Possible rent to own situation?

[willy1947]

I'm looking at buying a TC40 or L3830. Both dealers have offered me a similar deal. This deal is at the dealers risk and has no ties to Bota or NH.

The Deal: No credit check, you pay %5 of total cost of tractor each month (for up to 9 months), at any time you can buy the tractor outright (per agreed selling price when the program started) or return it. If you buy it, 100% of the rent to own money goes to the price of the tractor. I believe the dealer will have some limitations written in there. Maybe # of hours, upgrades, etc... Kind of like a lease, but since I plan to buy these aren't a consideration.

First of all, I want to mention I would only do this, if I planned on buying. Secondly, the advantage for me is to make a greater down payment (over the course of about 4 months I could put $4000 down) than I could right off the bat (I might be able to do $2000 right now). Finally, I am right in the middle of closing on my land and really don't want to deal with getting another loan right now. I could really get some major use out of it right now too. My only other option is to rent one for $200 a day.

Just wanted to know what everyone thought of this deal. If I should challenge each dealer to make it a little more affordable (i.e. It will cost me about $1000 a month to do this). I guess I feel like I really need a tractor now. Can't find a deal on a used one, plus financing sucks on the used ones right now.

Ok, let the...."this is a bad idea...", "you're putting the cart before the horse....", etc... begin! /forums/images/graemlins/crazy.gif

Thanks,
Dave

 

[edgaines]

When I bought my JD970, they were offering 0 down, 0 interest, and 36 monthly payments of $600 more or less.
Also they had a 0 down, and 3.5% interest for 4 years.

With those deals, I stopped looking for a used machine, and am very happy with everything from JD.

 

[BillyP]

From what I read in your post, you are giving $20,000 for the tractor? Is this just the tractor alone or are you getting anything else with it? If it's just for the tractor, it sounds a little overpriced.

What happens 9 months down the road and you've paid $9,000 on the tractor. Is the balance due then, are they going to finance the balance at a good rate, are you paying any kind of interest these first 9 months.

Lots of question here before you're gonna get an educated answer.

 

[MDSteve]

It sounds like a pretty good deal. If you could rent a tractor for $200 a day, I think rent to own at $1000 a month is a deal. I think he wants the $1000 a month to offset anyone who just wants a tractor for a couple months and doesn't plan on buying.

Steve

 

[DAP]

An interesting deal ... novel even ... where 'interesting' equals unorthodox. At least for me, this is the first kinda deal for a tractor I've heard of.

We ARE talking about a zero hour machine, brandy spankin new, with smelly rubber an all, right?

Everyone will want to know what happens at the end of your $9000 investment. Do you need to rent a machine for 9 months?

What if a new machine comes out that you simply have to have? Or you decide that that machine is too small or too big or just plain disagreeable?

I'd think about this one for a minute, to be sure.

Let us know the what and how of how you make out.

 

[willy1947]

BillyP,

The Bota is a L3830, w/GST, R4 tires (w/fluid), FEL with heavy duty bucket and bolt in teeth. It is priced at $21,000. The NH is comparable.

At the end of 9 months you either have to purchase or return to them. There is no interest either. I don't know for sure, but the financing will be what ever I can find or what they are offering at the time.

Thanks,
Dave

 

[willy1947]

DAP,

Yep, brand new machine. You do not have to rent for 9 months. You can stop and buy it at any time or return it. I would probably do it for about 4-5 months.

I guess if I wanted a different one, I would just lose my money. I don't know for sure though.

I would just finance it out right now, but I've got a few too many irons in the fire. This is replacing my new Jeep. I haven't actively tried to sell it yet, but don't forsee a problem getting rid of it. It is a $290 a month payment right now. The tractor payment would replace it and a little extra. /forums/images/graemlins/frown.gif

I would love to find a used one, but haven't found one. My bank wants 9% to finance it. It's hard to beat the 0%-5% from the dealer.

Thanks,
Dave

 

[BillyP]

Dave,

I don't know the prices of these tractors but doesn't sound like a bad deal for you.

Just be sure and read the fine print. You sure wouldn't want any surprises down the road.

 

[MarkV]

Will the tractor still qualify for the manufactures new equipment finance plans at the end of 9 months?

MarkV

 

[Steve02]

And also - When will the warranty start? Will you have the full warranty after you decide to purchase it?