Looking for tractor to maintain 8.5 acres in NH

[IslandTractor]

If you are one of the big banks you can borrow money from the Fed at less than .5% (that is one half of one percent) . . . Then that same entity can buy guaranteef federal gov't bonds from the fed that pay 2.5% to 3.25%. If you are part of the big players . . Not only is there a free lunch, but they actually pay the big players to eat it. By the way . . the big players can use the borrowed money in other ways besides buying the guaranteed gov't bonds. And depositors are getting 0.1 and 0.15% interest if the have qualifying sized deposits

Bottom line: zero interest rate loans on tractors and cars are marketing voodoo to attract financially naive consumers.

 

[AxleHub]

Bottom line: zero interest rate loans on tractors and cars are marketing voodoo to attract financially naive consumers.

I think that statement is far to broad to be taken as valid. Equipment financing is far easier to acquire from a seller than it is from a bank or credit union in today's economic times. Speed of approval thru the manufacturer is in minutes instead of hours or days. This is especially true if the buyer is a sub prime candidate. In addition, damage insurance is far more comprehensive and economical by some of the manufacturers.

I know very sophisticated borrowers who obtain financing thru GM or Kubota at 0% but still be able to get rebates of one sort or another. I also know some tractor financing programs are much better than some other brands are offering.

So to paint all 0% financing as being the same and being for suckers is just not logically founded imo. Some programs mau be while others are not. In addition there is the difference of Manufacturer finanacing programs vs. Dealer contributed programs and those have much different conditions to them.

 

[GManBart]

Arent there any 3rd party financing options for tractors? I couldnt find anything. Can get a car loan for 2% anywhere, why nothing for tractors? 6% sucks.

There are. AgDirect is a good company to deal with, and their current rates for new equipment are 3.75 to 4.55% for loans over $10K....rates vary with the term length.

AgDirect - Equipment Financing

 

[IslandTractor]

I think that statement is far to broad to be taken as valid. Equipment financing is far easier to acquire from a seller than it is from a bank or credit union in today's economic times. Speed of approval thru the manufacturer is in minutes instead of hours or days. This is especially true if the buyer is a sub prime candidate. In addition, damage insurance is far more comprehensive and economical by some of the manufacturers.

I know very sophisticated borrowers who obtain financing thru GM or Kubota at 0% but still be able to get rebates of one sort or another. I also know some tractor financing programs are much better than some other brands are offering.

So to paint all 0% financing as being the same and being for suckers is just not logically founded imo. Some programs mau be while others are not. In addition there is the difference of Manufacturer financing programs vs. Dealer contributed programs and those have much different conditions to them.

Somebody is making money off a zero percent loan. The money they are making as profit comes from you, the purchaser. There is no magic pot of money to compensate either banks or manufacturers who offer zero percent financing. In the case of manufacturers, only the big ones are able to offer zero percent because they are essentially self financing the loan and will not be paid for their tractor in full for three or four years. Even then, the only way they can do it is to jack up the sales price. If they invest $15,000 in labor, materials and overhead to build you a tractor, they must sell for a profit to stay in business. If they are willing to sell it for a $3000 profit then they can sell it to a dealer for $18,000. The dealer can then sell it to you for $20,000. If they are also giving you a zero percent loan, the manufacturer is not actually making their $20,000 back until you have made your final payment on the loan three to five years from now. That "loan" is costing the company quite a bit of money in opportunity costs. Why would they sell you a tractor that they won't be paid for in full for five years when they can sell it to the next guy in line for cash and be paid immediately? Answer: They sell it to the guy with cash for less than you pay. You are prepaying the difference as a markup on the sales price. You get the "zero" percent loan on the sales price but the sales price is higher than if you paid cash. Indeed, with smaller companies that cannot self finance the zero percent loans, the manufacturer actually pays the bank up front a fee equal to the normal interest rate that would be charged at the time the bank writes you the tractor loan. You agree to pay $23,000 for the tractor, the bank immediately pays the manufacturer $20,000 and then collects monthly zero interest payments from you until $23,000 has been paid. You think you were paying a zero percent loan because indeed you were not charged interest on the $23,000 but you paid more upfront as part of a higher sales price in order to get a zero percent loan.

Zero percent loans are even worse for tractors bought for a business. If you pay interest you can deduct interest on business loans but you cannot deduct the stupid tax you paid by agreeing to a higher sales price in order to get the zero percent financing.

As I stated earlier, there is no free lunch.

 

[mike69440]

Visited Mahindra again this weekend. Checked out the max 26xl. The pedal layout is not ideal. The loader capacity though is better than anything else in the price range.

Was surprised at all the financing "options." Options in quotes because I think its dishonest the way they advertise it. The price of the tractor increases for every financing option. Rather than just tell you they are charging 6% interest, they add the interest cost to the base price and then tell you the financing is 0%.

After building the house I am not going to be able to make a cash purchase, so financing will be key. Seems ridiculous to have to pay 6% on a loan right now but that's where I'm at with both Mahindra and LS. Kubota guy quoted me a price and said there is 0% financing, which I took to mean it was available at the quoted price, but I guess I'll have to follow up and clarify.

