Somebody talk us of it

[the old grind]

.. If you need factory financing ... don't be fooled by 0% financing. It does not exist.

Google equipment financing and look for a lender that would support your purchase. You might be surprised how low the interest rate would be on a used tractor. ...

I compared "0% financing" (60 mos) to cash price on a new machine. $1500 more to 0% finance. +$25/mo doesn't sound like 'free' to me.

Went to CU and borrowed against shares at 3.01%, would've been closer to 4% if unsecured. Interest saved by paying off early vs still owed due to remaining balance of padded "%0" loan having int folded into payment. (pre-committed = prepaid, there)

IMO, shopping for financing can be as important as shopping for the right tractor, new or used.

Oh, I forgot to mention warranty. If you think you need warranty on a slightly used tractor (500 hrs for example) you are buying the wrong tractor.

:thumbsup::thumbsup:

<TBN does love to spend other peoples $$$ :laughing:>

That's why we're here.

 

[PhysAssist]

Actually, these are exactly the answers I was hoping for.
I just thought if there were another side to this, I'd like to hear it. Glad to have our thoughts confirmed by people who have done the same thing.

Sure are good folks around this site!

Hi LKP,

Your reasoning is logial, rational, and correct, in fact, it matches ours', which why in 2011, we bought a new Kubota B2320, with a loader, middle mount mower, and ballast box.

We financed it for 5 years at 0%, which included the buyer protection plan, which we are going to renew when it expires with the loan this summer.

I am a Consumer Reports/Consumer's Union member, and as such, I have NEVER bought an extneded warranty, but the KPP is NOT a warranty, because it really has no exclusions- if I drop a tree on my tractor, drive it into our pond or otherwise damage or destroy it, we geta new one, for $250.

The only limitation (AFAIK) is that the damage cannot be incurred in a commercial setting.

I don't know of the green tractors or other mfgs offer anything as complete, but if your kids are going to be using it, you may want to look into the question.

Also (and I am now taking a risk** talking to you about this here) remember thta despite the smaller size and/or safety features of the newer tractors you are considering, they are stil considerably powerful and potentialy dangerous motorized equipment, and the kids will need realtime supervision for the forseeable future.

**The risk I took was two-fold:

1) Being branded/accused of being a member of the vigilante group called the safety police, and:
2) Offending you- I did see both your join date, and the prior ownership of at least one older 2-WD tractor, presumably w/o a loader.

My excuse is that having driven those myself before owning our "new" tractor, I did not at first realize the enormous difference in safety (and utility) that having both a loader and 4-WD could make.

I spent a lot of time here and practicing on my new tractor, before I felt/thought I was ready to coach SWMBO in using it safely, and instilling the proper safe habits in her.

Take my writings however you will, I am just trying to be helpful.

Good luck, and God Bless!
Thomas

 

[PhysAssist]

I compared "0% financing" (60 mos) to cash price on a new machine. $1500 more to 0% finance. +$25/mo doesn't sound like 'free' to me.

Went to CU and borrowed against shares at 3.01%, would've been closer to 4% if unsecured. Interest saved by paying off early vs still owed due to remaining balance of padded "%0" loan having int folded into payment. (pre-committed = prepaid, there)

IMO, shopping for financing can be as important as shopping for the right tractor, new or used.



:thumbsup::thumbsup:



That's why we're here.

What we did, qnd what you are actually pointing out is that you need to negotiate the price separately from financing, I already had bank financing (also from my FCU) in hand when we went to visit various dealers and negotiated firm prices with outside financing, which we then instead financed through the dealer financing (best way to shop BTW.)

If they tried to add ANYthing to the bottomline (or above it for that matter) we walked out.

A couple did (individuals, I believe, as I did not get the impression that any of the dealerships had that as their policy) and not only did we walk out, we also called and/or emailed the owners of the dealerships to report and complain about the attempts.

 

[MF283]

What we did, qnd what you are actually pointing out is that you need to negotiate the price separately from financing, I already had bank financing (also from my FCU) in hand when we went to visit various dealers and negotiated firm prices with outside financing, which we then instead financed through the dealer financing (best way to shop BTW.)

