38 million households live paycheck to paycheck. 6 in 10 Americans could not cover a $500 unexpected expense without going into debt to do so. Don't base decisions on what the masses due as the majority of people are broke.
Financing Financing experience's
- Thread starter Blackcatstrat
- Start date
38 million households live paycheck to paycheck. 6 in 10 Americans could not cover a $500 unexpected expense without going into debt to do so. Don't base decisions on what the masses due as the majority of people are broke.
Looking4new
Super Member
- Joined
- Apr 8, 2012
- Messages
- 8,417
- Location
- Northern Ontario, Canada
- Tractor
- 2012 Kioti CK27HST w/cab
I financed through AgriCredit and so far I have had no problems with them at all. My tractor will be ALL mine in July. I am thinking of using them again for a backhoe and a conveyor.
My payment situation is a little different than some, I am receiving Canada pension payments and still working, so the payments go directly into the same bank account that the Kioti payments come out of.
My payment situation is a little different than some, I am receiving Canada pension payments and still working, so the payments go directly into the same bank account that the Kioti payments come out of.
DavesTractor
Elite Member
bdog, we are probably on the same page personally. I've not financed anything since I paid off my house 22 years ago. So I am not suggesting that financing is always the best option. Just stating the facts. It is interesting though, that although we retail several hundred tractors per year, we see less than 1 repossession per year. Not all folks that finance are poor or living month to month. There are many reasons people use to justify financing and it isn't always because they lack the ability to pay for the tractor.
DavesTractor
Elite Member
If the 100 grand item is truly the same price for cash or for zero percent, then I understand. But that is not normally the case. On most tractor deals, if you choose zero percent you give up whatever incentives are running at the time. Like on a Branson, you get a "free" $4400 front loader if you pay cash or standard rate. If you want zero percent, you give up that incentive. Now Branson could choose to drop the "free" loader program entirely and offer the same price for cash or zero percent, but then the cash guy is subsidizing the zero guy and that certainly isn't fair.
Money costs something. When money is free, that just means you haven't figured out the real deal yet. But there are times that you have no choice. As a tractor dealer, when we order tractors they go on our floor plan. We get "free" floor plan for a certain term, often 6 months. After that we pay interest. Some companies allow a dealer to just pay cash and will offer 4% off invoice. Some companies won't offer any discount. If a discount is offered, I take it. If not then I agree with you and I use their money! Is that free floor plan free? No, it's packed into our tractor price. Surely, it must be.
Each situation is different, but in the world of finance, there is no "free".
OP
Blackcatstrat
Member
Dave, thanks very much for that information, after this recent purchase I found this to be very true.
Anyway, the loan process was very easy and took maybe 5 minutes. The over all purchase experience was fair...Had it delivered a couple days ago.
I'll post some picts as soon as I figure out how to up load them.
Thanks everyone for the information so far.
Jer
Anyway, the loan process was very easy and took maybe 5 minutes. The over all purchase experience was fair...Had it delivered a couple days ago.
I'll post some picts as soon as I figure out how to up load them.
Thanks everyone for the information so far.
Jer
OP
Blackcatstrat
Member
I agree. And quite frankly I doubt most acreage owners who are buying tractors fall into the paycheck to paycheck or couldn't afford a $500 expense category. I was just saying because "everybody" finances things doesn't make it a good idea.
Some people have these complicated schemes where they finance things at a lower rate than they can invest there money at and while I don't do that at least the math potentially makes sense but for most people they finance things because they want them now and don't have the money to pay cash for it.