Why buy new

[TheMadOne]

Here's my take on it. I couldn't have bought anything other than an old 8N or cub with cash. Finance rates on newish used equipment would eat any price savings. I was barely in my thirties and not making great money. I needed a tractor. My driveway was eating vehicles, my land was a mess, we were putting off tasks because we had no way of doing them.

Buying new let me get a great machine for a payment I could afford, let me do the work i needed to do without paying someone else to do it and being beholden to their schedule, as well as their definition of a job well done.

I do not regret it, and would do it again in a heartbeat. In fact, I have some serious thoughts about the new M4 that Kubota just announced, if I end up getting a decent sized property in a couple years.(something I'm working toward, and something the payments on the 3301 are helping me build credit for)

That is why I bought new. But I'm not you. You may be better off buying used. If so, that's fine. I might be better off doing so in the future as well.

 

[rScotty]

The only clean tractor I could find was a 2004 L3400 with 1000 hours, when I told him after looking at it that I thought 13000 was a bit high he got POed and took the ad down. At the time I had been getting prices of 18000 new for a comparable Kubota, so why would I buy used knowing that I was taking a chance with no warranty, and within a couple of years I would spring for 4 new tires? (+-$1400.)It wasn't even a shuttle shift, and even I would prefer a hydro to that. Again, where are all of these great deals on used tractors? Because I would have bought one in a heartbeat, and financing wasn't even part of the equation.

By "great deals" I would say that a good used machine for 20% less than original +tax is good to great price-wise for a 500/1000 hr machine. Keeping in mind that a used buyer saves tax and depreciation, plus is likely to get a few extras like manuals and such.

New machine warranties are attractive, but in reality seem to be over-rated. I'm basing that statement on my having read TBN for a decade now, but a person doesn't have read through TBN nearly that long to figure out that there are many more postings about problems with new machines and dealer service hassles than there are posts about problems with replacing used components on used tractors.

Which would you pay more for....an unknown warranty situation? Or pay less for a used machine with proven reliability that needs tires?
rScotty

 

[Newby first timer]

I had been looking for a couple of years for my first tractor.
When I got tired of looking at beat up old junk that needed lots of repairs to be reliable and Had my first real serious project that needed doing.
I started looking at new and with the 0% financing and not having $55K in cash for the purchase as others have said.
I chose to be taken advantage by the Bad Dealer and Finance the best fit Tractor for my purpose's

So my 1st project Was a leach field for my home, My Neighbors paid 25K and 30K for theirs just a year earlier
So it was pay a Contractor 30K+ or put 10K down and make Payments for the next 84 months.

Well my leach field is 4 times the size of my Neighbors and out side of the cost of the tractor it cost me about $600 on material.
and I have a reliable tractor to work my 36 acre land in Arizona which has lots and lots of never ending projects to be done on it.

 

[Industrial Toys]

So, that project should have paid for the tractor. I mean, if you had the money for the project.

Just like pick up trucks, I can't help think that all the people that don't pay for these things off the lot, are adding significantly to the price. I mean, if you don;t have to put the cash on the table, who cares if it's 60 or 80 grand? Sure, throw in the leather seats, it's only another fifteen bucks a month, oh sorry 7.50 biweekly, Ridiculous. People think they are getting such a GOOD, 0% DEAL! They are paying for finance, believe it or not and paying a higher price by a great margin, for this whold "system" of getting stuff now and paying for it later, if you ask me.

 

[Jstpssng]

That's your opinion. Just because somebody isn't paying cash doesn't mean that they aren't shopping for the best deal. If I'm going to shell out 13K for a 15 year old tractor which isn't really what I want or need; it makes more sense to spend a little more and get something that I will keep longer. As I have already pointed out, there isn't a plethora of used tractors to begin with. I probably would have been better off spending the extra 3K to buy new and get what I wanted, but it meant going with a slightly longer loan, and my interest rate would have been .5% higher than the 2.25% which the CU is charging me now.

 

[fried1765]

It's funny. You have an almost new tractor and you can't sell it to get your money out of it, and people looking to buy can't find a good, well priced, used one. It's also funny how people refuse to loose money to Joe Citizen, but don't seem to mind getting screwed by a dealer. It seems to hold true for car/truck and tractor dealers alike.

It is usually all about financing.
Though many state that they "could" pay cash.
They don't....because they like to keep their money in the bank?
Sometimes....Maybe........

 

[fried1765]

So, that project should have paid for the tractor. I mean, if you had the money for the project.

Just like pick up trucks, I can't help think that all the people that don't pay for these things off the lot, are adding significantly to the price. I mean, if you don;t have to put the cash on the table, who cares if it's 60 or 80 grand? Sure, throw in the leather seats, it's only another fifteen bucks a month, oh sorry 7.50 biweekly, Ridiculous. People think they are getting such a GOOD, 0% DEAL! They are paying for finance, believe it or not and paying a higher price by a great margin, for this whold "system" of getting stuff now and paying for it later, if you ask me.

I don't think there are many of us realist/logical thinkers still around.

 

[Jstpssng]

It is usually all about financing.
Though many state that they "could" pay cash.
They don't....because they like to keep their money in the bank?
Sometimes....Maybe........

I'm still trying to find out where all of these "almost new"_tractors are. If I had bought new it would have included all of the fluids for my first service. I don't know if mine had that or not; I didn't think to ask when I bought it, and the dealership deigned not to answer when I did ask. Buying an older tractor also wouod have cost me an extra percentage in interest... Thats just the way my CU is set up.
In this state we are required to pay sales tax on any purchase; new, used, dealer or private. A lot of people probably just take a chance; but that's hard to do when I'm depreciating it against money I make off my land.

