Avoiding Debt - Pay Cash for Tractor or 0% Financing

Hey folks, so I am in the market for a tractor. Still debating between used and new, since used tractors are pretty scarce around me right now. One of the tractor dealers I have been looking at offers 0% financing for new tractors, and I am debating if I should accept the financing offer or pay cash up front (which I am in the fortunate position to do).

Financing:
- If I am going to buy a tractor anyways, I basically view this as the the dealership offering to give me a 60 month, 0% loan. Instead of paying a lump of cash up front, I can basically invest the cash I would have used into my conservative long term investment accounts, where I can count on a conservative 6% interest rate over the long term. If I wanted a loan from anywhere else, I'd be paying a lot more for it.
- I have never relied on a loan before though whether for cars, the RV we lived in, or our current home. I've always saved and paid cash. The only "loan" I ever took was career starter loan that had a 60 month term and 0.25% interest rate. The day I got that money, I just put it in my investment account and let it grow at a rate greater than 0.25%. I basically saw this as free money for me.

Paying Cash:
- The only benefit here is that I get a $700 cash discount, which when buying a tractor is fairly negligible in my opinion. The "interest" I would get by investing the cash price of the tractor would exceed that $700 easily.

I have never had a loan and take pride in that. If I take the dealership's 0% financing loan, am I selling out? Or am I making an advantageous investment by saving that money, investing it, and using my own cash flow to make the monthly payments.

It's a tough one as life is complicated and there are thousands of tiny details we don't know about your life.

But, where would the internet be if random people didn't have opinions?

My two thoughts reading your post.
- yes you have money now, but a lot can happen in 60 months.  Will you have the money then or have to default on the payments.  What happens if that happens?
- $700 cash discount is pretty much saying the interest on the 0% interest loan is $700.  
- (okay, three thoughts) is that investment account guaranteed as in backed up with insurance and the government to pay it to you if the bank fails in some way?  If the bank goes belly up or the stock market crashes?  Here we have something called GIC - which I have  no idea what that means, but it means less interest, but the capital can't vanish.  I've never had money to invest in something that isn't guaranteed and backed by something bigger, but these GIC are a nice place to stash cash I'm saving up for a specific purchase.  

But if you need to build up your credit rating for something, the loan sounds like a good path to go.  

Maybe thought five before I go - some people make more money buying on a credit card and paying off right away because of the point rewards.  That might be something to look at.  

is it a Kubota? i did 0% insured and it worked out well.  if you trust the dealer i would do the 0%... you can always pay it off at anytime and may, as mentioned, need the cash for something else.

used == cash for sure.

cheers!

I don't like debt, never have and don't plan on liking it into the future. Leveraging has its place, but it just is not for me.

If I have the cash to pay, still have a comfortable reserve, I will pay in cash. If I do not have that, I will wait UNLESS the thing I am buying is integral for continuing to generate my revenue. Then you still have the used market and the pro/con that comes with that with getting a needed thing at a better price point.

If you have the discipline and want to take advantage of a low interest loan, I would have the pay off amount set aside and ready. I would resist the urge to touch it because I don't want to get hit the that interest explosion if I go past the low interest timeline.  

I would keep your debt-free status. I respect it.
New/used also depends on how many hours you are going to put yearly on the tractor. If it's let's say at least 500 per year then new one could be considered. I you a planning on less than that I would get used.
I'm using my tractor 30 hours a year at most.
Also, the new tractor will have a lot of electronics that may be reliable or not, depending on the brand and design.

i agree across the board that debt sucks.. but 0% WITH the principal set aside is not a bad thing really.

new vehicles are indeed crammed full of electronics and i noticed more interest in my vehicles welfare when i was "in the program" so to speak... same with my f150.. now that both the tractor and truck are paid off... they are regular joes.. (cue hints are upgrading/trading in)

so you may get better support as long as the company owns a piece == still their investment... you might even get a better deal on extended warranty which can save $$ in repairs

a thought - cheers!

