DJ Finance: The Advantages and Disadvantages
Setting yourself up with the highest-quality DJ hardware and software on the scene isn’t cheap. Particularly for up-and-coming DJs with limited budgets, quality is often compromised to cut costs.
This is why so many aspiring and established artists turn to affordable DJ finance. With a DJ finance package, you can pick up all the top-shelf equipment you need today and pay for it gradually.
Even so, there are advantages and disadvantages to DJ finance when compared to outright purchase. Before deciding which is the right way to go, it’s worth taking the time to think about the following:
Both for established DJs and amateurs alike, picking up quality DJ equipment represents a significant outgoing. High-end DJ gear can be surprisingly expensive, though is essential for anyone serious about building a career in this competitive industry.
DJ finance offers a flexible and accessible alternative to outright purchase. But as is the case with all types of finance, there are pros and cons to consider.
The Advantages of DJ Finance:
- The most immediate (and obvious) advantage of DJ finance is the elimination of huge upfront costs. You simply pay a deposit in the region of 10%, and the remaining balance is paid gradually over time.
- When you purchase DJ equipment by way of finance, you can set your sights on hardware that would normally be out of your price range. A great way to kit yourself out with club-quality hardware and let your talent do the talking.
- Terms and conditions tend to be flexible with most DJ finance deals, allowing buyers to repay the balance on their loans over the course of months or years, as preferred.
The Disadvantages of DJ Finance:
- Some DJ finance deals are interest-free, but others are charged at various rates of monthly or annual interest. There may also be other fixed fees and costs that apply.
- Individuals with no formal proof of income and/or an imperfect credit score may find it difficult to qualify for competitive DJ finance in the first place.
- When you buy anything on finance, you do not take legal ownership of it until your debt is fully repaid. In the meantime, it remains the property of the finance provider.
The Advantages of Outright Purchase:
- Buying something (anything) outright for cash paves the way for the most affordable transaction possible. No fees or interest charges are applied with cash payments, which could ultimately save you money.
- In addition, buying outright means gaining legal ownership of the products from the moment you buy them. You’re then free to do with them as you please – sell them on, trade them in against newer hardware etc.
- Outright purchases may be the only realistic option if you do not have a good credit score, or lack formal proof of your employment status.
The Disadvantages of Outright Purchase:
- If you need to save for a significant period of time to amass the money needed to buy your gear, your DJ aspirations may need to be put on hold.
- Spending significant sums of money outright is not advisable, if doing so means you will have almost nothing left as a financial safety net.
- Buying used DJ equipment outright is a tempting option, but it is worth remembering the potential consequences of having no warranty or guarantee in place.
In short, DJ finance is the better choice for anyone who is not sitting on considerable cash reserves at the time of purchase. By contrast, those with an abundance of on-hand cash should go with the outright purchase option, if doing so will not put much of a dent in their finances.