But...
In the fine print there is usually a clause that says something to the effect of "miss a payment and 0% is out the window" which is exactly what the finance company is hoping for.
New Tractor Purchases
- Thread starter MasseyWV
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But...
In the fine print there is usually a clause that says something to the effect of "miss a payment and 0% is out the window" which is exactly what the finance company is hoping for.
rjwerth
Gold Member
Couldn't agree more. Cash IS king so when Kubota only gives you $1000 for paying cash, it makes no financial sense to NOT take the 0%/60. You get to keep your cash and get a tractor! As long as a monthly payment doesn't drive you nuts (and I know it does to some), you end up ahead!
I believe it makes more financial sense to pay cash, regardless of what carrots a company may dangle in front of me to try and get me to finance it. Ultimately financing can cost a lot more than paying cash, regardless of any rebates that are offered.
They usually offer larger rebate incentives for financing because they know that only a fraction of buyers who apply for 0% financing will actually qualify, and of those that do, many of them are likely to miss or be late on a payment, causing that enticing 0% interest rate to skyrocket. Not to mention all the other potential pitfalls involved with financing.
Financing is a lot like gambling and as the old saying goes, the house always wins.
pjbci
Platinum Member
- Joined
- Feb 10, 2012
- Messages
- 780
- Location
- Summit. Ms
- Tractor
- JD 4840, Deere 5075e, 450j, Cat D4k2, Kobelco 160, Volvo EC140el, deere 310, komatsu D31px22, IH 1486, MF 135, MHF TO35
I had no idea our economy was doing so well that all these folks dont have to finace things. Maybe my cash flow will catch up with everbody else soon.
One doesn't have to be rich to pay cash, just disciplined enough to save the money, even if only a little at a time. I have a "tractor fund" going right now myself.
TripleR
Super Star Member
- Joined
- Mar 5, 2009
- Messages
- 18,084
- Location
- Missouri
- Tractor
- Kubota M8540HDC, L5740HSTC, BX2200, BX2660, John Deere 425&1025R, Case, Massey Ferguson, Ford
I'm pretty old, so I have the money now, but when I was younger with kids and all the expenses I had to finance cars/trucks. I also bought used stuff that I could afford rather than new. My wife got her first new car when she was 59; may be her last too.
I am certainly not knocking anyone who finances whether out of necessity or choice.
Mike476
Veteran Member
- Joined
- Jun 6, 2010
- Messages
- 1,080
- Location
- Annapolis Valley, Nova Scotia
- Tractor
- MF 135 Z134 Continental, MF 1660 Cab
My tractor I paid cash for but I've saved to purchase large ticket items only to be unable to part with it when the time comes, choosing rather to continue to save while drawing from it to make the agreed payments. In the end the payments have been lower or on par with what I had been fortunate enough to be able to put away. I've also paid things off early when the total was something I could bear to part with, crazy I know. :confused2:
Jamming
Gold Member
60 month zero interest, but i will pay it off sooner than later. i am not a farmer so why burn through cash when zero percent is available, besides if my wife ever decided to leave me, i would give her the bill and take the tractor. 
Jamming
Gold Member
There is also a law that says they must give notice before doing so, its not as simple as missing a payment, because with todays "auto payment stuff" it happens.
Law or not, if you haven't saved enough cash to pay it off, you'll end up paying the increased interest rate and the finance companies know this. Paying cash prevents "it" from happening in the first place.
