Taylor factory in GE Ad

[petevee]

Deferred interest financing falls under the same type of predatory business practices as car title loan and pay day loan establishments. Mind ya, I am not saying that the businesses shouldn't exist, but let's not pretend that it is free or that it doesn't mostly take advantage of poor, impulsive folks, that simply are too stupid to delay gratification.

You got that right. This is a good time to take a look at your local dealer and see just how sleazy they are. BTW, I'm told their is a fee to dealers unless they can get at least four suckers to apply. Good news for the dealers is even if the poor guy doesn't qualify it counts..

[teh]

Saw another GE Capital Ad featuring the CEO of Polaris and a GE manager on 4 wheelers. The point about these ads is they do catch your attention. If GE's founder had been a guitar junkie, we would probably all be playing an Edison.

To infer that all local dealers are sleazy because they offer this form of financing is not a fair statement. My guess is that the bulk of all music stores including online dealers would see a marked drop in sales if they did not offer alternative sources of financing. This would in turn roll up to the manufacturer(s) who would be forced to cut costs, relocate to a country with low cost labor or sacrifice quality. We already know how people feel about wings on their guitar neck. Any dealer who doesn't offer this alternative is a naive business person who won't be around long. A guitar (or 4-wheeler) should be purchased with disposable income which is why I have always paid cash for every instrument I ever bought.

Most non-standard auto insurance companies exist because drivers with poor driving records need an alternative and they pay a premium for their actions.

For those with poor credit it doesn't matter whether they are buying a guitar, a 4-wheeler. auto insurance or a car, there is always a certain number who will seek an outlet for financing. Read on:

http://www.philly.com/philly/wires/ap/business/20100722_ap_gmtopay35bforautofinancingcompany.html

[mas music]

Interesting. I've played several Nylon string Taylors and they don't sound like classical guitars. They sound like Taylors with Nylon strings. A true crossover instrument not for purists.

[DJ in FL]

Here's the answer: "Marija just landed a national commercial for Taylor Guitars/GE Capital!

She is playing the guitar music throughout the entire commercial. Some of the music she composed and arranged. Quite comically, they put the head of Deb Barker, GE representative, on Marija's body during the guitar scene, so you probably won't know it's her playing."

Also, the "Behind the Scenes making of the Taylor/GE Guitar Commercial" link reveals the spoof.

I've read discussion among classical guitar players that the guitar doesn't sound like a Taylor. Here is the guitarist, Marija Temo, being interviewed along with some of her playing.

Bill

BILL:  Thanks for that answer and post...I had not seen how it was done...used to be we oldsters would say "SEEING IS BELIEVING"...guess that is not so true anymore and certainly not in this case!

[Broadus]

Hi DJ. I also thought it was the real McCoy when I first viewed the commercial. That's why the lady in the commercial says that she didn't know she could play like that either. The joke doesn't make sense unless you know what's really going on.

BTW, how old does one have to be to qualify as an old-timer? Observed my birthday last month and my age is the same as the last two digits of the year of birth. 

Bill

[mas music]

  I've been deceived !!!!!

[flatlander]

Money makes he world go round. marketing make the money go round. Cool commercial. Wish it didn't have the after taste.

[GA-ME]

The Taylor/GE offer may be a bad deal for impulsive buyers, but it is not predatory lending by any stretch of the imagination.  Predatory lending is a pretty broad term, but here's how the Government Accountability Office defined it:

Predatory lending is an umbrella term that is generally used to describe cases in which a broker or originating lender takes unfair advantage of a borrower, often through deception, fraud, or manipulation, to make a loan that contains terms that are disadvantageous to the borrower. While there is no universally accepted definition, predatory lending is associated with the following loan characteristics and lending practices:  Excessive fee, Excessive interest rate, Single-premium credit insurance, Lending without regard to ability to repay, Loan flipping, Fraud and deception, Prepayment penalties, Balloon payment.http://www.gao.gov/new.items/d04280.pdf  (I've paraphrased & abridged some detail).

I don't see any sleaze here.  It's a fairly standard business practice.  Terms and conditions are known up-front.  The interest rate is high, but aren't most credit cards?  Home Depot 27%, Macy's 24.5%, Sears 25%, Capitol One 20%, Bank of America 21%, etc.  I understand that the GE rate on this deal is about 23%.  The retroactive interest on a Taylor 512 could be as much as $487.  That's almost 1/4 of the street price of the guitar – a serious kick in the butt or wallet if you miss the deadline.  On the other hand, if you pay about $177 a month for 12 months, you pay no interest, get your guitar now, & perhaps didn't have to take any $$$ out of the bank.

Unfortunately, I'm better at paying bills than saving $$$.  So, I've used similar deals in the past & never missed a deadline.  This is no different than managing any other credit card or loan.  Anyone who can't afford it, shouldn't do it.  If someone is inclined to do it anyway, then this GE/Taylor deal is probably only one of their problems.

  Are you naive enough to think these types of loans would be available if the majority of folks were able to pay them off in time?  Like I said before, I sometimes use these things myself because it lets me use somebody else's money for "free" for a year or so. However, I'll say it again, I don't delude myself into thinking it is truly "free" because it isn't. Some schmuck who can't be responsible pays my way and your way as well when we use these loans and pay them off within the agreed upon terms. Your gain, and my gain, comes at the expense of someone else's misery; plain and simple. If you fail to understand that, you are not being honest with yourself.

[z-clay]

Wow, the girl in the commercial can really play

Not bad for a girl.......... huh?  LoL

[TrinityGuitars]

GE is financing the guitars and assuming the risk of payment by the deadline (no earnings) and default (partial or total loss).  The prices of the guitars aren't being jacked up.  The interest rate is in the middle of the pack.  The terms and conditions are clear.  There's nothing immoral, improper, or unfair going on here.  What happens if someone doesn't pay it all by the deadline?  They pay interest from the date of the loan – as they would if they had made a regular credit card purchase (setting aside the 25 day grace period).

The purchases stimulated by the financing will help keep a lot of people working.  It may also help someone buy the guitar they've been gassing for.  Where's the harm?  I would have a different view if the interest rate was sky high or the price of the guitars was jacked up.  But as it appears now the only unfairness is the assertion that participating dealers are engaging in a sleazy practice. 

Thanks emptel. 

[Danny]

  I use 0% loans to finance things all the time. I also pay them off before any interest comes due.
  I think it's a good plan for people like me. I have a new to me Taylor though, so unless G.A.S. strikes again I probably won't be using the program.



I'll let y'all know if I do though