0% for 48 mos.

[skidoo]

dealer showed me his finance screen and it is costing him 0.5% charge for for my 0% x 36 months.
He is still making 1.35% on amount financed ($135.00/10,000)

That may be fine... But, the point that I am attempting to make is this:

What is the discount the dealer will give for a cash sale? I'll bet they would allow close to $300 discount on a $10K cash sale. So, instead of cash, it would really cost $435 for the financing, or 2.8% APR.

A buy down is really just paying the interest in advance. A $135 finance charge on $10K, paid monthly, is = to 0.88% APR. For a finance charge paid in advance, the APR may be slightly higher.

My opinion is that buy downs are worthless. Once you pay the interest in advance, you can not save any of those interest charges by paying a loan off early should you choose to do so.

 

[kurtfromct]

i was wondering, how hard is it to get the 0% for 36 months. what i mean, how "good" does your credit have to be, is it very strict? thanks

 

[ScottK]

The loan docs say the tractor is collateral, so it should be no different than a car. Call or e-mail JD Credit and ask them what credit score you need. Here's a link John Deere Credit is your source for equipment financing solutions - John Deere Credit, U.S.A.

 

[kurtfromct]

thanks ScottK