To finance or not to finance ...

[kenmac]

Why would you not have had dealer support buying used ? Dealers like making money. I'm sure they wouldn't turn you away if something broke.

I bought used for 23K vs 35 . If something were to break that I can't repair, As long as the cost isn't over 12K. I have done ok

Most cases, new has more issues than used.
When I bought my kubota z turn. I looked for used but was unable to locate one. I bought new. Within 1.9 hrs the engine blew a head gasket and overheated (toasted the engine) When I went back to the dealer, they said we'll have to see what the kubota rep has to say.

A week later they call and say kubota was going to cover the replacement of the engine

When I was at the dealer, they had a new 70hp tractor in the shop. something about a water pump issue, and it had been in the shop for four weeks. They said they were waiting on the factory rep to make the call to repair the tractor.

When I went back to pick up my Z turn, It was still there

I bought a new truck in 95 had issues, the dealer refused to make repairs under warranty. The truck had 12k mileage, of the 36000 mile bumper to bumper warranty.
I asked them to call in the factory rep which they did. He sided with the dealer on the grounds they had never seen my problem before.

Long story short. It they don't want to cover a warranty item, they don't have too.
Sure you could sue, but it would cost you more than the repair it's self.
Then there's that miss-use and abuse in the warranty, which they can claim to refuse warranty.

It's up to the individual. New /used/ financing /cash Just what ever floats your boat !

 

[kcflhrc]

It seems like this question comes up quite often. Is the 0% financing really 0%. Well, if you finance through John Deere then yes it is. Same price, cash vs financing 0% for 5 years. Mine will be paid off in January. All I did was put down $1k and financed the balance. And since the tractor is used for Ag use and not used anywhere else but my 10 acres there was no sales tax. So I know there will still be the folks that say it isn't so but really it's simple math to figure it out.

 

[RSR]

It seems like this question comes up quite often. Is the 0% financing really 0%. Well, if you finance through John Deere then yes it is. Same price, cash vs financing 0% for 5 years. Mine will be paid off in January. All I did was put down $1k and financed the balance. And since the tractor is used for Ag use and not used anywhere else but my 10 acres there was no sales tax. So I know there will still be the folks that say it isn't so but really it's simple math to figure it out.

I didn't believe you so I looked up current offers on John Deere's website.

You save between $500-$1,000 extra by paying cash on a 4 series.
4 Family Compact Tractors for sale | John Deere US

.

Cash price savings on the 2 series is $200-$500

2 Family Compact Utility Tractors for sale | John Deere US

But wait, if you buy the 3E, the cash price is $300 MORE expensive?!?!?!

3E Series Compact Utility Tractors for sale | John Deere US

My thought is this. As previously discussed, there is no such thing as a free lunch. If a dealer won't give a significant discount for cash versus 0% financing, it just means the finance price is already factored into the overall cost. This means the cash buyers are financing the 0 % interest rates. I'm not willing to be the sucker that pays for others, so there is no way I would buy a tractor in that scenario. By definition, it's a bad financial deal.

 

[kcflhrc]

I didn't believe you so I looked up current offers on John Deere's website.

You save between $500-$1,000 extra by paying cash on a 4 series.
4 Family Compact Tractors for sale | John Deere US

.

Cash price savings on the 2 series is $200-$500

2 Family Compact Utility Tractors for sale | John Deere US

But wait, if you buy the 3E, the cash price is $300 MORE expensive?!?!?!

3E Series Compact Utility Tractors for sale | John Deere US

My thought is this. As previously discussed, there is no such thing as a free lunch. If a dealer won't give a significant discount for cash versus 0% financing, it just means the finance price is already factored into the overall cost. This means the cash buyers are financing the 0 % interest rates. I'm not willing to be the sucker that pays for others, so there is no way I would buy a tractor in that scenario. By definition, it's a bad financial deal.

