Why buy new

[coobie]

Keep my money in the bank? The Interest charges don't even cover the Service Charges like they did, even a few short years ago.

Ya,banks are paying HUGH interest on your $$.Maybe 2%..Laffin..

 

[Geotech]

I am no financial expert. But all these "CREDIT" companies, associated with the big manufacturers, are they all just not for profit companies staffed by volunteers? After all, there isn't any profit in 0%, is there? Who then pays for the bricks, mortor, electricity and computers? It's a serious question.

Who cares who pays for bricks and mortars if by taking a small loss or breaking even through financing, they sell more total units and make overall more money? This is how a business sees it while individuals get all caught up on departmentalizing finances that, in reality, are fungible.

Tell you what - go pay cash for a new Kubota L Series. You'll save a whole $900.00. I'll eat more than that in hamburgers over five years. Now let's put this whole conversations into the correct context...It has been said that zero percent financing is not zero percent. That's true. It cost me $900 to finance 20K over five years. That is really about 1.2 percent. That is probably still not realistic. So how are they subsidizing the financing? Guess what - from folks who pay CASH. So when you proudly plop down cash for a new machine, you subsidize my loan! When you buy your great used deal, all the new tractor prices, financed or not, contribute to the appraised value of the used equipment. So we are all in this together. Nobody is getting over on anybody.

SO - are the manufacturers just getting fatter and fatter.... NO, because they will still undercut each other - competition. So in the end, the aggregate valuation and selling prices of tractors are competitive. But CASH buyers SUBSIDIZE the low interest rates for those of us who borrow.

So, thank you for paying cash for your tractor. Somebody needs to pay interest that I am not paying.

 

[Geotech]

Ya,banks are paying HUGH interest on your $$.Maybe 2%..Laffin..

If you think banks are the only place to park your money...you should stick to paying cash.

 

[fried1765]

Am I the only one tractor buyer who believes that cash (actual stacks of $100's) should get a discount? Because I do.

I start the negotiation on a piece of equipment stating I want to finance it, preferably thru their dealership.

Then after they are salivating thinking they can get a bigger ski boat, I walk out the door with papers in hand to sleep on it. I then call them the next morning from home with papers in front of me and ask for their cash price. If they are smart, they'll call me back with a fair number. If they're scum, they'll back pedal for a mile with excuses.

It outs a lot of sleazy dealers/sellers, I'll tell you that.

I do the same with automobiles,......but I am never a new auto buyer, and I am not a frequent auto buyer either.
For me it is somewhat of a pricing/shopping game, because I never allow myself to be convinced that I NEED a particular vehicle.
I have several backup automobiles, and more than one tractor.
A vehicle dealer may not like me, but I am not buying a friendship.

 

[fried1765]

Who cares who pays for bricks and mortars if by taking a small loss or breaking even through financing, they sell more total units and make overall more money? This is how a business sees it while individuals get all caught up on departmentalizing finances that, in reality, are fungible.

Tell you what - go pay cash for a new Kubota L Series. You'll save a whole $900.00. I'll eat more than that in hamburgers over five years. Now let's put this whole conversations into the correct context...It has been said that zero percent financing is not zero percent. That's true. It cost me $900 to finance 20K over five years. That is really about 1.2 percent. That is probably still not realistic. So how are they subsidizing the financing? Guess what - from folks who pay CASH. So when you proudly plop down cash for a new machine, you subsidize my loan! When you buy your great used deal, all the new tractor prices, financed or not, contribute to the appraised value of the used equipment. So we are all in this together. Nobody is getting over on anybody.

SO - are the manufacturers just getting fatter and fatter.... NO, because they will still undercut each other - competition. So in the end, the aggregate valuation and selling prices of tractors are competitive. But CASH buyers SUBSIDIZE the low interest rates for those of us who borrow.

So, thank you for paying cash for your tractor. Somebody needs to pay interest that I am not paying.

Kubota L series......"you'll save a whole $900".

Not me!
Kubota is not the only tractor manufacturer on the planet.
There is someone out there selling very similar tractors, who will provide a meaningful cash discount.

The Kubota $900 cash discount example...... would simply mean no Kubota tractor sale to me.
Virtually the entire world beyond the USA, operates on an age old concept called.......bargaining.
I understand that many folks do not have the time or intestinal fortitude to play the game.

Then of course, there is the instant gratification issue.....I gotta have it NOW!

Having traveled throughout much of the world during my working life, I have learned to be patient, and enjoy the bargaining game.

 

[coobie]

If you think banks are the only place to park your money...you should stick to paying cash.

Never said that.DAH !! Laffin though..Note to self I do PAY CASH..

 

[Industrial Toys]

I can't even imagine using something that I don't own. I love machines, but heck, if I had to pay for it again and again and again, and again, I would learn to love something else.

And maybe, just maybe, Companies don't want to offer a true cash discount, because it reveals their racket for what it is. It's a catch 22 situation, and they have decided that the money is in financing.

It's also like companies that will not give you a cash discount over credit card purchase, because next people want that price and STILL use their credit card. So since credit is the biggest part of their business they just accept the possible loss of a cash customer.

 

[Geotech]

How did I know the proud cash guys would start clamoring when some food for thought was put out there. Don't think about it. Just stick to your guns and your anecdotal experience.

 

[rScotty]

Isn't it odd how so many threads about choosing a tractor so often end up discussing the financials rather than the technical? Why is that? Does it even make sense?

After all, the difference in price is only a few percentage points, while any real difference in quality is worth far more.

It's as though all tractors really are the same, and it's only the price that makes them different.
Well, pardon me....but I don't think so. What I think is that it's the same competitive world out there for every manufacture of anything, and that any manufacturer who focuses on quality first is aware that his cost is going to go up.

I'll grant you that a higher price doesn't insure higher quality, but also true that focusing on high quality is going to raise the price of making most anything.

Hey Mr. Salesman.....talk to me about things that matter.
rScotty

 

[Industrial Toys]

Frankly, I see more people proudly flaunting stuff they don't own. And often, a lot of stuff!