Secrets in Sales 0% APR vs. CASH

I get this question from nearly every compact utility tractor shopper at my dealership, Midstate Turf & Tractor in Springfield, TN.                                                               “Which is really better, 0% or rebates?”

I opened MT&T after nearly 20 years of experience as a service manager working for some of the most brilliant minds in the business. Today I take their knowledge and pass it on to my own customers.

During my 10+ years of being a tractor dealer selling hundreds of tractors, I have concluded 3 things in sales…

  1. 0% Apr financing is designed and used to take your focus off of the actual price.
  2. Charges such as dealer “doc” fees and “origination” fees are all but made up.
  3. Cash rebates almost always outweigh the financing interest charges.

Here is an example of a recent tractor sale at Midstate.

A Kioti DK5010 tractor with Loader has a retail price of       $30,990                                                  At 0% APR for 72 months the payment is                                 $430                                                    Standard rate APR Gives us an instant $ 8000 discount      $22,990

CONCLUSION:  AT STD. RATE 5.5% APR. THE MONTHLY PAYMENT IS $375  $55 LESS.   AND THE  TOTAL PAYOFF IS $27,043 STILL ALMOST $4000 LESS THAN AT 0% APR!

Another opinion I have is on the crazy long warranties that some  companies have recently been offering that aren’t worth the paper they’re written on, But, we’ll save that for another day.

www.tntractors.com

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s