New Tractor Purchases

[MasseyWV]

I rented 'em! Did what I had to get done and finished the rest with a shovel, rake, ATV and truck.

I tried the rental route a couple of times but ones near me only have larger equipment, which I can easily run, but the fees are outrageous.

However, I can definitely relate to the part about using a shovel and an ATV. Last summer, I widened a large section of the parking area of my driveway near my garage, all by hand. Overall, I estimate that I moved the equivilant of one of those tri-axle dumptrucks full of dirt.

I'm still waiting to get my first tractor and could have bought a new one a couple of years ago but I needed a new truck which was more important than buying a tractor.

 

[paulemar]

I just bought my Kubota BX25 2 weeks ago. I was saving to pay cash, but decided that I could get the tractor for this Spring and have another year of ownership by financing. I put about 1/2 down and financed the rest at 0% for 48 months. I'll set up auto pay to make the payments and continue saving the difference between the payments and what I've been putting away every month. That way I can have my tractor now and still pay it off in the same time I would have if I saved to pay cash if I want to go that way. I really like having the tractor now! I have a lot of things to do that the tractor will make possible. Time was also a valuable consideration in my decision.

 

[CJBOTA]

I am surprised that no one has agreed with with my admission of stupidity for underestimating my needs. Since I'm confessing my stupid mistakes I should also admit my guilt for buying new stuff vs used. There is something about about the fresh Orange paint that beckons me when I visit the my dealership.
My reasoning for buying new is farming is much more a hobby then a job in my situation. For some strange reason I actually enjoy the farming in a way I have never enjoyed my job. I used to ride Harley's and we used to say "if I have to explain you wouldn't understand". I am sure there are some good deals out there on used tractors but I have been shocked at how the top brands hold there value if you take care of them. I have never felt cheated on my trade in's. I enjoy doing minor and routine maintenance, but I find major mechanical problems very stressful. Since I have a primary job my time is very valuable. I have trime to use things, or work on things, but not both. I know when I retire I will look at this differently, so my buying new days are somewhat numbered.
I am finding this thread very therapudic, I feel so much better after confessing my sins.
CJ

 

[scoutcub]

Paid cash for all 3 tractors, 2 new and 1 used. Having said that, paying on the wife's car...and land...and house....:laughing:

 

[MasseyWV]

Paid cash for all 3 tractors, 2 new and 1 used. Having said that, paying on the wife's car...and land...and house....:laughing:

After having financed, and paid off, several vehicles over the years, I'm still paying on my house. Fortunately, the payoff countdown has switched from years to months, until I finally reach the day when I officially become debt free. And when that day comes, I plan to begin saving to buy my first new compact tractor.

 

[Baby Grand]

I believe it makes more financial sense to pay cash, regardless of what carrots a company may dangle in front of me to try and get me to finance it. Ultimately financing can cost a lot more than paying cash, regardless of any rebates that are offered.

They usually offer larger rebate incentives for financing because they know that only a fraction of buyers who apply for 0% financing will actually qualify, and of those that do, many of them are likely to miss or be late on a payment, causing that enticing 0% interest rate to skyrocket. Not to mention all the other potential pitfalls involved with financing.

Financing is a lot like gambling and as the old saying goes, the house always wins.

If you take inflation into account, then you're better off taking the 0% financing option if the savings for paying with cash is less than you'd save with an inflation adjusted loan. Figuring this out involves some interest calculations or tables.

Of course, paying cash assumes that you have enough cash on hand to do so, and that you have enough cash reserve after the purchase that you can operate comfortably with reasonable risk assumptions.

When we bought our present place, (with a mortgage) we didn't have a very comfortable cash stash for contingencies like leaking roof, electrical issues, etc, etc. But we now had a fair sized piece of land that hadn't been cared for for ten years. I wasn't about to clear the field with loppers or cut it with a scyth, or turn a 60 x 120' section of field into a vegetable garden with a shovel and fork, so I took advantage of 0% financing and purchased one of the finest money savers I have ever owned. Just in terms of medical bills avoided, it paid for itself in the first year. Do you have any idea what a rotator cuff injury can cost, even with so-so medical insurance?

My point is that credit is a tool, but like all tools, it requires respect and consideration if injury is to be avoided.

 

[crazyangel]

Credit is like gun ownership.
Some people just can't handle it responsibly.

