Buying Advice Gonna buy a NEW tractor

[bdog]

Some brands don’t offer any discount for paying cash. Some do and significant ones. I was inquiring on some ~40k kioti machines today and the cash discount was 4K over their “0” percent financing. Many places that offer great financping are just tricking you in that pay for it by paying more for the machine.

 

[Jchonline]

I did actually, but the dealer network is smaller, prices were not hardly any less at all, and the financing wasn't as good.

You can go to a NH dealer and get parts for your LS right? Honestly I havent looked in about 3 years so financing and actual prices could definitely be closer now.

 

[Kosmo]

Some brands don’t offer any discount for paying cash. Some do and significant ones. I was inquiring on some ~40k kioti machines today and the cash discount was 4K over their “0” percent financing. Many places that offer great financping are just tricking you in that pay for it by paying more for the machine.

If you realize this you can just make a choice of shelling out 45K in one shot or taking 0% financing over 5 years. In my case I'd rather keep that money in an investment that i'm making 5% on, and shell out 6-700 a month. Not only does it stretch out payments for 5 years but it allows be to keep that cash for other unexpected expenses. I guess if I had an extra 100k hanging around I might be more comfortable making that big cash payout and save some money. But you are correct, the manufacturers can entice folks who are unaware with the financing deal. I'll still try to talk them out of some $$$ before making the deal.

 

[Grumpycat]

If you realize this you can just make a choice of shelling out 45K in one shot or taking 0% financing over 5 years. In my case I'd rather keep that money in an investment that i'm making 5% on, and shell out 6-700 a month. Not only does it stretch out payments for 5 years but it allows be to keep that cash for other unexpected expenses. I guess if I had an extra 100k hanging around I might be more comfortable making that big cash payout and save some money. But you are correct, the manufacturers can entice folks who are unaware with the financing deal. I'll still try to talk them out of some $$$ before making the deal.

... if there is no discount for cash, I agree.

Further advantage if one can get zero or low interest is that one pays tge loan back with inflation devalued currency. $1000 5 years from now will not buy what it can today.

I am expecting hyperinflation which will make today’s loans look even better.

 

[MoKelly]

I am expecting hyperinflation which will make today’s loans look even better.

Hyperinflation - see definition below.

Hopefully that is not really what you expect.

MoKelly

 

[Grumpycat]

Hyperinflation - see definition below.

...

Hopefully that is not really what you expect.

MoKelly

Before we had Venezuela to serve as a bad example, Jimmy Carter’s induced inflation was considered hyper.

Should be 10% by end of the year.

 

[mred2]

10%, we only hope that is all. Look at lumber and other supplies.

 

[MoKelly]

Before we had Venezuela to serve as a bad example, Jimmy Carter’s induced inflation was considered hyper.

Should be 10% by end of the year.

You may not believe this, but the Fed does not see high inflation in 2021 or 2022.

Neither does the stock or bond markets.

If you really believe 10% is coming, you should sell stocks and bonds now, put the money in gold, and wait.

MoKelly

 

[Grumpycat]

You may not believe this, but the Fed does not see high inflation in 2021 or 2022.

...

Neither does the stock or bond markets.

If you really believe 10% is coming, you should sell stocks and bonds now, put the money in gold, and wait.

MoKelly

Golly, The Fed has always been such an expert at the economy perhaps I should change my mind!

Lumber prices, used home prices, gasoline, spend-like-a-drunk-sailor Federal Government... $30T debt by end of the year. Inflation is coming and coming hard.

 

[tradosaurus]

The dollar is only worth what the consumer believes its worth. On paper its worthless.