Financing fees

[thefisherman]

I went to a dealer on Saturday morning to check out GC1705 tractors. All they had left were the 1715s, but I think he put together a pretty great package:

Tractor/loader: $12,000
60" belly mower deck: $2,650
48" box blade: $895
Sales tax: $1,115.64

Total: $16,610.64

My question is on the fees. Using standard financing, they tacked on $600 for insurance, a $150 "filing fee" and a $300 "documentation fee." They said the fees were required by Agco to use the financing, but I could check with my homeowner's insurance to see if they'd cover the tractor so the $600 could be waived. Is this standard operating procedure?

 

[atsah]

The price is good, the finance fees I think are pretty standard.

 

[TractorNH]

They will want to be sure it's insured if they're loaning money against it. Is the $600 for the life of the loan? How long is the loan?

Homeowners may cover it while on your own property but it usually only covers it for listed perils like fire, theft, vandalism, etc. If you're using it and you damage it that wouldn't be covered, like if you were to roll it over.

 

[thefisherman]

Yes, it's for the life of the loan - five year term.

I called and spoke with my insurance agent after posting this. They can add a rider to my homeowners that will cover everything the Agco policy covers - weather damage, fire, theft, and operational damage like rollovers - for about $80 per year for $15k coverage. If we don't add the rider it falls under personal belongings and gets standard theft, fire, and act of God coverage. The $80 add on is not only less expensive, I feel it is a safer bet since we have an established relationship with our agent.

 

[RoyKing]

I always refuse to pay any dealer fees, doc or filing and they don't walk away.

 

[tjkubota93]

When I bought mine the insurance thing was the same. I showed proof of coverage and they removed it.

As far as the other fees, if you dont feel right paying them, tell them to piss up a rope. They aren't doing you a favor selling you a tractor....

You can buy elsewhere or another brand. Or not all or used. Don't be bullied.

Shop out-the-door, turn-key prices

 

[jimmyhouser]

Yes, it's for the life of the loan - five year term.

I called and spoke with my insurance agent after posting this. They can add a rider to my homeowners that will cover everything the Agco policy covers - weather damage, fire, theft, and operational damage like rollovers - for about $80 per year for $15k coverage. If we don't add the rider it falls under personal belongings and gets standard theft, fire, and act of God coverage. The $80 add on is not only less expensive, I feel it is a safer bet since we have an established relationship with our agent.

Check your deductible! Agco has a $500 deductible no matter what. We had a customer that refused our insurance and got it covered through his homeowners. A tree limb fell on it and it was an $8000 deductible for wind damage. When he bought his next tractor, he went with Agco insurance.

 

[thefisherman]

Check your deductible! Agco has a $500 deductible no matter what. We had a customer that refused our insurance and got it covered through his homeowners. A tree limb fell on it and it was an $8000 deductible for wind damage. When he bought his next tractor, he went with Agco insurance.

When I got the firm quote from my insurance on the machine I planned to actually buy, it came back at 150/yr with a $100 deductible. They couldn't come close to the agco rate at pretty much any deductible.

I ended up in a 2017 with 113 hours. 4 year agco plan on what I financed was only $392.

 

[edgarrian]

Do not pay a filing fee that's stupid. Documentation fee can be absorbed by the dealer.

 

[MaineGuy1]

If you can get financing through a local bank, see what the rates and other charges are. When I recently purchased my Massey the 0% financing was only after they added about 4k on to the total price. I opted to finance myself and saved 4k.