0% What the?

Hartless · Oct 9, 2006

A dealer quoted me $24,000 for a TC40 tractor and loader with the 0%
financing for 4 years. Or if I had my own financing it would be $1400 less.
NH 0% deal works out to be about 3% for the life of the loan. How can they claim 0% financing? What a joke. I guess NH is not one of my choices anymore it is between Kubota and JohnDeere.

Redneck_Randy · Oct 9, 2006

Lets see you go to a bank and get a loan on a new tractor for 3%. You know what, you won't.

You will be lucky if you can get a percent rate close to 8%. That's still makes NH financing better then anything a bank can offer.

MikePA · Oct 9, 2006

Hartless said:
How can they claim 0% financing?

If you finance through NH, you pay no interest. Odds are, the dealer has to pay for part of the 0% financing. He's probably discounting the tractor by this amount if you do not use NH financing.

mathey · Oct 9, 2006

here's the actual wording from NH:

Your New Holland dealer is the place to be during Value Bonanza. Choose 0% financing for up to 48 months (select models), or choose cash back on the New Holland tractors and haying equipment shown below.

And now through October 31, 2006 you can own a TC40A or TC40DA Boomer™ compact tractor for less. Take advantage of 0% financing for 48 months or $1,400 ($1,700 in Canada) cash back. At 40 hp, this Class III compact tractor offers:

Inspector507 · Oct 9, 2006

Auto dealers run the same kind of promotion.

HRS · Oct 9, 2006

3%? What's that? Buy the NH if you like it. You will never be happy if a few $ made you turn away. Besides, I looked at the three brands also, I payed more that 3%. John Deere was not even close to NH. Kubota was close, but it was also higher. NH is offering some great machines and they make it easy to afford them. That's a deal that's hard to beat.

Hartless · Oct 9, 2006

JD and Kubota are offering 0% without the cash back deal. I am looking at the JD 4120 and the Kubuta 3830. They are all good tractors. The quotes are in the same price range with the same options. NH price about the same with the cash off and more expensive without it. My point was why would I pay $2000 more in interest for the NH for 3-4 years, when I can buy a comparable tractor with 0% over three years.

Doc_Bob · Oct 9, 2006

Buy whatever tractor make you happy.
Bob

dknarnd · Oct 9, 2006

I've just been looking at this myself and in my situation the 0% will get me into a tractor for the monthly payment I wish to make after a down payment.

Assuming 6% sales tax if you buy a 23k tractor the $1400 offsets the tax so you are still left with a cost of about 23k. If you put 8k down and finance 15k for a typical personal loan will run you around 10.5% ($384/mth) and that on 15k for 4 years adds 3400 interest. Add this all up you pay 26.5k total.

Buy the same tractor for 24400 incl tax and put that same 8k down leaving you a balance of 16400 to borrow for 4 years at 0% ($342/mth) and pay no interest on that. Add this up and you pay 24.5 total.

Get an home equity loan in the 5% - 6% range and it may be a different story, don't know didn't go there, but to me the 0% seems pretty attractive.