My deal was 5 years ago and there wasn't any cash price savings then. Looks like maybe now there is. As far as a bad financial deal, some of us cant pay cash for large purchases, me for one. I needed a tractor and I needed it now. So the 0% deal with $1k down 5 years ago was a great choice for me. Maybe the cash buyers are paying for the 0%, now that would be a bad financial deal on their part. Makes no sense to me to borrow money from a lender just to get a cash discount at a dealer. I guess you have to look at the overall discount vs financing with a 3rd party lender. The other thing about the John Deere deal was I got insurance for free for the term of the loan as long as it stayed on my property. Pretty sure my Homeowners covers it anyway though.

 

[kenmac]

Tractor insurance is another expense you incur when financing a tractor.
Yours was rolled into the price.
I assure you,They aren't giving anything away for free !

If your homeowners cover your tractor , you are lucky. Most won't, so you might want to read your contract carefully

 

[Gator6x4]

Why would you not have had dealer support buying used ? Dealers like making money. I'm sure they wouldn't turn you away if something broke.

I bought used for 23K vs 35 . If something were to break that I can't repair, As long as the cost isn't over 12K. I have done ok

Most cases, new has more issues than used.
When I bought my kubota z turn. I looked for used but was unable to locate one. I bought new. Within 1.9 hrs the engine blew a head gasket and overheated (toasted the engine) When I went back to the dealer, they said we'll have to see what the kubota rep has to say.

A week later they call and say kubota was going to cover the replacement of the engine

When I was at the dealer, they had a new 70hp tractor in the shop. something about a water pump issue, and it had been in the shop for four weeks. They said they were waiting on the factory rep to make the call to repair the tractor.

When I went back to pick up my Z turn, It was still there

I bought a new truck in 95 had issues, the dealer refused to make repairs under warranty. The truck had 12k mileage, of the 36000 mile bumper to bumper warranty.
I asked them to call in the factory rep which they did. He sided with the dealer on the grounds they had never seen my problem before.

Long story short. It they don't want to cover a warranty item, they don't have too.
Sure you could sue, but it would cost you more than the repair it's self.
Then there's that miss-use and abuse in the warranty, which they can claim to refuse warranty.

It's up to the individual. New /used/ financing /cash Just what ever floats your boat !

About the only warranty repair a Dealer or Factory Rep will deny is if they can prove was damage was intentionally done or caused by owners abuse. The Federal Law on Warranty repairs and the subsequent penalty and bad publicity is to great.

Warranty Laws and the Magnuson-Moss Warranty Act

 

[kenmac]

About the only warranty repair a Dealer or Factory Rep will deny is if they can prove was damage was intentionally done or caused by owners abuse. The Federal Law on Warranty repairs and the subsequent penalty and bad publicity is to great.

Warranty Laws and the Magnuson-Moss Warranty Act

even if the dealer gives you a written warranty,Most people don't read those warranties.to know it may state due to mis-use, or abuse

In this day and age, you would most likely have to prove you didn't abuse the machine vs the dealer proving you did.

The manufacture has lawyers on staff to defend them. A consumer would have to pay what $200.00 per hr.for an attorney.

Like I stated, I was denied warranty on a dodge truck, simply because the rep said '' I have never seen this happen before, therefore, dodge will not warranty it'' If I didn't like it, take them to court !
It was cheaper for me to have repairs made.

I don't know if Kubota paid for the repairs on that new tractor with the screwed up water pump, or not, But they paid for a new diesel engine in my Zturn .
I was expecting them to say I should have kept an eye on the coolant, so they weren't going to pay.
That would have been hard to do while mowing grass, the head gasket blows and loses all coolant

 

[prof fate]

My choices were the insurance offred by DLL (kioti's financier) for $993 for 6 years, or through my erie insurance at $115/year ..200ish more to go with kioti. Which is better, what is the small print, etc? I opted to go with the kioti..I know the TRACTOR is covered..regardless fo where it might be. Since it's often at the farm and not the home...that can be a big deal for some insurance coverage.

In the big scheme of things over 6 years $200 is nothing. I spent more than that in diesel this year. I spend 1/2 that to fill the pickup with gas.

Only drawback is if I sell the tractor do I get the unused years back? Didn't check on that detail.

