Financing Issue(s) getting financed?

[timswi]

Wow!!! This has kinda kinda turned into a personal finance/micro-economic disussion. Anyway, the OP had a foreclosure--Massive risk to the finance company and the fact that they wanted additional assets to secure the loan is no issue in my world. In fact, he's lucky they even considered it--Would any of you given the risk of "farm equipment" kinda just dissapearing?...Keep in mind that most contracts have a "call" option but it is rarely enforced on consumers..If it was, they would have called in his existing loan and the flatbed would have arrived in his driveway.

What I said about car financing: I stand behind...Cash will generally cost more unless the dealer wants the car off his lot--aint happenin without some level of profit from somewhere andmost of it comes from dealer reserves and add-on's...

Credit card are lethal if one doesn't have a full understanding of what they are doing..If you do, good for you.

All I can say is that this is a good discussion.

 

[ovrszd]

It's a very good discussion. Steve has added some very readable data.

I agree about the lethal effect of CCs. I stand behind what I said about the vast majority of our society not being able to play Russian Roulette in that regard.

No one would get any sort of cash back from their CCs if the financiers weren't making a killing on those that lose at the "scam".

 

[hystyk24]

Wow!!! This has kinda kinda turned into a personal finance/micro-economic disussion. Anyway, the OP had a foreclosure--Massive risk to the finance company and the fact that they wanted additional assets to secure the loan is no issue in my world. In fact, he's lucky they even considered it--Would any of you given the risk of "farm equipment" kinda just dissapearing?...Keep in mind that most contracts have a "call" option but it is rarely enforced on consumers..If it was, they would have called in his existing loan and the flatbed would have arrived in his driveway.

What I said about car financing: I stand behind...Cash will generally cost more unless the dealer wants the car off his lot--aint happenin without some level of profit from somewhere andmost of it comes from dealer reserves and add-on's...

Credit card are lethal if one doesn't have a full understanding of what they are doing..If you do, good for you.

All I can say is that this is a good discussion.

You clearly didn't read much of the thread or understand the structure of the proposed deal... I posed a very simple question. What would be the downside of the deal? The bottom line: if you can't articulate the downside for Kabota, then its just talking... In 17 pages one fellow made a good point that the actual loan officer could have a downside should the loan go bad. That was the downside. The point of the thread, and substantiated by the lack of a single person showing a downside, was the new loan left them in a much better position then the current loan that would be left in place. The payment was cut in half, the balance of the loan was less then the current one and the value of collateral increased by $2500. It's just that simple and the only point I was making. Actually, I was looking for other finance stories that make people shake their head, only posted my experience because all the posts were asking for the details...

I agree it is a good discussion on financing...

 

[hystyk24]

Good stuff. Did you inquire about cash discount or did the dealers offer that information?

I prompted him by asking if the reduced price was the best he could do? He asked if I was financing? Then offered another $400 off and another 2.5 % if I wrote a check instead of using a CC. So, $4100 for not financing or $4000 for not using a CC. A perfect example of a seller giving a cash incentive but remember, they don't make anything on the 0% financing other then a $50 fee and maybe forced insurance policy. On my end it's just a simple financial decision. The 4K transaction is worth $80 if I redeem it on travel expenses or $40 if I redeem the miles for cash...

 

[paulfun9]

Wow!!!
What I said about car financing: I stand behind...Cash will generally cost more unless the dealer wants the car off his lot--aint happenin without some level of profit from somewhere andmost of it comes from dealer reserves and add-on's...


All I can say is that this is a good discussion.

You will have a very hard time convincing me of this based on my personal experience. I have had to order and wait for delivery and still got better a better price with cash than any credit offer that was put on the table. I have also gotten better deals than anything the dealership has offered when I walked into the showroom and told them "I am pre approved from my bank at --%, have this much in my pocket and will be paying my bank $--- per month for --months. Make the car/truck fit and I will drive it home!"

Never let them even run my credit anymore as its just a waste of time and when I talk with others who recently purchased the same car/truck/motorcycle or boat so far I haven't found anyone who has done better with finance. Now admittedly I haven't talked to everyone but when you compare more common things like my Ram 3500 or motorcycle that you can get a lot of conversations started on it seems I always get the "How the ______ did you pull that off.

All deals get better when they need to move something and I have also purchased at this point in time and still did better with cash than credit. So what this leads me to believe is just as I said before most are not strong enough to know when to walk away and actually do it. If they don't deal on cash the next dealer down the road will and after telling them that I have been stopped at the door, in the parking lot and called on the phone before I could even get to the next place with a much better offer. Yes sometimes it takes time and I once spent many hours working a deal but the thousands I saved added up to way more than the few hours I spent working it.

