Financing special - does it really expire?

[Iowa Boy]

Right now all of the compact tractor manufacturers are offering 36 month 0% financing, with some variations. Is it a safe assumption that there will always be some sort of incentives available? I am not planning on buying until late this year or early next, can I assume there will be comparable incentives offered at that time?

Is there a better or worse time of the year to buy a compact tractor?

Thanks for your help.

Joe

 

[AndyMA]

I wouldn't assume they are always available. Sales of Compacts are down now so that is probably why there are low rates. Deals come and go.I financed my TN at 6.9%

Andy

 

[crbr]

Andy may indeed have a point, without argument. I see this market as competetive, more so than down sales. Just look at the various forum areas here. There's everything here but the kitchen sink and a computer forum area. Everyone is competing for the end user whom has the bling.....

My opinion is that promotional financing and rebates will continue for another year. With this in mind, the promos are also directed to move an outdated model, such as the 2006 ZTs from Kubota. They threw out rebates as an incintive to move the 06 Z models, over the new 07 Z models with all new features and a small HP increase. Notice you can't get the 36 month 0% (now) on those models, where rebates are pushing the 06s......etc....... Point is, there's competetiveness among manufacturers but also incintives within each to keep their year models moving.

It's hard to beat 36 months at 0%, any way one looks at it. For that reason, I think financing promos will be here for a while. But another thing to consider is that the price of these machines is also increasing each year. It's really a savings to buy sooner (relative) to stay ahead of the increases.

 

[LoneCowboy]

Just like cars, tractor companies change their promotions on the 1st of every month. (and, if you order one, you get what is in effect when it comes in, not when you ordered, just like cars).

And, nobody but the factory has any idea what it's going to be next month.

When I ordered my TN in february the thing was 900 cash back (I didn't finance, so i'm sure this changed too)
In march, it was 1100 cash back
In April it was 1300 cash back
in May (when it finally showed up) it was still 1300. (so I"m happy about that), but it could have gone to zero and there wasn't a thing I could do about it.
If you like the deal now, you better snap it up. It might get better, it also might get worse.

Free money is pretty darn hard to beat (0%)

 

[AndyMA]

Free money is pretty darn hard to beat (0%)

Another thing I should have said is that in several tractor loans I have had, the dealer had either the option of selling to me at a lower price (via rebate or incentative) or giving me a lower interest rate. Some of these incentatives were not even presented upfront to me.
People tend to jump at the lower rate, but it is not always the best deal. Sometimes it's a feel-good deal.

Andy

 

[crbr]

Another thing ....... Sometimes it's a feel-good deal.

Andy

Zero % sho' feel gOOd....

 

[Offy]

Incentatives change, without doubt. I was informed by the dealer of upcoming changes from Mahindra before becoming effective. That helped me make my decision time wise. the manufacturing sites generally have the current incentatives in effect available to view. The internet is an invaluable tool to research before you decide & buy.

 

[RedRiver]

Yes, the rates will change. More than likely the dealer will not know when they change til a week or so before the deadline on the rates.

 

[Seon]

36 months zero % financing is what I got for my JD 4210 in '03. Being that they're offering this incentive again, I may just upgrade my tractor that has 260 hours to a larger compact .

 

[AndyMA]

Zero % sho' feel gOOd....

What I was referring to was when the 0% resulted in a higher tractor price so that the net overall cost with another rate at a lower cost equaled the same or lower net cost.

Andy

 

[bandit67]

Iowa Boy,

Since the 0% has been going on for at least 4 years on-and-off, I think it would be safe to assume that it will continue for quite some time. Until our economy starts rolling along like an unstoppable freight train, manufacturers have to do what they can to continue to entice buyers. With the price of raw materials increasing regularly, and impacting end product pricing, the 0% offers are the best way to gain new customers.

I will bet that 0% will be back later in the year and/or extended after the current round expires, and I think it's safe to assume it will be around again in 2008.

If once you are ready to buy, you don't like the finance rates, then wait a little longer until better ones come around, because the good rates aren't going away for good any time soon.