TYM vs Yanmar

[Yander]

I drove past some TYM today and stopped and looked at them, first mistake. I called the name of the dealer salesman on the sign, second mistake.

He told me that I can get 1% interest on a 60-month loan. I know that I could pay cash and get it cheaper, but that is fairly cheap money. I have to ask about the cash vs financed price difference.

Is anyone pulling a 7' cutter with the TYM 474?... If so, how does it handle it.

Yes I'm intrigued by the value of the TYM and might get one. Keeping my Yanmar too though; wife likes it and asked me not to get rid of it.

 

[tacticalturnip]

Why not the best of both worlds?

 

[Torvy]

Is that one of the units TYM is building for Yanmar? Must be a 394.

The 474 has the TYM engine which gives you the benefit of not being beholden to sensors for emissions. If there's a fail, your tractor doesn't shut down.

OP, There's no reason it shouldn't be able to handle most 7' cutters. Just be careful about Cat I vs II.

 

[tacticalturnip]

Is that one of the units TYM is building for Yanmar? Must be a 394.

The 474 has the TYM engine which gives you the benefit of not being beholden to sensors for emissions. If there's a fail, your tractor doesn't shut down.

OP, There's no reason it shouldn't be able to handle most 7' cutters. Just be careful about Cat I vs II.

That's right, it is a T394; I really do get some of the legacy TYM machines mixed up.

It certainly is one of the machines TYM is building for Yanmar, and on their website they really make it look nice.

 

[Torvy]

The 394 has always had a Yanmar engine, so it makes sense.

If I had a Yanmar dealer nearby and more money, I probably would have bought one of those top of the line Yanmar machines with the fancy transmission.

I'd be fine if the two companies keep getting closer. Bridge the dealer networks.

 

[tacticalturnip]

These Yanmar TYM's must still get that 10 year warranty, and that might get some potential TYM buyers through a Yanmar door. That's a lot of piece of mind.

 

[Yander]

I need to check those out at the Yanmar dealership. It is closer than the TYM dealer.

The price on the TYM got my attention.

 

[tacticalturnip]

I would love to check one out but my Yanmar dealer doesn't have any in stock. Massey is where they tend to lean at lower costs, and the Yanmar machines on the lot are always premium.

 

[Torvy]

The same tractor from a TYM dealer.

2025 TYM T394H For Sale in Coweta, Oklahoma

2025 TYM T394H For Sale in Coweta, Oklahoma at TractorHouse.com. New TYM T394H Tractor with Front-End Loader PRICE INCLUDES ZERO TURN MOWER FOR A LIMITED TIME Cash price $26,805 with standard rate financing as low as $336/mo with ZERO down OR ask about special low rate financing for 3.99% for...

www.tractorhouse.com

 

[IH3444]

48 engine horsepower, 2.3L 4-cylinder engine. Most likely 40 PTO horsepower or more. 5hp per foot times 7-foot mower/brush hog equals 35hp needed. You have more than enough power for your 7-foot mower. Plus being a 4-cylinder, you have a very nice overlap of torque being produced so it with breeze through even tall grass.

 

[nyone]

I have to ask about the cash vs financed price difference.

There different. Lots of dealers mark up the financing price vs the cash price then offer low % interest rate..because it's just in the full price now.

 

[Torvy]

There different. Lots of dealers mark up the financing price vs the cash price then offer low % interest rate..because it's just in the full price now.

Typically, if you do the math, you are better off with the low finance rate, even at a higher price.

Place the cash in a low risk broad fund. Easy to net 7% or more after inflation. There could be exceptions, but when I have run the numbers, financing is better if you qualify for truly low rates.

 

[TractorTYMe]

I pull a 6' just fine, I can't imagine a 7' is gonna be hell or high water difference.

 

[California]

There different. Lots of dealers mark up the financing price vs the cash price then offer low % interest rate..because it's just in the full price now.

I've been reading about car financing and saw that dealers often push financing because they get a kickback that allows them to sell for less, if financed.

So for the customer, if you actually can afford cash, its important to see if the contract allows paying off the loan early. That might get you the best price of all.

 

[Torvy]

I've been reading about car financing and saw that dealers often push financing because they get a kickback that allows them to sell for less, if financed.

So for the customer, if you actually can afford cash, its important to see if the contract allows paying off the loan early. That might get you the best price of all.

It's not really a kickback. They get a couple of percent of the interest (usually they have some flex in that).