Aren't there any 3rd party financing options for tractors? I couldn't find anything. Can get a car loan for 2% anywhere, why nothing for tractors? 6% sucks.

Lastly I emailed the Yanmar dealer on the 424 - seems equivalent to the others I'm looking at except no locking differential which seems to be a really basic exclusion. Also emailed JD dealer on 2025r. Again, seems like a competitor so i might as well get a quote and check it out.

Check put my profile to see what equipment I have. Size matters. The Max28 shuttle I have fits the bill for my small tractor. Check out the reviews of various tractors. I do not know how involved you will get with your tractor, but I need all my equipment to manage my 17 acres, 10 of which is raw woods, that I do not venture much. This weekend I took down a 22" dia. + 65' tall birch tree next to our pasture that was damage in a recent wind storm. I'm really glad I had the L39, as it is very strong for it's size. The area was too muddy for the L39, never mind trying to bring in my excavator It would have been a real bad mess with my excavator. I managed to pull the tree up from a gully after cutting the tree into 3 pieces with the L39. I would have had to cut it into 12 pieces with the Max 28. That would be no fun in a thorn filled rocky gully. I did used the Max28 to carry away the cut up 16-22" lengths to the log spliter, to minimize soil damage and save my back.

I do not know what your property is like, or what the extent of your projects. It seems a something the size of a Max26, the 424 you looked at or a B size Kubota similar Kioti (they run heavy) is the bare minimum size for your acreage.

The tractor looks a lot bigger on the dealer lot than it does in the field. Just saying.

Best of luck hunting for your machine.

 

[pedzola]

Thanks again for the input from everybody. This is getting to be a long and winding thread.

I'll try to post an update on the search once in a while until I make the purchase.

Here's my most recent spreadsheet:




The Yanmars have pretty decent specs. Probably going to visit the dealer this Saturday. Will report back what I find.

I am liking different things about different tractors and dealers right now. Still have some time before I can buy, so will have to see if any new promos or incentives come up in April or May.

 

[DaveNJ]

All zero percent interest deals are BS. All the companies do it. The costs are just added to the sales price. Best to negotiate a cash price and arrange financing through a credit union or local bank.

My buying experience last year last year was frustrating in one respect because of the difficulty in comparing "apples to apples" in the aspect of financing with all of the hidden costs. The only fair way to compare is to come up with a final price including fees, taxes and insurance. In my case, I went with a dealer who suggested private financing with a company who financed many of the commercial purchasers he sold to over the available company "0%" financing. There's a lot of reasons why but 99% of the time I think Island Tractor is correct on this.

 

[Luke'sScreenName]

There may not be free money but there is cheaper money.

 

[AxleHub]

My buying experience last year last year was frustrating in one respect because of the difficulty in comparing "apples to apples" in the aspect of financing with all of the hidden costs. The only fair way to compare is to come up with a final price including fees, taxes and insurance. In my case, I went with a dealer who suggested private financing with a company who financed many of the commercial purchasers he sold to over the available company "0%" financing. There's a lot of reasons why but 99% of the time I think Island Tractor is correct on this.

Something that makes a huge difference in the financing situations is the background of the manufacturer. As an example. Agco owns massey and case and white and a couple others plus it is a banking/financing company. I don't mean they have a financing arm for their products . . . I mean they are a banking/leasing/financing/insurance entity. As a result . . You get a 0% financing option like all the rest offer (with no cash pricing incentives). But then you also get 5 to 6 other financing options with at low interest rates (2% to 4% ranges based on length) that can include the cash incentives. And of course because they own an insurance company . . That does more than just tractors . . they have a great program for that to self protect their loans and buyer's financial safety.


Kubota is not a banking entity . . So they offer the 0 % and the cash incentive options and let dealers figure out other programs on their own. But the ktac insurance is pretty good even though ut is insurance focused only on kubota purchases. So its good . . But more costly than the Agco insurance.

Point is . . . Each tractor brand manufacturer has a different background to drsw their offerings from. A Kioti or Mahindra or Yanmar or Jacobson is much different than an Agco when it comes to financing offerings and options. My isdue is Island Tractor made a blanket statement for all of them . . and the differences are great . . . not the same.

 

[IslandTractor]

This used listing for a Kioti CK20 with BH and other attachments is a real deal if it isn't a scam. It's listed in Dover, MA which is an upscale community and just possibly someone is not aware that it is worth at least several K more than the $8200 asking price. KIOTI CK2 TRACTOR WITH BACKHOE, SNOW PLOW AND ROCK PICK FOR BUCKET It lists a MA phone number, not something in Nigeria so it could be valid. It was probably bought at the same Kioti dealer I bought my CK20 from in Harvard, MA but they are no longer Kioti dealers. No trouble with service or parts though as Bobcat dealers sold an identical tractor with white paint and still service them.

The CK20 is a very capable tractor similar to the Kubota B series but heavier and with a more capable loader. From the look of the loader style (KL120) it is a pre 2008 model but it looks to be in good shape. It is priced lower than a BX TLB and would do twice the work.