Kubota or mahindra

[coobie]

Negotiate the cash price first. They want the extra money they get for financing you. Once you have a firm out the door price, suggest you would be willing to do that price with 0%. It may be tougher this year than usual. If you don't have a good understanding of the vehicle finance business, I'm sorry. I've been on the other side. They will finance people like me almost every time at zero percent because they can then afford to take more risks on someone with marginal credit. I've negotiated for friends buying tractors and for myself buying cars. The dealer is not really financing you. It is the bank. Even when KCC does the paperwork, they do not often keep the risk. They bundle it and sell it. Sometimes they service it themselves even after they sold the risk. Other times they dump the whole thing and you get a new lender. The secondary market is where the money is made.

To funny.

 

[K5lwq]

I would like to know some investors that will let me use their money for free. If they exist, they are not very smart.

Some dealers might would give you a cash price and then allow you to take advantage of a 0% deal but they will pay the interest for you up front to the bank. If you really pay cash they make a little more off the deal. They might would do that because most deals made with lending companies include a end of the year rebate to the dealer. They will make it as attractive as they can to take advantage of the rebates.

Most of them will offer a free loader for cash deals or conventional financing. But when 0% is on the table the free loader goes away. But that loader is still not really free as it is built into the price to begin with.

In my business, we get rebates from lenders all the time for bringing them business. We also get rebates from manufacturers. Some dealers will play the rebate game and sell product at ridiculously low margins and rely on the rebates for profits. This never works and these dealers go out of business with time.

 

[LD1]

The only way they take a cash price and ALSO agree to a 0% loan is if your cash price negotiating skills suck and there is still enough markup for them to agree to it. And how in the world do you make money on a 0% loan in the secondary market.

Lending institutions make money on the interest. So yea, let me loan you $30,000 and you can take 6 years to repay me and at the end of 6 years I only collect $30k from you? Thats LOOSING money actually.

 

[Torvy]

The secondary market is a bundle of loans. They package outstanding credit deals with low rates, including 0%, with subprime and lower credit with high interest rates. It is a package deal. The high credit zero percent deals maintain positive cash flow for the secondary lenders if they end up having to collect on the bad credit deals. This is required by the regulators. The secondary lenders cannot absorb only high risk deals. They have to blend them. Even primary lenders keep a subset of these loans on the books. It is about the whole portfolio. This is about the forest, not the trees. The inverse can happen, too. If a lender has too many high credit low risk deals, they may decline someone who has great credit. They are just keeping their books balanced.

Think of it this way, instead of 1, 0% $35k loan and 10, 10% $35k loans, the bank has 11 loans with $385k at something like 9%. Multiply this out by thousands. If you were lending on one loan, sure you would not lend at 0% to make money....though to say they only make money on interest is also wrong. Banks don't look at it as one loan. The goal is to be one of the small percentage they use to balance their books.

 

[coobie]

The secondary market is a bundle of loans. They package outstanding credit deals with low rates, including 0%, with subprime and lower credit with high interest rates. It is a package deal. The high credit zero percent deals maintain positive cash flow for the secondary lenders if they end up having to collect on the bad credit deals. This is required by the regulators. The secondary lenders cannot absorb only high risk deals. They have to blend them. Even primary lenders keep a subset of these loans on the books. It is about the whole portfolio. This is about the forest, not the trees. The inverse can happen, too. If a lender has too many high credit low risk deals, they may decline someone who has great credit. They are just keeping their books balanced.

Think of it this way, instead of 1, 0% $35k loan and 10, 10% $35k loans, the bank has 11 loans with $385k at something like 9%. Multiply this out by thousands. If you were lending on one loan, sure you would not lend at 0% to make money....though to say they only make money on interest is also wrong. Banks don't look at it as one loan. The goal is to be one of the small percentage they use to balance their books.

Spin it anyway you want to convince yourself, but I not buying your theory.Banks/credit unions are not in the business of offering 0% free money PERIOD.

 

[Cahaba Valley Farm]

Negotiate the cash price first. They want the extra money they get for financing you. Once you have a firm out the door price, suggest you would be willing to do that price with 0%. It may be tougher this year than usual. If you don't have a good understanding of the vehicle finance business, I'm sorry. I've been on the other side. They will finance people like me almost every time at zero percent because they can then afford to take more risks on someone with marginal credit. I've negotiated for friends buying tractors and for myself buying cars. The dealer is not really financing you. It is the bank. Even when KCC does the paperwork, they do not often keep the risk. They bundle it and sell it. Sometimes they service it themselves even after they sold the risk. Other times they dump the whole thing and you get a new lender. The secondary market is where the money is made.

"Negotiate the cash price first. They want the extra money they get for financing you. Once you have a firm out the door price, suggest you would be willing to do that price with 0%. It may be tougher this year than usual. If you don't have a good understanding of the vehicle finance business, I'm sorry."

Dude I'm telling you that's not how this works in the tractor industry. Trust me, I know, I've tried. I had to learn the hard way. They have a fixed cash price they will sell for and a fixed finance price they will sell for. It's fixed pricing no matter what dealer you go to. The only fluctuation in pricing is between dealers.

 

[Hay Dude]

Theres no free lunch.
The best way to get the lowest price is negotiate with a few dealers and use the lowest price financing you can get after you negotiate the best price.
I really dont do that anymore. I pretty much buy from dealers I trust that have excellent service. Saving $20 a month is silly compared to getting excellent service when it counts the most.

 

[K5lwq]

Man do I have a song for you.

 

[rScotty]

Cool! Where did you find this Scotty?

When I was referring to the 1000 series Fords I was referring to the 2000, 3000, 4000 that was introduced back in the mid 60's.

Yes, those 2000 thru 5000 were real Fords and built in real Ford-owned manufacturing plants. The problem at the time was that those plants were in Europe and people were concerned that Ford was sending jobs overseas.
FFWD 40 years and nothing has changed....!

Those sheets are just some historical literature that I kept from when I was looking for another tractor back in the 1980s. Lots of new generation dealers at the time were giving them out. There's a second page too. Here it is below.

Back then there were a lot of people concerned that the old time traditional and successful US tractor manufacturers were losing the lead in tractor manufacturing. That lead to a strong feeling of resentment against foreign made tractors being imported because the imports were thought to be depressing sales of domestic equipment.

Now we know that the major US tractor manufacturers really had been left far behind in the innovation and manufacturing of tractorts. The USA was building simple lawn and garden tractors where the rest of the world was building sophisticated compact ag tractors. The US tractor industry's response was to import those foreign made compact tractors, do some basic assembly to avoid tariffs, and then repaint and rebrand them as their own.

At the time, that rebranding was happening most people didn't believe that the US manufacturers would do such a thing. It led to some some fierce arguments. These sheets were part of that battle between the real manufacturers and the rebranders.

It's just history,
rScotty

 

[sea2summit]

I ended up buying used but l looked at buying a new Kubota CTL. The dealer wouldn’t change the machine price if I paid them or if I financed. But there was about $3000 in loan and paperwork fees if I financed.

Exactly, KTAC was almost 8k over the life of the loan for the M4. That's where they are making their money now on the 0%.