Question on 0% for 36 months

[JDGREEN1]

Why would someone pay a loan off early with 0% financing?

 

[JiminGa]

because as much as folks like to go into debt, they like to be debt free even better!

 

[WilliamBos]

Why would someone pay a loan off early with 0% financing?

...and the quicker you can pay the loan off, the quicker you can pay yourself again.

 

[cbturf]

Debt=Bondage

 

[CurlyDave]

From a credit rating standpoint it is sometimes better to have $20k in the bank than $40k in the bank and a $20k loan outstanding.

 

[AKfish]

From a credit rating standpoint it is sometimes better to have $20k in the bank than $40k in the bank and a $20k loan outstanding.

Yep... That's kinda like havin' 5-6 credit cards - even if you don't have a dime owed on the balance for any of the cards - that can work against you and your credit rating. Especially if you apply for a loan..

AKfish

 

[JDGREEN1]

because as much as folks like to go into debt, they like to be debt free even better!

I like the debt free part.

 

[JiminGa]

yep, the paid off home mortgage has taken the place of the BMW as the status symbal of choice!!

 

[kthompson]

Do not take this to mean any certain company is this way but can tell you two who have done this, Dell Computers and Sears.

It may be ZERO for X time but then you get hit with back interest at very high rate if you run the full period of the loan. Not being late, not missing a payment. So less say it have ZERO rate or NO PAYMENTS due for a certain period of time. Well say that interest rate is low for 36 months but they will break up the payments into 48. So you are billed for a payment on a 48 month period and do not realize what is going on. At the end of 36 months wham...since it is not totally paid for back interest now hits the loan.

Again, I know for fact Dell Computers and Sears has done this. Very dishonest to me. This is the reason some furniture chains can make hugh profits with NO Payments for say 6 months.

But there is still a cost to Zero interest, notice they are now being little more honest (car companies) with zero interest or few thousand in rebate.

 

[Phineas7]

I'm not sure about the current offer, but when I got mine it was a true 0% for 36 months. There was not rebate for paying cash. They will add an "insurance policy" that adds a couple of dollars a month.

 

[swines]

Do not take this to mean any certain company is this way but can tell you two who have done this, Dell Computers and Sears.

It may be ZERO for X time but then you get hit with back interest at very high rate if you run the full period of the loan. Not being late, not missing a payment. So less say it have ZERO rate or NO PAYMENTS due for a certain period of time. Well say that interest rate is low for 36 months but they will break up the payments into 48. So you are billed for a payment on a 48 month period and do not realize what is going on. At the end of 36 months wham...since it is not totally paid for back interest now hits the loan.

Again, I know for fact Dell Computers and Sears has done this. Very dishonest to me. This is the reason some furniture chains can make hugh profits with NO Payments for say 6 months.

But there is still a cost to Zero interest, notice they are now being little more honest (car companies) with zero interest or few thousand in rebate.

Exactly how does this relate to the John Deere 0% for 36 months? What you've described is not how the John Deere offer works - and you can pay the tractor off completely at any time with no penalty. Having purchased two pieces of equipment from John Deere 0% is exactly what it is and not your scenario of:

It may be ZERO for X time but then you get hit with back interest at very high rate if you run the full period of the loan.

All you have to do is ask the dealer and read the purchase agreement - which is what you should do with any transaction - including the supposed ones from Dell or Sears - if you don't, and the terms are not to your satisfaction, as always, you have no one to blame but yourself.

 

[WilliamBos]

I'm not sure about the current offer, but when I got mine it was a true 0% for 36 months. There was not rebate for paying cash. They will add an "insurance policy" that adds a couple of dollars a month.

Is that insurance offered by the manufacturer?? When we bought our MF, the dealer told us we had to find out own insurance, I am wondering that since post sales satisfaction was not high on their priority list, did they just not care, the dealer I mean.

Anyone from Canada buy a tracotr, and get insurance from the manufacturer??