So why do you buy Kubota? Even though Roy says JD's best? :)

[montelatici]

You did not upset me, but it appears that I upset you, sorry.

Seems to me that telling people that are candidly pointing out basic financial considerations to "take a deep breath and ease up" leads me to believe that it is you who was getting all huffy.:laughing:

 

[riptides]

Actually, if you have cash in the bank, you may be owing the bank to keep it there.
Fees and whatnot on accounts and balances vs. bank interest rate.
:smiley_aafz:

 

[lucky llama]

I hate to interrupt:laughing:, but, I bought my first Kubota based on price and availability. I bought the second one because of my dealers service and the dependability of Kubota.

 

[rjkobbeman]

Actually, if you have cash in the bank, you may be owing the bank to keep it there.
Fees and whatnot on accounts and balances vs. bank interest rate.
:smiley_aafz:

Well, I guess if you store your money under your matress and do not have a bank account, this whole discussion is pretty moot....

 

[crazyal]

I hate to burst anyone's bubble but if you pay cash Kubota has an instant rebate. I got an extra $1000 off after reaching a deal because I changed my mind and paying outright for it. secondly you don't have to deal with having Kubota notifying your town/ state they are the lien holder. Finally my homeowners covers my tractor as long as it's on my property or being moved for service so I didn't need to worry about getting the thumbs up from Kubota that it was good enough for them or buying Kubota's insurance.

 

[montelatici]

I hate to burst anyone's bubble but if you pay cash Kubota has an instant rebate. I got an extra $1000 off after reaching a deal because I changed my mind and paying outright for it. secondly you don't have to deal with having Kubota notifying your town/ state they are the lien holder. Finally my homeowners covers my tractor as long as it's on my property or being moved for service so I didn't need to worry about getting the thumbs up from Kubota that it was good enough for them or buying Kubota's insurance.

Yeah $1,000. I considered it but I would lose $20K in investment income over the 5 years of free money, as detailed and documented in my earlier post. Doesn't make financial sense. In fact it is just throwing away money.

There are no liens on tractors.

I didn't need to buy Kubota insurance, State Farm provided proof of coverage. I bought the Kubota insurance so that I could take my tractor to other places and still have coverage.

 

[beppington]

Realistically I expect to get about 20% return per year on these investments.

Like my ol' Granny Mae used to say, "Expectin' n' gittin' urr two diffrint thangs."

:laughing:

Good luck to you, though, sir!

 

[rjkobbeman]

I think the most realistic scenario would be someone who wants to buy a $20,000 tractor and has $20,000 cash.

If you buy the $20,000 tractor for $19,000 ($20,000 minus the $1,000 'rebate'), you have $1,000 left over.

You "saved" $1,000.

-- or --

If you buy the $20,000 tractor for $20,00 (no 'rebate' because you are getting the 0% loan) on a 0% 5-year loan, you will pay $333.33 each month.

Assuming you are making 5% per year on your money (your money being the $20,000 cash you have "invested" -- bank account, stocks, bonds, whatever) and it is this $20,000 pot of money in which you will draw from to pay the monthly tractor payment, at the end of the loan you will have $2,900 left over.

You "saved" $2,900.

Going with the loan, you will make $1,900 more than if you paid cash.

Make more than 5% on your pot of money? You make more money.

Make less than 5% on your pot of money? You make less money.

If the return on your investment gets low enough, paying cash would net you more money than the loan.

The best part is, as long as you don't spend the $20,000 on somethig else, it will always be there to cover the loan... so having a loan is not a risk to you financially.

Also, the more money you spend on the tractor, the more money you "make" -- as long as you have the pot of money to earn interest on. In other words, if my scenario above was a $40,000 tractor and you had $40,000 to pay cash with or invest. I don't know if the rebates go up when the tractor value goes up. That could change things too.

Me? I envy the people that "have" the cash to buy outright. I would still finance when rates are at 0%, but I still envy you none the less. I needed a tractor NOW and financing was the only way it was going to happen. Zero % was a blessing...

 

[montelatici]

Like my ol' Granny Mae used to say, "Expectin' n' gittin' urr two diffrint thangs."

:laughing:

Good luck to you, though, sir!

There is no luck involved, it takes a combination of acumen, patience, experience and knowledge.

As my earlier post documented I am at 17% in 7 months this year and year in and year out I exceed 20%.

However, even if it were to drop to 5% ROI for 5 years, I would lose $5,000 over 5 years.

ROI would have to drop to 1% per year to make the $1,000 discount on a 20K tractor a wash. And, you get can twice that from a 5 year CD even today.

It isn't rocket science, really.

 

[rjkobbeman]

There is no luck involved, it takes a combination of acumen, patience, experience and knowledge.

As my earlier post documented I am at 17% in 7 months this year and year in and year out I exceed 20%.

However, even if it were to drop to 5% ROI for 5 years, I would lose $5,000 over 5 years.

ROI would have to drop to 1% per year to make the $1,000 discount on a 20K tractor a wash. And, you get can twice that from a 5 year CD even today.

It isn't rocket science, really.

Although I agree there are smarts that go into smart investing, LUCK does play a role. You have no control over what the companies do that affect their stock price. You have no control over the emotional investors that dump stock that affects the stock price.

If you truly are getting those returns, my guess is you are highly diversified and your gains outweigh your losses... or you are the one person on the planet that does not lose.

There are lots of investors out there and there are lots of brokers/advisors out there. If it wasn't rocket science, nobody would be losing money. If nobody was losing money, the stock market would be up and not down. (If the stock market is down, SOMEBODY is losing money.)

This just in: the stock market is DOWN.