B3030 Final Payment - She's all mine

[Ord]

I have always paid cash for my tractors and equipment, but am beginning to wonder.

I would be interested to know the pros/cons of financing vs cash. I hate making payments, but that may not make economic sense.

Here in Canada I had the option of 0% for 30 months OR $550 discount on BX1860 (more expensive models had bigger discounts). There was also a $150 fee to open the credit account, so paying cash saved $700.

 

[brandoro]

When I bought the B7610 I asked how much for cash? The answer was the same for cash so I took the so called 0% financing. Things change, when I bought the B3030 I asked again. I'd have to check for an exact amount but cash was near $1000 cheaper than taking the so called 0% financing. I paid cash. I prefer not having payments but it needs to make a little sense. As of next week my house, land and everything on it are paid for. I do have another property with a mortgage but it is rented out so someone else is picking up the payments on that.

 

[tsteahr]

As has been mentioned before, the company is not going to lose money so the 0% is built into the price but everyone is paying for that interest cost whether they take advantage of it or not.

Bingo. Nothing contradictory about that. In this example, not taking the 0% is the same as leaving cash on the table. If a manufacturer chooses to offer a incentive, the buyer turns the incentive down and yet still makes the purchase, more money in the pocket of the manufacturer.