James MacKenzie wrote:
new vehicles are indeed crammed full of electronics and i noticed more interest in my vehicles welfare when i was "in the program" so to speak... same with my f150.. now that both the tractor and truck are paid off... they are regular joes.. (cue hints are upgrading/trading in)

so you may get better support as long as the company owns a piece == still their investment... you might even get a better deal on extended warranty which can save $$ in repairs

I had not thought about that, as I've never owned a vehicle under warranty lol... but that does sound like a good point. I know the warranties differ a bit between the major brands but not too much. I think I saw New Holland does a 6,000 hour warranty, which seems like a good indication. They are a bit farther from me than some others though so I don't know if I'd want to go with them or not. I know they also almost all offer the extended warranty which I would likely want since it is only a few hundred bucks.

I do fear the electronics and their lack of maintainability... I am fairly experienced maintaining and doing minor repairs on gas engines. I've never worked on diesels before but am sure I could learn. I've considered getting something a good bit older that can be more easily maintained; however, I am afraid I wouldn't know what I was buying and that I would spend more time repairing it than using it. I need a tractor that is reliable enough that I can use it for a lot of the heavy lifting since I am prone to overexerting and hurting my back. If it doesn't crank one morning, I'm too stubborn and will spend the day lifting everything myself and suffer the consequences on subsequent days.

I do not need to build my credit score. I am not really worried about not being able to make payments. Our jobs are very secure and we have diversified investments that we could liquidate in an emergency to pay it off. If the economy is so bad that we can't pay it off with those accounts, then I might as well not have a tractor since no one will be able to afford gas or maintenance then anyways. I'll stick with my wheelbarrow and hand tools lol.

Eager to hear more opinions from random people on the internet. I'll still be keeping my eye on the used market as well. Hoping to pull the trigger before this spring but we'll see.

As I have gotten older (41 in 2024) and my foundational values have become more solidified, I see this debt question as a philosophical/spiritual question for myself and a few others that try to work through it.

If your thought processes just have to do with the question; how can I retain the most money? It is an easier decision. You could take the loan, put the money in a CD or high interest savings account and net some profit versus paying cash.

I assume you ask the question because you have found some aspect of or value in being debt free. One would be that your assets are owned by you, not your bank or the dealership’s bank. Depending on certain financial conditions, a lot of people would be shocked to really understand the terms of the loan when someone (bank rep) comes to get the equipment or even their house/land/etc. and has the right to do so even if they are current on their payments. This is very unlikely to occur, however, and not the case with every loan. Also, my journey to being debt free was very, very difficult. I look back on that journey and am so very thankful I was given the conviction and discipline to get through it. The journey was something tangible that I did experience to get here.

The other values in being debt free, for me, are hard to describe. They are the type of value that most people do not understand. I am debt free with a family of 7. I consider mortgage debt and do not participate in any loan system. I despise usury (loaning of money with interest) to the extent that I will not invest my cash in any financial tool that generates profit from loaning money to other people. I have and do loan money to people I know, at no interest and with the mindset that I may not get it back. My “investment options” are very limited and I invest in my property and family and local community.

A basic observation would be that our entire economic system, since fiat currency and free market came to be, rises and falls based on usury. It is truly unbelievable and easier to see now with the coverage of interest rates in recent years. It affects me, being debt free, by the rising of goods and services because of higher loan costs to the businesses that operate in debt. Also, inflation comes into play with the injection of more fiat currency into the system.

I like what Wendel Berry said (this is from my memory); The problems began when money went from being what you use to buy good things to being a good in and of itself. Very powerful statement.

All that being said, this is my 2 cents and my conscience’s way of interpreting the things around me. It is informed by my Christian faith, and I do not believe others should believe these things just because I do, and it is certainly not for everyone. I’ll be interested to hear what you decided, and why if you get a chance to offer an update.

Pay cash…

Tractors are one of the few vehicles we can get that have an amazing return on investment as is. From not renting equipment, to doing tasks you never thought possible, to their low repair costs over decades and not just years: a tractor pays for itself quickly.

I get the interest rate thing as I do well with that myself, but why? Keep your debt free status (I am 100% debt free myself) and what little bit you’ll make on a tractor purchase is negligible.

You getting a tractor and still debt free: you’re winning the lottery twice. Trying to calculate Opportunity Cost is sound advice normally, but not with a tractor: the numbers are just there in that it is a sound fiscal decision.

Maybe I will be the odd duck here.

