Is this a good price for a 1025R?

[arrow]

SO TRUE!!!
And......SO FEW understand it!

It is unbelieveable. I get furious when I see all of these "car ads" of the this time period saying "we are here for you" "we are offering 0% blah, blah blah".

 

[Cruising]

Msrp's can be so played with it's pathetic. Let me explain: I have a tractor say that lists for $20,000. I add 10% to that to cover the 0% bs but you don't know what I just did as the manufacturer. So now this same tractor that listed for 20K yesteryear is now 22K. Now on a regular circumstance, there is a 25% mark-up on the majority of machines of the ORIGINAL pricing., So this tractor cost the dealer 15K. He now has $7000 to play with any way he wants or what the manufacturer advises. So lets say he says "Listen, this tractor lists for 22K but I'm taking $3000 off plus give you 0%. So now you're paying 19K for the tractor that originally listed for 20K and this looks absolutely swell to the consumer. The dealer is still making a profit on the product which is understandable and more so than if they had to "dicker", and there is money to pay for the manufacturer's 0%

Now, play with the "mark-ups " even more and you can understand that this was all to get the consumer to think "what a deal" and spend their money.
Everyone is doing this. It makes it seem "what a fool I'd be to pass this up".

This is a well thought out economic strategy and is ingenious in its concept because it's a win for the manufacturer, a win for the dealership and the customer "thinks" he is winning as well. Here, perception thrashes reality. Just what they wanted to relieve the customer of his money.

Then answer this. What price do you think I should be able to get for it using my financing?

 

[arrow]

Then answer this. What price do you think I should be able to get for it using my financing?

Then let me ask you a question: What is the value to you of owning this machine now? If it is more valuable to "have it" rather than what you pay for it, then the price becomes secondary to your need.

My main thrust with this is the surreptitiousness of the seller and manufacturers. They produce the illusion of giving the buyer a benefit when in fact it is they, the sellers that this is really benefitting. They have found a way to "ease the purse strings" of the buyer and gives the buyer a reason to pull the trigger now where he may not have pulled the trigger now or at all.

I have little idea of what should be coming out of "your" pocket for what "you" want. Lets even say it would be the same if indeed you were able to get your own financing. Would you (or anyone else as a consumer) be so quick to buy if they said "You can buy this tractor for $20,500 with 4% financing for 5 years as opposed to "you can buy this tractor for $22,500 for ZERO% financing? Even if it comes out the same money wise in the long run, which sounds better to the consumer? It is a lure to buy disguised with deception toward the unsuspecting that I absolutely detest and that is exactly what this "0%" bs is all about.

I'd much rather you have the intention to buy because you "need" the tool...period! It then doesn't matter what the price is because the "value" is in the ownership rather than this tom foolery they have resorted to.

It's similar to what Harbor Freight does when they give you a price for an item and then give you a "20% off" coupon. When that doesn't work, they slash the price and plus give you the 20%. That "lures" in the buyers if they were hesitant before..

 

[dodge man]

Arrow what you are describing isn’t anything new. Anybody who has bought cars, trucks, tractors or houses knows it’s somewhat of a game. When I bought my last truck and last car I probably got a good deal but not better than anybody else.

0% interest is exactly that. When I bought my last tractor I tried to actually pay cash and I would lose a $500 incentive if I did. Often dealers get some money for “selling” financing. With 0% they probably hope people default and soak them for past due interest.

One thing I’ve learned is you can pay off a loan right away. With our last truck the dealer said we had to make at least 4 payments. What he really meant was we had to make 4 payments for them to get there money for doing the financing. We paid it off right away.

They also can often get you a better interest rate. Dealers often have several options. Say they could offer 3.25% but if they give you 3.75% they make an extra $100. Which one will they sell you?

To the OP, it seems like a good deal to me. The only way to know is shop around.

 

[arrow]

0% interest is exactly that.



.

That is correct. They disguise the "interest" within the sale price of the item so they can call it "0%". What it does however is it gives the "impression" people are not paying for borrowing money on time. That is a total falsehood and leads people on.
For many people, the last thing they should do right now is buy a high ticket item. That corporations, in order to bolster their bottom line and sell product, would resort to this subterfuge, especially at this point in time, is totally reprehensible to me.