 

[Tractor Seabee]

I found tractors are a whole different animal with financing. They are not a registered/licensed item like cars, trucks, and motor cycles. Very difficult to repossess, if you can find it. The Big manufactures offering the 0 down, 0 % financing has changed the whole dynamic. It does not apply to used so most folks, that are not active farmers have to use unsecured personal loans. My hired hand just tried to buy a used pickup and the dealer would not sell for cash at all and take it or leave it price. 29% finance rate only. They are one of those dealers that finance their own deals and this guy concentrates on people who cannot get financing such as low income government workers and junior military. He also owns his own wrecker for repos; probably keeps it ready to run every day. He pushes a lot of cars. My worker and had a good laugh on that one. Today we went to a used truck dealer where I know a salesman. They wanted $3600 cash for an old pickup. checked the blue book and it was $1800 average dealer price. The offered $1800. They haggled back and forth, we made final offer 2K. Started to leave and were in my car and the sales manager came running ; said stop you got your price lets write it up. He drove it home 10 minutes later.

Last 8 vehicle deals I have made have all been for cash and at my price. I have walked out of several dealerships in the process. Last 3 were for new cars. Cash still works.

Ron

 

[ultrarunner]

Bought well over 80 vehicles and only for cash...

Never have financed anything other than a first mortgage...

My Grandparents and Dad were products of the Depression where it as all hands on deck... even Dad at 9 was contributing having a paper route...

My Grandmother never approved of loans saying so many got in over their heads and lost it all and then pointed to the homes in the neighborhood lost to foreclosure.

Mr Grandfather had two old weathered signs about his desk...

One is "Prosperity is earning a dollar and needing only 99 cents..." and the other is if "You're so **** smart why aren't you rich..." both from the Depression Era...

 

[mile9c1]

Ultrarunner I like how you think. How about, "A penny saved is 1.5 pennies earned"?

 

[fried1765]

You will have a very hard time convincing me of this based on my personal experience. I have had to order and wait for delivery and still got better a better price with cash than any credit offer that was put on the table. I have also gotten better deals than anything the dealership has offered when I walked into the showroom and told them "I am pre approved from my bank at --%, have this much in my pocket and will be paying my bank $--- per month for --months. Make the car/truck fit and I will drive it home!"

Never let them even run my credit anymore as its just a waste of time and when I talk with others who recently purchased the same car/truck/motorcycle or boat so far I haven't found anyone who has done better with finance. Now admittedly I haven't talked to everyone but when you compare more common things like my Ram 3500 or motorcycle that you can get a lot of conversations started on it seems I always get the "How the ______ did you pull that off.

All deals get better when they need to move something and I have also purchased at this point in time and still did better with cash than credit. So what this leads me to believe is just as I said before most are not strong enough to know when to walk away and actually do it. If they don't deal on cash the next dealer down the road will and after telling them that I have been stopped at the door, in the parking lot and called on the phone before I could even get to the next place with a much better offer. Yes sometimes it takes time and I once spent many hours working a deal but the thousands I saved added up to way more than the few hours I spent working it.

paulfun9....I don't know your age, but I am 76, and have bought cars/tractors/furniture with only cash for many years.
I have walked away several times also. Had a dealer call me next day once, and say OK to the deal we had discussed, my response: Sorry, I bought from a different dealer already.

I charge all other expenses on my 3 credit cards:

A Visa that gives me 5% back on gas, groceries, drugs ($400 yearly max cash back)
A VISA that gives me $2% back on everything (card costs $59 per year) with no cash back limit.
A M/C that gives me 3% at Office Depot, Lowe's, Home Depot, & hardware stores.

I charge EVERYTHING that I can!
From these 3 cards I get more that $1,000 back each year.
I love 'em !!!
Of course I pay the balance due every month.

 

[ultrarunner]

Wish I could take credit but it was my upbringing... my folks and grandparents never bought a new car...

Just prior to Dad passing he said make sure Mom gets her car to replace her 25 year old VW... she liked her VW but no power steering, radio, manual transmission, no A/C... etc she said now being older she could appreciate some of these luxuries properly... especially power steering for parking!

This is when we did a factory order for her 2001 Corolla S and watched it being built... and she paid cash for it...

My grandfather had another sign I found when I was cleaning up things... it was a gift from a friend when he married... I guess signs were popular back in the 1920-40's?

This one show a papa bird dangling a worm over a nest with open mouth chicks... the caption said "In the Spring I was an *** to get married"