Well said! :thumbsup:

 

[MasseyWV]

Of course, paying cash assumes that you have enough cash on hand to do so, and that you have enough cash reserve after the purchase that you can operate comfortably with reasonable risk assumptions.

Paying cash requires saving money, which requires discipline, something that many people seem to lack. Why wait when you can have "it" now. Instant gratification can feel great, at first, but it's usually a catch 22 proposition, as many people eventually learn, the hard way.

My point is that credit is a tool, but like all tools, it requires respect and consideration if injury is to be avoided.

My belief is that credit is like a minefield by design, if you make one wrong step, it blows up in your face.

Do you have any idea what a rotator cuff injury can cost, even with so-so medical insurance?

I think I have a pretty good idea what medical bills cost. My wife has been battling cancer for more than three years.

 

[greenthumb]

Cash is king. We started using the Dave Ramsey (modified) a fews years ago here and there will pay our house off next month. Used to do the 0% game. Never got caught but did not ever have the savings we have had since getting rid of credit cards and just Saving up and not being so impulsive. Funny thing is I was talking to my dad about paying the house off his comment was "that's un-American". I chuckled.

 

[Baby Grand]

Paying cash requires saving money, which requires discipline, something that many people seem to lack. Why wait when you can have "it" now. Instant gratification can feel great, at first, but it's usually a catch 22 proposition, as many people eventually learn, the hard way.



My belief is that credit is like a minefield by design, if you make one wrong step, it blows up in your face.



I think I have a pretty good idea what medical bills cost. My wife has been battling cancer for more than three years.

Sorry to hear about your wife - that's a rough road, and I wish you both good luck with treatment & recovery.

I agree, the credit companies (many, not all) lay snares and dead fall traps all across their business landscape. If you are aware of these, and not tempted to roll the dice, or double down should you roll and lose, then you can travel that Valley of Debt safely. I know that, I'm wise to most of their tricks, but I've still managed to get myself suckered on occaision.

There are other options - and when it comes to banking I'm a downright socialist, using credit union credit accounts, savings & checking. No horsepucky tricks. Great service. Friendly, fairly compensated employees. It's downright unamerican I tell you!

Don't get me started about consumerism & jonesin' to keep up with the Jone's. Never understood it, myself. I yam what I yam.

 

[GPintheMitten]

Whenever I see posts about new tractor purchases, and considering what these things cost, I can't help but wonder how many people are up to their eyeballs in debt trying to pay for them.

I owe, I owe, so off to work I go.

I was going to get a loan for mine, but my wife ponied up the cash. :thumbsup:So I'm going to put the cash back in her account over the next year when I start drawing my social security in June. This is not our first marriage and we keep some of our finances separate.

 

[MasseyWV]

Sorry to hear about your wife - that's a rough road, and I wish you both good luck with treatment & recovery.

Thanks. However, the road may have just got a lot tougher.

 

[murphy1244]

Everyones situation and personal preferences will vary.

Having credit at your fingertips can, and often does, create the possibility of making bad purchase decisions. On the other hand, when one has to save their hard earned money, they are much more likely to give very careful consideration to anything they may purchase with it.

You don't get credit at your fingertips by making bad purchase decisions.:laughing:

 

[Nissan197]

I had to get a loan for mine, but it was paid off with-in two years. It is a great feeling when you don't have to worry about having debt.

 

[MasseyWV]

You don't get credit at your fingertips by making bad purchase decisions.

That depends on how you define "bad purchase decisions". Ever hear of buyers remorse?

 

[samhudson3]

Put 50% down, paid 0% for the next 12 months to Deere back in 1999. It's paid for itself easily a couple of times over...

 

[zoomerii]

Saved up for a few years and paid cash. Had the shakes handing over all that money, but felt great not having to make payments

 

[crazyal]

My plan was to borrow $10k at 0% and pay for the rest but at the end of the day I just paid for it outright. I probably would of added more attachments vs buying them one at a time now (for cash). But by buying them one at a time I'm not stuck buying from the same dealer and can be more choosy as to what will fit my needs. For example I almost got a rear tiller but I have no garden and if I ever put one it it'll probably be 20x60 (or less) and it would take decades to justify the cost.

 

[TripleR]

I think I have a pretty good idea what medical bills cost. My wife has been battling cancer for more than three years.

Sorry to hear about your wife; best wishes.