Buying new with cash- how much bargaining wiggle room?

[dodge man]

I bought a new JD 2025R about 6 weeks ago and in my case, it would have cost me more to pay cash. I'm usually a cash buyer these days but in this case there was an incentive to finance the machine. It wasn't a lot maybe $200 but it was for something like 5 years at 0%. Its a little different though as I only pay once a year, and the next payment isn't due until a year from now. The downside is I have to insure it, which for a 20k machine isn't a bad thing. So in my case there was no savings to pay cash.

 

[looch]

I bought a new JD 2025R about 6 weeks ago and in my case, it would have cost me more to pay cash. I'm usually a cash buyer these days but in this case there was an incentive to finance the machine. It wasn't a lot maybe $200 but it was for something like 5 years at 0%. Its a little different though as I only pay once a year, and the next payment isn't due until a year from now. The downside is I have to insure it, which for a 20k machine isn't a bad thing. So in my case there was no savings to pay cash.

That's what killed the thought of financing my last machine. No Kubota insurance in Quebec. To get financing from Kubota I would have had to register it as a motor vehicle and then insure is as such. The best price I got was $65/month - the equivalent of an 8% finance rate on the amount I would be borrowing.

 

[finn1]

E

Makes perfect sense. That's what I do. My investments make my tractor payments.

Exactly where I was. My tractor loan is two years old and I am paying something short of 2.5% interest.

Money in the market has paid me 16.39% over the same time frame, annualized.

I would have lost about 14% annualized if I had paid cash. Looking at it another way, I saved almost half the cost of my tractor over a four year period by borrowing instead of paying cash.

Hope there isn稚 a crash, though.

 

[dragoneggs]

E

Exactly where I was. My tractor loan is two years old and I am paying something short of 2.5% interest.

Money in the market has paid me 16.39% over the same time frame, annualized.

I would have lost about 14% annualized if I had paid cash. Looking at it another way, I saved almost half the cost of my tractor over a four year period by borrowing instead of paying cash.

Hope there isn稚 a crash, though.

Gotta think long term and not be rash when things are down.

 

[dodge man]

I’m insuring my tractor for about $185 a year.

 

[finn1]

Gotta think long term and not be rash when things are down.

Yup! Things go up and down short term, but long term, investments are better than pulling your money from the market to make cash purchases of depreciating assets like tractors.

Let inflation and the market pay for them, as long as interest rates are reasonable.

 

[Geotech]

You're not going to find any substantial difference in what you end up paying, financed or cash, new or lightly used -----there is no free lunch. I will say that even though Kubota tends to be on the higher end price wise for similarly spec'd models, they have really good rebates on implement packages and they have nice Land Pride implements. Other brands often advertise rock bottom bundle prices but with middling to crummy implements. I like that fact that not only will my Kubota branded tractor hold its value better than most (or all), but so will all of my implements...except my TSC landscape rack.