New Tractor Purchases

[MasseyWV]

Whenever I see posts about new tractor purchases, and considering what these things cost, I can't help but wonder how many people are up to their eyeballs in debt trying to pay for them.

I owe, I owe, so off to work I go.

 

[TripleR]

Actually we pay cash for all of ours.

 

[shortthrow50]

have to pay remaining balance of 30k with check next week when tractor arrives. Almost forgot.

 

[flusher]

Whenever I see posts about new tractor purchases, and considering what these things cost, I can't help but wonder how many people are up to their eyeballs in debt trying to pay for them.

I owe, I owe, so off to work I go.

Bought my new 2008 Mahindra 5525 in March08. Will write the last check in a few weeks and then tear up the payment book :thumbsup:. Feels good, real good.

Now I can go shopping for my next tractor (I collect and restore old iron). Got my sights on several.

 

[jdtractor]

I paid CASH if you must know. I always have.

 

[flatpik6]

The OP brings to mind an interesting call I received from the dealer I am working with here in FL. I am interested in a new Mahindra 5035 and called my contact at the dealer to advise him and have him start putting a deal together. He called me later and asked if I wanted to pay cash for this one or not. I said that I could go either way, depending on what made the most sense for the use of my cash.

If paying cash then I benefit from all cash back offers and a better deal out the door. But if I finance on the 0% interest, I can use my cash for other things until the term of the 0% runs out. I will lose the cash back incentives so my decision will be based on whether I will make enough $ by using my cash another way to offset what I give up on the cash back incentives. Haven't gotten the final offer yet so I still haven't made up my mind but either way it will be an intentional, strategic decision rather than a decision that I HAVE to make. (I suspect that the cash back incentives will be great enough to sway me).

 

[murphy1244]

Going cash instead of credit saved me 3 grand. Need I say more?:licking:

 

[Dr_Zinj]

I paid cash for mine after saving up for it for over 3 years.
Still didn't have enough to get a backhoe with it. So trying to siphon off $8K over the next couple years while paying for 2.5 colleges and replacing the cars. /sigh It never ends.

 

[MasseyWV]

I paid cash for mine after saving up for it

Exactly. If I don't have enough cash to pay for it now, I save my money until I do.

It just gets under my skin every time I hear the terms "0 down" or "finance it today" or any one of a miriad of catch phrases used to get people to buy things they do not have the money to pay for which usually ends up costing them a small fortune in the end.

Today it seems that almost everyone is so obsessed with credit and having it NOW, that they don't really take the time to think about the true cost of credit.

Cash is king.

 

[RollingsFarms]

when I bought my tractor back in '08 the price was going to be the same whether I paid cash or took the 0% for 48 months.

 

[MasseyWV]

when I bought my tractor back in '08 the price was going to be the same whether I paid cash or took the 0% for 48 months.

But...

In the fine print there is usually a clause that says something to the effect of "miss a payment and 0% is out the window" which is exactly what the finance company is hoping for.

 

[rjwerth]

Exactly. If I don't have enough cash to pay for it now, I save my money until I do.

It just gets under my skin every time I hear the terms "0 down" or "finance it today" or any one of a miriad of catch phrases used to get people to buy things they do not have the money to pay for which usually ends up costing them a small fortune in the end.

Today it seems that almost everyone is so obsessed with credit and having it NOW, that they don't really take the time to think about the true cost of credit.

Cash is king.

Couldn't agree more. Cash IS king so when Kubota only gives you $1000 for paying cash, it makes no financial sense to NOT take the 0%/60. You get to keep your cash and get a tractor! As long as a monthly payment doesn't drive you nuts (and I know it does to some), you end up ahead!

 

[MasseyWV]

Couldn't agree more. Cash IS king so when Kubota only gives you $1000 for paying cash, it makes no financial sense to NOT take the 0%/60. You get to keep your cash and get a tractor! As long as a monthly payment doesn't drive you nuts (and I know it does to some), you end up ahead!

I believe it makes more financial sense to pay cash, regardless of what carrots a company may dangle in front of me to try and get me to finance it. Ultimately financing can cost a lot more than paying cash, regardless of any rebates that are offered.

They usually offer larger rebate incentives for financing because they know that only a fraction of buyers who apply for 0% financing will actually qualify, and of those that do, many of them are likely to miss or be late on a payment, causing that enticing 0% interest rate to skyrocket. Not to mention all the other potential pitfalls involved with financing.

Financing is a lot like gambling and as the old saying goes, the house always wins.

 

[pjbci]

I had no idea our economy was doing so well that all these folks dont have to finace things. Maybe my cash flow will catch up with everbody else soon.

 

[MasseyWV]

I had no idea our economy was doing so well that all these folks dont have to finace things. Maybe my cash flow will catch up with everbody else soon.

One doesn't have to be rich to pay cash, just disciplined enough to save the money, even if only a little at a time. I have a "tractor fund" going right now myself.

 

[TripleR]

I had no idea our economy was doing so well that all these folks don't have to fiance things. Maybe my cash flow will catch up with everybody else soon.

I'm pretty old, so I have the money now, but when I was younger with kids and all the expenses I had to finance cars/trucks. I also bought used stuff that I could afford rather than new. My wife got her first new car when she was 59; may be her last too.

I am certainly not knocking anyone who finances whether out of necessity or choice.

 

[Mike476]

My tractor I paid cash for but I've saved to purchase large ticket items only to be unable to part with it when the time comes, choosing rather to continue to save while drawing from it to make the agreed payments. In the end the payments have been lower or on par with what I had been fortunate enough to be able to put away. I've also paid things off early when the total was something I could bear to part with, crazy I know. :confused2:

 

[Jamming]

60 month zero interest, but i will pay it off sooner than later. i am not a farmer so why burn through cash when zero percent is available, besides if my wife ever decided to leave me, i would give her the bill and take the tractor.

 

[Jamming]

But...

In the fine print there is usually a clause that says something to the effect of "miss a payment and 0% is out the window" which is exactly what the finance company is hoping for.

There is also a law that says they must give notice before doing so, its not as simple as missing a payment, because with todays "auto payment stuff" it happens.

 

[MasseyWV]

There is also a law that says they must give notice before doing so, its not as simple as missing a payment, because with todays "auto payment stuff" it happens.

Law or not, if you haven't saved enough cash to pay it off, you'll end up paying the increased interest rate and the finance companies know this. Paying cash prevents "it" from happening in the first place.