New Branson 3820!

[dancce]

Micropilot,

You are absolutely correct. In this case you would be better off by paying $600 more for the tractor up front.
What the customer (and the dealer) need to pay attention to is the rebate amount AND the cost of financiing at current standard market rates.
Rebates should be looked at for what they are----upfront costs for getting lower interest rates (or in financial lingo--buydowns).
By running the numbers, (using an amortization calculator), a savy buyer can determine if there are actual cost savings, using the low rate offers.

dancce

 

[MicroPilot]

Every copy of Excel and Works Spreadsheet has a Loan Amortization template for running these kinds of scenarios. Thats what I used!

 

[Chipperman]

Micropilot
That all works fine if one can afford the payments. Some time speading the loan out over a longer time frame is the only way one can afford the monthly payments. Even if that means paying a higher rate.
Happy Tractoring
Chipperman /forums/images/graemlins/smile.gif /forums/images/graemlins/smile.gif

 

[MicroPilot]

True and I understand this because it's what I did. I wish I could afford $600/month!!