Fendt at huge reduction!!!

[Farmer_Joe]

The 7720s for 84k seems not bad money for today?

There will be some bargains about if new models out this month, we got a cheap 6430 when the new r series came out

 

[Red Fred]

It’s the 0% on max of 50% of the RRP that I don’t get. They set an artificially high RRP so that once a deal is done it’s pretty much half that figure, so 0% can be given on the price to change. Yet it’s their own in-house finance company, so who are they “kidding”?

Aren't they tied to a max of 50% of the RRP by law, though, so setting a high RRP allows for a bigger proportion to be financed while still being legal under the rules. So they are really just getting round the FSA regs rather than fooling the finance co. I think that's what I was told when I bought my Stockman Special, but that was back in prehistoric times and I haven't taken them up on it since.

 

[Cowabunga]

Aren't they tied to a max of 50% of the RRP by law, though, so setting a high RRP allows for a bigger proportion to be financed while still being legal under the rules. So they are really just getting round the FSA regs rather than fooling the finance co. I think that's what I was told when I bought my Stockman Special, but that was back in prehistoric times and I haven't taken them up on it since.

Yes, that is the main statutory and marketing reason for high list prices. There's no cheating involved, because it has been the same since the late 1980's really when subsidised finance took off as a marketing tool.

 

[kiwi pom]

Fendt and MF sales were down in 2018, don't know about 19 because I think the figures are released a year behind.
Perhaps they are struggling a bit because of high prices?

 

[warksfarmer]

There's one on the 'Offers' page ....

New Fendt 824 Power Version
240hp, 50kph

yours for £132,000!!

Or you can take advantage of our 0% finance offer...
One-off payment of £62,607.12
Followed by 22 monthly payments of £4358.31

However, if you add those figures up it comes to very near £158,500, which is quite a bit more than £132,000 so it is a bit disingenuous to print it under "our 0% finance offer" headline. The reason is, of course, that £132k is way more than 50% of the list price. However £62,607.12 is being paid in advance, so the actual amount financed is 'only' £69392.88, which is way way under 50% of retail. Retail is £209,200.

There's surely no justification for charging £26500 in interest for a 24 month loan of under £70k. I mean, it's nearly 40% of the amount borrowed or £20% per year. It would be cheaper to put the £70,000 on most credit cards. Nice little earner if you can get away with it though.

If this is taking advantage of 0% finance I dread to think how much 'normal' rates would be.

As I’ve said for years 0% finance deals are a load of crap. Your paying for it some way or another.

everybody pays what the dealer wants them to pay even if they think they’ve had a deal. They haven’t by any means.

 

[puppet]

The 7720s for 84k seems not bad money for today?

You need to read that back out loud.
Not so long ago that would have bought a herd of sucklers

 

[James]

You need to read that back out loud.
Not so long ago that would have bought a herd of sucklers

You need to read the whole sentence. The words 'for today' make all the difference.

 

[Robt]

How can they advertise 0% if its chargin interest? Surely thats totally illegal? Also if u went with a cheque for 132,000 k would u get the 824 for that?

Hi Davey,
This is how it works.
selling price of £132,000.
Retail price of £195,000.
Trade in of £70,000
balance £62,000
Amount able to finance over a 1+2 (three payments at 0%) based on 50% of retail £97500.
So the balance to pay of £62,000 fall within this.
£62,000 Divide by 3 = £20,666.67
1st payment of £20,666.67 and all the vat on signing.
If its annuals then next payment of £20,666,67 in July 2021
Final payment in July 2022

That is a very very rough simplified version of how it works.

Or pay £132,000 Cash on delivery. If you have £132,00 sitting in the bank. It is better to use the manufactures 0% finance scheme. Only real difference is you dont own the tractor until the final payment unlike if you pay cash.

 

[daveydiesel1]

Rv pughs have quite a few mf globals on thier site. They must have a bit of success sellin them.

 

[warksfarmer]

Hi Davey,
This is how it works.
selling price of £132,000.
Retail price of £195,000.
Trade in of £70,000
balance £62,000
Amount able to finance over a 1+2 (three payments at 0%) based on 50% of retail £97500.
So the balance to pay of £62,000 fall within this.
£62,000 Divide by 3 = £20,666.67
1st payment of £20,666.67 and all the vat on signing.
If its annuals then next payment of £20,666,67 in July 2021
Final payment in July 2022

That is a very very rough simplified version of how it works.

