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View Full Version : Speaker leasing like cars ? I want all of your opinions!



djdilliodon
02-07-2007, 12:03 AM
Ok guys i would like everyones opinion on this. Say you only have a $100-250 dollar budget for a comp set and would love to get a set that cost more. What if a company offered you a lease option of 1 year on a component set that would normally be way out of your budget? Say the set was $1000 and all you had to do is pay $100 up front and make 11 payments (one every month) of only $33.33 and the set is yours for a year! At the end of the term you have the option then to come to terms to buy the set out right, return it and move on with no more costs, or upgrade to an even better setup! How many of you would do this and how many of you think it is stupid?

LinxuS
02-07-2007, 12:05 AM
I don't think it would work with audio equipment.. too many factors that could make a speaker go bad. If a company did do this, who are they gonna get to buy / use the 1 year used speaker? :X

quakerroatmeal
02-07-2007, 12:06 AM
I think its stupid.

James Bang
02-07-2007, 12:07 AM
what about warranty, people poking holes in the speakers w/ screwdrivers and all that.

interesting idea, but i personally wouldn't participate.

djdilliodon
02-07-2007, 12:07 AM
Those speakers will be refurbished ect and sold off. There is no liability to the buyer what so ever! Speaker breaks does not come out of your pocket at all. The set is still under warranty as you bought it new!

James Bang
02-07-2007, 12:08 AM
I don't think it would work with audio equipment..
... or any electronic equipment.


too many things can go wrong.

djdilliodon
02-07-2007, 12:13 AM
Ill be a little more clear. It will be just like a lease car, it will still carry the full manufactures warranty. If anything breaks while you own it and its not due to abuse it will be replaced free of charge. The only catch is you will have to use the set for the full years time and make the low monthly payments that is it. There is no worries if something fails cause it wont cost you a dime.

phyphoestilic
02-07-2007, 12:15 AM
They do to this. Audio shops have down payments/monthly payments on equipment all the time. Like cars you have to show you have decent credit. BTW warrantee's usually dont apply to an idiot being stupid. They way they have it setup would be something like they do all the gains settings and everything and make sure the equipment can easily handle it. Then if it blew then you obviously changed something and doesnt get warranty'd

LinxuS
02-07-2007, 12:16 AM
Are you going to start this company? lol..

djdilliodon
02-07-2007, 12:18 AM
Nope. This program will be done by a manufacturer im a dealer for (CDT). Im just seeing what people think of it and if there would be any interest in it :)

LinxuS
02-07-2007, 12:20 AM
I wouldn't want to be the company doing this, for all the problems that could go wrong, but I'd definitely like to get something nice for half the price lol

What if somethings stolen?
Overpowered and blown?
Scratched?
Dented?
Dropped?

So many things can happen..

djdilliodon
02-07-2007, 12:28 AM
if it is stolen thats is your problem:( If it is blown due to abuse there will be in most cases a one time we will let it slide but next time its coming out your pocket. Scratched that is normal wear and tear and is fine! Dented would fall some what in that area depending how bad we are talking. Droped that would fall under abuse. This program is going to be all in the buyers favor. There is no risk involved just pay the monthly payment and that is it!

profundus-sanus
02-07-2007, 12:28 AM
It could work, if they did all the gain settings and throurogly tested the speaker before sending it to the next owner.

Honestly i think it is a way bigger hassle than its worth

200$ a year for a 1000$ speaker is absurdly low. I would be looking more around 400$ a year.

I mean, there are some stupid people out there(gains all the way up is louder MANG!!!!!). You would have to hire in a collection agency into your current business to get your money from the dude that blew your speakers but won't pay up.

djdilliodon
02-07-2007, 12:36 AM
The company is aware of all the risks involved and is willing to go foward. The sets that are returned at the end of the lease will be refurbished and sold off in working order as B stock items. When you lease a set it will be for a brand new set :)

Flipx99
02-07-2007, 09:00 AM
I personally think it is a good idea for the consumer because after a year I am ready for something new anyway. I don't have to worry about selling it and I usually lose $100 - $200 for using it anyway. Plus, I get a warranty. I would do it.

