The financing game - what's the real deal?

[DavesTractor]

Looks like you are doing your homework, good for you.

I agree that the downside of 0% is that you can never recoup the extra you paid. It is paid up front - if you then pay it off early (like many folks do) you aren't helping yourself. If you go zero, put little or nothing down and don't pay it off early.

 

[ameador1]

Looks like you are doing your homework, good for you.

I agree that the downside of 0% is that you can never recoup the extra you paid. It is paid up front - if you then pay it off early (like many folks do) you aren't helping yourself. If you go zero, put little or nothing down and don't pay it off early.

Trying to!

It makes me feel a little bad though - I like to research and have a pretty good idea of what I want before I show up at a dealer and with this pricing/financing scheme and have to keep adjusting the range of tractors I can consider as the different options are coming to light. I was thinking Max28XL, then 3016, then 3616, and now maybe even a little larger. But every time the bar moves, I have to call these guys back and say "price me up this model too!". Oh well, I guess it's the nature of the game - just gotta work my way through it.

 

[wedge40]

Trying to!

It makes me feel a little bad though - I like to research and have a pretty good idea of what I want before I show up at a dealer and with this pricing/financing scheme and have to keep adjusting the range of tractors I can consider as the different options are coming to light. I was thinking Max28XL, then 3016, then 3616, and now maybe even a little larger. But every time the bar moves, I have to call these guys back and say "price me up this model too!". Oh well, I guess it's the nature of the game - just gotta work my way through it.

I'm guessing they are smiling everytime you go back and ask to get a quote for a more expensive tractor.
I've gotten a basic price for the tractor I want, but not much more. I do plan on putting about 50% down and paying off early, so from reading I'll want a loan WITH interest.


Wedge

 

[DavesTractor]

I'm guessing they are smiling everytime you go back and ask to get a quote for a more expensive tractor.

Wedge

Actually, most of us wish there was just one price...simple. Here is the price, please write a check or finance at the real rate that does not cost me anything in the background that I have to somehow pass on to you, the customer. But alas, customers want and deserve options....so we have a ton of options.

Options are good as they can help you get the plan that works best for you. Like some people have a bunch down, but can only make small payments. Some people have no cash down, but can make huge payments. Some folks are coming into a bunch of cash in a few months due to a windfall of some sort. And for that reason, options are good. For the dealers sake, we'd prefer simple. "Here is the best price, please hand me a stack of $100's". That is the true price!

 

[lantxinNETX]

I'll have to ask about the 5 year option - if it drops the price and the interest isn't too bad, maybe near same payment with 2 less years loan time. Works for me.

The backhoe is probably what I'm after the most right now. Our soil is fairly hard packed (loam, clay, shale, limestone rocks, etc...) and full of fist size (and some bigger) rocks - and occasional - big rocks (dynamite? ). I don't think the FEL will get into it good enough by itself - even with a somewhat bigger unit. I had rented an excavator last year and the blade on the front had a hard time breaking the surface - but the hoe did pretty well. The most pressing issue is the footers for one of the buildings (which is my house). I need to go under the house and dig out new foots and re-build the foundation. Hard to explain, but I don't really have much option other than a smaller (sub-compact or compact) size machine than can dig the footers and then be able to scoop out and move the loosened dirt a distance away. I have another building (to be) that I need to dig footers for. I need to setup a water spring which is going to require digging out the area and building it up and then trenching water and power lines to it - probably 500' or so through the woods. I have to dig and burry water storage tanks (2 or 3, 500 to 1000 gal tanks). I also have a bunch of tree stumps to remove and I'm sure I can come up with more. BUT, I am still new to the world of tractors and digging machines - does this extra info make the backhoe more relevant or is a FEL alone still a possibility? I've never used one before - only the excavator so far - good at getting the dirt loose, but not so good at putting it somewhere else. Larger capacity/power would be nice - I'm sure I could use it in either case - but budget is the limiting factor. I think I would probably cap out with something like the 4035 with just a FEL - and granted that is more than the 3016 - but enough to give up the backhoe?

I'll check further with WV State Tax Dept on the Sales Tax Issue. I think they are behind on Income Tax returns. I did try calling them today and only got "We're REALLY busy!" messages with long hold times and never ended up getting anyone. Will try more tomorrow.

Thanks!

In my part of SE Oklahoma, we have red clay - with plenty of rocks. The FEL on my 4035 could dig into it, but I did buy a bolt-on tooth bar.

Compact tractor bucket bolt on tooth bar for compact tractor buckets up to 75 inches wide. Free Shipping!!

Helped with the digging. But this spring I decided to add the BH as I have a large number of stumps to try to dig out (great for that) as well as about 1000' of water and electric that I need to trench for. (Yes, could have rented a trencher, but given that I am about 90 minutes from the nearest rental yard it wouldn't have worked out too good.)

I understand your immediate need for the BH. Yes, you named off a bunch of good BH tasks. But if "budget is the limiting factor" and you really need the BH right now, then the 3016 is probably a good choice. But I would just say again that the bigger, more powerful tractor is going to take less time (and effort) to handle all of your tasks. Compare the specs on the FELs and the BHs for the 3016 and 4035. What you might be able to do in say five 'cycles' with a 4035 might take you 7 or 8 with the 3016.

As for the physical size - my 4035 is the same basic length as the 3016. It is about 10 inches wider, but that is not necessarily a bad thing. More stability.

I don't know what the price differences are, but when I was looking I would have taken the 4010 or the 4035. Ended up with the 4035 because a dealer had one left over from the year before at a good price. So I bought that one. This was not the most convenient dealer to me and I have not gone back to him for anything else - I bought my BH from a closer Mahindra dealer. So maybe you can look around a little and possibly find someone who has a 4010.

 

[architect]

As a client said to me today, why would you use cash when it earned him 25 percent in the market last year and the bank would lend him $3 million at 2.75 percent. Use their money, save yours for emergency's.

 

[jwcinpk]

Two things to keep in mind are 1-there are other lenders that will lend at very close to the 2.9% offers and you can only finance the cash price. I use Farm Credit Services for everything. 2-it's not set in stone, or at least it didn't used to be, that the 0% price was the only price you can get 0% at. When I bought my 3316 I got 0% for 60 months and they weren't even offering the promotion at the time. They wanted to sell tractors. I wanted to buy. I had bought 2 and will buy more. They weren't willing to see me even sample the competition. It never hurts to ask!

 

[Gravet]

I ran into this shopping for a SCUT, except when I went to JD. They are currently offering 0 for 60. The promotional price was $13,500 with FEL and MMM. Just like the other three companies I looked at, I figured that price would jump 10-15% once I told them I'd like to take advantage of the 0% financing. To my surprise, that JD is $13,500 with or without the financing.

 

[DavesTractor]

I ran into this shopping for a SCUT, except when I went to JD. They are currently offering 0 for 60. The promotional price was $13,500 with FEL and MMM. Just like the other three companies I looked at, I figured that price would jump 10-15% once I told them I'd like to take advantage of the 0% financing. To my surprise, that JD is $13,500 with or without the financing.

Let me take a different angle, just for fun. If I were buying that tractor with cash, I'd be concerned not to get a discount. Why should the cash buyer subsidize the 0% buyer? Obviously the cost of 0% is packed into the price. I want a discount....

 

[KennyG]

Let me take a different angle, just for fun. If I were buying that tractor with cash, I'd be concerned not to get a discount. Why should the cash buyer subsidize the 0% buyer? Obviously the cost of 0% is packed into the price. I want a discount....

When it's a factory offer it's not so clear what subsidizes the financing. Keeping the factory at capacity, controlling inventory, etc may play into it.