To finance or not to finance ...

[ericm979]

???

Kubota's website currently shows the following rebates in lieu of 0% financing:

B2650: $400
B3350: $900
All L01 models: $500
All L60 models: $700

That sure sounds like a financing charge to me, just with a different name.

Kubota changes the incentive package a few times a year. Sometimes there's a discount for cash, sometimes there isn't. The whole thing comes from corporate unlike loans at a car dealer.

 

[Maharaja]

Kubota changes the incentive package a few times a year. Sometimes there's a discount for cash, sometimes there isn't. The whole thing comes from corporate unlike loans at a car dealer.

I bought a 7060 $700 sounds right. I consider it prepaid interest (cost to borrow at 0%) no free lunch but a good option for me at this point to hang onto cash. My retired banker wife argued against it and said pay cash.
I didnt listen not sure if I made the best or worse decision but I feel comfortable with the terms.

 

[rScotty]

snip..... My retired banker wife argued against it and said pay cash. I didnt listen not sure if I made the best or worse decision.....

Uh, well.....I don't think I'll offer an opinion here.
rScotty

 

[MiserableOldFart]

The one very scary aspect of financing is if you go out on a limb and finance beyond the term of the full warranty, and worse, still, past the time of the much more limited "drivetrain" or whatever warranty. I used to say I'd never do that, but looking at current prices, if and when I make a purchase, I might. Again, to me, the absurd cost of parts is the main motivator in getting me interested in a n*w tractor, in addition to concerns about long term major parts availability at all, given the profusion of and short production time of, so many different models. If you bought a Ford 8n brand new, and you are lucky enough to still be alive, just about anything for it is available now, more than a half century later. I sincerely doubt that will be the case with these newer machines. Long term parts availability is not of personal concern to me, but I would expect that my heirs should get something of value in the tractor when I kick.

 

[finn1]

It’s foolish, in my opinion, to worry about the potential residual value of anything to benefit your heirs.

Very likely your grandchildren will have no interest in an old tractor.

 

[atsah]

Depends how old he is and how old the tractor is when he "kicks"..

 

[GirlWhoWantsTractor]

A lot of good advice here.

Agree if it's a toy, hope you already have a home with a good bit of equity and affordable payments, an additional large chunk of $$ in the bank over-and-above the tractor cost, health insurance, homeowners insurance, life insurance, long-term disability insurance, a 401K or other plan for retirement, reliable transportation and the ability to replace it when necessary, not to mention a college fund for your kids. That would be a *financial planner* talking.

Of course a lot of folks live their lives fine without most of the above, but you're parsing pennies here in an apparent search for financial perfection. If it's something you NEED then buy it the best way you can, but if it's a toy and you want to be ultra-responsible financially, a tractor ranks pretty far down the list IMO. OTOH, sometimes people do reckless things to make their dreams come true and it works out okay, like buy a sailboat and sail around the world with no real means of support. I endorse that too if it makes you happy.

Your future projections are based on a bunch of factors that are likely to turn out differently.

 

[the old grind]

This ^^ ... OMG yes! :thumbsup: We should all think this way whether we just want, or really need a tractor.

More then having 'too many choices' we can easily have too many goals when making such decisions.

 

[GirlWhoWantsTractor]

Regarding your latter comments. Yes, for the past 3'ish years I have been slowly saving for a tractor on top of all of my other expenses, retirement savings, etc. , while looking at an unhealthy amount of tractor ****. I have enough saved up for ~70% of the total tractor cost.

My problem in all of this is that I come from a long line of <ahem> ... let's say, "spendthrifts". Aside from purchasing a home, I have never been in debt a day in my life. This has allowed me to be in a stable financial situation where I am on track for a comfortable retirement, have liquid emergency savings if something catastrophic happens, and can still put aside some each month for items such as a tractor.

However, living this way for many years makes the thought of taking out a loan a very difficult pill to swallow; even if what I really need right now is time, rather than money, and in the grand scheme of things the financial "loss" would not be all that great.

I'm not one to make rash decisions, but instead prefer to think something completely through and try to see all of the angles. However, I also realize that my way of looking at it purely as an economic exercise does not necessarily paint a complete picture of the decision making process. For this reason, it's very helpful to hear how others came to their decision, as it helps me to consider variables/considerations I may be overlooking.

Wow, what a thread.

I think this thread illustrates that there is no "one size fits all" answer. Depends on your financial situation, your needs, your tolerance for *risk" and other things.

RSR, the sentences bolded above caught my eye. When you grow up in a financially chaotic family, the whole issue of money can be emotionally charged. Plus, you got no good lessons on money management from your family. You've done well so far by going in the opposite direction. Now IMO you need to find your *own* direction. As someone who also grew up in a financially chaotic family, I found Suzie Orman's books to be incredibly useful--beyond that, life changing--and I recommend them to you wholeheartedly. I think once you've found your *ground truth* about finances, your tractor decision will be easy.

 

[Industrial Toys]

I do live under unusual circumstances, but I have never bought anything on time, in my entire life. I can't even imagine what that is like. I would hate paying for something again and again and again and . . . Probably, no point starting now.