DejaWiz
02-07-2007, 09:27 AM
I think it's a good idea. Might be a good opportunity for CDT to steal away some buyers from the BB's and CC's s out there that are going to likely put a purchase on a charge account and make monthly payments anyway.

I'd think that a credit check would be a good idea. And for those with lower to fair history should be asked for a deposit (refundable or not at the end of the lease term by CDT/seller discretion).

Maybe the lower to mid range products offer the 12 months term and the high end goodies allow up to 24 months WAP?

In the hypothetical example you gave of $100 down and $33.33 for 11 months, which equates out to $466.63, for which speakers would the leaser be getting?
Is it going to be a set that has 1.) a street value/fair market value of ~$450, 2.) an MSRP of ~$450, 3.) something that retails for much lower, like a ~$350 set? IOW, is this going to be a program that's outright fair to the leaser/buyer?

Maybe make it so the monthly payments can be lower with a residual amount left that equals the deposit at the end of the term. If the leaser wants to keep the speakers, then the deposit is kept by CDT/seller. If they want to return them, the speakers come out and they get their deposit back.

And maybe offer an additional extent of the warranty period if the leaser does decide to keep the speakers after the leasing period. Might be an opportunity to raise incentive.

SQBubble
02-07-2007, 09:28 AM
i would never do this...

but it is a good idea for some ppl, id suggest that if ever you do it, make sure YOU or your shop professionaly install the product and set everything right...

you would have less problem imo..

Flipx99
02-07-2007, 09:37 AM
I think it's a good idea. Might be a good opportunity for CDT to steal away some buyers from the BB's and CC's s out there that are going to likely put a purchase on a charge account and make monthly payments anyway.

I'd think that a credit check would be a good idea. And for those with lower to fair history should be asked for a deposit (refundable or not at the end of the lease term by CDT/seller discretion).

Maybe the lower to mid range products offer the 12 months term and the high end goodies allow up to 24 months WAP?

In the hypothetical example you gave of $100 down and $33.33 for 11 months, which equates out to $466.63, for which speakers would the leaser be getting?
Is it going to be a set that has 1.) a street value/fair market value of ~$450, 2.) an MSRP of ~$450, 3.) something that retails for much lower, like a ~$350 set? IOW, is this going to be a program that's outright fair to the leaser/buyer?

Maybe make it so the monthly payments can be lower with a residual amount left that equals the deposit at the end of the term. If the leaser wants to keep the speakers, then the deposit is kept by CDT/seller. If they want to return them, the speakers come out and they get their deposit back.

And maybe offer an additional extent of the warranty period if the leaser does decide to keep the speakers after the leasing period. Might be an opportunity to raise incentive.

Problem that is that I never pay MSRP. Therefore, I might get the same set for $350 or so. I was thinking that I could get a Genesis and Rainbow Platinum or DLS set with an attractive lease. I don't want it to be a payment plan/

DejaWiz
02-07-2007, 09:39 AM
i would never do this...

but it is a good idea for some ppl, id suggest that if ever you do it, make sure YOU or your shop professionaly install the product and set everything right...

you would have less problem imo..

I agree to an extent, but there are plenty of individuals out there that are more than capable of handling installation themselves.

Make the leaser either have them professionally installed or professionally inspected by a certified (as CDT would define it) shop/installer. The leaser must send a copy of the install invoice/inspection report to CDT within a certain amount of time after the lease period begins.

DejaWiz
02-07-2007, 09:51 AM
Problem that is that I never pay MSRP. Therefore, I might get the same set for $350 or so.

I was thinking that I could get a Genesis and Rainbow Platinum or DLS set with an attractive lease. I don't want it to be a payment plan.

