Financing loan durations

[vinbug]

What is the different loan durations for buying a new tractor? (ex: 12 months; 24 months;72months?)...What is the Longest Loan you can get through johndeere/sema equipment???

 

[chevy]

It is best to check with your dealer to see what they offer.
Deere has some advertised offers, but dealers may have some different unadvertised offers.
Here is a link to Deeres current offers.

John Deere Special Offers - USA

 

[bigbull338]

as saiod check with jd on that.your standard loan is 5yrs in most cases.and sometimes they offer 6yr loan terms.

 

[Gary Fowler]

I couldn't imagine anyone wanting more to be paying a note for more than 72 months. I would get it paid in as little time as I could afford. Even if they claim 0% interest, it isn't free, they most times just roll the interest into the overall price so the longer term you get, the more you will pay.

 

[KiotiKowboy]

If you're looking at 72 months, you simply cannot afford that particular tractor. Don't bury yourself in long-term debt, especially for something that goes down in value.

 

[JDTank]

Do not think of debt in terms of dollars and cents.

Think of debt as imprisonment. Your "sentence" is you being forced to work for the length of that sentence. If you finance something for 6 or 7 years, that does not just mean you owe X number of dollars. What it REALLY means is you have now put yourself in a situation where no matter what, you must keep working for 6 or 7 years. You could say you would have to work anyways, which is true for 99% of us. However, if you did not have that obligation of a payment, you would have a lot more freedom to work less, or do things you want to do.

Am I saying do not ever finance anything? No. I believe that is darn near impossible if you want to have nice stuff. My advice is to finance one thing at a time, buy used if you can find the right machine for the right price. I would never consider financing a tractor longer then 5 years, 4 is optimal.

The longer the term the more scary it becomes. No one knows if they will have a job tomorrow, companies go broke and downsize all the time.

To me, the reason debt is scary is because you have promised to pay back X amount of dollars, with no promise of how many dollars you will have tomorrow.

 

[Wnc3]

The 3 previous post say it all....

 

[DVR]

I couldn't imagine anyone wanting more to be paying a note for more than 72 months. I would get it paid in as little time as I could afford. Even if they claim 0% interest, it isn't free, they most times just roll the interest into the overall price so the longer term you get, the more you will pay.

Once you sign the paperwork at 0% for XX months, including origination fee and insurance- there is no way for them to roll any interest into the price. In addition, when you finance through JD they provide you with (required) insurance, at a great price, with great coverage, that you cannot buy otherwise (through JD at the offered rate). If you pay it off early the only savings is insurance as they cancel the policy upon full payment. Early payment saves only the required insurance costs. Again, the insurance is very fairly priced and has great coverage.

Every JD finance statement has a required monthly payment amount and a full payoff amount. Payoff is less than full term as it has a credit deducted for unused insurance should you take the payoff. The statement is difficult (if not impossible) to understand w/o a call to customer service.

 

[Deadman]

The longer the loan term, the MORE $$$$$$$$$$$$$$$ you paid them in interest!

 

[calhoun9001]

The longer the loan term, the MORE $$$$$$$$$$$$$$$ you paid them in interest!

When I bought my JD85 I told them I would be paying cash, was dealing with two dealers. My local dealer ended up giving me the best price. After talking with my sale's men he said I could finance it at 0% for five years for the same price, Little over 18% off list. No brainer for me, I keep my money and financed it for 5 years at 0%.

 

[CinderSchnauzer]

Do not think of debt in terms of dollars and cents.

Think of debt as imprisonment. Your "sentence" is you being forced to work for the length of that sentence. If you finance something for 6 or 7 years, that does not just mean you owe X number of dollars. What it REALLY means is you have now put yourself in a situation where no matter what, you must keep working for 6 or 7 years. You could say you would have to work anyways, which is true for 99% of us. However, if you did not have that obligation of a payment, you would have a lot more freedom to work less, or do things you want to do.

The problem with blanket statements like this is they do not apply to all situations. First I don't "have to work" and could have just paid cash for my latest giant yard toy. Instead, I received a decent discount from list, gave a small down payment and signed for 0%. Price was the same either way. Still have the cash available and won't even miss the monthly payment. Almost as good as getting a free mower.

 

[Gator6x4]

When someone tells me I can buy something at 0% at the same price as cash, I leave. Manufacture's factor in interest and other hidden cost then set a sale price. A purchaser then agrees to pay the manufacture a amount per month arrived at by dividing the total months of an agreed payment period.

 

[Piston]

The first two posts in this thread answered your question wonderfully....and only the first two.



If you would like our opinion on how to mange your finances, just ask (or don't, because you'll get it anyways)

 

[calhoun9001]

When someone tells me I can buy something at 0% at the same price as cash, I leave. Manufacture's factor in interest and other hidden cost then set a sale price. A purchaser then agrees to pay the manufacture a amount per month arrived at by dividing the total months of an agreed payment period.

I always felt that way until this deal on my JD85. Was going to buy with cash until he told me wouldn't make any difference. From what I have seen and heard 18% off list is a good deal even when paying with cash. Would much rather use there money over the next 5 years.