TYM T474 vs John Deere 4044M

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Not true. Dealers do not give very much cash discount on the price of a new tractor. I was offered a $1100 cash discount on a $40k tractor if I paid cash. I went with the 0% for 72 months and paid the extra $1100. I found this to be true with the 4 dealers I got quotes from (in 3 different states). Tractor dealers aren’t offering much discount for cash. Where the Kubota dealers make up for the 0 interest is in the Ktac insurance that is required for financing. But it’s good insurance so I’m ok with the $75/month that it costs.

Their "cash price" is positioned to make the 0% crap more appealing.
It is part of the hoax.
Don't take too much off the "cash price" because we don't want the customer to go to his bank and acquire a home equity loan at 1.9%.
They figure their cash price so it looks commensurate to you taking the extra step of going to your bank for the loan.
You are still paying interest on an over priced item to equate to the illusion of 0%.

 

[Hozzie]

A manufacturer can raise the MSRP for a multitude of reasons. One of those could be 0%, but I don't believe that is the major contributing factor to an increase in MSRP. It's impossible to say exactly what the impact is (without seeing their internal docs) and I also won't disagree that it probably has some impact, but I don't believe it is a 1 to 1 offset.

At the end of the day it doesn't really matter. The price is the price regardless of the reason. People have to decided to pay it or not.

 

[RSR]

My LS dealer offered me a $2500 cash price reduction over the finance price. Kubota didn't offer anything. One of the reasons I didn't go with Kubota. I'm not willing to pay a finance charge when I'm not financing the tractor.

 

[espacef1fan]

It makes no sense at all.
You already paid the interest within the price of the commodity which I'm quite sure you have no idea what that interest rate really was.

I did have an idea of the interest rate, loan terms and monthly payment.

They drew up both sets of paperwork.

In the end, it was about $70/mo less to do the 0% +finance charge than the 5% or whatever it was without the finance charge.

The risk for me is I owe more in pay off which would affect me if I needed to sell it or trade it in.

However I’ll pay less overall with the option I chose.

 

[Cougsfan]

I agree with you that some things say made in america and yet have foreign parts. However, there are products that are made 100% in the usa. Plus, i guess im struggling to understand when you say "sub-standard in quality". Are you saying these are sub quality to their chinese counterparts? Plus, isn't buying something that has 60% of componets made in america better than buying something with 100% made overseas?

Are you really naïve enough to think a JD4044 is 100% American made? Or even 60%? Unlike JD's larger tractors, the JD4044 and their other compacts are no more "American made" than any other Korean, Japanese or Indian tractor. In fact some "foreign" tractors (Kubota and Branson for instance) have a considerably larger percentage of their final assembly done in the States. The American JD workers get no benefit at all from the sale of JD compact tractors. The only Americans who makes more money from a JD compact tractor sale are the overpaid JD executives and the company stock holders (a large percentage of whom are actually Chinese).

 

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I did have an idea of the interest rate, loan terms and monthly payment.

They drew up both sets of paperwork.

In the end, it was about $70/mo less to do the 0% +finance charge than the 5% or whatever it was without the finance charge.

The risk for me is I owe more in pay off which would affect me if I needed to sell it or trade it in.

However I’ll pay less overall with the option I chose.

Only because the company dictated the purchase price and its buy down price was commensurate to achieve to look like a "savings".
Who ever thought of this scheme was very clever and looked at all angles to make it seem like the consumer is getting something for nothing.
It's the "lie" of the entire thing that is bothersome to me.

As far as your concern of being under water with an eventual loan, they also considered that with themselves.
With what has happened to tractor prices in the last15 years, it is doubtful that you would "lose" money on the deal.
People are getting not only what they paid for their tractors 5-10 yrs ago, but in some cases more.

 

[arrow]

A manufacturer can raise the MSRP for a multitude of reasons. One of those could be 0%, but I don't believe that is the major contributing factor to an increase in MSRP. It's impossible to say exactly what the impact is (without seeing their internal docs) and I also won't disagree that it probably has some impact, but I don't believe it is a 1 to 1 offset.

At the end of the day it doesn't really matter. The price is the price regardless of the reason. People have to decided to pay it or not.

Hozzie, yes there can be a multitude of reasons for price increases but that is not my argument. The jist of "0'% as a marketing scheme, has substantially added to the pricing of commodity.
It is the "big lie" about the whole thing that bothers me the most.
The gullible fall for this and run to buy stuff thinking they are not using their money and its not costing them anything to do so. That is total bullshite.

We have a commercial on the local channels right now for a local furniture store staying "when was the last time you went to your bank and was charged nothing for your loan"? "Well we are doing just that at Jordan's Furniture with 0% interest with as much furniture as you want to buy and you have 84 months to pay". I want to shoot the TV every time I hear this ad.

The "plus" for this is totally for the company but they make it look like the customer is the one really getting the advantage and make it seem like "win-win".
0% does several things advantageous for the company: 1, They get to be their own finance institution and able to glom the interest that would ordinarily go elsewhere.
2. they can dictate pricing anywhere they want to appear advantageous. Haggling is reduced to a breath in many instances. 3. They achieve total retail pricing without making it seem so bad for the consumer. 4. They purport how convenient it is for the customer not to have to shop for financing.
5. The scheme is quite ingenious as it increases customer traffic with the customer thinking it is not costing them anything and they don't have to use their own money.
Exactly like you thought.

It is pulling the wool over the publics eyes and I for one, abhor that kind of funny business. I didn't do such when selling Dodge trucks, I don't do it now with working for Mahindra and i will always tell people the truth and show them their best avenues to acquire what they want even to the extent of perhaps they should not be considering such a heavy purchase right now.

I have 3 daughters and when they went to buy cars for themselves, it was like the sharks were circling at the dealerships. That to me was abominable to treat people in such a way because one thinks to take advantage of them.

That is what 0% is for me, taking advantage of people and I will never buy furniture at Jordan's Furniture.

 

[ruffdog]

I would sure lean towards the green color.

 

[jyoutz]

Their "cash price" is positioned to make the 0% crap more appealing.
It is part of the hoax.
Don't take too much off the "cash price" because we don't want the customer to go to his bank and acquire a home equity loan at 1.9%.
They figure their cash price so it looks commensurate to you taking the extra step of going to your bank for the loan.
You are still paying interest on an over priced item to equate to the illusion of 0%.

Your argument makes no sense. The cash price is the lowest price available. I’m sure not going to pay interest on a bank loan to lower the price of a $40k item by several hundred dollars. Neither am I going to pull money from investments making 10% to save a few bucks.

 

[espacef1fan]

Only because the company dictated the purchase price and its buy down price was commensurate to achieve to look like a "savings".
Who ever thought of this scheme was very clever and looked at all angles to make it seem like the consumer is getting something for nothing.
It's the "lie" of the entire thing that is bothersome to me.

As far as your concern of being under water with an eventual loan, they also considered that with themselves.
With what has happened to tractor prices in the last15 years, it is doubtful that you would "lose" money on the deal.
People are getting not only what they paid for their tractors 5-10 yrs ago, but in some cases more.

I even cross shopped loans at credit unions and stuff but the 0% “scheme”still worked out to be the best deal even if it “feels” deceiving.

Still, everyone should do their homework and do some simple math.

And I agree about tractor pricing, that’s why I bought the tractor 2 years earlier than I planned.