The Hidden Cost of Instrument Rental Contracts
Welcome back to Overture! In a previous article, we compared buying a beginner instrument to renting one, providing some background on how the instrument rental industry works, and why renting may not be the best or most affordable option for everyone.
Despite being far and away the most common path for new musicians to get their hands on a beginner instrument, the instrument rental industry sets pricing and contracts to make it appear to be the most affordable option. In this article, we will talk about some of the hidden costs in rental contracts, and how you may be overpaying for your child’s instrument.
Not all Contracts are Created Equal
While we highlight some of these hidden costs, it’s important to remember that not all instrument rental contacts are the same. The following examples are from real contracts we have seen, and we are using them to better demonstrate what you are really paying for when you sign the agreement. If you are planning on renting, it’s essential to take the time and read the fine print to see what you are getting.
New or Used Instrument
If you decide to rent, the instrument your child gets might not be brand new. This isn’t a bad thing in itself, as buying used can help musicians get their hands on a higher quality instrument at a lower price. The problem is, that rental you are paying for is a beginner instrument, which should be affordable from the start.
One example, highlighted in the video below, charges a seemingly reasonable $20/month for a rental trumpet. At face value, this contract does not seem bad, but when you read the fine print it changes. This rental program gives no guarantee the instrument you receive will be brand new. To make things worse, it requires a 30-month rental period. By the end of the contract, you will have paid $600 for a beginner instrument that should have cost around half that price, and that might not have been new.
Repairs and Damages (Liability Damage Waiver)
When you rent a car, you need insurance. When you rent an apartment, you pay a security deposit. The same is true with instrument rentals. A commonly used acronym is LDW or Liability Damage Waiver.
LDWs are generally non-refundable and cover a very narrow range of damage. One waiver we examined states it covers damages, but only due to theft or fire. This means any accidental damage the instrument sustains during your time renting it will be entirely on you, despite paying for the LDW.
Maintenance, such as professional cleaning, valve lubrication, and certain failures like replacing worn pads will be repaired or covered and some rental companies do offer loaner instruments if extended service time is needed.. However, something to remember is the cost of a yearly professional cleaning and maintenance check can be less than the annual cost of the LDW fee.
At its core, the LDW is an additional charge prospective renters pay that makes it seem easier to maintain your instrument but does little to help them in the event of an accident and costs the same as bringing it in for its yearly maintenance. Take a look at the video below taking a deep dive into a typical LDW.
Introductory Period Fee
While rental programs may seem like a risk-free, low-cost way to get your child an instrument, the introductory rental period locks you into a multiple-month commitment, meaning you are spending a set amount at the start no matter what.
Introductory periods can last one to three months, and depending on the instrument can cost nearly half what a student instrument from Overture would cost to own outright. Some rental companies charge a single flat fee when the contract is signed.
Cost Breakdown
At Overture, we want to make quality student instruments more accessible and affordable for all new musicians. We talk a lot about the high costs associated with rentals and how contracts drive these prices up further. Let’s look at an example trumpet rental:
Rental Fee
In this example, we will use a typical monthly rental fee for a student trumpet, $40. A full year of rentals, assuming your child sticks with it, will cost $480.
LDW Fee
If you opt to pay for the LDW, that could cost an additional $10 a month, or $120 a year.
Total Cost
In the first year of renting our example trumpet above, you would have paid around $600. And remember, the trumpet you get may not even be brand new.
Why Does This Matter?
The reason we want to highlight the annual cost of renting an instrument is so we can show you a better option exists. With Overture, you can buy – and own – a student trumpet for as little as $354. A bit over half the cost of renting.
What About Maintenance and Repairs?
This is a valid question. If you take care of the trumpet and opt for a professional cleaning once a year (typically costing between $75 and $100), you would still be paying less than you would if you rented it. The coverage for accidental damage is essentially the same whether you buy or own, as the LDW will not help if the instrument is dropped or mistreated.
That’s Just the First Year
After making it through your first year with your rental trumpet, you still won’t own it. You’ll be looking at another year or more of rental payments. Three years of this, and you’ll be around $1800 into a beginner instrument that your child may have outgrown by then.
Own With Overture First
It’s true, we’re highlighting the costs of instrument rentals with the hope that you’ll buy your child’s instrument through Overture. Unlike the instrument rental industry, we’re all about transparency. We’re musicians, and parents of musicians, with a goal of making musical education accessible for everyone.
With Overture, you’ll get a high-quality, brand-new John Packer student instrument for the price it should be, with a full-year buyback program to give you peace of mind if your child decides it’s not for them. After it arrives at your door, you’re done! No need to worry about ongoing payments or contracts.
Do you still have questions? Reach out! Our team is here to help guide you through your purchase and ensure you’re getting exactly what your child needs.