Wow. So much incorrect information in one place....yes, companies use 0% offers to attract business. In that sense, you could call it a marketing scheme.
Thousands of people save millions of dollars getting zero percent. Those people tend to have excellent credit. The rub is not what you think. People with bad credit don't get the zero percent. Are the dealerships taking a loss? No! They are moving product and getting better rates on floor plan and more inventory. Profits come from ancillary sales like parts, accessories and labor.
Even if you took your assumption at face value, the price increases are across the board. That means your 'cash' price would be subsidizing my zero percent. Thanks, BTW.
I also found it rich that the only honest truck or car salesman in the country just happens to post here. My point is not to disparage you but to have you take a step back and consider you words more carefully. Assume positive intent in others. Not everyone has $50k to drop in cash on a tractor (or truck). Zero percent allows people to buy and dealerships to sell more tractors. Not everyone who has a zero percent deal is in League with evil intent on consuming the souls of their victims. Most are offering a service. Think of it like a modern computer printer. The prices are very low. Many are likely sold at a loss. They make money on the ink/toner.
Dealers want your business. The odds are better than 50% that people who get a tractor from that dealer will buy more things from the same dealer.
I spent most of my adult life in the lending business. 4-5 years of it was small business lending, including AG loans. Lots of people get zero percent. The government makes banks balance risk and zero % helps them get financially secure people to finance rather than pay cash. They may not make money directly on that loan, but that loan will allow the bank to make a higher risk loan to another customer at a higher rate. Oddly enough, the government also forces banks to make those riskier loans. It is not a scam, it is risk mitigation and benefits both the lenders and the borrowers... and the dealers.
Seriously, you sound very angry. Life is too short to get upset about misinformation. Take a walk, hug your kids, do whatever helps you relax.
Peace -T
And I spent much of my adult life in the woods, chainsaw in hand, driving skidders hither and dither so whatda I know.
Don't start off with a disparagement with your "so much incorrect misinformation in one spot" crap. Of course a financial "lender" such as yourself would love anything that instigates paper.
Again, I am not proposing everyone pay cash nor go after the "cash price. If anyone is so misinformed in what i'm trying to say, it is you.
Why must we resort to subterfuge to gain business?
Your points are supporting subterfuge. The only reason they deal with people with good credit is the same exact reason they lend to anyone....low pay back risk because for those who are credit risks, they are automatically drawn to the shiny new object of 0%. Good credit priority offsets the the draw of the habitual delinquent individual.
There was nothing wrong with saying "this tractor will cost $17,900 and with 4.9% it will end up costing you $22,000 or whatever.
Instead, financial wizard heads came up with what they thought was the perfect business scheme of saying, this $17,900 tractor will now cost you $22,000 right up front but you'll be getting this loan for 0%..Of course, they don't mention the first part of that sentence and they can plop any price that subsidizes they're r.o.i. and of their own choosing.
Well I say "Bullshitte" to all of that.. It has saved no one a thin dime and I can easily understand a financial person such as yourself would find nothing wrong with that as long as it manifests business right? "For the good of all" kind of thing right? "We are only what we really are in the dark" right? All the rest is reputation, right?
This sneaky coercion by retail perpetrated on consumers who rely on lies to sell product, is a disparagement to ourselves as human beings. Your mentality seems to justify that if dishonesty is so abundant, it mustn't be noticeable any longer.
Also, I don't care what you find "rich".
If dealers want to establish business then they should be good at what they do. Be honest, forthright and supporting.
You want to post your opinion fine, but don't go off on your psychological tangent of what I need to do to "calm" myself.
That part is NONE of your freakin business.
