I have a construction company and I pay cash for everything, trucks tools, heavy equipment everything. Debt is a sin. You're literally selling yourself into bondage.
The other thing Niel doesn't address is that you have immediate or near-immediate access to that $20K. It's not tied up in an asset that may or may not be readily saleable.
@skutch Blobaum - It all depends on your asset allocations, risk tolerance, and horizon. Over the last 90 years, investing in equities, as part of a diversified strategy, has been one of the safest ways to turn a little money into a lot. I would call 90 years a reasonable track record.
This is a great topic you're covering here! One thought I had is that, since the stock market isn't a risk-free investment, that makes it a bad benchmark to use for this comparison. ("Past results are no guarantee of future returns!") A better benchmark would be either a regular bank account, which at best are paying about 0.5% these days, or a CD with a term similar to the financing. If that term is 6 years, a similar CD now pays about 1.25%. Of course, if the money goes into a CD, it's no longer available (without penalty), as it would be if it were in a regular bank account. I'd bet that at those rates, taking the cash discount might be a better deal, or at least would be close enough that the decision should be made based on other factors.
What you're not calculating is that people who are smart with their money have already earned, not thousands of dollars in interest, and not even tens of thousands, but hundreds of thousands, if not millions. They have done that by refusing debt, paying with cash, living WELL within their means, and putting a lot of money into investments, for a long time. Your business is heavily dependent on convincing people that borrowing money to buy a tractor from you is "smart", but the simple truth is this: If they can't afford to pay cash for a new or slightly used tractor, they don't need it bad enough to go into debt. It's horrible advice to recommend that a working farmer do that and it's even worse to suggest to someone wanting a tractor for what basically amounts to fun and convenience. I have a tremendous amount of respect for your knowledge of tractors and can't thank you enough for everything you have shared about them, over the years. When it comes to personal finance, you're out of your element. Take it from someone who could pay cash for 10 of the tractors in your theoretical transaction...for the most part, wealthy people do NOT get there by borrowing money. Yes, there are some fools who do, but they are taking a lot of risk and many of them will fail in spectacular fashion. I'll close with a hypothetical for you to consider: If someone has a tractor that is paid off, but worth tens of thousands of dollars, would you recommend that they go to a bank and obtain a loan against that tractor so they can invest it in the stock market? If you WOULD do that...then we can't have a reasonable discussion. If you would NOT do that...then you need to go back and think a little harder about this advice you're handing out.
the point of the video is the simple mathematical fact that the cash discounts offered rarely come close to offering the value that your money has in other places. If I goofed up anything here, I should have spelled out more clearly the risk involved. Our core customers are farmers, contractors, etc who use debt in smart ways as a core part of how they operate. Without debt bootstrapping a new business is nearly impossible, cash flowing growth of an existing one can be just as hard. The problem with your hyphetical is the lending costs. A bank loan like that is going to cost you 6-7% and the upside is too risky. The point of the video is the 'Lending cost' of a 0/60 is so low even the most conservative return will have an upside. Appreciate the thoughtful discussion.
@@MessicksEquip - We are honestly discussing two different topics, although that's not immediately apparent. You're looking at the sale of a manufactured item and creating what amounts to financial justification for someone to agree to using debt to make that purchase. Because so many Americans buy into the rationale you are providing, debt-financing has become the norm for a lot of people. Despite your assertion, many of the very best businesses out there operate entirely on cash flow. Take a guess how much money Warren Buffett borrowed to amass billions of dollars in wealth? What I'm talking about is how true wealth is managed, and why leveraging debt (which is basically what you're espousing) is not how an average person, like me, goes from living paycheck-to-paycheck to being able to afford to buy something like a tractor with cash. The biggest risk is not the interest rate, it's what happens when someone loses their job, has a huge medical expense, gets sued into bankruptcy, their business fails, or any one of dozens of other "life" events. The tractor gets repossessed and they lose everything they have put into it, through payments. It's flawed logic to buy anything you can't pay for with cash, outside of a home...because you HAVE to live somewhere. (Using your logic, buying a home is a horrible investment, because that money would earn so much more in the stock market!) You aren't wrong about the cash discount being insignificant. If what you're saying is, "Don't buy with cash because the discount isn't really saving you much!", then I totally agree with that. I would not buy with cash because of the discount...I would do so because going into debt for something like a tractor is foolish. Buy what you can afford, WITH CASH, or keep saving until you can. That is the most secure and direct path between you...and true wealth. Respectfully...your advice just keeps people broke their whole lives.
