Kubota - Does 0% financing mean they have high markup

[jim442]

I didn't imply the banks were cheating anyone, if you get the money for 1 percent and float it at 4.5 (have not seen 3.75, not doubting you though) it's hard not to make money. They are not lending because the new regulations are going to require greater cash reserves. Guess we'll never know for sure, but if I put out a dollar in my company I want a direct return on it

 

[timswi]

I didn't imply the banks were cheating anyone, if you get the money for 1 percent and float it at 4.5 (have not seen 3.75, not doubting you though) it's hard not to make money. They are not lending because the new regulations are going to require greater cash reserves. Guess we'll never know for sure, but if I put out a dollar in my company I want a direct return on it

Very true about the reserves. You wouldn't believe what they are for these so-called loan modifications. Like burying cash in the back yard and never to be found for banks. It does make some of them skittish.

 

[Motractr]

Great thread. I wonder with US dollar going down relative to other currencies lately if we will see in increase in import prices, i.e. Kubotas.

 

[jim442]

Not to mention the inflation we could be facing..... mayby I can buy a gold tractor?

 

[picker77]

Like most folks, I don't like financing anything either, and until I financed my latest tractor on the 36 mo zero interest plan we didn't owe a soul on this planet a penny. However, I do like paying John Deere back over 36 months at no finance penalty using U.S. dollars that will be worth less and less as each of those months goes by. Assuming something more than zero inflation stays in effect, that 'hidden discount' built in over the three years is essentially found money as far as I'm concerned, and is over and above any break I might have gotten when I negotiated the price. It also helps offset the unavoidable depreciation over that same period.

 

[Motractr]

Even sweeter if you can depreciate your tractor(s) on your taxes.

 

[montelatici]

Like most folks, I don't like financing anything either, and until I financed my latest tractor on the 36 mo zero interest plan we didn't owe a soul on this planet a penny. However, I do like paying John Deere back over 36 months at no finance penalty using U.S. dollars that will be worth less and less as each of those months goes by. Assuming something more than zero inflation stays in effect, that 'hidden discount' built in over the three years is essentially found money as far as I'm concerned, and is over and above any break I might have gotten when I negotiated the price. It also helps offset the unavoidable depreciation over that same period.

Good point.