Buying Advice Purchasing a tractor on a credit card?

[EarPlug]

Credit Card fees are about 2% to 4%. Except American Express is higher. Not sure on amount. It is now legal for companies to charge the CC fee to the bill for you to use the card as long as they post the fees. In business, I always gave a discount for cash. Made me a lot happier.

Amex has lowered their rate. Top rate of 3.5% for Lodging, Fast Food and Restaurants. About 2.9% for all others.

How Much Does It Cost You to Accept American Express Cards?

 

[MoMower]

I bought my daughters car with a CC, no issue ($4500) and got my 2% back. Paid it off within the billing cycle.

 

[BrokenTrack]

We had this conversation on a financial class we took, and it took awhile for the woman to understand that she was trying to save $10 and spending far more. In her case she was trying to use good credit to get $10 her car insurance. I do not have that option because I have crappy credit. In fact, it is getting worse, and I am just smiling about it. It is absolutely liberating not having to worry about what my credit score is.

But I always pay cash.

But this is the messed up part. A person's good credit is 100% based on debt. She was maintaining credit cards to get a good credit rating, but why? Just to save $10? It is fine as long as you do not slip up, but slip up just once and the credit card companies are there to cash in on your mistake. I know, my wife was a high end banker.

Everyone has debt...everyone has credit cards, yet no one has cash, and that is what everyone really wants. High school economics stated demand goes up when supply goes down. If you want a deal, bring out a fistful of cash and people will start talking cut-rates on what they are selling.

That works well with used tractors, but not so well with new ones because there is only so much wiggle room for the dealership. It does not matter what the mode of payment is to them, it has to fit within tight parameters. That just leaves the end result on the buyer, and this is where credit cards get dangerous. 85% of people in America have no savings and live pay check to pay check. I know everyone INTENDS to pay that new debt off, but the vast majority of people do not. My question is, if you are only getting a few hundred bucks at most, why make the gamble? You play your cards right, you MIGHT come out ahead by a few hundred bucks, but slip up and you will pay thousands.

It would be the same as if I put $500 on the other side of a deep chasm, and the only way to get to it was to slink across an ice covered 2x4. Yet a person has just watched 85 out of 100 people slip and fall off the 2x4 and pay thousands in medical expenses for their injuries, yet for some strange reason they try to wade across the 2x4 anyway? I put that in that context to show how high the risk is for the silly reward, yet people run head-long into credit cards and think they have an amazing chance of wining. It is exactly the opposite.

No thanks, I will get settle for the cash price, and call it good.

 

[Industrial Toys]

I tried to buy a property once that was repossesed. Made a huge CASH deposit with the offer. My DAD assured me, that they would just wet their pants seeing that CASH. Well, they didn't. Seems, someone else had more money than I did. I have experienced that again and again. CASH is not always king. Seems, many people, don't have CASH around, but enough do. .

 

[CADplans]

It is absolutely liberating not having to worry about what my credit score is.

But I always pay cash.

No thanks, I will get settle for the cash price, and call it good.

It is no longer "cash price" versus "credit price" ,, the game is totally changed,,

The NEW game?? "Credit Score Price",,

companies now judge you based on your credit score,,

If you do not use a credit card, you have a poor credit score,,
If you do not promptly pay bills, (by CC, check, or cash) your credit score is poor,,,

What does a poor credit score effect??
The cost of health insurance (higher for poor credit score)
The cost of car insurance (higher for poor credit score)
The cost of home owners insurance (higher for poor credit score)
The interest rate on the new car you buy (higher for poor credit score)
AND,, on,, and on,,,

Why? Well, if you have a poor credit score, you are unhealthy, a poor driver, do not take care of your home, and you will default on the car loan.

Raise your credit score, save BIG dollars on the big ticket items in your life,,

OOPs,, that can not happen completely,, until you have a credit card,,,

 

[Ricn]

We get about $500. per year in Cabela points then let the grandkids use it. Everything on the card if possible but pay it off the 1st day of the month. Have bought many high dollar items using the card but no luck on vehicles, tractors, boats or travel trailers.

Ricn

 

[BrokenTrack]

It is no longer "cash price" versus "credit price" ,, the game is totally changed,,

The NEW game?? "Credit Score Price",,

companies now judge you based on your credit score,,

If you do not use a credit card, you have a poor credit score,,
If you do not promptly pay bills, (by CC, check, or cash) your credit score is poor,,,

What does a poor credit score effect??
The cost of health insurance (higher for poor credit score)
The cost of car insurance (higher for poor credit score)
The cost of home owners insurance (higher for poor credit score)
The interest rate on the new car you buy (higher for poor credit score)
AND,, on,, and on,,,

Why? Well, if you have a poor credit score, you are unhealthy, a poor driver, do not take care of your home, and you will default on the car loan.

Raise your credit score, save BIG dollars on the big ticket items in your life,,

OOPs,, that can not happen completely,, until you have a credit card,,,

But everything you mention is DEBT!

That is how screwed up the system is, the only real way to spin yourself out of the foolishness is to pay cash for everything and not get into debt!