If they tried to add ANYthing to the bottomline (or above it for that matter) we walked out.

A couple did (individuals, I believe, as I did not get the impression that any of the dealerships had that as their policy) and not only did we walk out, we also called and/or emailed the owners of the dealerships to report and complain about the attempts.

That's what i did on my 2014 JD ZTR, got 1500 off the price because they had 4 of them, bought a 07 5303 in 2011 with 158 hours on it, financed at 3.1%, bank couldn't go thet low.
The deals are out there, you just have to look for them.

Ronnie

 

[Kubota 2350]

I compared "0% financing" (60 mos) to cash price on a new machine. $1500 more to 0% finance. +$25/mo doesn't sound like 'free' to me.

Went to CU and borrowed against shares at 3.01%, would've been closer to 4% if unsecured. Interest saved by paying off early vs still owed due to remaining balance of padded "%0" loan having int folded into payment. (pre-committed = prepaid, there)

IMO, shopping for financing can be as important as shopping for the right tractor, new or used.



:thumbsup::thumbsup:




That's why we're here.

I looked at the Kubota's, their 0% financing is not 0% at all, they will give you another 35 hundred off the price if you pay cash.

John Deere is the same price if you pay cash or if you take the 0%

30,000.00 is 30,000.00 either way.

I checked them all before I bought my new tractor

 

[Tractor Seabee]

When I was looking 5 years ago I tried to find financing for a used tractor. Banks and CUs all said bring in a copy of 3 years IRS Schedule Fs and we will treat you as a farmer with a line of credit you can use. It was a variable rate of 5% universally and collateral was the book value of the farming business, other wise it was a personal loan at 17%, they did not want the tractor as collateral, too hard to mess with foreclosures. Not being in the farming business that was a show stopper so started looking new. What I saw in the used market is a different story.

Wound up with a Kubota, they were the only tractor dealer within 40 miles. They are known nto have the best prices in WA state. $2-3 under the competition more than 40 miles away. There bottom line was cash or K financing same price, if you want to negotiate go 50 miles down the road. It was a no brainier as I understood their situation after checking 50 miles down the road. By the way they are still in business with same deals today even though today they have a JD and NH competition close by.

New may be your best all around pricing/financing solution depending on local competition. Good luck and teach those kids safety first, keep them home, and love them to death.

Ron

 

[Lastkidpicked]

Old Grind and Oversized, thank you for your advice on the financing.

To keep everybody honest, I stopped in at a different John Deere dealer about 35 miles away. Walked in and told the sales guy exactly what I wanted and stated, "I'm paying cash."

He wrote up the quote and it was to the penny what my tractor cost at my usual dealer with the financing. So in this case, no reason not to use it.

You are correct, of course, that there is no free lunch. John Deere has this financing cost built into their price for the tractor across the entire line. But if there is no cash discount then the cost to us is exactly the same.

Ron, (TractorSeabee) and PhysAssist thank you for such insightful posts. And yes, part of the reason for the purchase is the newer safety features never even considered when they built our 8N.

To put a finer point on it: I still believe that having the teenagers out on a tractor is safer than them sitting inside looking at the junk that comes across the internet.

 

[TripleR]

Tractor buying is like buying cars etc., I pay cash, but just for curiosity on my last two purchases, car and tractor I asked for the very best price I could get either way. Over a few days I negotiated several thousand off their "last and best possible offer". I HATE dealing with them as no matter where you go, it's the same song and dance.

A few years ago on another purchase, we were going to finance our M8540 with the 0 percent loan and got a final offer which was going to make the salesman's kids go hungry. I then said, "How about if we paid cash...Oh well in that case we can get it for you at..."

We've bought new and used, but lately mostly new as has been mentioned they really hold their value and I'm no mechanic.

 

[bigtiller]

I'm not going to try to talk you out of it, someone needs to fund my pension. :drink:

 

[Lastkidpicked]

BigTiller, you will be glad to know we're going in Saturday to complete the deal.