Down Payment?????

[Bill in VA]

When purchasing a tractor should the amount of down payment have an affect on the sale price?

In other words, if I offer a bigger down payment than what the financing requires would you expect a dealer to be willing to lower the price of the tractor?..................or are there just too many other factors to make that generalization?

Just wondering as I start to formulate an offer.

 

[JOHNTHOMAS]

When purchasing a tractor should the amount of down payment have an affect on the sale price?

In other words, if I offer a bigger down payment than what the financing requires would you expect a dealer to be willing to lower the price of the tractor?..................or are there just too many other factors to make that generalization?

Just wondering as I start to formulate an offer.

Don't think your down payment will have any effect on the purchase price. Kubota owns the new tractors and has a financing arm. The dealer makes the deal and don't think he gets any more money if you finance or pay cash. Finance the maximum at 0% and pay off any other interest bearing debt, if you have any. If no debt, finance the maximum at 0% and put the extra in a savings account.

 

[TripleR]

Listen to John, he's bought ten tractors.

Heck I pay cash and don't seem to get much off, they try to talk me into financing. I tend to believe 0% financing is kind of like Sasquatch, lots of people talk about it, but I don't think it really exists.

 

[JOHNTHOMAS]

Listen to John, he's bought ten tractors.

Heck I pay cash and don't seem to get much off, they try to talk me into financing. I tend to believe 0% financing is kind of like Sasquatch, lots of people talk about it, but I don't think it really exists.

If you buy another one, take the money and send it to me and I will make the payments. TAKE THE MONEY!! Go looking for a BX or L tomorrow and when you buy the B, take the MONEY and send it to me!!!:laughing::licking:

 

[TripleR]

John,

My wife has a GPS monitor on my leg and I can't go near a tractor place again for who knows how long

 

[CurlyDave]

The financing and the sale of the tractor are separate deals.

They both happen at the same time and are intertwined in many people's minds, but actually and legally they are separate.

The only real potential for savings through a larger down payment might be through a reduction in interest rate, but that is pretty doubtful.

 

[Bill in VA]

The reduction in interest rate with a larger down payment does make sense to me although it is sort of a mute point if 0% interest is available.

However, in visiting one dealers facility I noticed a jump in the price of an in stock unit. Same unit, prior to reinstatement of the 0% for 60 months was $2,500 less. Irritating practice. But we'll deal with that if we get to a negotiation stage.

 

[Ductape]

My wife has a GPS monitor on my leg ...........

I thought it was the County that put that on there............ :laughing:

 

[American Pit Bull]

The dealers get the same "cut" whether it is a cash sale or financed through Kubota.

 

[LBrown59]

lots of people talk about it, but I don't think it really exists.

I know it exist.

Bought a new BX23 in 2004.
O% financing Tractor price $15500.
Cash price $15500.

2007 purchased 2 BX1500s Cash price $I5600.
O% financing price $15600.

 

[TripleR]

I know it exist.

Bought a new BX23 in 2004.
O% financing Tractor price $15500.
Cash price $15500.

2007 purchased 2 BX1500s Cash price $I5600.
O% financing price $15600.

I stand corrected.

 

[timswi]

I got 2.9 on my BX in 2004 with 10% down. 0% on my RTV500 with 10% down.
0% on my RTV1100 with 50% down...None of this had any impact on the purchace price. They didn't care what I was doing in this respect. I like to be in a position to fire-sale if needed. So if I'm not buried in the machine, I can clear the deck if needed. Hence the 50% on the last one. Could have paid for the whole thing, but i'm making a little on my cash now. So I held on to it.

 

[Cat_Driver]

Down payment means nothing to a dealer. It just passed through his hands anyway. He still makes what he makes even if you put down nothing or 20K.

He gets his money from the finance company then pays the manufacturer and keeps the rest.

Only people that love huge down payments are the finance company because if they repossess the unit they already have a nice chunk of your money.

 

[Bill in VA]

So the only affect down payment then will have for me is to lower my monthly payments.

If I'm getting 0% I might as well make the down payment just big enough to keep the monthly payments manageable.

I did find out if I pay 3% above the final tractor price they will allow 72 months at 0% which I see no advantage in.

So I'll pay off some current debts that do have an interest charge, apply some of the rest of my mattress money to the down payment to make the payments manageable, bury the rest of the mattress money somewhere new since I gave away the mattress storage fact in this post, get another month older and forget where I buried the remaining money, use the new TLB to dig up the yard and find the money, thereby justifying the remaining cost of the TLB by the recovery of the buried treasure.

I love logic

 

[fredhargis]

I know it exist.

Bought a new BX23 in 2004.
O% financing Tractor price $15500.
Cash price $15500.

2007 purchased 2 BX1500s Cash price $I5600.
O% financing price $15600.

That was my experience as well, just last month on my B2920. I pulled out my checkbook and the dealer asked "Don't you want the 0% financing?".

 

[om21braz]

Same story here 5 years ago. At the time, all that was required upfront was to pay the recording fee (ucc? $100 I think). Also, the purchase price was the same for paying cash, 100% financing, or anywhere in between. It did'nt make sense to me either, but that's how it is. How long it will remain that way - who knows.