New Tractor Purchases

[herefromthere]

Going the financing route, even with the loss of the $1k cash discount (for Kubota,) can be a strategic decision. Assuming you'll be able to stay solvent, going that route allows one to make payments with future dollars that will likely be worth a whole lot less than current ones.

It's an interesting mental exercise to consider the pros & cons of paying cash vs. financing. If one pays cash, they are paying with today's dollars, and there is no risk...or reward. If one has cash but chooses to finance, they may get to pay back with future devalued dollars, but there is the risk of whether or not the cash may be lost via poor investments or other causes. On the up side, if one can invest the money not spent up front, a very small percentage annual return would more than cover the loss of the cash discount.

Has this line of thought been considered in anyone else's "to finance or not to finance" decision?

 

[Hollow]

Wasn't fortunate enough to pay cash... Just getting started, bought a house on ten acres, held off as long as I could but eventually I had to bite the bullet. I had to financed it but doubled down on the payments and paid it off in a little over two years.

 

[namesray]

i have a kubota b7800, rtv 900, and multiple attachments for use with my small business. all paid for now. (well the rtv will be paid off in may) i have 2 full time jobs (equipment operator for the state transportation dept. and my small business) i work on average 12-18 hours per day usually every day, unless the weather gets bad. i had over 200 hrs overtime last year at just my operator job. my small business has paid for all the equipment so far and i am looking to expand with another tractor. i also am a supervisor for my township. i feel i have worked hard for what i got. i think it to be more asthonishing if everyone here would be talking about getting new motorcycles, boats, or rv/campers all the time just for fun stuff. but most are getting equipment for making their WORK easier.:thumbsup:

 

[Fi-Q]

I am 30, new houses, new kids, decents cars..... The car is paid for, the trucks will be paid for soon, the house is far to be paid, it's not even finished yet. I have NO toys at all, I have a big RV toy hauler, but it is to leave in it while working. I have never used it for camping ( I am calling camping going away from home to travel for fun, nothing to do with work) i think I am doing good with my money, i have a good start on my own pension plan, I own 80 acres that is paid for and I put over 100k$ on the house (plus payment) in the last 3 years. I keep telling myself that I need to pay cash for toys (including the eventullay must have tractors) but it seems i always have other priority.

But if I would have bought, let say, a 25k$ tractors 5 years ago, it would be paid for now and I would have it, and I could have easilly have done the paiment, but i spend that money elswhere. And one more payment would have kept me more away from Bars & restaurant. For a lot of people payment is a good discipline.

So will see, i will probably tart with a 5k$ old tractor like a massey 135 and this will kick me in the a** to save to get a newer 4x4 rigs , time will tell, in the mean time, the small loader on my dad bx25 is doing a lot of good things for me

 

[IndyIan]

I wrote a cheque for mine but it was still financed on our line of credit. I sort of a young guy but we don't owe a whole lot on our house any more, and we have no other debt so I bit the bullet on a new one. I'd loved to have bought a used one but it wasn't much more for a new one.
I do wish we bought the tractor years ago now, debt be damned...:laughing: Besides it should pay for its self in driveway snowplowing, and firewood collection and for moving moderate amounts of dirt over the next few decades, and it prevents me from wasting money on cars for the next couple years.

 

[Muhammad]

54.8% of TBN members pay cash for their tractor, and 41.6% finance in one way or another.

 

[kenmac]

I have an old yanmar. But, I paid cash

 

[foreman Etexas]

Probaly not the way it should of been done but I borrowed from my 401k then payed myself back with interest,so it didnt lose anything not being in there. Guess I could save and pay cash but if my wife knew I had that kinda cash,she may need something and i would have to start all over again:laughing:.

 

[kenmac]

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.

I would think the fine print (in the contract)would be your notice

 

[rsewill]

I bought a 1999 model last year because it was in my cash price range. For new I would have to do a midnight pickup so no financing or cash would be involved.