Unbelievable deal

[jyoutz]

I was traveling this week and heard a radio ad from a dealership that was advertising any new LS tractor at 120 months zero interest financing. This was a well established dealership that has been around since the 1960s. The dealership is Navajo Tractor in Gallup, NM. I’ve never heard of such financing.

 

[CalG]

Who sells the insurance during the note?

 

[jyoutz]

Who sells the insurance during the note?

No idea. This was just a radio advertisement.

 

[scootr]

That is an incredible use of somebody else's money...

 

[ning]

Looks factory
There's also a $7k rebate for cash purchase
Not sure which models

 

[Squirrel's242]

Yes, great deal. I took advantage during winter. Its my only debt besides the house. I could pay ot off tonight but I'll let my cash keep working for me and borrow someone else's for free.

As for insurance, the lender does require it. I added it to my Progressive policy with my motorcycles. Miight not be perfectly dialed in yet as tractor insurance is new to me, but its covered. Looking to add my attachments and loader too.

 

[Thomas]

 

[Quaffer]

That is an incredible use of somebody else's money...

Agreed but kind of depends on the purchase price as well. If they have stiffened up MSRP or stopped dealing below MSRP as in the past, then you are also front-loading the financing cost. I don't know LS pricing but that is a common car dealer process.

 

[EddieWalker]

I went with 7 years at zero percent when I bought my Massey three years ago. If I paid cash, it was $3,000 less. In my opinion, that was too good of a deal to pass up. $55,000 for the tractor and $652 a month payment. Insurance is through Texas Farm Bureau. It was considerably less than what Massy offered for insurance, but I forget what it was because I switched everything over to them because it was a lot less then I was paying Geico.

 

[tacticalturnip]

10 years at 0 percent? As much as that'll put butts in seats, I just can't imagine a 10 year loan. Still it's the natural progression.

 

[bdhsfz6]

Not sure if this is the case everywhere, but when I financed my last Kubota tractor, my dealer required Kubota insurance. Placing it under my homeowner policy or another insurance company was not permitted.

 

[EddieWalker]

Not sure if this is the case everywhere, but when I financed my last Kubota tractor, my dealer required Kubota insurance. Placing it under my homeowner policy or another insurance company was not permitted.

That was why I didn't buy a Kubota RTV when I was looking. When financing, it drove the cost way up.

 

[old and tired]

There is no "free" money... $7,000 cash rebate means that the "zero percent" finance = $7k finance

Even if there were not the $7k rebate; the loan price WILL include "finance" charges.

 

[bdhsfz6]

That was why I didn't buy a Kubota RTV when I was looking. When financing, it drove the cost way up.

I took out the 0% loan to solve a short term cash flow issue. I paid it off in less than a year due to the high Kubota insurance premium.

 

[2515R Dude]

There is no "free" money... $7,000 cash rebate means that the "zero percent" finance = $7k finance

Even if there were not the $7k rebate; the loan price WILL include "finance" charges.

Add to this insurance which would increase ar least 10% each year, but most likely 20% as it was in the recent years. Pretty expensive deal I'd say.
French people say, "free muffins are only in the basket under the guillotine ".

 

[part-time-Farmer-NC]

That's a lot of monthly birthday payments...

 

[ericm979]

Not in this case but sometimes companies offer low or zero interest loans but no cash discount. Kubota was doing that when I was tractor shopping about six years ago. VW had a similar deal when my wife bought one a while ago. Super cheap loan but no cash discount. Rather than paying cash like she'd intended she took the loan.

Either way, it is a discount off the usual price.

 

[Mtsoxfan]

What does the insurance cover? Repairs, replacement if stolen to maintain value??? or is it like home PMI?

 

[dodge man]

I got 5 years 0% with JD and they let me insure it through State Farm. JD’s cost for the insurance was pretty close in cost though. It’s been paid off for a while but I’ve left insurance on it, it’s worth nearly what I paid for it, close to $20k, I hate to not insure it.

 

[Squirrel's242]

I asked my dealer if there was difference in cash price vs financed, there was. There's always a catch right? I can't remember the number to the penny but I ran the numbers for the life of the loan. The difference was too small to be a detriment to taking the 0% deal. It gives me flexibility to still have my cash in the bank in case something in the other parts of life needs money. If I can have the tool and the cash flexibility, to me, that's a good position to be in.

At the end of the day, run YOUR numbers. A deal to someone else may not be a deal to you. I think

Someone up there mentioned carrying a 10yr loan. Yes, it does sound like a long time. I thought so last time I put the drop in the bucket (tractor and house) lol I've already started thinking about paying it (the tractor) to get it gone. However I'm telling myself to just be patient.