Or pay £132,000 Cash on delivery. If you have £132,00 sitting in the bank. It is better to use the manufactures 0% finance scheme. Only real difference is you dont own the tractor until the final payment unlike if you pay cash.

That’s fine but it’s still not 0% because an interest rate has been built into the £132,000 cash price. So in reality the real cash price if that tractor would in fact be about £126,000 + vat on delivery.

 

[mf7480]

I thought the 7720 for

Rv pughs have quite a few mf globals on thier site. They must have a bit of success sellin them.

The fact they’re on their site says to me they haven’t had much success selling them?

 

[daveydiesel1]

I thought the 7720 for


The fact they’re on their site says to me they haven’t had much success selling them?

They wouldnt of bought so many if they werent sellin them but

 

[puppet]

You need to read the whole sentence. The words 'for today' make all the difference.

I know, it's partly an age thing but it would still buy 60 good cows/calves or 2 of them would buy an average Scottish house.
And it won't make any money without something on the back. Just seems scary money to me

 

[Drillman]

That’s fine but it’s still not 0% because an interest rate has been built into the £132,000 cash price. So in reality the real cash price if that tractor would in fact be about £126,000 + vat on delivery.

Ah but do you know anybody who rocked up with the cash and got something that was offered at 0% cheaper?

 

[Robt]

That’s fine but it’s still not 0% because an interest rate has been built into the £132,000 cash price. So in reality the real cash price if that tractor would in fact be about £126,000 + vat on delivery.

Technically it is 0% as its costing you nothing to borrow. The finance is being paid for by the manufacture. Technically if you buy it at £132k with your own cash you arent borrowing so its irrelevent. Offering to have no fiance and pay £126k is another ball game......

 

[Clive]

money is near as dam it free now anyway - 0% offers not really the draw it once was

 

[Clive]

Ah but do you know anybody who rocked up with the cash and got something that was offered at 0% cheaper?

it would be illegal I believe if that was to happen - i'm sure there are laws re this ??

 

[warksfarmer]

Technically it is 0% as its costing you nothing to borrow. The finance is being paid for by the manufacture. Technically if you buy it at £132k with your own cash you arent borrowing so its irrelevent. Offering to have no fiance and pay £126k is another ball game......

The finance is most definitely not being paid for by the manufacturer even if it looks like it is on the paperwork. I sold farm machinery for 10 years and saw all the tricks. I lost count the amount of times I had a smug looking finance bod trying to get me to offer customers a 0% finance deal when the reality of it is that purchase prices are inflated to cover it. The customer ‘always’ pays for it every single time.

That Fendt is circa £125k for a cash purchase. The manufacturing cost to Fendt is probably £50k. Fendt then sell to the dealer for about £110k - £115k. That gives Fendt about £60k for R & D, marketing, overheads blah blah blah. Then it’s up to the dealer how much profit they want taking into account their overheads and the fact they need to cover labour warranty repairs etc etc.

 

[Clive]

Has anyone ever seen a PCP type finale deal offered on a ag machine ? common ion cars - ie finance the USE of the machine (repaint = not the capital cost ?

The finance is most definitely not being paid for by the manufacturer even if it looks like it is on the paperwork. I sold farm machinery for 10 years and saw all the tricks. I lost count the amount of times I had a smug looking finance bod trying to get me to offer customers a 0% finance deal when the reality of it is that purchase prices are inflated to cover it. The customer ‘always’ pays for it every single time.

That would be illegal Lee if you had ever offered the same machine at a lower price for an un financed deal

But of courses a customer pays ultimately for the machine they want - why would anyone else ?

 

[warksfarmer]

Has anyone ever seen a PCP type finale deal offered on a ag machine ? common ion cars - ie finance the USE of the machine (repaint = not the capital cost ?



That would be illegal Lee if you had ever offered the same machine at a lower price for an un financed deal

But of courses a customer pays ultimately for the machine they want - why would anyone else ?

It’s not illegal if the purchase price is set first. It’s only illegal if it’s backtracked after an initial advertising campaign. Even then proving it wouldn’t be easy due to hundreds of different levels of spec and tyres of service/warranty package.

As for the customer always pays, yes that’s what I’m saying in reply to Rob who said the manufacturer pays the finance. They don’t the customer does if it’s a 0%.

This is why I never ever offered any kind of finance as it’s a very grey and confusing area. It was always best to quote the best price and then let the customer sort out finances themselves. Sometimes you got paid by a finance house and sometimes by the customer.