But having a business I've learned that insurance is a very sketchy deal - you MUST read teh small print and insurance agents are all order takers - there is all kinds of insurance you SHOULD have, riders, increased coverage, etc but THEY never up-sell, or 'counsel' you on it..till you call with an issue and find out you COULD HAVE had more coverage...but how are you supposed to know that?

Like rental coverage on your car insurance, towing, etc - very cheap to add, but YOU have to ask about it.

Tractor insurance is another expense you incur when financing a tractor.
Yours was rolled into the price.
I assure you,They aren't giving anything away for free !

If your homeowners cover your tractor , you are lucky. Most won't, so you might want to read your contract carefully

 

[prof fate]

Yeah, right.

GM admits to having an oil consumption issue with their 5.3L enging on 2011 and earlier trucks. Appears about 35-40k miles. Like 2 quarts every 1000 miles.

Had a '13. No issues till 60k miles, then a quart every 1000 miles. Give or take. IMO that's bad. GM says it's normal. They did an engine oil flush - twice - and two consumption monitoring tests where they say it was under 1 qt/1000 miles so no repair is warranted. they did this over 12,000 miles of time. the oil pressure switch goes bad often due to this issue...no warranty coverage on that though.

Today GM warrants their trucks to 60k, NOT 100k as in the past. the company line is "consumers didn't respond to the longer warranty, so we saved money by reducing coverage"...yeah, they got their engines to hold up long enough to be out of warranty!

the issue, from what I've read, is the V8-4 fuel saving bit causes the oil rings to stick and the only fix it rebuild the engine...a pricey thing they of course would prefer not to do.

Had issues with a ford windstar (rusting subframe) that they denied was a warranty item...but a year after I paid for a fix they did a recall on it...adn I got reimbursed.

Warranty? Sometimes it's not worth the paper it's printed on.

About the only warranty repair a Dealer or Factory Rep will deny is if they can prove was damage was intentionally done or caused by owners abuse. The Federal Law on Warranty repairs and the subsequent penalty and bad publicity is to great.

Warranty Laws and the Magnuson-Moss Warranty Act

 

[Gator6x4]

even if the dealer gives you a written warranty,Most people don't read those warranties.to know it may state due to mis-use, or abuse

In this day and age, you would most likely have to prove you didn't abuse the machine vs the dealer proving you did.

The manufacture has lawyers on staff to defend them. A consumer would have to pay what $200.00 per hr.for an attorney.

Like I stated, I was denied warranty on a dodge truck, simply because the rep said '' I have never seen this happen before, therefore, dodge will not warranty it'' If I didn't like it, take them to court !
It was cheaper for me to have repairs made.

I don't know if Kubota paid for the repairs on that new tractor with the screwed up water pump, or not, But they paid for a new diesel engine in my Zturn .
I was expecting them to say I should have kept an eye on the coolant, so they weren't going to pay.
That would have been hard to do while mowing grass, the head gasket blows and loses all coolant

If it happens to you again, send the Manufacturer a lemon and copies of the Dealers failed repair attempts. Alabama has one of the better Lemon Laws. Alabama Lemon Laws | DMV.ORG

Alabama Lemon Laws | DMV.ORG

 

[kenmac]

best I remember the lemon law only applies after the dealer has failed at making the same repair time and time again.
I did not have this issue.
My issue was a one time issue. They wouldn't repair due to the fact the dealer and the factory rep stated they had never seen a failure like I had, happen on any other vehicle. I doubt very seriously they were telling the truth

 

[Diggin It]

Had issues with a ford windstar (rusting subframe) that they denied was a warranty item...but a year after I paid for a fix they did a recall on it...adn I got reimbursed.

Warranty? Sometimes it's not worth the paper it's printed on.

Got into a war of words with a Ford dealer one time many years ago. Company van needed a front end alignment. They quoted an unreasonable price saying they needed to straighten the frame. We went back and forth and they finally admitted that the ONLY way to do the first front end alignment on that model of van when new was the frame bit. Once that was done, future alignments would be easier. To me, that sounded like a manufacturing defect that would be covered under warranty.

