Was looking for a golf cart...bought a Mule

[LouNY]

We have and use 2 mules on the farm and 3 4wheelers then I have my side x side which gets used over there also,
they are much handier and will go many places that the pickups will not go especially when the fields and pastures are soft and muddy,
a pickup or jeep would be either getting stuck or tearing up and rutting the ground terrible. These UTV's can run around with minimal disturbance
of the surface and minor rutting. Also the ride on the newer ones is so much better then a jeep or pickup on rough ground, (not the old style mule).
While a bit better then a pickup not much.
Also when one does get stuck it's much simpler to get it free then a pickup and it has been know to just sit and wait a few days.

 

[dnw64]

Some people believe that credit is cheaper than cash too.

Sometimes it is, sometimes it isn't. Depends on what the deal is.

$50k purchase, choice of $1000 rebate and 8% financing or no rebate and 0% financing, both over 5 years. What's the better deal?

$10k purchase, choice of $500 rebate and 8% financing or no rebate and 0% financing, both over 5 years. What's the better deal?

$1k purchase, choice of $100 rebate and 8% financing or no rebate and 0% financing, both over 5 years. What's the better deal?

Sometimes the better deal is the one you can afford. NOT the one that has a total lower cost.

 

[two_bit_score]

Sometimes it is, sometimes it isn't. Depends on what the deal is.

$50k purchase, choice of $1000 rebate and 8% financing or no rebate and 0% financing, both over 5 years. What's the better deal?

$10k purchase, choice of $500 rebate and 8% financing or no rebate and 0% financing, both over 5 years. What's the better deal?

$1k purchase, choice of $100 rebate and 8% financing or no rebate and 0% financing, both over 5 years. What's the better deal?

Sometimes the better deal is the one you can afford. NOT the one that has a total lower cost.

There is always a cost for using someone else's money. If that cost is less than the cost of using your own money (interest or opportunity cost) then it's possible but there is no free lunch and there is no free financing. It's made up in the price somewhere.

These tractor deals usually include some finance scheme to entice people into buying for the 'low down and 0% financing'. Cash may not always be the best way to buy because of all the built ins but in any normal transaction you are NOT going to use someone else's money without paying for it.

 

[dnw64]

...in any normal transaction you are NOT going to use someone else's money without paying for it.

Maybe I have some abnormal transactions...

If I can borrow money for at or less than the (anticipated) rate of return in other venues, and I need/want to spend some money, I will borrow it rather than take my money out of the better ROIs.

Even at just a 1% differential, on a $1MM investment it's a $10,000 difference. Continuing the math exercise, at $10MM it's $100,000 (not that I am at that stage...) it's enough to buy the nicest light-duty pickup you can possibly option out OR a very nice UT and then throw it away at the end of the year.

You CAN beat the system.

 

[Industrial Toys]

It's mostly people that have money, liquid money and assetts that can best take advantage of many situations.

 

[two_bit_score]

Maybe I have some abnormal transactions...

If I can borrow money for at or less than the (anticipated) rate of return in other venues, and I need/want to spend some money, I will borrow it rather than take my money out of the better ROIs.

Even at just a 1% differential, on a $1MM investment it's a $10,000 difference. Continuing the math exercise, at $10MM it's $100,000 (not that I am at that stage...) it's enough to buy the nicest light-duty pickup you can possibly option out OR a very nice UT and then throw it away at the end of the year.

You CAN beat the system.

Refer to my statement above: If that cost is less than the cost of using your own money (interest or opportunity cost) then it's possible but there is no free lunch and there is no free financing. It's made up in the price somewhere.

 

[two_bit_score]

It's mostly people that have money, liquid money and assetts that can best take advantage of many situations.

My Dad used to say about some individuals that, "He's bankrupt. He just hasn't figured it out yet." Because they were always buying on credit.

 

[Industrial Toys]

I know businesses that always pay CASH, buy their assetts outright. Pay their bills right away. They have plants in various countries around the world. Whenever the economy tanks, it's always them that survive.

Much of this smoke and mirrors, "use other peoples money" is not always guaranteed to work.

I like Warren Buffetts saying. To paraphrase. When the surf goes out, you find who has been swimming naked.

 

[dnw64]

...not always guaranteed to work.

Oh, you mean like "life"?

:laughing:

 

[Industrial Toys]

Or you find, you (not YOU specifically) and the other lemmings are headed over a cliff!