Financing JD financing question

[blurrybill]

I stopped by a regional JD dealer today (rats, no 4x10s to see). Asked about financing programs and was told that with 20% down by March 1 one can get 5.9% interest on tractor and implements for 60 months. Looks like this program has been in effect 15Dec01-until 18March02.

Questions: Are any lenders in your area matching these rates on this type of equipment? Is JD planning another, perhaps better, financing program after mid-March? Do these rates impact the deal or can one expect 15% or so below list with the financing? Seems like dealers get some type of incentive for encouraging use of JD financing. Does use of JD program actually HELP with the best deal?

I'm getting ready to do some serious dealing on my dream machine, but don't want to be too late (OR too early). Help if you have any info. Thanks.

Bill

 

[rancar]

Bill,

I'm in same position as you. I'm shopping for my new 4710 but want to wait until after 2/28. This is drop dead date that JD has had on their website as the end of current financing that started last October on the 4000 series machines. Their current rate is 5.9% financing that started last October and ends 2/28. So, if this dealer is telling you the same thing and it's good until mid-March then maybe it's their own local independent financing unit, not John Deere's. Fed has dropped interest rates twice since last October. I would like to think JD would at least drop their financing rates to accommodate the current low interest rate environment. 5.9% just doesn't seem like a good deal.

I have to believe JD will offer a new nation-wide financing incentive this Spring to move their tractors. This is typical. I've asked some of your same questions to other TBNers and they seem to suggest you can get a better deal if you offer cash (ie, finance through some other means such as home equity loan or whatever cash you can put together on your own). My local dealer nearest me is selling a new 4710 for 12% below list. TBNers like cowboydoc in the mid-west keep on saying we should look for a 20% off list, at least this seems to hold true for his neck of the woods. I will be canvassing as many JD dealers as I can in the next several weeks to see what they can do for me. I will likely go with the low package price so long as I feel comfortable with the dealership and their servicing abilities.

I don't think you're too late. If anything, you might be a bit early in wanting to deal. As John Miller III told me, this season is the 'hot' season for the dealers when they make big push to sell their machines. They will likely offer better deals if you want to wait until late Spring or Summer or better yet in the Fall, Winter. But, he also suggested tractor sales are likely to be down this year because of slow economy. So, your local dealers just might be willing to wheel and deal from the get-go to capture local market share.

Bottom Line for Me: I can't wait until Summer or next Winter. I've waited 2 years already. I'm going to wait for a few weeks to see what big JD comes out with on financing. Then I'm going to look at 2 or 3 financing routes I can go and which works best for me. But, right now, I'm doing the leg work and will be trying to contact and visit as many dealerships as possible for their best deal. I will also ask them upfront to give me 2 prices, one that's a cash deal and the other that's financed though JD. I'll see what they come back with. Hope this helps. /w3tcompact/icons/wink.gif

 

[rancar]

Bill,

I just looked at your member profile and see you live in Iowa. In this case, you should definitely contact TBNers cowboydoc and deerenebraska (located in Bennington, NE). Cowboydoc I believe has his ranch in Iowa and can likely help you out with locating good dealers and deerenebraska is a dealer in your neighboring state and may offer you a good deal. /w3tcompact/icons/wink.gif

 

[blurrybill]

Rancar,

The info above was from the JD finance book and the dealer copied the page for me on the finance rates that are supposed to end 3/1-318 (sounds confusing, but the rates on the sheet indicated deal must be made by March 1st). I have emailed both the NE dealer and Cowboydoc. The latter didn't give the name of his dealer, but I recall reading that he pays cash. I need to stay liquid so that I can get the house going, so will most likely finance all but 10-20% depending on the deal and the dealer. I for one am not opposed to buying in a nearby state, although many TBN posters suggest that the decision could compromise service -- I'm not there yet. I won't travel 200 miles to save a couple hundred dollars, but would if savings were substantial. The company nearby drug feet on getting me requested info after promising it and that turned me off to some extent. It made me more willing to investigate other deals. Here in ag country, I guess spending 25K with someone isn't worth following up on promises....

What are your bank rates? I'm a low-end preferred customer and I'm hoping the planned construction loan, good credit and other factors might allow the locally owned bank to offer some type of very good interest rate. Let me know how your searching is going and I'll do the same.

