Montana bought FarmTrac today??

[JDeerekid]

I talked to a senior sales rep at the Tulsa farm show over the weeked where I was looking at the new "big" tractors of the Montana line. He indicated Montana was "very" happy with the price they paid for what they got(whatever that means). I think from what he said though they wished the deal had gone thru much faster.

What big tractors are you talking about? What hp range?

 

[chh]

I posted another thread here in the Montana forum on them. The P9084C@88hp and P8084C@80hp and the P7084C@72 hp.

 

[JDeerekid]

I posted another thread here in the Montana forum on them. The P9084C@88hp and P8084C@80hp and the P7084C@72 hp.

Oh cool I didnt know that they had those models. They are not listed on the website. I know they said on the website that they make models up to 90hp.

 

[SESS]

This is interesting reading for those that have floorplan accounts with TFC:

Textron Announces Plan to Exit All Non-Captive Financial Businesses; Revises Fourth Quarter Financial Outlook and Expands Restructuring Program: Business Wire Business News: TXT - MSN Money

What are some comments, concerns, questions, thoughts?

 

[Maka]

Not worried about it. That is the best comment with no questions, thoughts or concerns. I'm not trying to sound flip but we really are not worried about it. Maybe some other dealers have input as I am just speaking for us.

Maka

 

[smith mall]

Maka,There are people like you who think ahead,plan and are sucessful.We wonder about Montana.The current bailouts are an indicator to textron and its fallout will be high on Montana.Farmtrac asset purchase looks like a great bravado at a wrong time.This is going to Tsunami the Montana dealers????

 

[Gator6x4]

A good article on what Montana as a company should avoid is in Equipmnet Industry News. I have included a link below along with several paragraphs on page six (6) of the article.
http://www.sblsg.com/admin/upload/60-NEWS-NEWS_FILE_TX.pdf

The paragraphs alluded to above are below:

Be wary of deals that sound too good to be true. For
instance, Farmtrac lured dealers into accepting unordered
inventory by promising that the equipment would be
interest free and would not become due until sold. Few
floor-plan companies would honor the terms promised to
dealers absent several years in court to determine whether
a floor planner is bound by these promises. It is better
to avoid the question altogether.
Similarly, Farmtrac offered “not even zero” financing
to consumers. Farmtrac promised to rebate all interest on
consumer loans and even rebate more than the actual
interest. Now, many dealers are faced with resentful
customers.
I have talked with one Farmtrac dealer who was also
offered a substantial discount in exchange for paying
cash in advance. While this was not a particular method
used by Farmtrac, there are other struggling
manufacturers who use this tactic to essentially borrow
dealer money to finance current operations. Once the
money is gone, these companies are unable to
complete their promises. The promise of the pre-pay
discount may be simply too good to be true.
• Make sure that the people making the promises are
the same people who are responsible for keeping the
promises. When a manufacturer promises financing
terms, but financing comes from another company, be
suspicious and demand proof. Don’t be lured in unless
you are provided something in writing from the
financing company adopting the terms. While it may
be possible to establish later that there was enough
authority extended by a financing company to make
a manufacturer’s promise binding, proving authority is an
expensive proposition and requires a great deal of effort
and time. Avoid questions and document both the
promises and the means that will be used to keep the
promises.
There is no way to eliminate all risk associated with inventory
financing. The starting point is to carefully read the documents
provided and remember that no one will care what was
promised by any representative.