@@jasonbroom7147 What your arguing is a zero risk, zero debt philosophy that some people choose to live by (which is okay if that's your thing). The mathematical fact remains that baring a financial collapse you will have less money at the end of 5 years by paying cash than using a tractor loan to leverage even a conservative investment. We see daily that as cash discounts go down the number of people who choose to finance will raise considerably because they leverage the cheap money.
@@MessicksEquip - As long as none of the risk (what some call "life") occurs, your math is correct. However, my math says to save up for 6 months and buy that $20K tractor with cash...then life can happen and I'm not in a compromised position. When it comes to truly winning with money, the smartest folks don't do it with debt. Also, you never answered my question about whether or not you would recommend someone getting a loan against their paid-off tractor, so they can invest that in the stock market. ETA - I won't post anything further. I've stated my position, and I do appreciate yours. Please continue to post excellent videos on the relative merits and attributes of tractors, and I will watch those quite happily. :)
@@jasonbroom7147 I took $14,000 put $2500 down on a $24,000 tractor, payments are $265 /month. Took the $11,500 remainder and invested it in my usual fashion, I make 4% per month trading which is 60% annualized.The money I make over the life of the loan will more than pay for the tractor from profit.Essentially I get the tractor free. That $14,000 was some profits made on investing.I could have paid cash,but wouldn't have those funds to trade with. I have funds to pay off the tractor if need be. I rather have 11.5 K earning money than a tractor paid off.That 4% I'm making on the 11.5k is more than paying for the tractor and at some point I will recover my basis and just play with house money.Neal has a good point on money strategy and for those that are disciplined in managing money it is a great deal.
10% has been happening for years. So in that sense it's realistic. However, in my calculations, the long run average is more like 6%. So if we've had 10% for years, we're due for a really really big crash. You might make negative 30% for a year. That'd change your math a lot.
Something that Neil did not address was how risky stocks can be. Here are some SP500 yearly returns. 2000 (-9.06) 2001 (-12.02) 2002 (-22.15) 2008 (-37.02) The last 10 years have been great for stocks but the next 10 might not be. Think inflation, Fed raising rates, virus problems, wildfires, droughts, etc. If we knew the SP500 would get 13% for the next 10 years we would all go out and refinance our houses and invest that in the SP500. But no one would do that because we don't know where the market will be next week let alone 10 years from now.
You are 100 percent spot on. I do this every chance I get. I can borrow at 4 percent and invest at 12 percent. My interest earned makes my payments for me
@@rodneylove8023 Well much like the folks leaving the Casino, you only hear about the winners. You can't pick a winner every time, and everything since March 2020 has gone up huge but to Capture that you have to time the market which always fails in the long run.
I see a few problems with this analysis. 1st, how many people finance because they don't have the cash? You can't invest what you don't have. 2nd, you're assuming a fixed payment over 60 months, thus you should "invest" the funds in a way that you'll be assured to have the payment available when needed. The stock market doesn't always go up. Money markets, CDs and bonds would be a better choice here, but their return is far lower. I personally, wouldn't think of storing my short term capital in an SP500 index fund, but everyone's risk tolerance is different. I prefer a money market for short term funds. 3rd, cash discount + no UCC fee + no documentation fee + you are relieved of _having_ to purchase insurance (I do it anyway). Counterpoint: if I'm buying for a business, and I feel that I can "invest" the cash back into my business to increase my revenue, that's probably what I'll do.
