eatenabean
Bronze Member
When buying a Tractor, why is there a cash price and a financed price(about 3000 higher)? I have bought cars, trucks, houses, and boats. Never have I heard of this. I am new to tractors, But this is stupid.
Pricing Tractors
- Thread starter eatenabean
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whistlepig
Elite Member
My experience seems to be much different than yours. On cars, trucks, tractors, implements, appliances, and all other major purchases I have always got a much better price paying with cash or pre-approved financing. I'm not sure what the difference is but for sure there is a difference.
Mousefield
Veteran Member
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- Aug 24, 2008
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- Sold 2008 CK35 HST
I think you will find if you pay cash for a new car it will be a different price than say, 60 months at 0% finance. One way or the other they get ya. You have to realize that the 0% (or other low rate) is subsidized by the higher cost of the product. The company that does the financing of what ever product does not get its money at 0%.
CurlyDave
Elite Member
I negotiated the best price I could and then asked for the difference if I paid cash. When they said "none" I used the financing. If they had named a figure, I would have calculated the interest rate.
coobie
Super Member
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- Kubota RTV 1100c, JD 740,Kioti DK 40 with KL401 loader .
I saved another $1000 bucks of the price of my 2008 Kioti DK40SE tractor when I paid cash.I guess cash is king.LOL,coobie.
Coyote machine
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Financing, even at 0% is still not always the best deal in some situations. It is possibly the best deal for the manufacturer when they want to move whatever metal that they might not otherwise move, unless 0% were offered to those who can't come up with the cash to pay for the product upfront. Sometimes local banks beat out the manufacturer's best deal, or zero % just to get the local business they might not otherwise have coming to them.
Its tricky business with the cards almost always stacked in the dealer's hand, just like in Vegas!
Caveat Emptor - buyer beware- if the deal sounds too good to be true then guess what- it probably IS!
Its tricky business with the cards almost always stacked in the dealer's hand, just like in Vegas!
Caveat Emptor - buyer beware- if the deal sounds too good to be true then guess what- it probably IS!
BTI
Platinum Member
Because at this point in time Kioti is charging the dealer for the 0% which unfortunately must be passed on to the customer.
The brand of Zero turn we used to sell did this all the time.
Makes it tough to price machines.
KiotiDave
Advertiser
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- Jan 27, 2004
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- 357
- Tractor
- Can't remember
Hi all,
In a lot of cases when a dealer quotes a cash price to a customer, they have already applied any available rebate to the selling price. In most cases you will get a choice of a rebate OR low rate financing. If he is adding a chunk of money back into the financed price it may be a rebate is being added back into the price. The O% financing on most of the manufacturers programs require a dealer participation so it may not be the best choice. Most of the manufacturers have it figured pretty close to the same cost(for them) no matter what program you choose.
This is my best guess as to why there is a different price for cash and financing.
I hope it helps you.
KiotiDave
In a lot of cases when a dealer quotes a cash price to a customer, they have already applied any available rebate to the selling price. In most cases you will get a choice of a rebate OR low rate financing. If he is adding a chunk of money back into the financed price it may be a rebate is being added back into the price. The O% financing on most of the manufacturers programs require a dealer participation so it may not be the best choice. Most of the manufacturers have it figured pretty close to the same cost(for them) no matter what program you choose.
This is my best guess as to why there is a different price for cash and financing.
I hope it helps you.
KiotiDave
AKfish
Super Member
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- JD 5115M; JD 110 TLB; JD 4720; Ford 9N; JD X300R
I has been my experience when buying a tractor, a car, a truck - almost anything - don't let the salesman cloud the water's with "are you planning to finance with us" or "we can help you with a rate at X%"!!
That line of discussion always leads "up the hill" from a reasonable purchase price - IMO. Gently, politely steer the conversation back to whatever his cost is...
I always deflect that tactic with -- "I haven't made up my mind, yet. I might; I might not. I'll either pay cash or finance with my bank or credit union or maybe I'll finance with you. It all depends on where the tractor is priced at."
Of course, before I walk in the door - I already know how much my bank or credit union will give me a loan for. And I have already done alot of homework getting price estimates from other dealers and for other tractor makes, too.
Best of luck.
AKfish
That line of discussion always leads "up the hill" from a reasonable purchase price - IMO. Gently, politely steer the conversation back to whatever his cost is...
I always deflect that tactic with -- "I haven't made up my mind, yet. I might; I might not. I'll either pay cash or finance with my bank or credit union or maybe I'll finance with you. It all depends on where the tractor is priced at."
Of course, before I walk in the door - I already know how much my bank or credit union will give me a loan for. And I have already done alot of homework getting price estimates from other dealers and for other tractor makes, too.
Best of luck.
AKfish
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Martinez
Cash For Gold Prices
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Martinez
Cash For Gold Prices