Buying Advice What is going on here?

[newuser]

When purchasing and financing a tractor why would a dealer add money to the total and then put in that you made a deposit even though we weren't?

lets say buying a tractor for 10,000
but filling out the paperwork like the tractor cost is 13,000 and the deposit is 3,000

 

[Jim in ICT]

Probably makes it easier to run the financing through. I'm not sure I'd go further with the deal until I asked some questions.

 

[mburke121]

Also, unless you get the farm use tax exemption, you will pay sales tax on the higher amount.

 

[MtnViewRanch]

He is trying to get you the tractor with no money up front. The lender thinks that you have put $$$ down and is more likely to give you the loan. Lets just say that the lender would not like it if they found out and might not do business with that dealer any more. It shouldn't cost you anything, but what the dealer is doing is not right in my opinion.

Good luck

 

[newuser]

He is trying to get you the tractor with no money up front. The lender thinks that you have put $$$ down and is more likely to give you the loan. Lets just say that the lender would not like it if they found out and might not do business with that dealer any more.

not the case I would assume.. so again lets say he bumped the price up to 13000 .. I would still be required to have a downpayment besides the 3000 he put to offset what he added.

 

[RoyJackson]

When purchasing and financing a tractor why would a dealer add money to the total and then put in that you made a deposit even though we weren't?

lets say buying a tractor for 10,000
but filling out the paperwork like the tractor cost is 13,000 and the deposit is 3,000

That sounds pretty shifty, but I agree with MtnViewRanch...he's telling the lender you put $3000 down...I think.
But you really ought to ask him.
If he's doing what I think he's doing, it's fraud.

 

[mjncad]

Sounds fishy to me. Ask questions, and if you don't like the answers...run, don't walk away.

There are plenty of other places to buy a tractor.

 

[Thomas]

Maybe the dealer trying to help out w/purchase..better rate etc..I also be asking for the dealer to explain before signing.

 

[flusher]

When purchasing and financing a tractor why would a dealer add money to the total and then put in that you made a deposit even though we weren't?

lets say buying a tractor for 10,000
but filling out the paperwork like the tractor cost is 13,000 and the deposit is 3,000

When I used to finance car/truck purchases through my credit union, I'd get pre-approved for an amount maybe 10-20% higher than I expected to pay for the vehicle. Then go shopping and get the best deal I could find-always less than the pre-approved amount.

 

[jinman]

When purchasing and financing a tractor why would a dealer add money to the total and then put in that you made a deposit even though we weren't?

lets say buying a tractor for 10,000
but filling out the paperwork like the tractor cost is 13,000 and the deposit is 3,000

It doesn't matter what his reasons for doing this are, it is fraud and I'd politely tell him the price much match the real price. The tax consequences mentioned by mburke121 are enough reason to refuse to deal on a contract like this. If the dealer does this on a sale, do you think he would think twice about misrepresenting something else? My "red flag alert" would be flying high, and I suspect yours is too and why you posted about this.