I tried to buy my B26 from Messick’s in 2019 but was told by the guy that answered their phone they weren’t allowed to sell to different areas of the country even if I was willing to pay the shipping costs. He wasn’t even willing to price out my Kubota tractor. I told him I was disappointed he said, “sorry”.
totally Agreee, even if you put it in a Roth that's a minimum of 5 yrs / 60 mos. . just pay the upfront tax but the gains are not taxed. you Matrix is sound.
That works until you lose your job, can't make the payments, the tractor is repossessed, and you have to cash out the Roth, paying taxes on gains AND penalties. The best financial advice is not what will work in the best of circumstances, but what will protect you in the worst case scenario. No debt is always better than the alternative.
I'm glad you got the cash vs credit video out. Here's a link for your viewers to the original video that we had a discussion about with regard to the present value calculation for financed tractors... ua-cam.com/video/fUkwlHqTOus/v-deo.html
If youre not doing stuff where you risk puncturing the tire I doubt it, if youre going to be running over things that are a bit sharp its definitely worth getting thicker tires.
Brad, to the average person, checks are different but as a business term, paying in full, whether its actual paper, check or using your charge card is considered a "cash" deal. If the dealer finances it is a finance deal.
I did it, took $14,000 put $2500 down on a $24,000 tractor, payments are $265 /month. Took the $11,500 remainder and invested it in my usual fashion, I make 4% per month trading which is 60% annualized.The money I make over the life of the loan will more than pay for the tractor from profit.Essentially I get the tractor free.
For most purchases, cash is the right financial decision. However, when Kubota will sell you a machine for $0 down and 0% financing for 60/84 months, your cash is probably better served in running your business.
Lol no wonder you can’t make 10%.. There has never been a year where apple stock have not increased. Even with the “crashes” you are talking about. Might want to look into other investment opportunities if you can’t return 10%
Hey Neal, how do you have a BX in stock? My son wanted one, so we went to our local Kubota dealer, and was told it would probably be October of 2022 !!!! before we could expect one. We went a mile up the road and bought a comparable Deere for a little less money, and it was in stock. They said, "That's the perks of buying a tractor made in the US." He wanted a Kubota, but can't go over a year without a tractor.
We're starting to have a little bit of BX inventory finally. It's not good, it hasn't been good for a long time, but a year is a gross overstatement. At this point any dealer who has things in stock is doing something wrong.
Took a month for my dealer to get my BX...they sent someone from Idaho to Utah to get it....yet a dealer 30 miles away had several in stock sitting on their lot...these dealers make absolutely no sense. I ordered a mower deck and pallet forks as well, haven't seen either and most likely never will as well as the quick hitch I bought that is supposedly sitting at the dealership...I ordered a set of Titan pallet forks from Messick's last week, and went over to Fedex and picked them up yesterday morning...can't tell me there isn't any inventory out there, just certain dealers aren't doing their jobs.
What about dealer fees? In my business if someone takes advantage of 0% for 48 months I pay almost 6% in dealer fees. A 20,000 purchase cost me 1,200.00 in fees if my customer takes advantage of 0%.
@@danmcgivern1345 you say you pay almost 6% in dealer fees. On a $20k deal you pay $2.4K in fees? 6% of $20k is $1.2k. This certainly sounds like dealership owner math.
My question is who the heck has cash to buy a tractor!? If I had that much money in the bank, I don't think I'd be buying farm equipment, lol. We finance our equipment and hope that the farm squeaks out enough to make the payments.
When you refuse to buy with credit, live within your means, and invest your surplus...it isn't long before you are running your life and your business entirely with cash. It's a mindset that is common to many, if not most, successful business owners. The only reason you're convinced you can't run a business without debt, is because you've been told that your whole life...and you believe it. Other people have learned that it can be done and that it's 100% to your benefit to do so.
I did. But I'm not a farmer or rancher I'm just a homeowner with a small property I want to more easily maintain. Saved money over time, and paid for it outright.
I have a construction company and I pay cash for everything, trucks tools, heavy equipment everything. Debt is a sin. You're literally selling yourself into bondage.
