Deciding Whether To Rent Or Buy A Fractional Instrument
When a parent is starting a child on an instrument, most don’t even want to think about buying at first. They much prefer the flexibility of renting. And most really are stretched so thin in their lives that they don’t even want to deal with the complexity of the numbers. I do have the occasional parent that want to buy and trade in, but they are the exception. This article might help with the thought process.
The following is an attempt to run some numbers that represent a possible fiscal scenario over time, and illustrate why the decision to rent or buy is very much a personal decision. I make no claim that these numbers are in any way exact, but they are intended to help people think this through if they are considering buying. I have used a cello rental for this example.
If a child starts on a 1/4 and is in each size for 18 months, that total for 1/4-1/2-3/4 rental is $2,430. If half is applied toward purchase of a full size that’s $1,215. It’s just one hypothetical.
If they buy a 1/4, they will trade that in and I will credit them that amount less strings, bow re-hair, and wear. (If there is damage that is an additional charge.) But let’s call it $200. If we apply that to the three sizes before 4/4 then it is $600. $1,215 minus $600 gives you the effective difference of $615 in that hypothetical.
This is just one scenario calculated over a 4.5 year period, using a common pattern. These numbers could vary a lot based on many factors. Some will continue to rent a full size until they are confident to make a purchase decision. For others, they might start younger. And sometimes kids are in a size for longer or shorter periods of time.
If you want to go down to a tenth size and figure an additional 4 years to go through those three sizes, then that is an additional 48 months at $40 per month. Over 8.5 years they would have spent $4,350 with half applying toward purchase, so $2,175. The trade-in cost over 6 size changes would be $1,200 instead of $600. So a difference between renting and buying of about $1,000 over six sizes, this over 8.5 years.
I generally encourage people to do the math and see what works for them; everybody relates to money and finance a little differently. People have different commitment levels, and there is always a wild card that no one can predict which is how long the person will actually play. So it’s not really black and white. Most people would rather rent because it leaves more flexibility and there is very little up-front investment. And many people are not at all concerned about spending the extra money over time. They would rather have the flexibility. This is an individual matter and a personal judgement call.
If the child quits they have a cello then they have to sell, and for many people this is not an appealing option. I do not have a buy-back program as I simply cannot do business that way and make it work. I also tell people, that if they do buy and then decide to sell their fractional instrument, they are unlikely to get what they paid for it on the secondary market. That is how it always works with anything that we buy. Fractional student instruments are like any other commodity item. They do not get better over time, and the value keeps going down. These are not investment grade antiques.
Having said all that, if you do buy an instrument and end up having to sell it, even if you only get half of what was paid for it, you will have gotten your use value out of it. For some people that is the preferred option.
I hope this makes clearer that there are trade-offs. What works for one person won’t work for the next.
Some people will rent for years, and some rethink the matter as they go along. If a child has been playing for five years, and they are looking at another 4 or 5 years, sometimes the parents might purchase the fractional that they have to trade in later. But people are very nervous about buying if there is any chance that the kid will quit. This is their biggest dilemma. And it is an unanswerable question. Teens especially are so unpredictable that way.
As a related matter for parents thinking long term, it is also helpful if parents are given some idea what they will need to spend on a full size cello down the road. If the teenager has been playing for many years, is now an advanced intermediate player, and is sticking with it they could easily spend $3,000 to $6,000 on an instrument/bow/case combination to match the level that they have achieved. Some teachers have this conversation with parents early on, and I think it helps them to mentally prepare for later!
The following is an attempt to run some numbers that represent a possible fiscal scenario over time, and illustrate why the decision to rent or buy is very much a personal decision. I make no claim that these numbers are in any way exact, but they are intended to help people think this through if they are considering buying. I have used a cello rental for this example.
If a child starts on a 1/4 and is in each size for 18 months, that total for 1/4-1/2-3/4 rental is $2,430. If half is applied toward purchase of a full size that’s $1,215. It’s just one hypothetical.
If they buy a 1/4, they will trade that in and I will credit them that amount less strings, bow re-hair, and wear. (If there is damage that is an additional charge.) But let’s call it $200. If we apply that to the three sizes before 4/4 then it is $600. $1,215 minus $600 gives you the effective difference of $615 in that hypothetical.
This is just one scenario calculated over a 4.5 year period, using a common pattern. These numbers could vary a lot based on many factors. Some will continue to rent a full size until they are confident to make a purchase decision. For others, they might start younger. And sometimes kids are in a size for longer or shorter periods of time.
If you want to go down to a tenth size and figure an additional 4 years to go through those three sizes, then that is an additional 48 months at $40 per month. Over 8.5 years they would have spent $4,350 with half applying toward purchase, so $2,175. The trade-in cost over 6 size changes would be $1,200 instead of $600. So a difference between renting and buying of about $1,000 over six sizes, this over 8.5 years.
I generally encourage people to do the math and see what works for them; everybody relates to money and finance a little differently. People have different commitment levels, and there is always a wild card that no one can predict which is how long the person will actually play. So it’s not really black and white. Most people would rather rent because it leaves more flexibility and there is very little up-front investment. And many people are not at all concerned about spending the extra money over time. They would rather have the flexibility. This is an individual matter and a personal judgement call.
If the child quits they have a cello then they have to sell, and for many people this is not an appealing option. I do not have a buy-back program as I simply cannot do business that way and make it work. I also tell people, that if they do buy and then decide to sell their fractional instrument, they are unlikely to get what they paid for it on the secondary market. That is how it always works with anything that we buy. Fractional student instruments are like any other commodity item. They do not get better over time, and the value keeps going down. These are not investment grade antiques.
Having said all that, if you do buy an instrument and end up having to sell it, even if you only get half of what was paid for it, you will have gotten your use value out of it. For some people that is the preferred option.
I hope this makes clearer that there are trade-offs. What works for one person won’t work for the next.
Some people will rent for years, and some rethink the matter as they go along. If a child has been playing for five years, and they are looking at another 4 or 5 years, sometimes the parents might purchase the fractional that they have to trade in later. But people are very nervous about buying if there is any chance that the kid will quit. This is their biggest dilemma. And it is an unanswerable question. Teens especially are so unpredictable that way.
As a related matter for parents thinking long term, it is also helpful if parents are given some idea what they will need to spend on a full size cello down the road. If the teenager has been playing for many years, is now an advanced intermediate player, and is sticking with it they could easily spend $3,000 to $6,000 on an instrument/bow/case combination to match the level that they have achieved. Some teachers have this conversation with parents early on, and I think it helps them to mentally prepare for later!