2.5% to dealer for finiancing?

Discussion in 'Lawn Mowing' started by tnpete, Nov 24, 2005.

  1. tnpete

    tnpete LawnSite Member
    from West Tn
    Posts: 180

    Had a Ferris Dealer tell me saturday, That ferris charges him 2.5% that he passes on to me if I use the Ferris finiancing. Anyone else been told this?
    Looking at picking up a 2006 4500 in march.
    Also he knows all that he has to is call when the mower comes in. And i come and pick it then.
    Best deal he offered was $11,980. out the door.

    Pete
     
  2. zero_turn_mowers

    zero_turn_mowers LawnSite Senior Member
    Posts: 410

    I would use the bank before I would pay 2.9.

    Tim
     
  3. Cobra Jock

    Cobra Jock LawnSite Member
    Posts: 206

    That seems like a lot of money. It would be hard for me to justify paying that much when there is so many great machines being made by different manufactures that will mow just as much grass for at least 3000 less. By the way, the dealer needs to eat that 2.5 percent, IMO.
     
  4. Mowingman

    Mowingman LawnSite Platinum Member
    from Texas
    Posts: 4,666

    That is a very common practice. One of the biggest finance companies for mowers. works deals with the manufacturers to provide low interest financing for their brands of equipment. The catch is, that the dealer has to pay a 2.0 - 2.5%, (or maybe more), "participation fee",, in order to offer this financing to his customers. As a dealer, if we are selling a machine at a pretty low profit margin, we can not afford to eat 2% or more of the selling price.
    It is just like a credit card sale. Many places will qoute a very low price on an item, but if you pay by credit card, they add 3% to cover the CC processing fees.
     
  5. tnpete

    tnpete LawnSite Member
    from West Tn
    Posts: 180

    Well as I have a bad back the ride of the ferris is well worth it. And have not been on a mower that will even come close to the ride.
    So the extra cash is well worth it. Also the diesel adds to the price also.
    Pete

     
  6. GrassBustersLawn

    GrassBustersLawn LawnSite Senior Member
    Posts: 983

    You're spending $12k on a mower and complaining about $360 to finance it????

    Simple solution...PAY CASH FOR IT and then no $360 finance.

    Mike
     
  7. tnpete

    tnpete LawnSite Member
    from West Tn
    Posts: 180

    Thanks I know its only $300. but then again he is not that much lower then one other dealer.
    But then I also will not have to pay sales tax. Buying it in different state. And is only 2 more milesthen the one in Tn.
    So I will save even more buying it and paying the extra $300.
    Pete

     
  8. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I think that is a good rate in my opinion
     
  9. tnpete

    tnpete LawnSite Member
    from West Tn
    Posts: 180

    Thanks Guys. Was just making sure that the dealer was being straight with me.
    Not a problem paying the extra. Just making sure as Used to car dealers and they will try anything.
    PEte
     
  10. LASTEC

    LASTEC LawnSite Member
    Posts: 240


    I your looking for ride you should demo a Lastec Articulator.... I rep. West TN i would be glad to let you try one..
     

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