Financing End of the line for zero financing?

[PILOON]

Last car I purchased I paid cash.
Man that sales rep tried everything to sell me on financing it.
I very strongly suspect he got a fair kickback (or commission) above his normal commission for selling a car.

Call me old school but parents taught me to save for what I wanted, not buy on credit.
Only finance I ever did was on housing, and that for my primary dwelling. Cottages and toys were always cash.

On the other hand I also keep and maintain vehicles for long times as it is much cheaper in the long run.
I do research B4 buying and always get second opinions when not sure,

Just do not believe 0% is true, someone somewhere is paying for that borrowed money.
OK, if factory sponsored the % is on the manufacturers actual cost and not retail as we know it but still a hidden cost factor.

 

[Lilguy]

I have 2 dealers within an hour of me. Their quotes are within change of one and other and they both said they'd take 500 additional off deal for cash. So there are Big incentives from KUBOTA to push Zero finance.

Yes, dealers get kick backs for financing.
The longer the term the bigger the perk.

 

[jeff9366]

On the other hand, inflation was 1.7% last year and likely will surpass 2% in 2017. Over a four or six year "0%" loan you are paying off the loan with continually depreciating dollars.

Kubota wants to move iron. The more volume Kubota has, the lower Kubota's cost per unit produced.

Financing is crucial to dealers, a necessary evil to Kubota, which can access cheap Japan capital but hates the financing risk it assumes.

 

[Tractor Seabee]

When I bought my BX 6 years ago he price was the same, finance or cash. That is a penalty for paying cash. I financed even though I had the cash. And that was one of the fastest movers of CUTS and SCUTS in the state.

Ron

 

[PILOON]

When I bought my BX 6 years ago he price was the same, finance or cash. That is a penalty for paying cash. I financed even though I had the cash. And that was one of the fastest movers of CUTS and SCUTS in the state.

Ron

That was because it was a 'fast mover' did not need an incentive to sell.

Look at car adds, "up to $4000. discount", sure on the top, fully loaded, full list price model but only peanuts on the base every day version.
Then comes the pitch " To save $4000. and get all that luxury it is only 27 cents a day, less than a coffee"
and now we suggest the extended protection plan..............

 

[rScotty]

When I bought my BX 6 years ago he price was the same, finance or cash. That is a penalty for paying cash. I financed even though I had the cash. And that was one of the fastest movers of CUTS and SCUTS in the state.
Ron

Ron, I ran into the same thing 8 years ago when we bought our tractor. Up until we got to the cash/credit question the bargaining went pretty much like these kind of things always do. That is to say that after a week or two of talking about everything from fishing to hunting dogs to how the weather was affecting crops, we had somehow found time to come up with an agreeable package price for everything we wanted. Then we got around to how I was going to pay for it.

Of course at that point our deal is still not final. It's all just talk and speculation; the dealer has no assurance that I'll go through with it. I knew about the 0% credit of course; everyone knows about that. But I'd deliberately left the cash/credit question for the very last because I figured on getting a few additional dollars knocked off for cash. To my surprise a week later he hadn't budged a penny. His price for cash and 0% credit were still identical. So just as you did, I went with the 4 year credit, too. And probably for a lot of the same reasons.

The dealer did say that the reason it didn't make any difference to him was because it didn't make a difference to Kubota. The Kubota home office would buy the 4 year 0% note from him for the same face value as if it were cash.
But it still bothers me. I cannot think of any reason why any business would rather have a note than cash. Any ideas?
rScotty

 

[arrow]

For a local furniture business who touts "have up to 5 years to pay no interest charged" it simply moves furniture. It addresses the impulse buyer big time. I attempted to pay for the whole thing asking for a "purchase price" and it was the same as the 5 year deal. No discount. Why? because if these stores continued that practice, it gives less credence that a person is actually getting a deal with the 5 year plan. One still has to pay monthly. The still can repossess the furniture if monthly obligation is not met plus they get incentives from all the manufacturers . As is, furniture has a 100% mark up or more. What better way to make even more money with a 8%-12% invisible finance charge on a 5 year investment.

 

[KubotaToy]

You could actually see more of it. They only show you "0" so they can increase the price so as to get their money they didn't get from interest. I bought a tractor that was a few bucks cheaper at 4.3% interest in the long run, than buying the thing for 0 interest but at the higher "0 %" purchase price .

This!

:thumbsup:

 

[ultrarunner]

Last car I purchased I paid cash.
Man that sales rep tried everything to sell me on financing it.
I very strongly suspect he got a fair kickback (or commission) above his normal commission for selling a car.

Call me old school but parents taught me to save for what I wanted, not buy on credit.
Only finance I ever did was on housing, and that for my primary dwelling. Cottages and toys were always cash.

On the other hand I also keep and maintain vehicles for long times as it is much cheaper in the long run.
I do research B4 buying and always get second opinions when not sure,

Just do not believe 0% is true, someone somewhere is paying for that borrowed money.
OK, if factory sponsored the % is on the manufacturers actual cost and not retail as we know it but still a hidden cost factor.

Same here... grandparents and parents went through the Depression... only thing I've bought on time is a first mortgage... unless I can pay for something I can't afford it... really cuts down on impulse buying.

 

[Oldoak]

Same here... grandparents and parents went through the Depression... only thing I've bought on time is a first mortgage... unless I can pay for something I can't afford it... really cuts down on impulse buying.

I am "old school" too. Couldn't agree with you more. First house mortgage and first new vehicle is are the only things I bought on time and paid interest on. Even now, we only use a credit card to avoid carrying cash. Any charges are paid off every month without one penny interest added. Thanks to my parents, we were taught if we didn't have the cash, we couldn't afford it and we don't need the latest and greatest of anything.

So when making a major purchase such as a new tractor, which isn't often, I'm always looking for a cash incentive, not "0" % financing.