You can continue the insurance after the note has been paid off.
Concerning home owners coverage, if you take the tractor off property, you are not covered unless you have an added rider to your policy.
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Financing Cash Purchase versus 0% Financing
- Thread starter smstonypoint
- Start date
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You can continue the insurance after the note has been paid off.
Concerning home owners coverage, if you take the tractor off property, you are not covered unless you have an added rider to your policy.
Johno Geo
Silver Member
I have Allstate in Wisconsin.
The Tractor IS covered as "personal Property", even if it is located out of State. I have this inwriting from the Agent.
I suspect this may vary from state to state , company to company and policy to policy. I did not need a rider or I certainly would have purchased one.
The Tractor IS covered as "personal Property", even if it is located out of State. I have this inwriting from the Agent.
I suspect this may vary from state to state , company to company and policy to policy. I did not need a rider or I certainly would have purchased one.
PoorMansCat
Platinum Member
I was made equally aware of that several years ago... my local credit union keeps tabs on all members credit scores... after several years of having a great credit to debt ratio, I could not seem to get my score over a threshhold of about 770.... Had a sit-down talk with a consultant with the credit union and got my eyes opened about how the credit score game really works!.
Without a major bank card, it doesn't matter how much money you have in the bank or how you pay your bills, you cannot get the score much higher than 750-770!!. I had not had a credit card of any kind for 10 years or better.... only an ATM card... My credit union actually suggested that I get rid of the ATM card and get a credit card thru the bank.. So, thats what I did. We pay the balance off twice a month so we incur NO interest and actually get paid .25 cents per transaction PROVIDING you carry no balance.. (thats the catch) And after about 10-12 months, my score is at 800... go figure..
I used the Kubota 0% for 60 months and got several thousand off at the same time... maybe the dealership competition is stronger around here??
montelatici
Platinum Member
Yes, but my homeowner's insurance was sufficient to cover the insurance requirement.
I'm sure you are right with varying from state to state and or insurance company's. It may also depend on whether you have a working farm or just a residential property. I think we got off the beat and path though as my original mention of mandatory insurance when financing requires one to 'purchase' insurance, thus the 0% is costing you money. But as I stated, I went with the 0% and the Kubota insurance.
Alan L.
Elite Member
I think the conclusion is that with today's pitiful interest rates, there's not much difference at all but.....one reason a person might choose the financing would be to maintain cash reserves in case of emergency, or in case of investment opportunity. This is because its not as easy to get financing as it used to be, to use for whatever you need. If all the opportunity and emergency buckets are already fully funded, then it becomes a pure numbers decision, based on relative present values (but the interest rate to use is problematic).
bigbull338
Elite Member
i asked my banker if i needed a credit card to get my credit score up,an she said no.because we will loan you the money you want no prob.so i said good deal.
LostInTheWoods
Platinum Member
Actually, that is me. However, some say that I bear an uncanny physical resemblance to the gentleman.
Steve
Resemble him like this??
"Smith, who is often described as a prototypical absent-minded professor, is considered by historians to have been an eccentric but benevolent intellectual, comically absent-minded, with peculiar habits of speech and gait, and a smile of "inexpressible benignity". He was known to talk to himself, a habit that began during his childhood when he would speak to himself and smile in rapt conversation with invisible companions. He also had occasional spells of imaginary illness..."
Oh, you said physical resemblance ...
:laughing:
OP
smstonypoint
Super Member
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Oh, you said physical resemblance ...
Well, that too!:laughing: He was an intellectual giant, I fall well short in that category.
Steve
Ah ha, and then you throw in there the actual changing value of the dollar and you really don't know what to do. The value of the dollar is constantly changing and changes more than one might think in 5 years. So then, over the course of 5 years, is your dollar itself going to be worth more or less, aside from investing it. Inflation, deflation, in what direction are we heading? Either way, those monthly payments may feel heavier in your pocket, or not existant....
And can getting 0% financing when you DO have the cash available really be considered debt? I am in debt on my house, I just do not have that much cash to pay it off, considering we just got it less than 2 years ago. However, I do not feel I am in debt on my tractor since we did have the option to pay cash, but opt for the financing with a large enough down payment to get the monthly payments where we would hardly feel them, without taking all of our savings. However, the fact that we could pay off the loan at any time doesn't really make it feel like a debt in the sense that we owe on something for which we do not have money (I would guess though that my feelings come back to the reason I have never owned a credit card.....Aside from the house, if I don't have the money to buy it, I am not buying it.)
And can getting 0% financing when you DO have the cash available really be considered debt? I am in debt on my house, I just do not have that much cash to pay it off, considering we just got it less than 2 years ago. However, I do not feel I am in debt on my tractor since we did have the option to pay cash, but opt for the financing with a large enough down payment to get the monthly payments where we would hardly feel them, without taking all of our savings. However, the fact that we could pay off the loan at any time doesn't really make it feel like a debt in the sense that we owe on something for which we do not have money (I would guess though that my feelings come back to the reason I have never owned a credit card.....Aside from the house, if I don't have the money to buy it, I am not buying it.)
