Posted by JD Seller on June 24, 2013 at 20:33:58 from (208.126.196.144):
In Reply to: Kubota financing posted by rrlund on June 23, 2013 at 11:13:47:
Quoting Removed, click Modern View to see
Mark if you had paid cash there would have been a cash discount the dealer could have passed on to you. So you DID pay interest it was just the loss of the cash discount up front.
There is one Kubota dealer that replied. HE stated that the zero percent costs you an $800 discount on the model in question.
An example of this would be that you pay cash and pay $8500 for the item. You take the zero percent financing and the purchase price would be $800 more or $9300 in my example.
Which would still be a good deal if you need to stretch the payments out. I just do not want you guy to think that it truly costs ZERO to finance something.
One thing to remember. Is if you take this Zero percent financing, and lose the cash discount, paying it off early is throwing away the money you gave up in the cash discount. So if the term is 48 months take the 48 months to pay for it. You already paid the interest up front.
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