The other thing Niel doesn't address is that you have immediate or near-immediate access to that $20K. It's not tied up in an asset that may or may not be readily saleable.
If you can't sell a tractor inside of 2 weeks, in this market...you're just not trying.
@@jasonbroom7147 In THIS market, correct. What's to say another depression won't come along where medium to low income families can't afford it?
@skutch Blobaum - It all depends on your asset allocations, risk tolerance, and horizon. Over the last 90 years, investing in equities, as part of a diversified strategy, has been one of the safest ways to turn a little money into a lot. I would call 90 years a reasonable track record.
Oldest advice I've heard is "Insurance is always cheaper than a good lawyer with time, but not cheaper than proper maintenance."
I place value in the fact that if I lose my job tomorrow, the tractor isn't going anywhere since I paid cash for it.
I paid cash for my tractor no payments Thank you, The Transaction is over and done with.👌
@Mr. Cool Just be sure and make your payments
I think it’s just a piece of mind to pay it and not having a loan that may better than some small return
You completely don't understand the video and just posted this idiotic statement.
This is a great topic you're covering here! One thought I had is that, since the stock market isn't a risk-free investment, that makes it a bad benchmark to use for this comparison. ("Past results are no guarantee of future returns!") A better benchmark would be either a regular bank account, which at best are paying about 0.5% these days, or a CD with a term similar to the financing. If that term is 6 years, a similar CD now pays about 1.25%. Of course, if the money goes into a CD, it's no longer available (without penalty), as it would be if it were in a regular bank account. I'd bet that at those rates, taking the cash discount might be a better deal, or at least would be close enough that the decision should be made based on other factors.
spot on. Risk should have been a bigger part of the conversation.
What you're not calculating is that people who are smart with their money have already earned, not thousands of dollars in interest, and not even tens of thousands, but hundreds of thousands, if not millions. They have done that by refusing debt, paying with cash, living WELL within their means, and putting a lot of money into investments, for a long time. Your business is heavily dependent on convincing people that borrowing money to buy a tractor from you is "smart", but the simple truth is this: If they can't afford to pay cash for a new or slightly used tractor, they don't need it bad enough to go into debt. It's horrible advice to recommend that a working farmer do that and it's even worse to suggest to someone wanting a tractor for what basically amounts to fun and convenience.
I have a tremendous amount of respect for your knowledge of tractors and can't thank you enough for everything you have shared about them, over the years. When it comes to personal finance, you're out of your element. Take it from someone who could pay cash for 10 of the tractors in your theoretical transaction...for the most part, wealthy people do NOT get there by borrowing money. Yes, there are some fools who do, but they are taking a lot of risk and many of them will fail in spectacular fashion.
I'll close with a hypothetical for you to consider: If someone has a tractor that is paid off, but worth tens of thousands of dollars, would you recommend that they go to a bank and obtain a loan against that tractor so they can invest it in the stock market? If you WOULD do that...then we can't have a reasonable discussion. If you would NOT do that...then you need to go back and think a little harder about this advice you're handing out.
the point of the video is the simple mathematical fact that the cash discounts offered rarely come close to offering the value that your money has in other places. If I goofed up anything here, I should have spelled out more clearly the risk involved. Our core customers are farmers, contractors, etc who use debt in smart ways as a core part of how they operate. Without debt bootstrapping a new business is nearly impossible, cash flowing growth of an existing one can be just as hard.
The problem with your hyphetical is the lending costs. A bank loan like that is going to cost you 6-7% and the upside is too risky. The point of the video is the 'Lending cost' of a 0/60 is so low even the most conservative return will have an upside.
Appreciate the thoughtful discussion.
@@MessicksEquip - We are honestly discussing two different topics, although that's not immediately apparent. You're looking at the sale of a manufactured item and creating what amounts to financial justification for someone to agree to using debt to make that purchase. Because so many Americans buy into the rationale you are providing, debt-financing has become the norm for a lot of people. Despite your assertion, many of the very best businesses out there operate entirely on cash flow. Take a guess how much money Warren Buffett borrowed to amass billions of dollars in wealth?