I don't see that as a problem. :D

But if you buy it outright (even from a local shop that advertises msrp only so they have some wiggle room for the stubborn negotiatiors that walk in the door), then you should get it for fair market value, which is often lower than msrp.

A lease plan, on the other hand, could be entirely different when it comes to the pricing. If you can't afford to buy them outright, then you'll have to settle for the lease price. Would be a good opportunity for CDT to run specials and promotions from time to time "lease or purchase - same price!"

But I do think a leasing program might be a good opportunity to get more CDT sets out there. Hence, give the leaser the option to become an owner at the end of the period by willingly forfeiting their deposit to CDT.

And you're absolutely right, without some kind of residual amount at the end of the lease period (e.g.- leaser makes 12 payments then owes nothing and gets to keep them.), it becomes a ownership payment plan not a leasing program.....Because I can't honestly think of a single person in their right mind that would give up a set of speakers that they just made 12 months of lease payments on and owe nothing further whether they decide to keep them or return them.

EXAMPLE:
Speaker Lease Price: $500
Deposit Amount: $100
Lease amount: $400 (500-100)
12 Equal Payments of: $33.33 (400/12)
At the end of the 12 months, the leaser has the option to return the speakers and get their $100 back or keep the speakers and pay the $100 residual amount by forfeiting their deposit.

OCURIEL
02-07-2007, 11:36 AM
I like this idea.

acreature
02-07-2007, 11:45 AM
The idea is for fegs.

djdilliodon
02-07-2007, 12:37 PM
I think it's a good idea. Might be a good opportunity for CDT to steal away some buyers from the BB's and CC's s out there that are going to likely put a purchase on a charge account and make monthly payments anyway.

I'd think that a credit check would be a good idea. And for those with lower to fair history should be asked for a deposit (refundable or not at the end of the lease term by CDT/seller discretion).

Maybe the lower to mid range products offer the 12 months term and the high end goodies allow up to 24 months WAP?

In the hypothetical example you gave of $100 down and $33.33 for 11 months, which equates out to $466.63, for which speakers would the leaser be getting?
Is it going to be a set that has 1.) a street value/fair market value of ~$450, 2.) an MSRP of ~$450, 3.) something that retails for much lower, like a ~$350 set? IOW, is this going to be a program that's outright fair to the leaser/buyer?

Maybe make it so the monthly payments can be lower with a residual amount left that equals the deposit at the end of the term. If the leaser wants to keep the speakers, then the deposit is kept by CDT/seller. If they want to return them, the speakers come out and they get their deposit back.

And maybe offer an additional extent of the warranty period if the leaser does decide to keep the speakers after the leasing period. Might be an opportunity to raise incentive.


If the set retails at $1000 you would pay 50-60% less in total (400-500) by the end of the lease.

DejaWiz
02-07-2007, 01:27 PM
If the set retails at $1000 you would pay 50-60% less in total (400-500) by the end of the lease.

Gotcha. Glad they are structuring it that way.

Flipx99
02-07-2007, 01:29 PM
I would consider it under the 50%-60% lease rule, but not for the line of speakers that are offering it.

mjf
02-07-2007, 01:38 PM
alot of leases, like cars for example, effectively make you pay double the amount for the car if you had bought it outright.

now what seems wrong to me there?

acreature
02-07-2007, 02:14 PM
May as well "Rent-to-Own" $1000 components for 19.99 a month for 15 years.

djdilliodon
02-07-2007, 02:21 PM
Also this wouldnt be available to all sets either. A lease on a lower cost set just wouldnt be logical. It will be for only sets that retail at $1000 or higher. The main catch with this is you will have to keep the set for at least 1 year. Also i dont care how good of a speaker your running is the fact is they cost very little to make and as long as a set can be fixed or it works when returned, it can be sold off. As long as no one runs with the set money will be made.

Pl8er
02-07-2007, 02:38 PM
I actually don't think this is a bad idea at all. I mean if you really wanted to get a really high end set of speakers, this would be your chance. I think I would give it a try.

