Curious if Many Folks are Financing tractors

[ragkar]

Personally I don't want any one having a claim on my property. I lived in a mobile home for thirty years before I retired and bought a nice house for cash. My vehicles were bought for cash and so was my tractor. It's a great lever when you take out the checkbook and say that you will pay cash right now. And an even bigger lever when you put the checkbook away.
My sister bought 50 percent of a showdog once. I would never do that.
Recently a neighbor offered me $500 for the fallen timber on my property. I turned him down and I'll be giving that firewood away.
I do however use my credit card quite a bit, especially for web purchases, and then pay in full monthly.

 

[carpenter383]

You know, I like Dave Ramsey a little, but Dave Ramsey speaks from a bulley pulpit of sorts. I'm sure it's real easy to "pay cash" for everything when you earn a nationally syndicated radio host's salary. In his world, all us stiffs are supposed to eat "beans & rice" until we can pay cash for a $500 used car and a trailer home in East Junkford Indiana.

I'm just a regular working stiff, but I'll be damned if I'm gonna do that.

There ain't nothing wrong with some well timed debt.

Now these idiots who are financed beyond belief, they might want to take some of his advice and stop borrowing for everything.

I wouldn't call it "junkford indiana, but I do live in what some would call BFE indiana. Oh, and I live in a mobile home too!
Grew up with a loving but financially poor single mom raising 4 kids in a (GASP) mobile home. As a kid I worked for the nieghbor, bought my own dirt bikes, first car, etc. I moved out on my own at 18 and had absolutely no help financially. I moved into a guest house, taking care of the place for the rent. In the meantime I saved as much money as I could. I showed up for work on time every day, worked hard and learned as much as I could. Then at 20 yrs old I bought my own mobile home on rented lot, lived there for a few yrs while continuing to save money and work hard. I saved about 25,000 dollars then at 23 yrs old I found a bank repo piece of property with 15.29 acres and a 2001 16x80. Gave the credit union most of my savings for the down payment (my very first loan) and went from one full time job to two! The place was completely gutted and needed alot of work. I've gotten the place pretty nice (IMHO) I've almost completed a 36x40 garage (built out of my pocket) Now 25 yrs old just had a beautiful baby girl on 3-3-09, oh and I just got my second loan for my dk40se.......My plan is to stay the course... work hard, learn all I can, keep from blowing money on useless things and keep getting ahead. (thanking the lord the whole way)
We'll see how it goes!

 

[Hematite]

You know, I like Dave Ramsey a little, but Dave Ramsey speaks from a bulley pulpit of sorts. I'm sure it's real easy to "pay cash" for everything when you earn a nationally syndicated radio host's salary. In his world, all us stiffs are supposed to eat "beans & rice" until we can pay cash for a $500 used car and a trailer home in East Junkford Indiana.

I'm just a regular working stiff, but I'll be damned if I'm gonna do that.

There ain't nothing wrong with some well timed debt.

Now these idiots who are financed beyond belief, they might want to take some of his advice and stop borrowing for everything.

I agree completely, it's a matter of using your head. Luckily, I don't let Dave Ramsey, whoever he is, run my life. I'm quite intelligent enough to have done quite well on my own, thank you.

 

[Builder]

Financing equipment is just another "tool" for business.

Look at it this way-Let's say I want to get into the excavating business. If I had a customer offer me a big job opportunity that required a piece of equipment-say a backhoe or a dumptruck, but I had to "pay cash" for it (and didn't have enough cash), I wouldn't be able to get that job.

However, if I financed the piece of equipment, I'd own a new business tool to complete the job, then be able to use it when that customer recommends me to another customer to do a job for him, too.

I'm sure all of you own cell phones. If you do, you're financing your cell phone though your yearly cell phone plan.

 

[Builder]

I wouldn't call it "junkford indiana, but I do live in what some would call BFE indiana. Oh, and I live in a mobile home too!
Grew up with a loving but financially poor single mom raising 4 kids in a (GASP) mobile home. As a kid I worked for the nieghbor, bought my own dirt bikes, first car, etc. I moved out on my own at 18 and had absolutely no help financially. I moved into a guest house, taking care of the place for the rent. In the meantime I saved as much money as I could. I showed up for work on time every day, worked hard and learned as much as I could. Then at 20 yrs old I bought my own mobile home on rented lot, lived there for a few yrs while continuing to save money and work hard. I saved about 25,000 dollars then at 23 yrs old I found a bank repo piece of property with 15.29 acres and a 2001 16x80. Gave the credit union most of my savings for the down payment (my very first loan) and went from one full time job to two! The place was completely gutted and needed alot of work. I've gotten the place pretty nice (IMHO) I've almost completed a 36x40 garage (built out of my pocket) Now 25 yrs old just had a beautiful baby girl on 3-3-09, oh and I just got my second loan for my dk40se.......My plan is to stay the course... work hard, learn all I can, keep from blowing money on useless things and keep getting ahead. (thanking the lord the whole way)
We'll see how it goes!

I'm sorry I used your state as an example, I shouldn't have done that.....

I'm really happy for you-you did right by yourself, but in the end, you used financing to get you into your dream property.

Most important thing is that baby girl. Congratulations! Gotta love kids!

Teach them to work, save and educate themselves!!

Good for you!!!

 

[workmytractor]

I ended up financing my Kubota MX5100. 0% interest is hard to pass up. I figured I would just keep driving my old beat-up toyota pickup and get a tractor instead of a new truck. Works for me!!

 

[MessickFarmEqu]

You can't make blanket statements like 'thou-shalt pay cash for everything'. There are some legit 0% programs with cash rebates that are a fraction of the value of the financing package (Kubota)... there are also companies that offer substantial discounts for paying upfront (NH)... there are others who offer what looks like a good deal, but rittle the financing program with document and promotional fee's that pass the actual cost along to you. Each needs considered on its own merits.

 

[nysteve]

Just was wondering about how common or not that people are financing some new machines now or even used ones. The 3 I own, were used ones when bought, I paid cash. Granted they are old as dirt but have done their job to this point. I'm looking at getting rid of my JD 4010 as I no longer need an +8,000 lb machine. Not that I ever really did but it was cheap hp/hydraulics at the time.

So If I can sell it before too long, I would like to pick up a 50hp with FEL. Looking more at NEW Holland but haven't slammed the door shut on others. I haven't called for pricing or what finance deals are out there but I would be interested in financing at zero %, who wouldn't right! Hence, my question about what others may be doing in regard to financing.

Tks
Tom

Tom


Every manufacturer, dealer, model is different. For example, Massey Ferguson offers 0%-72 months financing on their entire compact tractor line. Generally the manufacturer offers the dealer a cash discount if customer does not elect to use the 0% or low rate finance program. These discounts change sometimes monthly and sometimes by model. You can finance $10,000 for $138.88 per month at 0%-72 months. If you are paying 6% APR to finance, you can finance $8380 for $138.88 per month-72 months. So you need to get a discount of over 16% to not elect 0% in this case. Cash discounts are never this good. Often the fine print can change your financing circumstances, ie., down payment requirement( sometime they need 20% down to offer you the low rate.) My suggestion, go to web sites, do your homework on tractors and financing programs, then go to dealer(s) you are comfortable with and deal with him. Instead of dickering for every cent, get the dealer to throw in something you want, such as extended warranty or some parts or service support from dealer. Because the variables are unknown, it is almost impossible to get the best price available, there is always somebody willing to make a better deal, but when you call them for service you will get the "budget service plan"

 

[Maknwine]

Good information fellas. Tks.