No, I don’t like debt either, but I have come to recognize its usefulness in the right situation.

My first tractor, a 2005, JD 2305, I bought almost exactly one year after my wife and I built our house.  We didn’t have much in the way of savings and while I was wanting to save up to buy the tractor outright, I weighed the decision to buy now and finance or save for years and pay cash in the future.  I went with buy now.

1. I didn’t want to go through another winter without a way to reliably clear my driveway in snow—just how many years was I going to have to do that if I paid cash?

2. If I saved, would the price go up while saving?  If so, would it have been worth it to just pay finance charges to avoid future price increases?

Now as it was, 2005 was one of those record low-inflation years and I “financed” at 0%.  Is that financing?

At any rate, while I am no fan of debt and have gone to great lengths to avoid it in the past, it does have its place.

Eric

I bought a new Kubota a couple years ago.  0% financing.  My dealer is great and didn't hide anything.  He told me upfront, you can get 0% financing, but if you pay cash, it (at that time) is $1500 "cash discount".  If you choose 0% financing, you're still paying the financing.  I didn't pay cash because I had my money in investments that were making me more money than the "0% financing" was costing me.  No company is giving you 0% financing out of the goodness of their heart, they are getting some extra money from you somehow.

The free financing cost is imbedded into the price of the tractor. It’s an inflated price and you will see it if you go back a few months.

You never get something for nothing, and on
Loans the cost is in the interest.

That being said, with cash being king, and the buyer having what the dealer wants, you can get a much better deal than just $700 off. It might mean going to a different dealer but the tractor price is inflated.

Right now there is a huge glut of tractors and few buyers. The dealers need to unload these and the tractor and dealerships know this. Tractors don’t sell in winter and tax write offs are only good until December 31st. Like anything, zero percent financing is just a game.

Look up Dave Ramsay on YouTube punching in zero percent financing if you want free expert advice.

Steve,

You mentioned tractor glut, but prices just seem to go higher which is counterintuitive to me.  Are there maybe a glut of specific tractors?  Especially specific brands of tractors?

I know that there is definitely a glut of new brands in the tractor market.  Bobcat, Caterpillar jumped from construction equipment to compact tractors.  Then there are brands like Branson and Summit not to mention Montana tractors.

What I have heard is that many of the newer brands are being phased out.  Montana was perhaps the first.  I believe that Branson is now essentially a Kioti?  I could be wrong on that.  Caterpillar had some interesting offers several years ago but they disappeared.  Cub Cadet even had a nice tractor, but it’s gone too.  Summit is a very interesting brand.  Technically it’s a subcompact tractor but with just about every bell and whistle that you could possibly expect as a basic feature.  I understand that they are not doing well.

What I heard was that the JD-Kubota duopoly are doing great, but others, even if they are selling (New Holland) don’t necessarily have deep stocks of spare parts so that one is potentially just one repair away from the whole tractor becoming an expensive lawn ornament!

Does any of this feature into what you describe or am I thinking of something entirely different?  And I certainly might!

Eric

A little off topic, but I would be very wary of JD right now with the whole issue of moving their factory to Mexico and Trump promising 200% tariffs if they do.

Oh there are a ton of tractor brands out there. With the ones you mention but what about Bad Boy Tractors, LS Tractor, McCormick, etc...

I watched some videos on why there is a current tractor glut, as well as some chatter on tractor specific forums. This matches what I am seeing at the local dealerships... tractors are not selling. One that is just three miles from my house, which I pass by daily, had a ton of tractors and I was thinking those LS tractors will never sell. Not that many tractors anyway in the middle of Podunk Maine... but they did, Super fast.

Last year.

This year they are just sitting with very few sales. In fact, about a month ago I watched the 0% Financing banner go up as tractors just sat there.

You mention higher tractor prices, but you have to remember, its been many years since you bought your subcompact John Deere in what was 2005 if I remember right? I am the same way. I bought a new Kubota 2500 in 1999 for $14,000. It was not only less money than a $16,000 subcompact BX tractor, but a lot bigger tractor too. But costs naturally go up due to normal inflation year by year. The $16,000 price tag of 2024 I think, is not that prices are gone up so much, as you are experiencing sticker shock after 19 years. I did too when I found out what a new tractor would cost me.

