I agree... money may solve just about all financial issues.
But I can say this... as a newbie 2 years ago, I just recently was awakened to the reality of where we stand today over two years ago...(June of 2020 just as COVID was beginning to take hold).
I wanted to possibly upgrade my Extremely clean and excellently maintained Kubota Grand L3560HSTC/L805 loader/BH92 Backhoe with 517 gentle hours ... for a new Grand L4060 with the same exact accoutrements. I paid $52,000 in June of 2020.
For a modest $3000 difference in the base price between the new L3560 and new L4060, I was handed a $21,000 bill showing my trade in ($45,000 of the $52,000 I didn't when I purchased new), a very generous credit towards new of $5000 from Kubota for service support that I won't go into right now, and matching up COMPONEMTS with the addition of 3 rear remotes and an air ride seat....
$21,000 ... and that was without state taxes of $5500 on the new tractor-so $26,500 to upgrade.
Getting back to the point though... delivery could take up to 15 months.
My concern was twofold:
First, there was no price hold on the tractor or implements once ordered. So any inflationary increases would be at my cost. (Possibly 5% to 6% or about $3500 on delivery - which takes the additional costs up by an additional $3500 to now $30,000 to upgrade)
Second, There was no promise to hold zero% financing going into a period of the feds raising interest rates at a level unprecedented since the 1980's... phat chance zero % would be available in 15 months at the rates they are increasing things right now. I can't see how anyone, including Kubota could hold rates at 0%, unless like most here believe, they just pad the price to hold that 0% in place.
At 2 to 3% rates you can add $5000 over the life of the load so taking that $30,000 upgrade and adding even a $3600 cost to finance I'm up to $33,600 more money TO UPGRADE to a new 4060 from my 2 year old 3560...
That's a ton of money to invest yet again, into upgrading a 2 year old 530 hour machine to new... so to get on board with this order with those three or four things on the table is a risk that's a bit high for my tastes.
I could add a third challenge to this ...
And one that is relatively innocuous from the surface, but much more likely to result in a serious conflict if something goes awry.
The dealer states that I can keep my tractor, and use it u til the new L4060 arrives.
Now that sounds like a great thing... as I will continue to place maybe 250 additional hours on the equipment... but at two years the "bumper to bumper" Kubota warranty will be up right away. Like right Now. Any damages not covered by my inland marine policy or by the base manufacturers drive train warranty (6 years from purchase - or 4 years remaining) would be out of pocket for the L3560 while I'm using it. So basically anything of a Wear and Tear, or cosmetic issue that could make the tractor less valuable in the next 15 months would be on my dime.
So... I might be tempted to buy the Kubota extended warranty for an additional year to cover everything for an additional $1800.
(See the above mentioned proclamation that money usually can solve just about any financial issue!) ugh!!
So add another $1800 to the $32,600 and you get a staggering $34,400 to upgrade a 2 year old L3560 to a New L4060...
What would you do?
The biggest increase by far is the base cost to enter the much higher base rates of inflation now and on the next year.
Folks have said that the best thing to do to try to minimize one's impact by inflation os to not buy anything that's not absolutely necessary. I'm finding that to be a very true sentiment.
If I opted to buy I would be entering into the higher than normal cost structure that is making up the inflationary practices that fuel even more of this craziness.
This is not a "have to do" or "necessary" expenditure. So I'm thinking I do not need to spend that kind of money chasing something new. It's not worth that much to me. It's a portion of my life, not my life. For some it may be worth the expense and that's fine. I can't gauge someone else's needs to my own.
So in the end I may just buy the two year extended warranty for $3250 to cover the equipment (and all implements) for an additional 2 years and keep on keeping on. That's $3250 instead of almost $35,000. That sounds like a pretty cost effective choice for us ...
I may have to sell my Kubota L3560
It's a mad Mad Homestead
Don