Prices with and without 0% loan?

[check]

Well, each person has to go with what is comfortable for them. I have a relative that follows a simple rule: “neither a lender nor a borrower be.“

In my view, that simply doesn’t work for anyone who has a mortgage. Unless you are maxed out on that mortgage, there will always be some equity in your house, and so if you get a mortgage that allows a line of credit as well, you can simply compare the interest on that line of credit to the real or imputed interest on your tractor deal. Interest rates up here went down it’s ridiculously low as less than 2%, and the last time I checked on a new Kubota deal, the dealer said that if I paid cash the price would drop by so much. It was easy enough to calculate imputed interest using that cash incentive, and it worked out to around 4 or 5%. So, in that case I would be better off using cash from my mortgage, because it is at a lot cheaper rate. The same thing with buying my truck. You can always get Ford to tell you how much less you would pay if you did not take their financing deal, and then figure out how much that financing deal with the worth.

It is simple, really. The complications come in when you factor in the psychological factors associated with debt. Some people are crazy against debt, And some people simply have to have it because they cannot cough up the cash. But they still want or very much need the tractor.

One thing I do not do is “save up“ for a purchase, because that money earns such a low interest rate.

 

[RoyKing]

Let's get back to squeezing the dealer on price, we can all look up Kubota's deal of the day cash vs finance and we can all decide where we can get the cheapest money. I believe in multiple quotes and multiple rounds like asking the second best price to be the first. But what I would like to know has got to do more with Kubota/dealers motivation to sell. Like I know car dealers like to sell end of year, or slow movers, or odd colors or options. I found some videos that show how the tractors arrive and how the line works, actually for larger models pretty small plant. While fel's look like made here with a very automated plant. Even if we could estimate time to deliver different models, I'm not sure if that effects dealer motivation. I used my own guess which is sales are slow in winter and at year end, but I don't know? Probably 0% deals moves product.

 

[Atchuuu]

not going to bother correcting the points, but simply to say there is a lot of loud opinions in this thread that are wrong.

That's too bad. If you corrected the misinformation then we could all learn something.

 

[RoyKing]

YEAH!

 

[Atchuuu]

It was easy enough to calculate imputed interest using that cash incentive, and it worked out to around 4 or 5%. So, in that case I would be better off using cash from my mortgage, because it is at a lot cheaper rate.

HELOC's or second mortgage rates are generally cheaper because the money is secured by your home (not the tractor). So comparing interest rates for a auto or tractor to a home equity loan is not apples to apples in terms of lender risk. Additionally, most HELOC rates are variable. So if rates spike your rate goes up. The Kubota standard rate financing is fixed.

I don't like using home equity lines. If something goes bad you really are putting your home up as collateral. I would rather lose the tractor, car, etc.

My guess is that dealers are a lot like the people commenting here on TBN. You have all types. Some have the set up to do large volumes of tractor and equipment sales. Some have multi state dealerships. Others are happy to be a small mom and pop shop. Some have low overhead and others high. So trying to figure out the ins and outs of each dealer is pointless. Shop around in your area and find the ones that feel right to you. Get a couple of quotes and check for manufacture rebates.

I have never paid the "asking price" for any large purchase and I find this to be true of tractors too. You can generally make an offer. But a dealer can only be squeezed (to use RoyKing's phrase) so much. Squeeze too much and you get bad service or a dealer who is out of business.

 

[RoyKing]

Buy the cheapest get KTAC get it serviced at the best shop. No dealer going turn you away.

 

[RickB]

not going to bother correcting the points, but simply to say there is a lot of loud opinions in this thread that are wrong.

That's too bad. If you corrected the misinformation then we could all learn something.

I agree with Neil, and I am not going to bother inserting myself into the discussion either. A good share of what dealership personnel know about the dealer side of the tractor business would not be accepted as factual by those on the consumer side and another share of that body of information is simply none of their business. A classic no-win situation. So I will sit back and read what the consumers think they know about selling equipment.

 

[RoyKing]

Then why bother to post anything, Rick & Neil other than brag you know more than we do. You not protecting state secrets. Just consumers trying to be informed and your just adding to the mistrust that people feel toward salesmen. Do feel justified taking each costumer for as much as you can? Pretty low moral starting point.

 

[JOHNTHOMAS]

Then why bother to post anything, Rick & Neil other than brag you know more than we do. You not protecting state secrets. Just consumers trying to be informed and your just adding to the mistrust that people feel toward salesmen. Do feel justified taking each costumer for as much as you can? Pretty low moral starting point.

:laughing::laughing: I somewhat agree. One of them told me on the QT not to buy a new Kubota F since a new model was coming out. I didn't listen and bought the new F Kubota and a year and a half or two years later a new F Kubota came out. Does anyone think that dealer has valid input with me? :thumbdown: They also sometimes do what they done here which alludes to gross misinformation which some of it is but which one is to be determined but they have caste dispersions on all input by implication and their little inputs stating among the thousands of inputs are some misinformation
If one has something to say, say it and quit giving misinformation as the north east dealer did to me concerning the new F model release so I wouldn't buy another new Kubota from Barlows. Also quit throwing pieces of info out to cause discord and be straight and tell what is not true.
I've bought over 180 cars/trucks and around 25 Kubotas and have established a mostly honest working relationship with dealers during these purchases. No, I'm not a dealer but I observe and listen and ask direct and indirect questions from dealers before, during and after my purchases and have many years of experience in self employment and business management/teaching/consulting.I also know how to do fair research on the internet so I feel confident concerning the info I provide is accurate. Not vouching for others input and speculation. Especially those that relate the tractor business to the car/truck dealership methods of operation/financing/floor plans/ownership of the product for sale.:2cents:

 

[RickB]

Then why bother to post anything, Rick & Neil other than brag you know more than we do. You not protecting state secrets. Just consumers trying to be informed and your just adding to the mistrust that people feel toward salesmen. Do feel justified taking each costumer for as much as you can? Pretty low moral starting point.

I don’t work in sales. I do communicate with customers one on one and treat them as fairly as humanly possible. The trust they have in me and the dealer I work for is a completely different goal than what TBN members think of my contributions here. I sleep very well just about every night.