What I'm talking about is how true wealth is managed, and why leveraging debt (which is basically what you're espousing) is not how an average person, like me, goes from living paycheck-to-paycheck to being able to afford to buy something like a tractor with cash. The biggest risk is not the interest rate, it's what happens when someone loses their job, has a huge medical expense, gets sued into bankruptcy, their business fails, or any one of dozens of other "life" events. The tractor gets repossessed and they lose everything they have put into it, through payments. It's flawed logic to buy anything you can't pay for with cash, outside of a home...because you HAVE to live somewhere. (Using your logic, buying a home is a horrible investment, because that money would earn so much more in the stock market!)
You aren't wrong about the cash discount being insignificant. If what you're saying is, "Don't buy with cash because the discount isn't really saving you much!", then I totally agree with that. I would not buy with cash because of the discount...I would do so because going into debt for something like a tractor is foolish. Buy what you can afford, WITH CASH, or keep saving until you can. That is the most secure and direct path between you...and true wealth. Respectfully...your advice just keeps people broke their whole lives.
@@jasonbroom7147 What your arguing is a zero risk, zero debt philosophy that some people choose to live by (which is okay if that's your thing). The mathematical fact remains that baring a financial collapse you will have less money at the end of 5 years by paying cash than using a tractor loan to leverage even a conservative investment. We see daily that as cash discounts go down the number of people who choose to finance will raise considerably because they leverage the cheap money.
@@MessicksEquip - As long as none of the risk (what some call "life") occurs, your math is correct. However, my math says to save up for 6 months and buy that $20K tractor with cash...then life can happen and I'm not in a compromised position. When it comes to truly winning with money, the smartest folks don't do it with debt. Also, you never answered my question about whether or not you would recommend someone getting a loan against their paid-off tractor, so they can invest that in the stock market.
ETA - I won't post anything further. I've stated my position, and I do appreciate yours. Please continue to post excellent videos on the relative merits and attributes of tractors, and I will watch those quite happily. :)
@@jasonbroom7147 I took $14,000 put $2500 down on a $24,000 tractor, payments are $265 /month. Took the $11,500 remainder and invested it in my usual fashion, I make 4% per month trading which is 60% annualized.The money I make over the life of the loan will more than pay for the tractor from profit.Essentially I get the tractor free. That $14,000 was some profits made on investing.I could have paid cash,but wouldn't have those funds to trade with. I have funds to pay off the tractor if need be. I rather have 11.5 K earning money than a tractor paid off.That 4% I'm making on the 11.5k is more than paying for the tractor and at some point I will recover my basis and just play with house money.Neal has a good point on money strategy and for those that are disciplined in managing money it is a great deal.
What would be a good topic is the 0% financing offering from these big corporations.Is it really 0%?
Nice to see this transparency and level of detail from a dealer!
hope you do a video on insurance for equipment
Already did, search for KTAC
Great videos as always!
10% is totally unrealistic, and there is potential for loss. So it depends on your risk tolerance
10% has been happening for years. So in that sense it's realistic. However, in my calculations, the long run average is more like 6%. So if we've had 10% for years, we're due for a really really big crash. You might make negative 30% for a year. That'd change your math a lot.
Buy pre-DEF used tractors for cash and stay out of debt.
@Mr. Cool Yes you are.
Something that Neil did not address was how risky stocks can be. Here are some SP500 yearly returns. 2000 (-9.06) 2001 (-12.02) 2002 (-22.15) 2008 (-37.02) The last 10 years have been great for stocks but the next 10 might not be. Think inflation, Fed raising rates, virus problems, wildfires, droughts, etc.
If we knew the SP500 would get 13% for the next 10 years we would all go out and refinance our houses and invest that in the SP500. But no one would do that because we don't know where the market will be next week let alone 10 years from now.
You are right. I should have included a stronger statement on risk.
Those compound interests you mention are subject to taxes. You can’t write off the interest either, unless a business.
Correct, that was discussed at length.