 

[Industrial Toys]

Keep my money in the bank? The Interest charges don't even cover the Service Charges like they did, even a few short years ago.

 

[fruitcakesa]

Keep my money in the bank? The Interest charges don't even cover the Service Charges like they did, even a few short years ago.

This is right on!

 

[ch1ch2]

Keep my money in the bank? The Interest charges don't even cover the Service Charges like they did, even a few short years ago.

I am old school. Put the money in the bank! Save, Save, Save.
Retire early kick back or Go, Go, Go.
You can afford it.

When you want a tractor, you can go buy a new one or you can wait around and find the used one you want.

You can afford to do what you want.

Too many people out there whom need instant gratification. Instant gratification is expensive.

 

[Newby first timer]

So, that project should have paid for the tractor. I mean, if you had the money for the project.

Just like pick up trucks, I can't help think that all the people that don't pay for these things off the lot, are adding significantly to the price. I mean, if you don;t have to put the cash on the table, who cares if it's 60 or 80 grand? Sure, throw in the leather seats, it's only another fifteen bucks a month, oh sorry 7.50 biweekly, Ridiculous. People think they are getting such a GOOD, 0% DEAL! They are paying for finance, believe it or not and paying a higher price by a great margin, for this whold "system" of getting stuff now and paying for it later, if you ask me.

OK
I will admit that I am a Moron for not wanting to put a second mortgage on my home to pay a contractor to do the work that I can do myself with the proper equipment.

It was my decision to invest in the equipment that I will use the rest of my life.
I do know that the 0% financing is not with out cost.

Yes I am the biggest Moron on the face of the earth for my bad decisions but I pay for those decisions and no one else.

 

[Industrial Toys]

I will never forget a financial advisor in the late 70s told me. There are only two kinds of people, those that earn interest and those that pay interest. Well I did kind of invent a third, for I really don't have much money, but don't owe any either.

I guess it all depends on how much money a person has. Some people pretend that, they don't believe in using their money and go with 0%, when they really don't have any. A business is another story. They may wish to use their money for other things and the interest on a loan is tax deductible, big difference compared to the private individual.

I don't know about the US, but Canadians are up to their eyeballs in consumer debt. Soon, it would not surprise me, if you just go from one car loan to another, never owning the vehicle.

 

[heavy hammer]

I believe it doesn't matter if you buy new or used, payments or cash purchase if the one buying can afford the purchase, and if the seller if happy with price. Then it will work out, everyone has their opinions on how to spend money, and save money. Everyone's situation financially is a little different, from the posts I have read here pretty much everyone has good reasons for how or why they made their tractor purchases. It seems like most are pretty happy with their current situation as well, so maybe their is know right or wrong way. Just the way that works for that tractor owner.

 

[Geotech]

I believe it doesn't matter if you buy new or used, payments or cash purchase if the one buying can afford the purchase, and if the seller if happy with price. Then it will work out, everyone has their opinions on how to spend money, and save money. Everyone's situation financially is a little different, from the posts I have read here pretty much everyone has good reasons for how or why they made their tractor purchases. It seems like most are pretty happy with their current situation as well, so maybe their is know right or wrong way. Just the way that works for that tractor owner.

I agree. However irritated I get reading soap box posts, these conversations still benefit folks by presenting multiple considerations which are applicable situations beyond tractor purchases.

 

[falfrenzy]

Am I the only one tractor buyer who believes that cash (actual stacks of $100's) should get a discount? Because I do.

I start the negotiation on a piece of equipment stating I want to finance it, preferably thru their dealership.

Then after they are salivating thinking they can get a bigger ski boat, I walk out the door with papers in hand to sleep on it. I then call them the next morning from home with papers in front of me and ask for their cash price. If they are smart, they'll call me back with a fair number. If they're scum, they'll back pedal for a mile with excuses.

It outs a lot of sleazy dealers/sellers, I'll tell you that.

 

[heavy hammer]

I agree 100% Geotech!

 

[Industrial Toys]

I am no financial expert. But all these "CREDIT" companies, associated with the big manufacturers, are they all just not for profit companies staffed by volunteers? After all, there isn't any profit in 0%, is there? Who then pays for the bricks, mortor, electricity and computers? It's a serious question.

 

[Code54]

While I agree with some of the posts about it is better to save and buy than finance BUT with that said - think of what it saves you financing. I needed the driveway built - contractor wanted well over $2,000. So I can buy the tractor and did it myself for about $100 bucks. So buying it with the "0%" was a BIG savings at the time. I bought a house in the country, a trailer and a tractor all within a month so having cash to buy anything (new or late model used) was not an option. So I did the driveway, was able my mow my yard, did some brush hogging, leveled the yard for a patio, prepped an area for a shop all in the 3 years I had the 0% financing. Was it worth it - HECK YES. I would have spent well over 10K or more just on those jobs so the "extra" I paid was more than made up. Something to think about for the group that says "never finance" - there is a time and place and each person has to look at their exact situation to decide what is best for them.

 

[fried1765]

I will never forget a financial advisor in the late 70s told me. There are only two kinds of people, those that earn interest and those that pay interest. Well I did kind of invent a third, for I really don't have much money, but don't owe any either.

I guess it all depends on how much money a person has. Some people pretend that, they don't believe in using their money and go with 0%, when they really don't have any. A business is another story. They may wish to use their money for other things and the interest on a loan is tax deductible, big difference compared to the private individual.

I don't know about the US, but Canadians are up to their eyeballs in consumer debt. Soon, it would not surprise me, if you just go from one car loan to another, never owning the vehicle.

"Soon it would not surprise me, if you just can go from one loan to another, never owning the vehicle".

People already number in the millions who "trade up", before paying off their existing car loan.