I think tractors are not selling for two reasons, tractors are essentially a luxury purchase, or at best a purchase of connivence and not a necessity. But with people paying absorbent amounts of money for food and other day to day costs, there is no money in the budget for a new tractor. Since its not needed, people are buying food and paying their electric bill rather than buying tractors.

To entice people to buy, they just inflate the price by $1500 , say it is due to higher manufacturing costs, and then offer 0 percent financing to entice buyers who might be on the fence to buy tractors that are sitting before the 2025's come out.

I think you will do better with cash however.

Steve,

Yeah, you may be right.  And I was never going to remember every tractor brand so thanks for at least mentioning those.  

I don’t drive by a tractor dealership on any sort of regular basis.  The only two in my area are JD and Kubota.  The JD is a standalone dealership and I can at least see the tractors from the highway but I honestly don’t keep track.  The Kubota is weird.  It was recently sold/bought.  It used to be a standalone dealer but now is owned by a car dealership.  It’s obvious that the tractors are a minor part of the business.  They are definitely visible from the highway but they are so jammed into a small space that it’s hard to determine what is what.

And you are right about tractors being a luxury.  And since I am in JD, they see themselves as more of a luxury than others.  You are right that I bought my subcompact in 2005, but I bought my new one in 2018, so not too long ago.

Either way, it will be interesting to see what is ahead!

Eric

Didn't have the cash, or qualify for 0% but even at around 3% stretched out to 72 months I'm glad I got a new Kubota. Can't believe how the time flies, so many projects done with it and have less than 2 years now til paid off.

They hold value so well, and it was bought just before the covid era price hikes, so I've been in the green on the orange machine for most of the loan!! Which is a great feeling just in case, never know what the wind might blow your way.

I say go for the 0% loan and put that $ into other projects and/or investments while enjoying the capabilities and full coverage of a new tractor to build your dreamscape!

Trace Oswald wrote:I bought a new Kubota a couple years ago.  0% financing.  My dealer is great and didn't hide anything.  He told me upfront, you can get 0% financing, but if you pay cash, it (at that time) is $1500 "cash discount".  If you choose 0% financing, you're still paying the financing.  I didn't pay cash because I had my money in investments that were making me more money than the "0% financing" was costing me.  No company is giving you 0% financing out of the goodness of their heart, they are getting some extra money from you somehow.

Yup. Nothing wrong with paying cash, or zero percent financing. Just accept that there is no free lunch. Whatever you choose, don't blow your entire safety fund on it -- when life hands you a surprise, cash flow is king. Pay attention to the fine details of the financing to see if there are catches -- penalties for paying off parts or all of the balance early.

I started writing a non-fiction book on tractors, and while I never got all that far on it, I did get past the chapter on tractor fiscal considerations, and what everyone says here holds merit. They just are worth so much that it is hard to transcribe the amount of work accomplished with one into fiscal return on investment, or even opportunity cost calculations. But I think it is because it is so obvious after one is bought.

Another consideration I brought up in my unfinished tractor book however, is to not discount other options. The old held thought of "have farm, must have tractor", no longer applies.

I bought a mini-skid steer that honestly works better for me, and cost $11,000 less than a subcompact tractor would have cost me. I think for a lot of Permies, one just like mine would serve them incredibly well, and save them money.

But I also considered an ATV. I was going with a ARGO since it can pull, steer sharp, carry people, be fun to trail ride, go for a drive in the river I live on, and do work around the homestead by pulling my log trailer. For the same price as a subcompact tractor, it could do more for the same price. Again, for some Permie people that unit might serve them better than a tractor. I really was headed in that direction when I found my mini skid steer for sale. Again, the Argo would do more, but would also cost me $11,000 more. It was still justified, but I also like saving my money.

My point here is not to slur tractor ownership... it has its place... but there are also alternatives that might better fit, but Permies might not be aware that other options would work better for them. Even if it is determined a tractor is needed, what kind? When I had my big farm, my next tractor purchase was going to be a road grader and not a traditional tractor. I was going to use it untraditionally, but that is what out of the box thinking can do; net better results.

Before committing to a tractor, consider many other options: ATV's, Skid Steers, Industrial type tractors, small trucks, two-wheel tractors like BCS, etc.