@@MessicksEquip someone didnt watch the whole video... lol
Excellent discussion, Neil! 👍
I stopped by the Elizabethtown store few weeks ago on vacation. Dam near left with a BX.
We'll try harder next time.
It wouldn’t take much, just didn’t have my trailer with me to take it home on vacation.
You are 100 percent spot on. I do this every chance I get. I can borrow at 4 percent and invest at 12 percent. My interest earned makes my payments for me
Rodney, would really like to get more than 1 or 2% return from the banks. Where can invest to get better returns?
My Pfizer stock is through the roof
Don’t forgot the capital gains taxes on the investment.
@@FishFind3000 there are ways around that too. And perfectly legal too.
@@rodneylove8023 Well much like the folks leaving the Casino, you only hear about the winners. You can't pick a winner every time, and everything since March 2020 has gone up huge but to Capture that you have to time the market which always fails in the long run.
🤦🏻♂️ Investing $ elsewhere? Today? 😅 Good one, Neil!
I see a few problems with this analysis. 1st, how many people finance because they don't have the cash? You can't invest what you don't have. 2nd, you're assuming a fixed payment over 60 months, thus you should "invest" the funds in a way that you'll be assured to have the payment available when needed. The stock market doesn't always go up. Money markets, CDs and bonds would be a better choice here, but their return is far lower. I personally, wouldn't think of storing my short term capital in an SP500 index fund, but everyone's risk tolerance is different. I prefer a money market for short term funds. 3rd, cash discount + no UCC fee + no documentation fee + you are relieved of _having_ to purchase insurance (I do it anyway). Counterpoint: if I'm buying for a business, and I feel that I can "invest" the cash back into my business to increase my revenue, that's probably what I'll do.
You got a M-7, so cool
I tried to buy my B26 from Messick’s in 2019 but was told by the guy that answered their phone they weren’t allowed to sell to different areas of the country even if I was willing to pay the shipping costs. He wasn’t even willing to price out my Kubota tractor. I told him I was disappointed he said, “sorry”.
That's correct. There are requirements on us that keep us from selling into places we can't service.
That way someone from a cheaper area doesn’t low ball the rest of the country will
Wesley Pandy needs a new New Holland T7
I was going to say an M5 Kubota. It’s a shame to see the old girl go that way though.
I’m in the market for a tractor. 100hp. I’ve seen multiple zero for 60 terms. Who’s offering zero for 84?
Super curious.
I'm not sure anyone is on that size right now.
Kubota has it...
ua-cam.com/video/fUkwlHqTOus/v-deo.html
Just bought a l4060 84 months 0%
@@sizemorec1 I appreciate the info. Do they offer 84 months on large utility / small AG tractors? We need at least 100hp.
I’m in Georgia not sure
totally Agreee, even if you put it in a Roth that's a minimum of 5 yrs / 60 mos. . just pay the upfront tax but the gains are not taxed. you Matrix is sound.
That works until you lose your job, can't make the payments, the tractor is repossessed, and you have to cash out the Roth, paying taxes on gains AND penalties. The best financial advice is not what will work in the best of circumstances, but what will protect you in the worst case scenario. No debt is always better than the alternative.
@@jasonbroom7147 agreed, mitigate risk whenever possible.
Is that M7 152 premium in the back ground
available?
Yes, I do know we have someone looking currently so I'm not sure how long.
Ordered a Bobcat CT2025 in August paying cash to receive the free loader promotion. If not for the free loader I would have done financing @ 0%.
I'm glad you got the cash vs credit video out. Here's a link for your viewers to the original video that we had a discussion about with regard to the present value calculation for financed tractors...
ua-cam.com/video/fUkwlHqTOus/v-deo.html
Is ply rating important for agricultural tractor. I have johndeere 3036E with ply rate 4 on rear and back tyres. Is it okay for trolley operation
If youre not doing stuff where you risk puncturing the tire I doubt it, if youre going to be running over things that are a bit sharp its definitely worth getting thicker tires.
Check is not cash!