Here is an example. I own my houses so I do not have to have insurance on my homes. If I did, because I have a farm, it would not cost me $400 a year, but $1800 a year...and I have (3) of them. But do the math on that, in the 10 years time I have NOT had home owners insurance, I have saved $54,000. here, we can buy kit houses for $30,000, so I have saved enough by being self-insured (because I can) to build almost two new houses.

That is what I mean by the system being silly. People are worried about trying to save a few bucks on insurance when they could save gobs more by not having insurance in the first place! And that is just one example.

The real problem is, people in this country are starting to lose sight of the fact that they do not have to pay premiums to banks, credit card companies and insurance companies. I am NOT having steel roofing flapping in the breeze at my place, just to pay for their marble floors and slate roofs.

Again, there is no way I can go down to my tractor dealership and buy even a garden tractor on credit. I just do not have good credit...but I can by ten farm tractors with cash! That is how messed up the system is!

So why do I have a 20 year old Kubota tractor in my driveway?
Because I am content with what I have.

I would rather know I could buy a new tractor with the money I have, then actually spend it and have a new tractor. And that is where cash rules, because unlike credit cards where there is no immediate feed-back, with cash...when you spend it, you feel it, and you know there is a loss. That mental awareness, unlike credit cards, limits your spending, and that is why credit cards are so dangerous.

 

[RSR]

And that is where cash rules, because unlike credit cards where there is no immediate feed-back, with cash...when you spend it, you feel it, and you know there is a loss. That mental awareness, unlike credit cards, limits your spending, and that is why credit cards are so dangerous.

This is so true!! There is no effort or work required to buy on credit. But when paying with cash, you understand how much sacrifice was required to save the money to make the purchase. You also gain insight into whether it is really a sustainable financial decision. (If you can't save the money in the first place, it may not be a good idea to buy on credit). These experiences naturally lead one to ask, "do I REALLY need or want this item?"

 

[fried1765]

We had this conversation on a financial class we took, and it took awhile for the woman to understand that she was trying to save $10 and spending far more. In her case she was trying to use good credit to get $10 her car insurance. I do not have that option because I have crappy credit. In fact, it is getting worse, and I am just smiling about it. It is absolutely liberating not having to worry about what my credit score is.

But I always pay cash.

But this is the messed up part. A person's good credit is 100% based on debt. She was maintaining credit cards to get a good credit rating, but why? Just to save $10? It is fine as long as you do not slip up, but slip up just once and the credit card companies are there to cash in on your mistake. I know, my wife was a high end banker.

Everyone has debt...everyone has credit cards, yet no one has cash, and that is what everyone really wants. High school economics stated demand goes up when supply goes down. If you want a deal, bring out a fistful of cash and people will start talking cut-rates on what they are selling.

That works well with used tractors, but not so well with new ones because there is only so much wiggle room for the dealership. It does not matter what the mode of payment is to them, it has to fit within tight parameters. That just leaves the end result on the buyer, and this is where credit cards get dangerous. 85% of people in America have no savings and live pay check to pay check. I know everyone INTENDS to pay that new debt off, but the vast majority of people do not. My question is, if you are only getting a few hundred bucks at most, why make the gamble? You play your cards right, you MIGHT come out ahead by a few hundred bucks, but slip up and you will pay thousands.

It would be the same as if I put $500 on the other side of a deep chasm, and the only way to get to it was to slink across an ice covered 2x4. Yet a person has just watched 85 out of 100 people slip and fall off the 2x4 and pay thousands in medical expenses for their injuries, yet for some strange reason they try to wade across the 2x4 anyway? I put that in that context to show how high the risk is for the silly reward, yet people run head-long into credit cards and think they have an amazing chance of wining. It is exactly the opposite.

No thanks, I will get settle for the cash price, and call it good.

I do agree with your concepts ....but....
For me:

I have two cards.
One is no fee (5% Gas/groceries/drugs)
One is $65 per year (2% everything).

I put absolutely EVERYTHING I can on my credit cards!
I have been doing so for years.

Each year I get between $1000 and $1200 in cash rewards (my cost $65).
I have never paid even $.01 in interest.

 

[Gary Fowler]

Folks with high credit limits bought cars with "The GM Card" when it first came out. The door slammed on that within a fiscal quarter.

I put all bills I can on CC except the PoCo, who won't allow it. (.. only use cash for hookers and heroin. )

A few times in 30 years I didn't pay a balance off by the end of the month. My insurance agent will now take CC with no fees, nearly $3k/yr for 2 cars, truck, & house. Wishing the township would do that for property taxes.

I have had a GM card for years, never used the benefits to buy a car. I did let one of my kids use the cash back to buy one. I only use that card to buy all my prescription drugs (by mail order) and all internet purchases. So far I have a $3500+ credit to buy a new GM vehicle but I am happy to drive my 2007 Chevy for many more years, so I doubt that a vehicle purchase will be in my future for a long time. I dont have any of the % back ones, in fact, I only have the one GM credit card, closed out all the others years ago. Of course the wife has all the store cards that she uses, but the balance is paid off each month.