Totally agree. Which is why I wasn't surprised at the other dealers when they upped the price after hearing I wanted the 0%.
Interesting.
The financing game - what's the real deal?
- Thread starter ameador1
- Start date
Totally agree. Which is why I wasn't surprised at the other dealers when they upped the price after hearing I wanted the 0%.
Interesting.
DavesTractor
Elite Member
It works better from a sales angle to offer discounts if folks do not take 0%. If you start from the cash price and then charge more for 0% it is distasteful to folks. Same thing, feels way different.
Saying a unit is $17,500 at 0% or there is a $1500 discount for cash seems OK. Saying it is $16,000 or we have to add $1500 for 0% seems unfair....
Saying a unit is $17,500 at 0% or there is a $1500 discount for cash seems OK. Saying it is $16,000 or we have to add $1500 for 0% seems unfair....
DavesTractor
Elite Member
Actually, they tell the dealer what it costs them in the background and the dealer can package the financing options and discounts in whatever manner they wish. Some do this better than others.
That is why when you email a Mahindra dealer and ask for a price on a tractor it is really helpful to tell them your ideal purchase method, cash, low rate, big down, little down, monthly constraints, etc. They can then give you a couple of options that best fit your financial goals.
I bought a Max25 last year with FEL, MMM & BH. All my neighbors have a minimum of five acres. They also have FEL and MMM (or rear mount finish mowers) tractors. I'm the envy of my neighbors because I have the BH. It has allowed me to pull railroad tie fence posts, dig nice deep holes and do some other stuff.
The reason I mention this is that you should get it right away, and not buy it later. Would you be able to finance it? Other 3PT implements like a bush hog, disk, seeder, etc. can be borrowed, rented, or bought used or new for less then $1K later on. The BH will generally be $2K+ later. So adding it to the original loan is probably easier.
Just my :2cents:
The reason I mention this is that you should get it right away, and not buy it later. Would you be able to finance it? Other 3PT implements like a bush hog, disk, seeder, etc. can be borrowed, rented, or bought used or new for less then $1K later on. The BH will generally be $2K+ later. So adding it to the original loan is probably easier.
Just my :2cents:
Thanks everyone for your information and input. Interesting perspectives - I think the one that hit me the most on this was the one where the financed prices are the 'real' price and the lower prices are with a cash discount. I still feel like it is somewhat misleading as this effectively gets people in the door with a price that is unrealistic for (I'm assuming here) the majority of people who probably end up needing to finance. Then there are some models with more of a 'financing fee' connected to them. Like the 16 series that had a couple thousand more added to their cash price, but much less of a difference on the 3535 - but with a larger percent financing (3.99/84 vs 2.99/84 - or 0/84). Just confusing, inconsistent from model to model on prices difference, different percentages they offer for different terms - per model, etc...
I decided on the specs, and I think on the overall prices, that I picked the best model for my money - but without holding the dealer hostage for a week - I don't think I'll ever know what all I could have potentially gotten for the money I was willing to spend and finance.
I finally decided on, and got approved for, a 3535 with FEL and Backhoe. $34,000 + insurance + finance fee of some sort + sales tax (6%) - less $3000 down - $407 per month on the 0/84 plan! The dealer seemed honest and up front. He included delivery (2 hour drive by car - I'm sure longer by heavy loaded truck), filled tires, and a heater plug for cold weather for free. We split the cost of a thumb for the backhoe outside of the financing (thought about it after paperwork was done). Hopefully I will have it by this Saturday!
It seems like a good machine. I have posted a new thread about another issue related to the backhoe though - the model seems to be somewhat in question, but other than that, I can't wait!
I decided on the specs, and I think on the overall prices, that I picked the best model for my money - but without holding the dealer hostage for a week - I don't think I'll ever know what all I could have potentially gotten for the money I was willing to spend and finance.
I finally decided on, and got approved for, a 3535 with FEL and Backhoe. $34,000 + insurance + finance fee of some sort + sales tax (6%) - less $3000 down - $407 per month on the 0/84 plan! The dealer seemed honest and up front. He included delivery (2 hour drive by car - I'm sure longer by heavy loaded truck), filled tires, and a heater plug for cold weather for free. We split the cost of a thumb for the backhoe outside of the financing (thought about it after paperwork was done). Hopefully I will have it by this Saturday!