Eric Hanson wrote:Steve,

Yeah, you may be right.  And I was never going to remember every tractor brand so thanks for at least mentioning those.  

I don’t drive by a tractor dealership on any sort of regular basis.  The only two in my area are JD and Kubota.  The JD is a standalone dealership and I can at least see the tractors from the highway but I honestly don’t keep track.  The Kubota is weird.  It was recently sold/bought.  It used to be a standalone dealer but now is owned by a car dealership.  It’s obvious that the tractors are a minor part of the business.  They are definitely visible from the highway but they are so jammed into a small space that it’s hard to determine what is what.

And you are right about tractors being a luxury.  And since I am in JD, they see themselves as more of a luxury than others.  You are right that I bought my subcompact in 2005, but I bought my new one in 2018, so not too long ago.

Either way, it will be interesting to see what is ahead!

Eric

The tractor market is really crowded. I had never even heard of Bad Boy Tractors before, or McCormick being a brand now. It is crazy.

I am just fortunate to drive by a tiny tractor dealership everyday where his tractor lineup is right beside the road. With only a dozen tractors it is easy to see what is selling and what is not. He sells a lot more than I fist thought. But sales have really dried up.

It is just easy for me to see that.

But I love tractors and have my finger on the pulse of them.

To wit, to keep me from wetting my pants as a toddler, my mother drew tractors on my diapers and told me not to wet on them. I drove my first tractor at age 5... a Wheel Horse Garden tractor. Drove my first bulldozer at age 9, a John Deere 1010. Got my first moving violation at age 10... driving a bulldozer across a paved way. And my daughters first word was "tractor" as she watched me drive my Kubota. My wife thought she said "cracker" until she pointed to the tractor I was on. She was saying "actor", not quite forming the t well enough. Dada? Mama? Nope, my daughter's first word was tractor. A proud moment!

Steve,

Funny story about your daughter!

McCormick has been a brand for a while, but Bad Boy just entered, having expanded from heavier duty zero turn mowers.  Honestly, I really wonder what it is that Bad Boy has to offer that isn’t already covered by Deere, Kubota and the whole lot of other vendors.  I am not making any predictions, but I would not be surprised if they to came and went quickly like so many others.

And the ARGO—oh, how I have tried to justify my need for an ARGO!  But of course, I am personally dreaming. One use for me though would be navigating flooded roads which typically happens every spring and fall.  That just sounds like a fun adventure.  But I will probably just dream on…

Eric

Eric Hanson wrote:Steve,

Funny story about your daughter!

McCormick has been a brand for a while, but Bad Boy just entered, having expanded from heavier duty zero turn mowers.  Honestly, I really wonder what it is that Bad Boy has to offer that isn’t already covered by Deere, Kubota and the whole lot of other vendors.  I am not making any predictions, but I would not be surprised if they to came and went quickly like so many others.

And the ARGO—oh, how I have tried to justify my need for an ARGO!  But of course, I am personally dreaming. One use for me though would be navigating flooded roads which typically happens every spring and fall.  That just sounds like a fun adventure.  But I will probably just dream on…

Eric

I really liked the ARGO idea, but as I said, I am kind of frugal so when another solution came my way I took that instead.

For others considering an ARGO, just keep in mind that for heavy pulling, the hitch is only bolted to the plastic tub-frame. This might not be strong enough for constant heavy trailer pulling. My work around to that was to rebolt the hitch with longer bolts, using coupling nuts on the inside to go back to the metal frame with rods so the strain was taken off the plastic tub.

I honestly did not think that would be a big cost ($25) and make the hitch less prone to breakage.

I just bring this up in case Permies on here look at the Argo as a solution, and are not aware of the hitch issue. But you guys all know me, I try not to bring up a problem without also giving a potential solution.

I strongly feel the Argo is a valid solution for a Permie needing a tractor. Boating, ATV and bulldozer all in one? What is not to love?

I did a 0% interest loan when purchasing a car.  I had an opportunity to pay the loan out early, but had not read the small print which stated that if I paid off early, then I had to pay a penalty for not completing the contract.  Check the find print. There is no such thing as a free lunch.

