Missed the boat

[ovrszd]

as I for one am tired of bailing out those who are failing. On a local level and in the present I am paying attention to who is making a real effort to work and be productive, these people get my business and support.

That's what I'm talking about!!!

Regardless of whether Chrysler owns anything or not due to bankruptcy procedures, I'm sick of seeing tax money spent on bailing out failing business practices. Our government needs to take care of their own business and let successful business practices thin out the pack.

Free enterprise, capitalism at it's finest!!!

 

[pitt_md]

I'd like to just see the prices come down and the so-called 0% to go away. Get your own financing or save up the money and pay cash.

I have been shopping for a truck and just this week got a 'offer' from a dealer for "72 mo at 0%" .....further investigation revealed that the price would be $4,000 LESS if I paid cash or got my own financing.

People gotta wake up.....that 0% financing ain't no bargain.

I have to agree with this if you look at it in the total cash paid for something.
The appealing part of 0% to some people is that "I can have it now" insted of waiting until you have cash in hand.

 

[IslandTractor]

I'd like to just see the prices come down and the so-called 0% to go away. Get your own financing or save up the money and pay cash.

I have been shopping for a truck and just this week got a 'offer' from a dealer for "72 mo at 0%" .....further investigation revealed that the price would be $4,000 LESS if I paid cash or got my own financing.

People gotta wake up.....that 0% financing ain't no bargain.

These discounts are part and parcel of the same 'discount'. For someone who has cash, you get the lower price. For those who need financing there are attractive terms. If you crunch the numbers comparing zero percent to market rate loan, the discounted interest savings is usually pretty close to what the cash discount would have been. I would not expect any company to give both together. They are simply the same discount expressed in different ways.

 

[jenkinsph]

These discounts are part and parcel of the same 'discount'. For someone who has cash, you get the lower price. For those who need financing there are attractive terms. If you crunch the numbers comparing zero percent to market rate loan, the discounted interest savings is usually pretty close to what the cash discount would have been. I would not expect any company to give both together. They are simply the same discount expressed in different ways.

Or you can't have your cake and eat it too.

 

[Hematite]

I'd like to just see the prices come down and the so-called 0% to go away. Get your own financing or save up the money and pay cash.

I have been shopping for a truck and just this week got a 'offer' from a dealer for "72 mo at 0%" .....further investigation revealed that the price would be $4,000 LESS if I paid cash or got my own financing.

People gotta wake up.....that 0% financing ain't no bargain.

O% financing can be a bargain IF you shop for the deal. No, on a long term loan of 60-72 months at 0% you are not going to be any better off because you can get a discount if you finance with a low rate loan. Normally when you crunch all the numbers, the final cost ends up the same either way.

Where you CAN get a bargain, particularly with a truck purchase, is to take a shorter term 0% loan or low interest AND get the discounts. The last 2 vehicles that I bought were at low or no interest. First was 0% for 48 months and $250 BELOW dealer cost (he really wanted to get rid of the convertible in Sept). The F150 was $250 over dealer cost, $3500 discount off the final price and 1.9% for 36 months. Both dealers admitted that even if I brought a bag of cash in, I wouldn't have gotten a better dea and my research supported that.

The NH tractor was different. Because of the long term 0%, I COULD have gotten a better price for cash but once the numbers were crunched, it was still advantageous to take the 0% deal. Some people refuse to believe that 0% financing is advantageous because they either haven't shopped to get the best deal and/or haven't bothered to sit down and crunch the numbers to understand how it can be advantageous. In the end it is really up to the consumer how he wants to pay for the item. As long as the costs are comparable, I'll always prefer to use other peoples money at 0% interest and keep my funds in the bank or investments where they earn money.

 

[tsteahr]

I'd like to just see the prices come down and the so-called 0% to go away. Get your own financing or save up the money and pay cash.

If you get a 3rd party financing, the profit margin associated with that financing goes to that third party lender. If you take a financing offer from the finance division of the tractor manufacturer, the profit margin associated with the financing stays with the tractor manufacturer. I would rather see the profit stay with the tractor manufacturer. We need healthier tractor manufacturers more than we need more financing companies. In turn, removing a third party from the equation could allow more competitive product pricing. We already have enough bankers as it is.

Just my 2 cents...

 

[Hematite]

If you get a 3rd party financing, the profit margin associated with that financing goes to that third party lender. If you take a financing offer from the finance division of the tractor manufacturer, the profit margin associated with the financing stays with the tractor manufacturer. I would rather see the profit stay with the tractor manufacturer. We need healthier tractor manufacturers more than we need more financing companies. In turn, removing a third party from the equation could allow more competitive product pricing. We already have enough bankers as it is.

Just my 2 cents...

I agree completely and I think that is a very important point in favor of using manufacturer financing.

 

[jdbnh]

New Holland always offers 0% interest on tractor starting at at least 48 months and usually 60. They have no gimmicks and offer the interst rates with no money down, with approved credit. so they hide nothing.

 

[Punk]

I recently bought a used M9000, with about 800 hrs on it. I was gonna buy new, all the way, until I finally relized that the bigger - used tractors - were by far a better deal. This 0% financing saved me a ton on the tractor. Not because I got the 0% financing, but because I chose the best bone she threw me.
As far as I can see those who want a new tractor, and still have time to sit on the fence, should stay the course. I just couldn't wait any longer. Times are gonna get worse, this much I know, but that don't mean I'm a pessimist. When the forecast is rain, I generally keep my eyes open. When I can smell it in the air, I know she's near. When I hear it roaring across the mountain, I'll head for the shelter. I don't fall for fairy tales.
When, and if, the 0% goes by the way side the dealers will feel the pain. Far more than this old boy. And when the real flood comes, we'll see who missed the boat.

 

[wampum]

If you notice I had 2 posts. The first was that I bought a Tractor @0% interest. I dealt with several dealers and got what I consider to be my best buy. Then we talked financing,every dealer that said They had to raise the price to get 0% I walked away from. I ended up dealing on a tractor that was brand new but was on the lot since last summer. After the final price was quoted,he gave me 0% on that price. I have nothing against tractor dealers,they are in business to make money,that is that American way. I do not agree with any one,whether he is a dealer or not, that says you missed the best deal. The economy is bad,no body knows for sure when it will get better. There could be a lot better deals coming. One area could be from consumers themselves. I do not like to see this,but some may have over spent. They looked at these so called great deals with 0% interest and around May or June find they can not pay for the tractor. I hope not,but some could lose their jobs,and have to sell. If the economy is still bad,there may be few buyers. In that case people may take huge loses to get out from under the tractor. Right now I am in pretty good shape,I have the cash to pay for my tractor. I will however leave that money in a secure place and use the 0% to pay for it. I agree with a lot of what Island said. I do believe inflation is coming even though I really hope I am wrong. When inflation hits,a lot of people will get by with what they have or by used. Inflation will hurt all. I have a lot of hope for the future,I just know if I run my credit past what I can pay,I will be in trouble. This is what I believe the government is doing,sooner or later the crap will hit the fan.