Brand new tractor...appraisal?

oosik

Super Star Member
Joined
Aug 22, 2012
Messages
15,522
Location
AMBER, WA
Tractor
2009 Kubota M6040
I have a question. Does the lending institution need the appraisal on the new tractor OR the value if it has to be repossessed? The value of the new tractor is the average asking price. The value at any time of repossession will be a virtual unknown. At exactly what time? What is the market for tractors at that time?

Somebody is blowing smoke ..................
 

k0ua

Epic Contributor
Joined
Jun 28, 2009
Messages
30,442
Location
Branson, Mo.
Tractor
Kioti DK35se Hydrostat
Sounds like a case where "keeping it local" is more hassle than its worth. IF they dont want your money, dont give it to them and find a lending institution with less hassle and BS
That was also my first thought. They want you to do the legwork, I would tell them to pound sand.
 

Torvy

Gold Member
Joined
Jul 21, 2021
Messages
493
Location
North East Texas
Tractor
Looking to purchase a Compact Tractor in 30-50 HP range.
I have a question. Does the lending institution need the appraisal on the new tractor OR the value if it has to be repossessed? The value of the new tractor is the average asking price. The value at any time of repossession will be a virtual unknown. At exactly what time? What is the market for tractors at that time?

Somebody is blowing smoke ..................
They need to know what it is they are taking as collateral. Most cars have a solid history and lots of data. The bank can just use a schedule and (nowadays) a program does the risk analysis instantly. It factors in depreciation. The only reason purchase price matters is that the bank does not want it too far from the value at that time as most non-land assets depreciate. With a lesser known vehicle, the bank simply didn't know what they were taking and could not fit it into their risk analysis. We had some cars we just wouldn't take...Yugo, for example. We dropped Suzuki, too because the resale became too big of an unknown after 2012 bankruptcy. Some lenders will take on the odd stuff, but at a premium...bigger risk.
 

MHarryE

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Feb 15, 2009
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2,647
Location
Northeastern Minnesota
Tractor
Kubota M7-171, Kubota M110GX, IH 4386, IH1486, Case 301.8, Kubota L6060, plus many others
I'm dealing on another tractor. My dealer is NH and Kubota. Kubota offers $2k rebate and 0% interest for 60 months or $5k rebate and cash, or market interest rate. Yesterday market interest rate was about 3.5% so financing with the additional rebate amounted to about $3,000 additional paid over the life of the loan. Local CU has no interest in loaning for farm equipment - cars and boats, yes, equipment no.
 

LD1

Super Star Member
Joined
Apr 30, 2008
Messages
19,562
Location
Central Ohio
Tractor
Kubota MX5100
I'm dealing on another tractor. My dealer is NH and Kubota. Kubota offers $2k rebate and 0% interest for 60 months or $5k rebate and cash, or market interest rate. Yesterday market interest rate was about 3.5% so financing with the additional rebate amounted to about $3,000 additional paid over the life of the loan. Local CU has no interest in loaning for farm equipment - cars and boats, yes, equipment no.
0% OR $5k rebate

Always hated that lingo.

Its NOT interest free....you are just opting to pay all the interest up front. $30k loan, 5 years , 6.25%......$5k in interest.

PAy me 6.25% NOW and I'll make you feel good and call it 0%......or we can knock 5k off the load and charge you 6.25%.....SAME DAMN MONTHY PAYMENT. But some people fall for it
 

PILOON

Super Star Member
Joined
Aug 26, 2004
Messages
10,190
Location
North of Mtl,Que,Can (Ste Adele)
Tractor
MT180D
When they advertise at 0% loans, just try to get a discount for cash.
They won't do it as most times a kickback is somewhere in that 0% loan and the sales person gets no remuneration other than his base salary but gets a % of the 'kickback'.

Back when I was selling fork lifts I needed to get same rates info for a client and the boss was out so I called the lenders directly.
First question was what % kickback would the transaction be able to support followed by what industry was it to be used in.

I did make that sale but it was not my assigned territory so I received zilch commission and not even a 'thanks' from that area rep.

That was my first and only commission type job!
 

Torvy

Gold Member
Joined
Jul 21, 2021
Messages
493
Location
North East Texas
Tractor
Looking to purchase a Compact Tractor in 30-50 HP range.
0% OR $5k rebate

Always hated that lingo.

Its NOT interest free....you are just opting to pay all the interest up front. $30k loan, 5 years , 6.25%......$5k in interest.

PAy me 6.25% NOW and I'll make you feel good and call it 0%......or we can knock 5k off the load and charge you 6.25%.....SAME DAMN MONTHY PAYMENT. But some people fall for it
When it is either/or that is a bad deal. I've never had a problem getting both. Sure, the zero percent gets paid by someone, but I am happy to let the cash buyers pay part of my expense while I keep my money invested.

Same principle applies when businesses are 'taxed'. No possible way to really tax a business, it just hits their customers and employees. Just a shell game played by people who shall not be named but who impose taxes.
 

scaredychicken

Platinum Member
Joined
Jul 21, 2012
Messages
797
Location
Salmon Arm BC, Canada
Tractor
John Deere 160 (1988), Arctic Cat 400 ATV (2006), Kubota BX23S (2018),Jacobsen Super Chief 1450 (1969)
brochure, quote, invoice ought to be sufficient.

some brands have better financing than C U
 

ArlyA

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Mar 18, 2016
Messages
3,919
Location
Houghton MI (the Lake Superior snow belt) USA
Tractor
Polaris Boss 6x6 with pods (tracks) Center actuating lawn mower by Husky
Some manufactures don't like to do discounts but will offer zero% financing. If you have the cash to get it, you are better off getting zero% financing and put that cash in the bank or someplace you can gain some interest..
 

fried1765

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Jan 6, 2015
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10,193
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Northeast & FL
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Kubota L48 TLB, Ford 1920 FEL, 8N Ford, Gravely 12 HP "Professional", 48" SCAG Liberty
Some manufactures don't like to do discounts but will offer zero% financing. If you have the cash to get it, you are better off getting zero% financing and put that cash in the bank or someplace you can gain some interest..
True zero % financing is exactly like the Easter bunny!
I does not exist!
 
 
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