I'm sure that like me you can't wait to post questions, pictures and details of the new purchase. I, too have been looking for 2 years biding my time. My wife is supportive and recognizes the benefits of having the tractor on our 8 acres. So far, she understands the "necessity" of some implements --all of you guys can keep your fingers crossed that this gentile attitude continues.

Bill

 

[rancar]

Bill,

You may be right on the current JD financing. I just tried to check JD's website and I can't find any reference now to current financing specials for the 4000 series machines. It would be helpful to get current information off JD's website rather than calling the local dealers.

I'll check the current home equity loan rates in today's newspapers in my area. This is one possibility I may go. Another is securing a loan from my employer's retirement/pension program. The interest rates going this route are a little bit higher than JD's 5.9% but if I go this borrowing route and pay for the JD4710, cash on the barrel head, the local JD dealer may offer a better deal. This is what cowboydoc suggests. How much better, I just don't know until I do the wheeling and dealing. But, there's a big difference between 12% and 20% when you're looking at a $25-30K total package. The savings here could easily offset the higher interest payment I would incur going other routes. So, I will have to jumble the numbers at the end to see how best I make out. Whatever deal I make and whatever package I get, I'll post here in this forum.

My wife is supportive to an extent. It's a up hill struggle at times to convince her that spending $25-30K on a tractor is a wise investment. She sees large ticket price that could easily be better used to pay down the house mortgage or purchase another car. I see a utilitarian machine that will improve the value of the property over time. I also point out JD's well reknowned high resale value on JD units. I try to emphasize this is an investment in our home and property. I think see's coming around. /w3tcompact/icons/smile.gif

Look at my post on the Mantis Rototiller. I think the deal I'll make with my wife is I'll let her get her Mantis if she let's me get the JD4710 with attachments. She's thinking about it. Such a deal I wish all of us had here. /w3tcompact/icons/grin.gif

Will be in touch.

Regards,
Bob Ancar
Cambridge, NY

 

[cowboydoc]

Bill,
I didn't give you the name of the dealer because like I said I have used numerous dealers to get the deals that I do. Like I said I will get on machine finder and see what's out there and for what prices. I will also see what the list prices for this equipment is. Then I will look at used prices to see what things are going for. When I've got all my cards together I'll start contacting dealers and seeing what they can do for me. I have probably used 10-15 dealers in the last few years. Whoever can give me the best deal is where I'm going to go. That may change depending on the equipment that they have, inventory et.

Perfect example. For my 4020 I wanted a loader for it. I didn't want to pay for a deere loader even at a reduced price, still way too high. I was looking at an allied loader. Local dealers best deal I could get was $5500 for the one I wanted. I searched machine finder and found a used one in South Dakota for $2200. Called but it was already gone. However the guy said he could order me the Allied one that I wanted for $4300. I called the local dealer and he didn't want to touch it for that. The dealer in S. Dakota ordered it for me and I picked it up at the supply house about 100 miles from me. Saved $1200 and it was about 30% off of list.

When I bought my Gator I found a few in NE for $7500. Told the local dealer and he said he'd see what he could do. He did wind up matching that price and added a few extras. So it's not like each dealer is going to give you the best price everytime. It all depends on what they deal in, how they feel at the time, how sales are, etc., etc. That's why I am not really dealer loyal at all costs. The local guys know this and when they can they will make me the best deal. When they can't they say that's a good deal buy from them. It has worked really well for me. Now if you aren't into the wheeling and dealing and homework then no you probably won't get as good of deals. I know alot of my friends that aren't and will just walk in and pay list. It does take some work though to find the best deals.

 

[blurrybill]

Great advice, Richard and it makes sense to me. I rather enjoy bargaining a little bit. It sure would be nice to find both the deal and dealer nearby, however. The Machine Finder option sounds like a good one for attachments. Still, I'm thinking that a package deal might be better and offer an opportunity to finance the package, since I plan to go that way. You obviously have needs for a variety of equipment -- we'll have two "only children" in our family within a short time; our daughter and the baby JD. Let's hope "fly by wire" is not a synonym for "pain in the [censored]." Thanks again for your input.

Bill

 

[heehaw]

i was quoted 5% for 5 years, or a floating rate that starts at 3.9%, but cannot go above 5%; now who would take the 5% when the other one can't go above 5??? this was last friday, feb 22.
heehaw

 

[blurrybill]

Heehaw,

Was the variable rate JD financing or a local lender?

Bill

 

[heehaw]

it was all JD..
heehaw