I need to buy a tractor!

[OrangeAlex]

</font><font color="blue" class="small">( my HP may need some new batteries but I can't get opportunity cost of capital to come close to "a grand or two" between 24 and 36 months at 0%. )</font>
You are right Bart.. my mistake. I was looking at it a bit weird. I am using 8% return on investment as an example here. Although with real estate investment, things have been appreciating more like 12% around my neck of the woods.

$20,000 invested over 3 years with a yearly return of 8% compounded yearly yields $23300. A gain of $3300.

$20,000 invested over 2 years with a yearly return of 8% compounded yearly yields $25200. A gain of $5200.

A difference in $2000 not using your money to invest that extra year.

It is a bit more complex than that.

over 2 years. You effectively pay $10000 per year.
Yr 1: $20000 investment@8% = $1600 return , Yr 2: $10000 investment@8% = $800 return. Total $1600 return on opportunity cost.

over 3 years.You effective pay $6666 per year.

Yr 1: $20000 invest @8% = $1600, Yr 2: $13333@8% = $1066, Yr 3: $6666@8% = %533. Total $3200.

A gain of $1600. check my math my Apple Mac might need a better UPS. ;-)

 

[OrangeAlex]

</font><font color="blue" class="small">( OrangeAl,

your dealer needs to lower his overhead. one way to help him do that is not buy from him. 24k for a 3320 and 300cx???

did he have a gun?!!

3320's all day for 15,900
300cx std material bucket = $3300. with the HD bucket (adds $98 if priced right) should be 3400 all day. best I've seen is $3340.

total=$19,200 with standard bucket. /forums/images/graemlins/laugh.gif
that is a WHOPPING $4,800 less than you were quoted??!!! /forums/images/graemlins/confused.gif

For pete's sake, he's steelin 'ya blind! tell him to find himself another goat to whip and git on down the road! there's competition in them thar hills!!! /forums/images/graemlins/grin.gif )</font>

Bart,
I have a question. I am kind of curious about this. I went to John Deere web page and "built" a 3320 Hydro with 3000CX loader and the price came up at $23799 (not including freight). I assume you are saying that this is the list price. You said $19200 was more reasonable. A difference in $4600. 24% less then the John Deere web page price listing. Assume that the prices on John Deere's web page are list price, is it common for the John Deere dealers to discount 24% off list???? That is huge! It has been my experience that Kubota dealers take 15% off list.

Thanks
-Alex

 

[Ghostbrigade]

We not way off tractors. In Australia they have no migrant workforce as you surmised, therefore almost everything is machine harvested, great big expensive machines designed for vineyards, unfortunately most are manufactured in France.

 

[Ghostbrigade]

Seasalt,
I live in Conroe as well. What dealer do you refer to on the JD 3320?

 

[rockyridgefarm]

I see about the same spread with my local dealers, one is WAY high... The others want my business... The highball one is staffed bya commission hungry sales force

 

[seasalt]

Alex,

common, maybe not. available yes. at least three dealers I went to either quoted directly or matched the numbers I had.

I never had more than a 10 sec conversation with anyone who didnt come in that ball park. I would start with 20% off and go from there.

 

[seasalt]

OrangeAl,

first I belive you have the years and value reveresed for 2 and 3. second you took the difference between what you might make on an investment - cant do that. you are not investing this in an appreciating asset. you have to look at free money - that is what 0% is. difference between 0% for two and three is calculated on what two costs - nothing and what three costs - 3.9%??

if you are looking at what you might make on your money if you put it elsewhere - that is the wrong basis. I am assuming you are committed to buying a tractor - (re: title of post), in that case there is no alternative investment. choice becomes simple at that point - you should take all the free money your cash flow will allow, period. pay interest only if you cant stand the 800 per month payment and need to lower it.

at the end of the day I have never found any of that foolishness to count for much. most people arent making 8% after tax right now and real estate is about to burst in almost every area of the country - figure in risk and your estimated profits go to pot. 8% AT is only valid for long term investment estimates from the S&P 500. double digit gains on property will not stand over the long term and when they go down there is no fundamental bottom - you could loose big.

as my wife would say "stop fooling aroud with the justification and buy the darn thing, so you can start enjoying it! /forums/images/graemlins/grin.gif

 

[Soundguy]

</font><font color="blue" class="small">( Bart,
I have a question. I am kind of curious about this. I went to John Deere web page and "built" a 3320 Hydro with 3000CX loader and the price came up at $23799 (not including freight). I assume you are saying that this is the list price. You said $19200 was more reasonable. A difference in $4600. 24% less then the John Deere web page price listing. Assume that the prices on John Deere's web page are list price, is it common for the John Deere dealers to discount 24% off list???? )</font>

I know this is picking nits about inclusive and exclusivity.. but.. I come up with a 20% or so spread. And as was stated.. a discount of 24% off list ( 23799 ) would yeild more like 18087.24.. and not 19200.. etc. right? I.e. 23799$ minus 24% equals 18087.24.. etc..


Soundguy

 

[seasalt]

Ghostbridge,

regarding our local dealer who is on the hot seat with a 3320 you could get for 15900 + what ever you can negotiate for the third service and mid pto already installed...there is only one IN town and that is the one. dont want to name names.

call me or private message me for more info if you cant find it or want further details. otherwise you'll know you are in the right spot when you pull in and see a dozen 790s flanked by two 3320's - one with a mid pto and third scv.

your first response to my post seemed like you would be swayed by financing. if so see 60 mo at 0% from Nholland. if you want an orange machine, I doubt you will regret it other than possibly on size or features - but in most cases you will enjoy a fine machine from all indications including my research.

The features, resale, reputation and ability to meet future needs (plus a little on the bragging rights side), did it for me on green. Last but not least, I found my/ our local dealer for K's couldnt find the phone to return my calls or follow up on my request to send a unit out for a test drive. must not be too interested, and my money wont go to anyone who doesnt put me first as a customer. I wont be begging anyone to take my money. That is when I wandered back over to the JD dealers in the greater area and began to compare. Things just seem to fit better for me (other than the K 3030 which I had no problems with other than it looks a bit odd to me personally when fitted with a belly mower and especially with that and a cab. the a/c was nice, though. also when both my wife and I got it (one of the smallish front wheels) stuck in some gumbo during a test drive at a non local dealer and it had to be wenched out that didnt help the way I felt about it.

Just my experiences - yours may vary - but remember all in all no one can tell you what to buy - just follow your heart - this is an emotional decision as much as anything else. heck, who really needs an expedition 4x4 or H2 around here? but they sell like hot cakes!

Enjoy what ever you do and know whatever you do it will be the right choice for YOU.

 

[seasalt]

yup