Replacement value is what it would cost to replace the used piano with a brand-new one. 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. 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.
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. 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. These prices, or information on how to estimate them, can be found in the “Model & Pricing Guide.”
Trade-in value is what a commercial seller would pay for the used piano, usually in trade (or partial trade) for a new one. 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. (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. 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 closing, I’d like to remind you that your best protection against buyer’s remorse is having the piano inspected by a piano technician prior to purchasing it, particularly if the piano is more than ten years old. Sometimes it will be sufficient to speak to the seller’s technician about the piano, if he or she has serviced it regularly and has reason to believe that he or she will continue servicing it under your ownership. However, in most situations, you’ll be better off hiring your own technician. You can find a list of Registered Piano Technicians in your area on the website of the Piano Technicians Guild, www.ptg.org.
If you're serious about buying a used piano, additional information in The Piano Book may be useful to you, including:
ELECTRONIC PLAYER PIANOS
SPECIALTY BASIC KNOWLEDGE ARTICLES
LARRY’S BLOG ARTICLES
LOCAL SERVICES DIRECTORY