Financing End of the line for zero financing?

[Lilguy]

With the latest fed increase are we at the end of the line for the zero interest consumer economy?

 

[mddorange]

Yes, but the real problem is that a lot of businesses will jump even higher trying to get ahead of the next increase.

 

[RickB]

With the latest fed increase are we at the end of the line for the zero interest consumer economy?

Zero percent financing ALWAYS has a cost and did not come into being after the 2008 crisis.
When supply and market conditions dictate, zero percent deals will be around regardless of the Fed rate.

 

[arrow]

With the latest fed increase are we at the end of the line for the zero interest consumer economy?

You could actually see more of it. They only show you "0" so they can increase the price so as to get their money they didn't get from interest. I bought a tractor that was a few bucks cheaper at 4.3% interest in the long run, than buying the thing for 0 interest but at the higher "0 %" purchase price .

 

[tcartwri]

Zero financing was strictly marketing. I assure you they were not doing us a favor.

 

[sixdogs]

Zero percent financing ALWAYS has a cost and did not come into being after the 2008 crisis.
When supply and market conditions dictate, zero percent deals will be around regardless of the Fed rate.

You could actually see more of it. They only show you "0" so they can increase the price so as to get their money they didn't get from interest. I bought a tractor that was a few bucks cheaper at 4.3% interest in the long run, than buying the thing for 0 interest but at the higher "0 %" purchase price .

Zero financing was strictly marketing. I assure you they were not doing us a favor.

Bingo on all three. Zero is just a different form of a discount with a little snake oil rubbed in..

 

[jeff9366]

Cars or tractors, if you want the business you have to offer attractive financing.

The majority of customers shopping have acceptable credit but no money in the bank.

(Which is a pretty terrible statement about how financially unprepared the same folks are for eventual retirement.)

Kubota is based in Japan where the Japanese 10 year note was 0.07%, ( 7/100ths of 1% ) yesterday.

Without question "0%" financing is built into the net, net, net tractor price UNLESS you can pay cash and negotiate, in which case the "0%" premium can be squeezed out.

I speculate 90% of 17-horsepower to 60-horsepower tractors are financed.

 

[Lilguy]

So you get 500 off if you pay cash. Where's the benefit.

 

[arrow]

So you get 500 off if you pay cash. Where's the benefit.

What is your reference for the $500?

 

[jeff9366]

So you get 500 off if you pay cash. Where's the benefit.

I did not understand your post, either.