Brand new tractor...appraisal?

   / Brand new tractor...appraisal? #21  
Besides that, if the argument is keeping money "local" to pay local wages, my JD dealer employs a dozen individuals that live within 5 minutes of my house. Not to mention the fact that they support local charities and money raising events in the community. I play golf with several of their employees and they assist our small, almost broke golf course with aquisition of used golf course equipment and they also support our fund raising efforts. You can't get much more "local" than that.

John Deere is much more active in our community than the local banks and credit unions. Heck, my wife is a VP with a local hometown bank. They do participate in community efforts but nothing compared to JD.
   / Brand new tractor...appraisal? #23  
Sorry if you take it that way, I was not trying to be argumentative, I was replying to the comment you made on my post, about banks providing jobs. I thought of it as a friendly debate. Quite simply, I don't think that tractor loans come anywhere close to where home mortgages, auto loans and personal loans make profit for the bank. The OP and I both have given examples where our CU (or bank?) have been unable, unwilling, or have at least made it difficult to write a loan for a new tractor. It seems likely that this has contributed to tractor manufacturers making it easier for consumers to get these loans for their own business interest, that is to make it easier for customers to buy their tractors. That is a good thing. In fact, the competition among the tractor manufacturers has gotten to the point where they offer either low or zero interest for their customers. Hard to compete with "free". There is a similar trend with cars, furniture and appliances, and all sorts of other major purchases. The banks still hold their niche in their core business, mortgage and personal loans.
Exactly how Walmart and Amazon got where they are today.
   / Brand new tractor...appraisal? #24  
:unsure: (y)
   / Brand new tractor...appraisal? #25  
How much lower could the CU interest rate possibly be? Go buy a green or orange tractor and you won't have any interest.
NOTHING is 0% interest.... you're paying it upfront in the cost of the tractor.
PLUS, the big K or JD are gonna cost a lot more to begin with!
   / Brand new tractor...appraisal? #26  
There's usually a good reason for that.
   / Brand new tractor...appraisal? #27  
NOTHING is 0% interest.... you're paying it upfront in the cost of the tractor.
PLUS, the big K or JD are gonna cost a lot more to begin with!
That's only if you are getting 0% from the dealer's in house financing. Those of us with great credit get those terms. It helps finance companies borrow money by having stronger assets. True, it is not 'free' money, but the tab is being picked up by those who don't manage their credit well. If all of their loans were high risk, they would not be able to lend.

Never negotiate the payment method with the out the door price. Get the price you want first, then do financing (or better, get a pre-approval from lender, first). You can always switch if you get better terms through the dealership.

As for CU versus banks, the CU has a decided advantage in that they do not need to provide ROI to investors. As for local, every situation is different. Maybe OP's CU is a small local and the banks are regional or national. Even if a small institution is paying someone out of state to do payment processing, the assets are still held locally. Money is just a store of value. Digital money is just accounting for that value and moving it from one entity to another.
   / Brand new tractor...appraisal?
  • Thread Starter
The similar unit for an RK55 is a TYM 554.
Why not explain to the loan officer that the tractor is a rebranded TYM 554?

Look on to find the following verbiage:
"RK Tractors are made in South Korea by TYM, manufacturers of compact tractors for leading U.S. tractor brands, and feature best-in-class Yanmar (19-55HP) and Deutz (74HP) diesel engines. Final assembly takes place in Waverly, OH, and Williston, FL. RK by King Kutter 3-Pt. equipment is made by King Kutter in Winfield AL, and tires & wheels are made by midwest-based and industry leader Titan International. RK provides full service at every RK Tractor location, zero down payment financing for up to 84 months, tractor delivery (for a fee) and an industry leading 8-year limited powertrain (19-55HP) and 5-year limited powertrain (74HP) warranty. We can offer fully-loaded, premium tractors at very low prices because we buy directly from the manufacturer. We can proudly say that you will not find a better value in sub-compact, compact or utility tractors anywhere!"
You hit the nail on the head
   / Brand new tractor...appraisal?
  • Thread Starter
UPDATE After calling around yesterday to local used tractor dealerships and having them tell me “we don’t do that, why not just buy a tractor from us” I talked to the sales guy at RK. He suggested it might be because it’s a tym tractor that’s been re-branded. Called them back and explained, and the difficulties were worked out.

As to local vs big national financing source, I had never thought of it. The wife suggested it. She has been reading some things about big corporate banks and how what they do with your loan (bundling it with other loans and selling it as a security to other banks) is bad for the economy and the country. You as the customer don’t realize they have done this because they are still the one servicing the loan. I am not a finance wizard, I handle my own finances, I have good credit and that’s about it. So I can’t debate whether or not it’s true. But it sounds plausible. If the local CU does well, they take their profits and offer loans to people and businesses in the local area at reasonable rates, then the area you live in does well and there you have it. Anyway thanks for all the info.
   / Brand new tractor...appraisal? #30  
Glad to hear it worked out!

I spent over 25+ of my life working in financial services. Bundling loans and selling them is a long time practice. It helps the economy, if anything, because it makes more money available for people to use. It is really no different than selling a used piece of equipment, bit offering to handle the maintenance for a small fee. At least, to a point. Some banks did use the concept to write bad loans and bury them. Ultimately, that boondoggle rests squarely on the shoulders of politicians who pushed banks to make those loans...but I cannot discuss that further here.