Brad, to the average person, checks are different but as a business term, paying in full, whether its actual paper, check or using your charge card is considered a "cash" deal. If the dealer finances it is a finance deal.
It's possible but how many people will do it or even pull it off when they invest it?
I did it, took $14,000 put $2500 down on a $24,000 tractor, payments are $265 /month. Took the $11,500 remainder and invested it in my usual fashion, I make 4% per month trading which is 60% annualized.The money I make over the life of the loan will more than pay for the tractor from profit.Essentially I get the tractor free.
@@bahabob1386 As I said it is possible, but you are the exception. Most people won't do this.
For most purchases, cash is the right financial decision. However, when Kubota will sell you a machine for $0 down and 0% financing for 60/84 months, your cash is probably better served in running your business.
Neil keeping calm with laser focus while that bug climbs all over him
seriously. The spotted lantern flies are out of control.
Have not seen 10 % for many years. For me I pay cash. Said and done. Never look back
Just invest in apple.. smart phones are not going anywhere for years to come. You could easily make 30% a year lol
Lol no wonder you can’t make 10%..
There has never been a year where apple stock have not increased. Even with the “crashes” you are talking about. Might want to look into other investment opportunities if you can’t return 10%
We're going to nick name Neal, "Great Deal Neal "
Hey Neal, how do you have a BX in stock? My son wanted one, so we went to our local Kubota dealer, and was told it would probably be October of 2022 !!!! before we could expect one. We went a mile up the road and bought a comparable Deere for a little less money, and it was in stock. They said, "That's the perks of buying a tractor made in the US." He wanted a Kubota, but can't go over a year without a tractor.
We're starting to have a little bit of BX inventory finally. It's not good, it hasn't been good for a long time, but a year is a gross overstatement. At this point any dealer who has things in stock is doing something wrong.
BXs are made in America. Just saying.
@@paullambert2668 And parts outsourced like every manufacturer, just saying!
Took a month for my dealer to get my BX...they sent someone from Idaho to Utah to get it....yet a dealer 30 miles away had several in stock sitting on their lot...these dealers make absolutely no sense. I ordered a mower deck and pallet forks as well, haven't seen either and most likely never will as well as the quick hitch I bought that is supposedly sitting at the dealership...I ordered a set of Titan pallet forks from Messick's last week, and went over to Fedex and picked them up yesterday morning...can't tell me there isn't any inventory out there, just certain dealers aren't doing their jobs.
Not sure where you are, but Murphy family kubota in uniontown has a couple in stock.
What about dealer fees? In my business if someone takes advantage of 0% for 48 months I pay almost 6% in dealer fees. A 20,000 purchase cost me 1,200.00 in fees if my customer takes advantage of 0%.
We don't pay participation at those rates. There are only a select few that have cost.
@@MessicksEquip good for you guys. I enjoy your videos.
@@danmcgivern1345 Dan, either your mixing your analysis or your math is wrong? Just a heads up…👍
@@jgk9820 what are you talking about? I own a dealership and know my business and I certainly know my numbers.
@@danmcgivern1345 you say you pay almost 6% in dealer fees. On a $20k deal you pay $2.4K in fees? 6% of $20k is $1.2k. This certainly sounds like dealership owner math.
My question is who the heck has cash to buy a tractor!? If I had that much money in the bank, I don't think I'd be buying farm equipment, lol. We finance our equipment and hope that the farm squeaks out enough to make the payments.
You'd be surprised, quite a lot of our customers are professionals who find tractor work enjoyable and relaxing on the weekends.
When you refuse to buy with credit, live within your means, and invest your surplus...it isn't long before you are running your life and your business entirely with cash. It's a mindset that is common to many, if not most, successful business owners. The only reason you're convinced you can't run a business without debt, is because you've been told that your whole life...and you believe it. Other people have learned that it can be done and that it's 100% to your benefit to do so.
I did. But I'm not a farmer or rancher I'm just a homeowner with a small property I want to more easily maintain. Saved money over time, and paid for it outright.
Sounds like salesman bs to me