have never paid a dime of interest plus I get money back in rewards. That’s free store credit for something I was going to buy anyway.

Funny thing is that I have been told by folks I know who work in the credit card and banking industry that people such as yourself, me, and others in this thread who routinely pay off balances before accruing interest charges, are referred to as "deadbeats". It used to be that deadbeats were those who didn't pay their bills. How times change.

Tony

[geelinus]

I never buy guitars on credit.

[Malcolm Kindnes]

There's really no such thing as "free credit" you are paying for it in some other way. Most likely the store is charging you a premium price to cover the cost of the credit to them.
If you want the best deal the thing to do is walk into a store with a pocket full of cash. It's also more difficult to part with cash, it feels like real money and you take the transaction more seriously. Stores know this so they try to suck you in with offers, 0% finance being one of them.

[tbeltrans]

Originally Posted by geelinus

I never buy guitars on credit.

Tony

[Batmitestar]

Originally Posted by Malcolm Kindnes

There's really no such thing as "free credit" you are paying for it in some other way. Most likely the store is charging you a premium price to cover the cost of the credit to them.

I got me a 2021 new Eastman E20SS, deferred tax (out of state purchase), 6 months same as cash for $1499 all in last month.

I do not feel I left even one dollar on the table despite using credit.

Those who pay interest on these deals subsidize the credit for “deadbeats” (previous post callback) like me.

[davenumber2]

Originally Posted by Malcolm Kindnes

There's really no such thing as "free credit" you are paying for it in some other way. Most likely the store is charging you a premium price to cover the cost of the credit to them.

If you want the best deal the thing to do is walk into a store with a pocket full of cash. It's also more difficult to part with cash, it feels like real money and you take the transaction more seriously. Stores know this so they try to suck you in with offers, 0% finance being one of them.

Well, buying used at GC, the price is the price whether I pay with cash or 6 months at 0%. Plus I get rewards. I don’t really see a downside.

[warfrat73]

Originally Posted by tbeltrans

If people who choose to live as debt free as possible were able to speak up (not just in these forums), maybe others would learn that there is an alternative to what they see many people doing by living beyond their means.

Being in such a position requires a great deal of good fortune.

[pagedr]

Originally Posted by tbeltrans

Rather than responding to a specific post, these are my thoughts on discussing money and credit in a forum such as this (or most anywhere for that matter).

We often hear/read that credit card debt is a real problem for many people. Rather than speculating on why this may be the case, I am simply assuming that such reports have at least some degree of truth. If people who choose to live as debt free as possible were able to speak up (not just in these forums), maybe others would learn that there is an alternative to what they see many people doing by living beyond their means.

It doesn't have to be some sort of "contest" or negative judgement, but instead a sharing of good information. Also, in a forum without anything to communicate with other than words (i.e. facial expression, tone of voice, body language, and the immediate feedback loop of question/clarification), it can be al too easy to misread the intent of another poster.

In a forum that seems to stir up GAS, at least according to much conversation about the matter, maybe hearing/reading about people who choose not to go into debt could help to give another side to the constant discussion about the "hunt" and then the "acquisition", at least for those who would go into debt to participate.

Tony

I think assuming that people “choose” to go into debt is wildly off base. Sure, there are some who mismanage their money. But there are many, many out there who are in debt due to no fault of their own.

[tbeltrans]

Originally Posted by warfrat73

Being in such a position requires a great deal of good fortune.

...or hard work. I went to college at night and worked full time during the day for several years to get my degree that led to a much better career path.

Just so that doesn't sound too judgmental (since that was not my intention), I realize that not everybody has the capacity, the possibly will, or the circumstances to do that.

However, I have known people with nominal incomes still be able to sock money away simply by having a large degree of self-control and a willingness to make the effort to be really "smart" about their financial choices in all aspects of their lives. Such people never cease to amaze me because I am not sure that I could have done that.

Tony