I spent years on the bank side of auto finance. Happy to answer questions if you have them.

 

[California]

It's not really a kickback. They get a couple of percent of the interest (usually they have some flex in that).

I spent years on the bank side of auto finance. Happy to answer questions if you have them.

Thanks for the comment.

How does the dealer make more overall, by discounting the sale price then getting a fraction of the customer's payments? There's some magic here that's not apparent.

Isn't negotiating cash always going to have lowest overall cost to the customer, assuming you shop several dealers?

(I've always paid cash and ignored the finance guy's pitch).

 

[Torvy]

Thanks for the comment.

How does the dealer make more overall, by discounting the sale price then getting a fraction of the customer's payments? There's some magic here that's not apparent.

Isn't negotiating cash always going to have lowest overall cost to the customer, assuming you shop several dealers?

(I've always paid cash and ignored the finance guy's pitch).

Not really. Imagine you have the cash. Instead of paying cash, you invest the cash. Even basic investments in broad markets net roughly 7% after inflation. Versus a 3% note, paying cash is actually losing you 4%+.

Cash is not always king anymore, especially at franchised dealers. The dealer gets his money immediately (more or less) either way. He gets more if he sells you a loan. Franchises often reward dealers with access to more and/or special inventory if they sell well. Sales isn't simply units, it's the whole package of services, including financing.

As a lender, we put more emphasis on a trade than cash down when pricing a loan. It turns out that people who trade a vehicle are more likely to pay. Analytics drive a lot of the bank decisions on auto loans. Cash down is better than no down, but trade is better.

 

[careyo63]

Not really. Imagine you have the cash. Instead of paying cash, you invest the cash. Even basic investments in broad markets net roughly 7% after inflation. Versus a 3% note, paying cash is actually losing you 4%+.

Cash is not always king anymore, especially at franchised dealers. The dealer gets his money immediately (more or less) either way. He gets more if he sells you a loan. Franchises often reward dealers with access to more and/or special inventory if they sell well. Sales isn't simply units, it's the whole package of services, including financing.

As a lender, we put more emphasis on a trade than cash down when pricing a loan. It turns out that people who trade a vehicle are more likely to pay. Analytics drive a lot of the bank decisions on auto loans. Cash down is better than no down, but trade is better.

Dealer cost is a big factor. It varies. My 01 F250 300$ + shipping @ 3.2% I kept the cash. No Dwn.payment. It's super fast. Father was Dealer Rep. Ford credit Ga.. A plan 148Mph..

 

[California]

Not really. Imagine you have the cash. Instead of paying cash, you invest the cash. Even basic investments in broad markets net roughly 7% after inflation. Versus a 3% note, paying cash is actually losing you 4%+.

Cash is not always king anymore, especially at franchised dealers. The dealer gets his money immediately (more or less) either way. He gets more if he sells you a loan. Franchises often reward dealers with access to more and/or special inventory if they sell well. Sales isn't simply units, it's the whole package of services, including financing.

As a lender, we put more emphasis on a trade than cash down when pricing a loan. It turns out that people who trade a vehicle are more likely to pay. Analytics drive a lot of the bank decisions on auto loans. Cash down is better than no down, but trade is better.

Sounds like the net least expensive way to buy, then, is to negotiate a balance (after trade) to finance, that is low enough that the savings compared to paying cash, exceeds the opportunity cost lost by paying off the loan after a few months. The customer saves and the dealer makes his sales targets. No?

 

[Torvy]

Sounds like the net least expensive way to buy, then, is to negotiate a balance (after trade) to finance, that is low enough that the savings compared to paying cash, exceeds the opportunity cost lost by paying off the loan after a few months. The customer saves and the dealer makes his sales targets. No?

Early pay-off is only an advantage if your interest rate is higher than what you can earn investing. I'm not talking risky investments, broad market funds only.

The balance isn't relevant other than how LTV (loan to value) affects your interest rate. The best thing is to get a zero % deal. I know it's counter-intuitive, but banks offer these to balance their risk portfolios. They make it up by having more money to lend with sub-prime or near-prime loans. If you have great credit, banks will allow higher LTV and don't care about down payments.

With cars, there is not typically a savings to paying cash. Dealers who do that are either in trouble financially or will be. (Again, franchise dealers) Used car lots are another bag altogether.

One reason people with money have money is that they make their money work for them, passively or actively. Leveraging a loan to make money can be an avenue to wealth.