I would and our case have always paid cash, but the decision has nothing to do with your stated reasons. First, I won't have a tractor built before 1990, after that the government(s) got into emissions regulations far too deep to make a diesel tractor fiscally practical, and tractor companies started adding bells and whistles that they thought a farmer "should" have, I remember Deere coining the term "your rolling office", which isn't a tractor. I have 5 Deere's and 1 Caterpillar, the newest being a 1990 2155 4x4 open station, synchromesh geared transmission, originally having a bunch of electrohydraulic switches that have been removed as unnecessary.  I have old diesel tractors because a diesel is simple, to run and maintain, clean fuel & oil, change the filters regularly, keep the batteries charged, wiring clean and tight and they run.  I have Deere's for several reasons, not in any particular order, parts, new, I have a 1953 14T hay baler that I can get all the important wear parts still through a Deere dealer, bearings, bushings, blades, teeth, just about any part that I've needed, used parts, there's been enough green machines built over the years that salvage yards have good inventory should something catastrophic happen, axle casting, transmission housing, whatever. Old designs, the brand has been around long enough to evolve a tool that's fitted to the task, things "feel right", controls easy reach, access in and out easy thought out, check points, oil, fuel, coolant, batteries, grease fittings, easy to get to.   Take your time, do your research, take a cold hard look at your needs and the main job(s) you want the tractor for, start looking and be comfortable with maybe going out a ways, both monetarily and distance, and get a unit that fits and lasts. Paying cash gets you the best deal possible, in the end the process will pay for itself

Aside from spending (perhaps far too much) time here on Permies, I own a tractor, and work in the financial services industry.  That said, this won't be advice, so I'll strive to stay fairly generic.

The correct answer (to many things, possibly including this one) is "it depends".  You make valid points about the cash back vs. 0% and the ability to do something else with the "free money".  

From an early response, GIC stands for Guaranteed Investment Certificate here in Canada.  It is comparable to a CD (Certificate of Deposit).  The industry considers Treasury bills to be "risk-free" as they are backed by the government.

When I talk with clients about a big purchase, one of the topics we touch on is needs versus wants.  Do they need the item?  If yes, have they looked at the various options?  A car may be a need, but do they "need" a BMW or does a Hyundai fit the bill?  In this case, brand and features is one consideration, but some of the outside the box ideas noted earlier may also be worth of consideration.

One big thing is that human psychology has us making decisions based on emotion, then backed up with logic.  For some people, going the route of the 0% financing is the best plan, but for those who are debt-averse, paying cash may be the better option.  Ultimately, it's a question of which decision will allow you to sleep better at night?

I like a lot of what Dave Ramsey says, but he makes me quite angry too.  See, he isn't licensed in the industry, so he's allowed to say anything he likes without any risk of censure.  I can't say anything I like as I could risk losing my licenses.  

It seems to me McCormick is actually an old name in the agriculture industry, although whether it's remained or resurrected, I have no idea.

We purchased our acreage in 2008.  Since I also "needed" to look after the property (this is from my pre-permaculture days), I felt I needed a tractor.  We financed as it fit better into our cash flow situation at the time.  I settled on a Kubota B2620 with front end loader, mid-deck mower, rototiller, and ordered a snowblower.  What I found at the time was that a comparable JD was about $3000 more...that seemed to me mighty expensive green paint.  My father never had any JD equipment back in the day, so I wasn't born into any ownership cult.  The tractor has done well for us over the years.  Within the last year, I spoke to a dealer to get an idea of the value for insurance purposes, and it is valued about 2/3 of what we paid for it, so it hasn't appreciated significantly like a 15 year old car would.

Last (perhaps) point I'll make is on the new versus used debate.  Again, this can be more from an emotional perspective than a pure dollars and cents idea.  A new tractor will come with a warranty.  For some folks, that is very valuable (especially if they don't want to be dealing with some of the repairs).  While a used tractor would be less expensive, you may be purchasing unseen maintenance or repairs.

So, as I noted earlier, it depends.  Good luck coming to a decision that is best for you.

"Ownership Cult" ? odd turn of phrase, if you mean a brand loyalty specifically Deere, that was born during the Depression (1st) when Deere didn't and wouldn't foreclose on equipment when the farmers couldn't make the payments,  incredibly astute marketing move.

