The problem here is that so many older brands are now made by companies different from the original, in different factories and parts of the world, and to different standards, that it can be difficult or impossible to determine what constitutes a “comparable” new piano. A depreciation schedule, such as the one in Piano Buyer, shows how much a used piano is worth as a percentage of the actual selling price of a new piano of comparable quality. DepreciationThe depreciation method of determining fair market value is based on the fact that many types of consumer goods lose value over time at a more or less predictable rate. Understandably, however, the price ranges shown in the chart are quite broad. This chart is most useful for determining the approximate value of many brands of older piano for which it would otherwise be difficult to find enough comparable sales to determine a value. (Exceptions might be technicians or dealers who specialize in used Yamaha, Kawai, or Steinway pianos, brands that have attained near-commodity status in the piano business.)Piano Buyer includes a chart, “Prices of Used Pianos,” which was compiled after querying a number of piano technicians about their memories of comparable sales of pianos of various ages, sizes, and conditions.This method can be used when a piano needs extensive, quantifiable repair work. For example, if a piano, rebuilt, would be worth $50,000, and it would cost $30,000 to restore the unrebuilt one to like-new condition, then according to this method the unrebuilt piano would be worth $20,000. Idealized Value Minus the Cost of RestorationThis is the difference between the cost of a rebuilt piano and the cost to restore the unrebuilt one to like-new condition. Note that depreciation is from the current price of the model, not the original price, because the current price takes into account inflation and, if applicable, changes in the value of foreign currencies.Whatever brand and model you choose, depending on how high a replacement value you seek, you can use either the manufacturer’s suggested retail price (highest), the approximate street price (lowest), or something in between. Here it may be helpful to consult the rating chart in the Piano Buyer article “ The New-Piano Market Today.” Choose a brand whose relationship to today’s piano market is similar to that the original brand bore to the piano market of its day. The problem here, again, is what brand and model of new piano to consider “comparable” if the original brand and model are no longer being made, or are not being made to the same standards. This value is often sought when someone has purchased an insurance policy with a rider that guarantees replacement of a lost or damaged piano with a new one instead of paying the fair market value of the used one. Other Types of ValuationSeveral other types of valuation are sometimes called for:Replacement value is what it would cost to replace the used piano with a brand-new one.
![]() ![]() ![]() It can be determined using the idealized-value-minus-cost-of-restoration method, but discounted, like trade-in value, to allow the commercial seller to make a profit. (In practice, the commercial seller will often pay the fair market value for the used piano, but to compensate, will increase the price of the new piano to the consumer.)Salvage value is what a dealer, technician, or rebuilder would pay for a piano that is essentially unplayable or unserviceable and in need of restoration. This is discounted from the fair market value, typically by at least 20 to 30 percent, to allow the commercial seller to make a profit when reselling the instrument.
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