kootch88
Platinum Member
I think it is about dealers getting the pricing options to the customer very early in the sales process. We used to price every item at 0%, then offer discounts. But some customers would walk because we were $1300-$2500 (more expensive tractors have higher buydowns) higher than the guy selling at cash price and they didn't listen carefully enough to hear the discount part of the sales pitch.
So about 2 years ago we made the decision to price at cash/standard rate with all discounts, then offer the better rates, all the way to 0%, at our cost to the customer. In reality, we all know that 0% isn't free, it is just absorbed in some manner and the cost is passed on to the customer. This seems like the most "honest" approach, although I use that word carefully as it is not dishonest to price everything with 0% packed in.
The best thing, although it takes the sales guy a little time, is to crunch the numbers for 0%, 4.25%, and standard rate and see what fits best.
Glad you got your tractor! Stay in touch.
Dave, many of us have never bought a tractor or at least financed one, like in my case. The only large ticket items most of us have bought are new cars and houses. When I buy a new car the price I pay is the same if I pay cash or finance, even when they have 0% options, which is what I got when I bought the FJ 2 years ago. Heck 10 years ago I bought a S-10 on my credit card and then financed it with my credit union because our rate was half what the dealers was at the time and I needed it right away, and they still gave the car to me for the negotiated price. So, to say the 0% is always paid for by the consumer is misleading in my opinion.
You are right though, if I had known the options right up front I would have had an effortless and happy buying experience. I really wish I had because I always try to buy local. I could have gone down the road and bought in N.H. and paid no sales tax, but I like to support the local guy, so I think you can see I wasn't trying to nickel and dime the dealer. I want him to make money too, that way I can always have a dealer and parts 5 miles from my house instead of 90.