It seems like a good machine. I have posted a new thread about another issue related to the backhoe though - the model seems to be somewhat in question, but other than that, I can't wait!
jrbarnard
Bronze Member
For me, it is all about the monthly payment, the lower the payment, the more tractor I can afford. 84 months is not a huge deal as 1 - it SHOULD last longer than that and 2 - It will get paid off by then, if not sooner. and lastly 3 - It will save me a heck of a lot more than I would have paid if I did not own the tractor.
For instance, I have a lot of work that needs to be done. 2 jobs would require a week of renting 2 bobcats. That is money out the window as I do not own them.
The "luxury" of being able to keep my payments low is more than worth the extra cost of longer term financing and what I factor into the deal.
I have not bought mine yet, but I am looking around, learning from here and other sources, and I will end up renting a backhoe if I need one, but saving the 7k and adding it into a bigger tractor with a CAB
I have the same rock issues you do and we can use a backhoe.. but a bigger tractor is a better solution, imo.
Russ
For instance, I have a lot of work that needs to be done. 2 jobs would require a week of renting 2 bobcats. That is money out the window as I do not own them.
The "luxury" of being able to keep my payments low is more than worth the extra cost of longer term financing and what I factor into the deal.
I have not bought mine yet, but I am looking around, learning from here and other sources, and I will end up renting a backhoe if I need one, but saving the 7k and adding it into a bigger tractor with a CAB
I have the same rock issues you do and we can use a backhoe.. but a bigger tractor is a better solution, imo.
Russ
pacountryboy
New member
- Joined
- Jan 31, 2011
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- 1941 Farmall M
Good luck on the purchase my brother. I am going through a purchase now and it isn't as aggravating as your situation but there is a ton of waiting to hear back if the deal is done or not from John Deere financing.
For me, it is all about the monthly payment, the lower the payment, the more tractor I can afford. 84 months is not a huge deal as 1 - it SHOULD last longer than that and 2 - It will get paid off by then, if not sooner. and lastly 3 - It will save me a heck of a lot more than I would have paid if I did not own the tractor.
For instance, I have a lot of work that needs to be done. 2 jobs would require a week of renting 2 bobcats. That is money out the window as I do not own them.
The "luxury" of being able to keep my payments low is more than worth the extra cost of longer term financing and what I factor into the deal.
I have not bought mine yet, but I am looking around, learning from here and other sources, and I will end up renting a backhoe if I need one, but saving the 7k and adding it into a bigger tractor with a CAB
I have the same rock issues you do and we can use a backhoe.. but a bigger tractor is a better solution, imo.
Russ
Well, to some extent, that is what I looked at - that's what drove my decision to buy in the first place. Over the long term I will spend and awful lot on rentals and delivery fees and additionally the convenience factor - I can work when I have that chance to vs scheduling a rental and delivery. The overall cost was a large factor, but monthly payments was the primary restriction. So in the process of finding out what I could get, I ran into pricing and financing options where the monthly payment was coming out almost exactly the same - expect that one option had a lower sales price with a small finance interest rate or higher sales price with a 0% interest rate. So, same product, same payment, but different interest rates. In this case, to me, it make more sense to choose the one with the lower price and a small interest rate (2.99% in my case) so that I have the option of paying a little extra when I can to lessen to overall expense over time. With these different financing options and correlating changes in sales price and interest rates - it makes for a confusing and complicated decision.
In the end - I opted for a little more of a monthly payment, than I was wanting to do, for the purpose of getting a fair bit more tractor. This also ended up having me choose the 0%/84 month finance option to get my payment closer to where I wanted it. In this case there was very little difference in the sales price between cash and financing - $500, and the interest rate was not 2.99, but 3.99, so the 0% option was noticeably cheaper per month. But, on the 3016/3616, the price difference was a couple to a few thousand difference in cash verses financing prices and the interest rate was 2.99% - if not doing the 0% option. With those, the payment for 0%/84 and 2.99%/84 worked out to be within a dollar or two difference - just with the 2.99% option, you COULD pay more per month or make and extra payment or two and save a lot down the road.
DavesTractor
Elite Member
Regardless of the finance rate chosen, the monthly payment is often really close to what it would cost to rent a tractor for one day. I often tell people that if they can use the tractor one full day a month it costs the same as renting and they get it for 30 days a month instead of 8 hours. And they own it when it is all said and done. It is a compelling argument if there is work to be done. And you get to use the same machine each time, you do not have the transporting issues, you can run it an hour in the evening for fun, etc.
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