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[Snead Tractor LLC]

You can still get the 0% for 60 months now. However, there is a price that goes with that rate. The price is going to be in what the tractor cost at 60 months compared to 42 months.

 

[JOHNTHOMAS]

You can still get the 0% for 60 months now. However, there is a price that goes with that rate. The price is going to be in what the tractor cost at 60 months compared to 42 months.

Do what??

 

[Snead Tractor LLC]

Do what??

Lets say you want a certain tractor, and your dealer quotes you 18,000.00 and 0% for 42 months. But, you want that tractor with 0% for 60 months, that tractor is going to cost you more. The price will change from $18,000 to $18450 when you go with 0% for 60 months

Hope this helps

 

[bp fick]

So, zero isn't really zero. At least if you want a longer period. Anybody got a sharp pencil to figure that 450 bucks just for carrying the loan out from 42 to 60? Seems relatively steep for an additional 18 months, or am I missing something?

 

[Evil the Weasel]

Lets say you want a certain tractor, and your dealer quotes you 18,000.00 and 0% for 42 months. But, you want that tractor with 0% for 60 months, that tractor is going to cost you more. The price will change from $18,000 to $18450 when you go with 0% for 60 months

Hope this helps

What a deal... pay the difference up front. Or maybe you are saying by the time the 0/60 deal comes back around the price of the tractor will have gone up so you didn't gain anything and maybe lost by waiting.

 

[JOHNTHOMAS]

So, zero isn't really zero. At least if you want a longer period. Anybody got a sharp pencil to figure that 450 bucks just for carrying the loan out from 42 to 60? Seems relatively steep for an additional 18 months, or am I missing something?

You must be missing something. That would be about 1.7% APR on $18000 for the additional 18 months. Some would say the interest would be on the unpaid balance after the 42 monthly payments but I'm not sure that would be a legitimate method to determine the true APR with the 0% for the 42. But if you do calculate it that way then it 5.5% for the $5400 for the additional 18 months. That's still not 0% but still fairly cheap. Or .005% APR of the $18000 for the entire 5 years. Or most simply $450 to borrow $18000 for 5 years or $450 more to spread an $18000 loan out over 60 months instead of 42. Or $428.57 mo for 42 months or $307.50 a month for 60 months, an additional $7.50 a month for 60 months (the $450). None of the interest rates seem bad to me or the simple $450 to extend an $18000 loan to 60 instead of 42 months.

 

[Snead Tractor LLC]

You must be missing something. That would be about 1.7% APR on $18000 for the additional 18 months. Some would say the interest would be on the unpaid balance after the 42 monthly payments but I'm not sure that would be a legitimate method to determine the true APR with the 0% for the 42. But if you do calculate it that way then it 5.5% for the $5400 for the additional 18 months. That's still not 0% but still fairly cheap. Or .005% APR of the $18000 for the entire 5 years. Or most simply $450 to borrow $18000 for 5 years or $450 more to spread an $18000 loan out over 60 months instead of 42. Or $428.57 mo for 42 months or $307.50 a month for 60 months, an additional $7.50 a month for 60 months (the $450). None of the interest rates seem bad to me or the simple $450 to extend an $18000 loan to 60 instead of 42 months.

You are exactly right, its still a great deal for the additional 18 months. Also, your giving a great example with your figures.

Guys there's a dozen ways you can look at the additional cost, but taking the 7.50 a month over a 60 month period is not bad at all. Plus, what if the rates go from 42 and 60 back to 36 and 42. That 7.50 a month will look REAL cheap then.

We carry MF as well, and we can still do 0% for 60 months with no increase in price. We can even do 0 for 72 months on the MF compacts.

 

[JOHNTHOMAS]

You are exactly right, its still a great deal for the additional 18 months. Also, your giving a great example with your figures.

Guys there's a dozen ways you can look at the additional cost, but taking the 7.50 a month over a 60 month period is not bad at all. Plus, what if the rates go from 42 and 60 back to 36 and 42. That 7.50 a month will look REAL cheap then.

We carry MF as well, and we can still do 0% for 60 months with no increase in price. We can even do 0 for 72 months on the MF compacts.

I might could have found a couple more ways but I couldn't find a dozen ways. Maybe if one has other debts I could have found a dozen ways.

 

[kinglake]

You must buy tractors (and other things) different than we do down south. We negotiate the price. We then figure out how it will be paid for. It is completely unacceptable for someone to try to change the price after it was agreed upon because they decided to finance for 60 instead of 42 months. It almost seems unacceptable. If it is discussed up front, that is fine, but that is not the custom down here. They do generally ask if you are financing or paying cash but that is completely different that what was stated above.

 

[bp fick]

You must be missing something. That would be about 1.7% APR on $18000 for the additional 18 months. Some would say the interest would be on the unpaid balance after the 42 monthly payments but I'm not sure that would be a legitimate method to determine the true APR with the 0% for the 42. But if you do calculate it that way then it 5.5% for the $5400 for the additional 18 months. That's still not 0% but still fairly cheap. Or .005% APR of the $18000 for the entire 5 years. Or most simply $450 to borrow $18000 for 5 years or $450 more to spread an $18000 loan out over 60 months instead of 42. Or $428.57 mo for 42 months or $307.50 a month for 60 months, an additional $7.50 a month for 60 months (the $450). None of the interest rates seem bad to me or the simple $450 to extend an $18000 loan to 60 instead of 42 months.

You are exactly right, its still a great deal for the additional 18 months. Also, your giving a great example with your figures.

Guys there's a dozen ways you can look at the additional cost, but taking the 7.50 a month over a 60 month period is not bad at all. Plus, what if the rates go from 42 and 60 back to 36 and 42. That 7.50 a month will look REAL cheap then.

We carry MF as well, and we can still do 0% for 60 months with no increase in price. We can even do 0 for 72 months on the MF compacts.

Thanks JT for crunching those numbers. OK, it is what it is. Next ... how do we "average" this? Flat $450 for all sales? From a $11000 BX to $34000 L?
Is it merely a flat fee? Need more clarification. John's example was on a $18000 purchase. What about those higher, those lower?