0% doesn't always mean 0%

[kootch88]

Just an FYI on the Mahindra financing. I thought I was negotiating with the intent of taking advantage of the 0% for 5 years. After all was said and done, I learned I needed to write a check for that privilege. I ended up going with the regular financing with the intent of refinancing with my credit union at 2.99%, but I was rather angry with how the process worked. The owner knew I was ticked and threw in a weight box (JD) and painted it Mahindra red, but still, I could not find anywhere on the website where I would have to write a check for $1375.

I am glad the dealer helped me work through it after all, because I was about an inch away from going to a lesser Kubota on principle.

On a side note, my local dealer owes Davestractor a commission for saving the sale. He was great in providing quality information and making me realize the dealer was not gouging me, which is what I thought as I looked at the ceiling until 3:45 this morning.

 

[teg]

...I am glad the dealer helped me work through it after all, because I was about an inch away from going to a lesser Kubota on principle...

Yea, that would only have cost you $1,000 more... It's not really 0% if you have to pay extra to get it.

 

[rockshaft]

Just an FYI on the Mahindra financing. I thought I was negotiating with the intent of taking advantage of the 0% for 5 years. After all was said and done, I learned I needed to write a check for that privilege. I ended up going with the regular financing with the intent of refinancing with my credit union at 2.99%, but I was rather angry with how the process worked. The owner knew I was ticked and threw in a weight box (JD) and painted it Mahindra red, but still, I could not find anywhere on the website where I would have to write a check for $1375.

I am glad the dealer helped me work through it after all, because I was about an inch away from going to a lesser Kubota on principle.

On a side note, my local dealer owes Davestractor a commission for saving the sale. He was great in providing quality information and making me realize the dealer was not gouging me, which is what I thought as I looked at the ceiling until 3:45 this morning.

Ouch. That would make me angry as a hornet. I would 2nd your thoughts on Davestractor- he was the only dealer I could get information from, very helpful. I decided on JD (and got their 0%financing), but the reason I didn't go Mahindra was mostly proximity to dealer.

Lots of folks looking at these new Max machines, some will undoubtedly have their interest peaked (no pun intended) by your recent experience.

 

[LAWALLSTRACTOR]

As I have said on TBN before, the only way to compare the price on a tractor you are financing, is to compare the monthly payment for X number of months. I try to explain this as soon as the customer and I mention financing. And by the way, dealers having to buy 0% rates isn't just a Mahindra thing, it is just that Mahindra is being up front about it.

 

[MrChris]

Just an FYI on the Mahindra financing. I thought I was negotiating with the intent of taking advantage of the 0% for 5 years. After all was said and done, I learned I needed to write a check for that privilege. I ended up going with the regular financing with the intent of refinancing with my credit union at 2.99%, but I was rather angry with how the process worked. The owner knew I was ticked and threw in a weight box (JD) and painted it Mahindra red, but still, I could not find anywhere on the website where I would have to write a check for $1375.

I am glad the dealer helped me work through it after all, because I was about an inch away from going to a lesser Kubota on principle.

On a side note, my local dealer owes Davestractor a commission for saving the sale. He was great in providing quality information and making me realize the dealer was not gouging me, which is what I thought as I looked at the ceiling until 3:45 this morning.

Couldn't you have gotten the financing through the credit union first and then paid the cash price for the tractor??

 

[JerryK]

Another way to think of it, is that while you are getting the loan for 0%, you are paying for the credit check, loan filing fee, monthly servicing of the loan, and other paper work. You can not think that they would do all that for free, too... The people at Mahindra Finance have to be paid somehow.....

 

[LD1]

And by the way, dealers having to buy 0% rates isn't just a Mahindra thing, it is just that Mahindra is being up front about it.

And it isnt just a tractor thing either.

The auto-manufactures have been doing it for awhile too. Like the 0% OR $4000 cash back.

So in reality, to get the 0% you are paying $4k (or whatever it is at the time) more for the vehichle.

So yea, 0% really isnt 0% if you can purchase the SAME car/tractor with cash or other financing for less money.

All they are doing is collecting the interest UPFRONT and making you "think" you are getting a good rate.:confused2:

 

[kootch88]

Couldn't you have gotten the financing through the credit union first and then paid the cash price for the tractor??

I could have done so, but there was a time issue involved due to me having someone lined up to fabricate hand controls so I can operate it. Otherwise yes, that would have been the best approach. My FCU is located in Ilinois and it would have taken a few days.

 

[grsthegreat]

This same tactic is at play every wheres. When i purchased my Kioti i made the best deal i could find, then i offered cash fo more of a discount... almost $1,000 more of a discount over the offered price.

I know at furniture stores they have these so called 0% interest for 4 year sales all the time. They say you dont have to make any payments for 4 years and there is no interest. what they dont openly tell you is if it isnt paid off in total at the end of the 4 years..and i mean 100% total, they charge you 4 years of accrued interest on the total purchase price. can you say scam.

if theres a way to make a deal look good on paper..but not be such a great deal overall, someone has already thought of it.

 

[DavesTractor]

I think it is about dealers getting the pricing options to the customer very early in the sales process. We used to price every item at 0%, then offer discounts. But some customers would walk because we were $1300-$2500 (more expensive tractors have higher buydowns) higher than the guy selling at cash price and they didn't listen carefully enough to hear the discount part of the sales pitch.

So about 2 years ago we made the decision to price at cash/standard rate with all discounts, then offer the better rates, all the way to 0%, at our cost to the customer. In reality, we all know that 0% isn't free, it is just absorbed in some manner and the cost is passed on to the customer. This seems like the most "honest" approach, although I use that word carefully as it is not dishonest to price everything with 0% packed in.

The best thing, although it takes the sales guy a little time, is to crunch the numbers for 0%, 4.25%, and standard rate and see what fits best.

Glad you got your tractor! Stay in touch.