Threepoint
Veteran Member
- Joined
- Feb 13, 2014
- Messages
- 2,234
- Location
- No. VA
- Tractor
- Kubota B2150HST w/ LA350 loader, Kubota GF1800 HST, Kioti CK3510SE HST w/ KL4030 loader, Kioti NX4510HST/cab w/ KL6010 loader
Agree. Get a cash price and arrange your own financing. That is especially true if you intend to pay it off early. The full realistic interest charges on zero percent loans are simply built in to the sales price. If you pay off early you've still paid all the realistic interest charged for a 60 month loan. No such thing as free money or zero percent finance charges.[snip]
Amvcane and Island give good advice on manufacturer or dealer "zero percent" financing. It's not at all free, in fact it's only real benefit is if you need to pay over time for cash flow purposes and can't find lower-cost financing elsewhere. As with any financing, you are making level monthly payments but the portion of each payment deemed to be interest is allocated on an actuarial basis. By the time you're well into the 60 month term, much more of each remaining payment will be principal. So there's less and less reason to pay it off early at that point.