0% doesn't always mean 0%

DavesTractor · May 1, 2012

lambchop said:
Hello Dave's Tractor,

.... I decided on purchasing the Kubota because the local Kubota dealer has been in business for about 30 years and I anticipate he will be in business if my tractor needs service in the years to come.

Lambchop,

Buying a good quality unit from a reputable local dealer makes a lot of sense to me. We could slice and dice your analysis, because there are some issues to speak about, but when it comes right down to it, Kubota has a lot to offer and we all wish you the best.

Just take good care of it in case you ever want to trade it in on a new Mahindra....

Dave

Richard R. · Jun 2, 2012

a red green fan !!!!

tlbuser · Jun 2, 2012

LAWALLSTRACTOR said:
I agree to some extent, but when financing comes into play, the only way to compare from one brand to another is to decide how many months you want to pay for it in, and compare the monthly payment for that many months. Between % rate, buy downs, and rebates, it only leaves the monthly payment for x number of months as an accurate comparison.

Cash price = cash price, easiest way to get a head to head comparison. If a 30 hp hydrostat brand x is cash priced at 11,000.00 and brand y 30 hp hydrostatic is 11,000.00 and brand z is 11,500.00. What is different ?

LAWALLSTRACTOR · Jun 2, 2012

tlbuser said:
Cash price = cash price, easiest way to get a head to head comparison. If a 30 hp hydrostat brand x is cash priced at 11,000.00 and brand y 30 hp hydrostatic is 11,000.00 and brand z is 11,500.00. What is different ?

If you are financing, the only true way to compare is to get the monthly payment and multiply it by the chosen number of months. Mo Payment X loan duration in months = comparable number.

teg · Jun 2, 2012

tlbuser said:
Cash price = cash price, easiest way to get a head to head comparison...

Hidden costs, Smoke and Mirror crap *IF* you finance - which is the question as the title implies; "0% doesn't always mean 0%".

DavesTractor · Jun 4, 2012

teg said:
Hidden costs, Smoke and Mirror crap *IF* you finance - which is the question as the title implies; "0% doesn't always mean 0%".

Actually I will finance people at the cash price, it just isn't a subsidized low interest rate. So when I advertise a tractor for $15,000 with all cash discounts applied, the same price applies at the 5.79% rate, or whatever the standard rate is at the moment. If a person wants 0%, the rebates/discounts go away and the tractor price goes up to where it was before we discounted it down for the cash buyer.

Richard R. · Jun 9, 2012

I just pulled the trigger on the 5035 with the Ml 130 FEL. and as is posted here. I found out that 0% is not 0% the price of the tractor was $31,345.00
if I used the 0% they took $1,000. off
If I used the 4.25% financing they took $2,000. off
If I paid cash they take $3,000 off which makes the tractor $28,345. in addition to that savings I don't have to carry there insurance at $1,475. and I save there credit procesing fee of $250. So by paying cash I saved $4,725.00 Now if you say I don't have that kind of cash. you can still get your own loan from you credit union and carry the insurance on your home insurance. as long as you give them the check there paid off !!!!
Richard

tedhrs · Apr 9, 2013

Here is my dealings so far with the interest and payments etc.... All of this based on a 4035 pricing wise:

Dealer can give me a base price of say $25000 for cash (pay them a check, no matter where it comes from, but take your financing through 3rd party in to consideration - mine was going to be 3.5% for 60 months, so total for me would end being $27288 total at the end but a monthly payment of $455)
Add a $1000 to the price bringing to $26000 for the rate of 2.99% for 72 months (breaks down to a total of the tractor being $28,434 when done with a monthly payment of $395)
Add another 1000 to that price bringing to $27000 for the 0% for 60 months (total of tractor bening $27000 all said and done with a monthly of $450)

per their program for getting 0% for longer terms, there is a buy down, so lets take that under consideration next:
Take your $27000 price and add on another $1200 for rate buy down for an 84 month term, this would bring your total tractor price to $28200 with a monthly payment of $336.

Obviously if you can for the money for the 0% for 60 you will be seeing it at the cost with a higher monthly payment than that at the 0% for 84 months. What you have to think about is your budget. Can you suck it up and pay the higher monthly or is it worth it to you to pay an extra $1200 to get a monthly payment in your budget.

kootch88 · Apr 9, 2013

Bought a p/u last week and negotiated a cash price since I already had financing. Dealer still matched my 1.9% for up to 72 months (only did 48). A lot of discussion has been had that cars are no different, if you finance you pay more. Just pointing out that that is not the case and never has been in my experience buying new vehicles over the past 30 years. Tedhrs did a nice job showing the 0% still works out nicely as a total package.