McCormick disappeared into the IH conglomerate years ago, resurfacing as a nameplate on who knows who built machinery.

Any warranty- note not guarantee -is only as good as the company making it Ag company's go as quick as they start.

Another favorite saying of my grandfather "In this trade (farming) you shouldn't have if you can't fix it", you'll just make the dealership happy

In the end, the one looking back at you in the mirror will let you know if you did the right thing

Scott Leonard wrote:"Ownership Cult" ? odd turn of phrase, if you mean a brand loyalty specifically Deere, ...

I took it to mean what I would call "brand loyalty", meaning growing up with any brand, and so being determined that that brand was the one and only good one.

Interesting.  I was not aware that Deere would not foreclose on equipment in the Depression.  I can see this making sense for two reasons.  The first is that Deere would avoid alienating a customer.  The second was that they probably could not get much for used equipment  during the Great Depression anyways--even new equipment tended to sit on lots for a long time.

Eric

The phrase band loyalty didn't occur to me at the time of writing, but it does seem to be a bit more rabid than that.  I suppose some folks get as fanatical about Ford vs GM or Dodge.

Regardless, in my context, I was starting out with a blank slate so wanted to see where I could get the best bang for our buck at the time without expressing bias based on any branding.

Just my own adjusted-for-inflation, tariff-free (for now) $0.02 USD......

Own both a Deere (2005) 4010 and Kubota (2015?) L3200, both purchased new with FELs using 0% financing for 60 months.  It was the second time after our home mortgage that I used a loan, outside of a $2000.00 student loan (the latter taken out to buy a $1500.00 MacPlus for typing my thesis....remember that little prequel to the modern desktop computer??).  By contrast, we've only paid cash for, and owned, used cars/trucks. One more new purchase was a ~2021 Deere Gator XUV 560e (would not recommend) which also was 0% financed and cost nearly the same as my 2005 tractor did. [Deere made it's name in ag equipment, not sport utility vehicles....I wager you'd do better with other brands for this classification of vehicle.)  I don't recall at the time having a "cash incentive" at the time I chose the 0% financing route.  I was accepting of the price of both tractors at the time and have not been disappointed.  The Yanmar/Kubota diesel engines in both tractors have been stellar and quite efficient on fuel use and start very reliably even after months of no use.  Although there may be hidden costs with the 0% financing option, I have not run into any and liked the option of being able to sell the tractor (low depreciation) and recover the debt if an emergency arose.  Although cars have advantages over tractors in daily life, THEY have been the money pit, even when purchased for their apparent reliability.  Purchasing new tractors has not been a source of disappointment or dissatisfaction for us.

John Weiland wrote:Just my own adjusted-for-inflation, tariff-free (for now) $0.02 USD......

Own both a Deere (2005) 4010 and Kubota (2015?) L3200, both purchased new with FELs using 0% financing for 60 months.  It was the second time after our home mortgage that I used a loan, outside of a $2000.00 student loan (the latter taken out to buy a $1500.00 MacPlus for typing my thesis....remember that little prequel to the modern desktop computer??).  By contrast, we've only paid cash for, and owned, used cars/trucks. One more new purchase was a ~2021 Deere Gator XUV 560e (would not recommend) which also was 0% financed and cost nearly the same as my 2005 tractor did. [Deere made it's name in ag equipment, not sport utility vehicles....I wager you'd do better with other brands for this classification of vehicle.)  I don't recall at the time having a "cash incentive" at the time I chose the 0% financing route.  I was accepting of the price of both tractors at the time and have not been disappointed.  The Yanmar/Kubota diesel engines in both tractors have been stellar and quite efficient on fuel use and start very reliably even after months of no use.  Although there may be hidden costs with the 0% financing option, I have not run into any and liked the option of being able to sell the tractor (low depreciation) and recover the debt if an emergency arose.  Although cars have advantages over tractors in daily life, THEY have been the money pit, even when purchased for their apparent reliability.  Purchasing new tractors has not been a source of disappointment or dissatisfaction for us.

That's worth about a Canadian nickel right now

For the record, I recall learning to use a bit of BASIC on a Mac II.  Computers kept coming into schools just after me until I went to university.