Скачать с ютуб Cash or Low Rate, What's the Best Deal When Buying a Tractor (or Car, or Anything With Low Rate)? в хорошем качестве

Cash or Low Rate, What's the Best Deal When Buying a Tractor (or Car, or Anything With Low Rate)?

When you're buying a tractor, or car, or boat, or any high dollar item that offers a low rate program, should you use it? Today we'll do the math to show how to tell when it's a good deal or when to walk away. This was prompted by a viewer letter from Wayne, whose dealer priced him a tractor for $23,000 with 3.99 or 4.99% annual percentage rate interest (depending on the term). When he inquired about low rate, the dealer offered a 0% or ,99% program, but raised the price to $27,000. He wondered what was going on. Also had a couple of other letters calling low rate programs a "scam" and "smoke and mirrors" and saying that there's no real 0%, it's all baked into the price. So, what was going on with Wayne's dealer? In my mind, he's not very good at marketing. Tractors have one price for the dealer if the customer takes the low rate program and a lower price if they pay cash. The best way to present that to a customer is by giving the high price with the low rate first, then offering a cash rebate if the customer wants to go with the standard rate program or pay cash. If you present the cash price first and try to raise it to offer the low rate, it raises red flags. If I'm selling a tractor it's much easier to come down in price than go up. How do you tell if the low rate is a good deal? Easiest way is to find the total cost of ownership and to do that, all you need is the low rate program annual percentage rate, or APR, the standard rate (or what you can borrow money at your bank for), the cash discount amount, and the amount of any filing fees the dealer charges for doing the contract. Then, Deere has a nice financing calculator at this link which will tell you really quickly which is the better deal. Here's a link: https://calculator.deere.com/MobileCa.... In Wayne's scenario, I calculated a 5 year loan at .9% annual percentage rate with a $27,000 selling price versus a 5 year loan at $24,000 at the standard rate of 4.99%. Taking the cash discounts and going with the lower price and higher interest rate would save him about $1500. However, using a different scenario, if you were offered a 0% APR for five years or a $2500 cash discount, it would be much better to go with the low rate program. In either scenario, you'd save a lot more money if you had the amount sitting in a low interest rate CD, and cashed it in to pay off the tractor up front. You can calculate how much interest you'd lose in that scenario at this site: https://www.bankrate.com/calculators/.... Bottom line is, before jumping on the 0% interest program, calculate your total cost of ownership. Sometimes it's a great deal, sometimes you're paying more and getting less. LINKS YOU NEED TO KNOW ABOUT... The Tractor Fun Store: https://asktractormike.com/products-f... Support the Tractor Mike Channel:   / tractormike   Visit the Tractor Mike website: http://asktractormike.com/ Visit Facebook Page:   / ask-tractor-mike-312112962245304   Copyright 2021 Tractor Mike LLC