Would you have to pay the remaining price left on the speakers or would there be an added expense?

acreature
02-07-2007, 02:40 PM
Would you have to pay the remaining price left on the speakers or would there be an added expense?Ever leased a car?


$25,000 car leased for , say; $249.00 a month for 36 mos...


At the end of the lease, you can turn the car in, or pay, 75% of original asking price.

Pl8er
02-07-2007, 02:53 PM
Na, never leased a car. I won't even buy a new car. No real value in doing so.

alteraudiousa
02-07-2007, 02:59 PM
i am not sure the idea is sound long term. i think its good in theory and on paper but not in actual practice. Will this require a credit check, how will money be collected especially on late payments or no payments, with a lease you typically pay more on the long end so why would a company want to take a hit on profit, and how will the payment be paid for, online account or auto draft?

djman37
02-07-2007, 03:00 PM
interesting, only because YOU brought it up, not some noob.
Would the lease cover theft, damage, etc?

Pl8er
02-07-2007, 03:01 PM
In some ways this is unique and although it can be compared to an auto lease, I don't think it is exactly like one. I mean this isn't a car dealership selling a car that they got from Ford. This is a speaker company leasing speakers that they make. The overhead is not nearly as high. I mean truly from a business standpoint to make the real $$ here, you woudl offer financing, because then you would make the financing dollar plus make the money from the speaker rental and then if they sell it for B stock, they could still sell it above cost and make a profit that way.

Patrick Simmons
02-07-2007, 03:32 PM
Interesting concept but may come back and bite you in the butt.

PremierAudio
02-07-2007, 03:43 PM
We have though about doing this many times before and everytime it is brought up, the cons just outwiegh the pros. There also isnt enough market for it which is what would drive this whole deal. We have done quite a few surveys and its just not worth it. Plus you have to deal with credit card companies when you would not receive your money, deal with repo's in numerous states...just way to big of a hassle.

On a side note, profit wise, you would make more on one set of speakers then just outright selling, but your losses outweight the benefit.

PM if you want more info or advice.

-Aaron

bimma85
02-07-2007, 03:49 PM
and how many of you think it is stupid?
I do

bikinpunk
02-07-2007, 04:09 PM
I do

x2.

3.5Max6spd
02-07-2007, 05:20 PM
what does CDT have worth leasing?

6spdcoupe
02-07-2007, 06:01 PM
Nothing that I can think of. Highest line comes in just shy of $1000 and thats where this 'leasing' advantage would start?

DejaWiz
02-07-2007, 06:53 PM
Nothing that I can think of. Highest line comes in just shy of $1000 and thats where this 'leasing' advantage would start?

Hopefully it's not just for their ToL products.

If CDT was planning on lease programs for all lines (except maybe for their lowest lines of product offerings), I think this would be a more viable plan.

djdilliodon
02-07-2007, 07:26 PM
This program is not 100% going to happen but was brought up to see how many would be interested. Really the only models that would be able to fall in a lease is the ES (650-1000) and the 07 series on cdtgold.com (800-2000 ish). I personally feel its a hit or a miss with payment ect. What CDT may do is offer the sets at 40-60% off retail to a buyer and then after a year you have the option to return, upgrade, or buy out right. This way there is no monthly payment involved you get the set way cheaper and many of us want to upgrade after a year or less anyway lol.

6spdcoupe
02-07-2007, 11:20 PM
Isnt the ES-642i theyre top of the line in the Gold? As far as I can see that set is $999 MAP, so which carry over to $2K?

djdilliodon
02-07-2007, 11:27 PM
Model: ES-642i/07 GOLD $1,499.99 there are also custom sets you can do that carry retail even higher. cdt actually dropped the price on the 07 line

6spdcoupe
02-07-2007, 11:31 PM
Ahh ok, didnt see that on my price sheet. Ill have to look again..

djdilliodon
02-07-2007, 11:59 PM
not every dealer is offered them. Also cdt actually does custom drivers to, also not available to everyone :)