Recently I had decided to purchase a Mahindra 3215 4WD tractor with FEL, and backhoe, including a box scraper and free delivery from a local dealer for $20,730.00 and applied for Mahindra financing through Agricredit but was denied financing.
Without going into too much detail, I learned that the reason I was denied by Agricredit, was because of a minor "item" that appeared on my credit report. Ironically, the "item" they had found was a mistake and was not even mine. All I can say is that it is their loss because the "delay" they caused has given me time to carefully consider everything and make a better purchase decision as a result.
Initially, I had decided to put my tractor purchase plans on hold indefinitely but after careful consideration, I have decided to buy a tractor afterall. The only difference is that I will be waiting a little longer to save more money, and paying cash in lieu of financing it.
Being turned down for financing was bad enough but what really caught my attention was when the Dealer suddenly acted as if I was a bum or something after they learned that I was not approved. Little did they know that I could have paid cash right there on the spot but the sudden change in attitude ruined any chance they had of making a sale. Besides, paying cash would have required that I take money from our savings which I was not comfortable with doing because the financial security of my family is much more important to me than what amounts to little more than a very expensive toy. Just because I was financing, did not mean that I did not have the money to buy it.
This time around, I will be doing things a bit differently before I make any commitments.
1. Check out the dealer much more carefully.
2. Give other brands more consideration, especially Kubota.
3. Re-evaluate exactly what options to purchase.
4. Save money by paying cash.
With respect to item #2, I had initially committed myself to Mahindra but have begun to think more about Kubota and possibly other "brands" because I would rather not have to deal with the hassle of trying to find actual Mahindra MSRP's to make sure the dealer is not a crook. I can only wonder how many other people are thinking the same thing about a manufacturer who cannot do something as simple as tell consumers what their products should cost. Ultimately, I may still buy Mahindra, but it is no longer a definite.
With respect to item #3, I have decided that my need for a backhoe does not justify the $6000 dollar price tag that comes with it. I will be renting the equipment I need to do my backhoe work, which will cost considerably less.
They say that hindsight is 20/20 and this case is no exception. Lesson learned: Look before you leap.