Cahaba Valley Farm
Veteran Member
I will add to this the finance charge to each customer is determined by the time horizon they are willing to approve the customer for. When I was crunching the numbers a few months ago a 60 month loan from Kubota for what I was purchasing came out to be somewhere around 4% interest over that 5 year period. That % would obviously drop the longer time horizon you were approved for.They are simply putting their finance charge within the purchase price and calling it a 0% loan.
In reality, they are covered legally speaking to do such but it is still an around the bend tactic in my mind.
I will say it is an ingenious plan because it gives the "appearances" that everyone is a winner.
I also liked what you pointed out when you said the following:
No, I have never seen that either. And you won't. That was a great point made Arrow.I have witnessed no advertising from a bank or credit union that has stated "borrow $10,000 with no interest for 84 months". I would need to be enlightened in that regard.
I have seen this with cars, tractors, furniture where actual goods were being traded.