Rental Contracts - there is a difference
Nothing could seem more boring a topic than Rental Contract terms but the difference that The Music Store puts into your rental contract is substantial and saves you HUNDREDS of dollars!
Understanding the differences helps you understand The Music Store really is your best option. Allow us to bullet point a few of the difference:
Rent-to-own and not Rent-to-Rent
Our contract allows and encourages customers to purchase their instrument. Several rental contracts, like those from Music and Arts, actually state in the contract, “You can not buy this instrument.” Their associates say they allow rent-to-own, but the contract you are obligated to says otherwise. Read here for yourself:
No hidden “Rental Service Fees”
Some stores say they have zero interest, and I guess technically that’s true, but when you read their contract it states, “Each time a normal rental payment is made, 72.38% of the normal rental payment is applied...”
To re-state the above: ‘We keep 27.62% of EACH MONTHLY PAYMENT and call it a “Rental Service Fee.”
I don’t care what you call it but when you pay money that doesn’t go toward your payoff, that’s interest.
Rent at Cash Price not Full Retail
If you walk into a store and say, ‘I want to buy this outright’ you will get a lower price than what they’ll put on the rental contract if you want to rent it. I say these stores are just smarter than I am because they can remember two prices for the same instrument...I’m just not that smart so at The Music Store we rent all our instruments at our Cash Price - no messing around with a higher price for renting.
0% Interest...is it really 0%?
I was part of a store in northern Utah when they went to 0% interest contracts. Basically we rented and sold instruments just below retail (to say we didn’t charge retail) but at a high enough price that it allowed us to still collect what we normally would have at the “cash price” plus an interest rate. In most cases we collected more money on 0% contracts!
As an example: Yamaha Trumpet Cash Price of $645 for 26 months at 15% interest the total price plus tax is $802.05. Same trumpet at $795 (just below the $929 retail) and at 0% interest plus tax is $844.69...more money. Is 0% really the better option? I don’t think so.
Furthermore, if you want to pay off early on the 0% contract you are still going toward the inflated price.
On a 15% contract, and if you wanted to pay off early, you’ll save all the interest PLUS get the lower price! It’s a much more friendly approach when well understood.
The Music Store’s 15% Interest Contract
At The Music Store we rent instruments at our Cash Price, not an inflated Retail.
We rent good quality instruments that are well set up, we do not deal with inferior instruments. We want your student to succeed so we equip them to succeed.
We suggest customers rent until they know their student is going to stick with it; when they do know, pay it off and stop paying us an interest rate - as much as we like the interest, it’s better for you to pay it off.
We charge a 15% simple interest, charged to the day (not the period or month). If you make larger payments or pay early you’ll save yourself money. See following picture:
If you have more questions about how a rental works here, or at other stores, just call, click or stop by and we’re happy to explore this topic in more with you.
Steve France, Owner of The Music Store