I finally persuaded them and got the alignment for a normal price.

 

[Newby first timer]

Well for me the decision to Finance was between getting a second Mortgage on my home to pay between $25 K -- $30 K to have a contractor put in a new leach field for me or buy my own Tractor and do the work myself.

So I put $10500 down on an MX5800 Kubota that cost me $55 K installed twice the Leach field than my neighbors did for the $25 k --$30 K

which stretches my payments out 84 months so that I do not have the Second on my home.

And now I possess a 60HP tractor to do work on my 36 acre property I own out right in another state.

Two weeks ago I put 36 hours on it building a bridge , Cutting a city block long road and plating a very rocky driveway entrance to my property
instead of having to Hire the work done which I would not have done.

With the stretched out payments I will be able to afford to do more work over the years with the Tractor.

Maybe a mistake Financing but in my case it was worth the extra cost for the equipment. I also can take the expense off my taxes as business expenses.

Everyone has to do their own decisions when it come to things in their lives.

This one made sense to me in my situation.

 

[kenmac]

Got into a war of words with a Ford dealer one time many years ago. Company van needed a front end alignment. They quoted an unreasonable price saying they needed to straighten the frame. We went back and forth and they finally admitted that the ONLY way to do the first front end alignment on that model of van when new was the frame bit. Once that was done, future alignments would be easier. To me, that sounded like a manufacturing defect that would be covered under warranty.

I finally persuaded them and got the alignment for a normal price.

LOL. I do remember when ford had their ''Twin I Beam'' front suspension, that they had to bend the I beams in order to align the front end

 

[Jchonline]

Do you have any proof of that interest rate? Because I don稚 believe it. That痴 $8500 nearly half the cost of the total loan. I think we can all agree the manufacturer 0 percent has a little extra factored in somewhere, but it痴 a lot closer to zero than half.

For Kubota its easy math. Take the difference between financing 0% for 60m and the cash rebate. On almost all machines it is well under $1000. For my M62 it was only $700. So the cost of financing is $700 over 5 years or $12 a month.

For me insurance is a wash as I would have it no matter.

 

[Jchonline]

You folks are amazing. Who gives a crap, it's money... more pours in every day. Live life, make love, have fun and savor every moment. Money is fake, it comes and it goes.

If your hobby is saving money, great. My hobby is making money and spending it at the same time. I'm pretty good at it. I make a ton and I spend a ton. I really and honestly am not worried about a tomorrow that may never come, and I sure as heck am not hurting for a dang thing.

You sir are hurting for HP up that side hill with the rotary cutter blades turning! Still I love your setup. Awesome machine.

 

[Rock Crawler]

You sir are hurting for HP up that side hill with the rotary cutter blades turning! Still I love your setup. Awesome machine.

No doubt! That's why I sold the FDR2672 and bought a Cub Cadet XT3 GSX. What an overpriced POS that machine is though! I'm dumping that thing in CL this coming spring. I hate the Hydro Gear BDU-10 that is in the Cub, it's weak as heck compared to my Hydro Gear G730 in my other GT. The G730 is a beast.

 

[Blue Mule]

Obviously you have to plan for your future so that you can hopefully take care of yourself and your household after retirement.

But, beyond that I think is just that...a hobby. Saving money is a hobby for some people. And in the end that money will be spent by others.

I had an uncle who was a straight laced military man. He saved his entire life. Didn't have any kids. He paid his mortgage off after a couple decades and just kept on saving. As he got older my mother started to have to care for him. She became POA and found out he had $300k in one account, some CDs at other banks, cash stashed around the house, just gobs of money. Long story short, he became very ill suddenly and passed away within a year. Relatives of his that live 1,000 miles away and NEVER came to see him ended up spending all his money. Like, I never even met them. That's how distant they were. And I'm sure they were smiling literally all the way to the bank.

If I'm working for my money, I want to be the guy who spends my money.

As far as my tractor goes, it's on 1.9% for 72 months. Could have done 0% for 60, but there's no prepayment penalty when times are good but payments are lower on 72 if times get bad.