Curious if Many Folks are Financing tractors

[chh]

I am not saying it doesn't happen, but I have always found significant discounts by going the cash route. As far as putting the money on interest instead, the last CD I renewed went in at less than 2%. That makes it really tough to make back a 3 to 4 grand cash discount in 3 or 4 years. Part of the difference discount wise may be though that I buy ag tractors and equipment, not compact tractors. The pricing strategy and markups are most likely different.
The best deals usually come from shopping hard, aged inventory and demo's usually have additional rebates or discounts. As deep as some of the dealer lots are stacked right now, I would expect a heavy discount on anything I was looking at in this area regardless of brand.

 

[Hematite]

But did you have the cash?

How much rebate did you lose to get the 0%?

How much was the purchase price (roughly)?

Yes, I had the cash in a 8% return account.

Because it was an aged inventory machine (2008), NH gave me substantially more than the rebate in aged inventory discounts and extended the 0% term as well. The sales tax was even financed at 0%. The machine costs me nothing till the first month payment. The machine has 2 hours on it and was never hooked up to anything. The first few years of depreciation are absorbed by NH.

Ask any wealthy individual and they'll tell you NEVER to use your money when someone else is willing to loan you theirs for 0%! I'm not going to mention the price but it was very low for a new machine.

 

[Hematite]

I have been told the same thing on the last few pieces I financed. One salesman told me "I don't care if you pay in cash or gold, it's still the same price as if you take the financing".

I generally finance to keep my cash freed-up for other opportunities (land, houses, etc.). As long as the interest rate is low or 0% and there's no prepayment penalty, I take the financing.

Our economy is too screwed up and too unpredictable to plunk down huge sums of my cash on equipment that may need to be sold because of government policy changes, huge downswings in the economy, etc.

Besides, my business model changes too often. I'm not a farmer plowing up the same 200 acres every spring/fall.

Your results may vary.

I agree completely. Anytime you can use someone else's money for 0% interest and keep your money in play, there is nothing further to think about!

 

[Duffster]

Ask any wealthy individual and they'll tell you NEVER to use your money when someone else is willing to loan you theirs for 0%! I'm not going to mention the price but it was very low for a new machine.

Dave Ramsey wouldn't agree with you

 

[Hematite]

Dave Ramsey wouldn't agree with you

.....and that's why everyone is entitled to their own opinion!

 

[Alan L.]

I just wonder how much rent money a guy would flush down the toilet while trying to save enough money to pay cash for a house?

 

[Builder]

I just wonder how much rent money a guy would flush down the toilet while trying to save enough money to pay cash for a house?

Very astute point. It's better to be in a financed home than a rented apartment.

You guys that "pay cash" for everything weren't born with $500,000 were you? I sure as heck wasn't.

I don't believe in financing everything, but even at what my wife and I make, I don't "pay cash" for land I buy and materials I buy to build, I finance them at the lowest rates I can and keep my cash "liquid".

 

[Builder]

Dave Ramsey wouldn't agree with you

You know, I like Dave Ramsey a little, but Dave Ramsey speaks from a bulley pulpit of sorts. I'm sure it's real easy to "pay cash" for everything when you earn a nationally syndicated radio host's salary. In his world, all us stiffs are supposed to eat "beans & rice" until we can pay cash for a $500 used car and a trailer home in East Junkford Indiana.

I'm just a regular working stiff, but I'll be damned if I'm gonna do that.

There ain't nothing wrong with some well timed debt.

Now these idiots who are financed beyond belief, they might want to take some of his advice and stop borrowing for everything.

 

[Duffster]

I just wonder how much rent money a guy would flush down the toilet while trying to save enough money to pay cash for a house?

I would bet there are people that wish they where paying rent instead of being upside down on there house

There ain't nothing wrong with some well timed debt. .

I agree

Now these idiots who are financed beyond belief, they might want to take some of his advice and stop borrowing for everything.

I think that is why Dave has such a hard line about borrowing, few people know the difference between good debt and bad debt or when to stop borrowing.

Ramsey does say it is alright to borrow for a home.

 

[Builder]

I would bet there are people that wish they where paying rent instead of being upside down on there house

The "upside down" phenomena is a recent development that has occured because of a rise in foreclosures, economic turmoil, etc. and will reverse itself. I'd rather be upside down a few years in a house with a great chance of developing a lot of equity later than pizzing away cash on renting a home.

I would believe that investing in real estate is still one of the smartest investments known to man. Financing to buy it is nothing to fear. My wealthiest friend invested in real estate for 20+ years with outstanding results.