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2.5% to dealer for finiancing?

tnpete

LawnSite Member
Location
West Tn
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
 

Cobra Jock

LawnSite Member
Location
Niceville, FL
tnpete said:
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
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.
 

Mowingman

LawnSite Platinum Member
Location
Texas
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.
 
OP
tnpete

tnpete

LawnSite Member
Location
West Tn
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

Cobra Jock said:
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.
 

GrassBustersLawn

LawnSite Senior Member
Location
Indianapolis, IN
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
 
OP
tnpete

tnpete

LawnSite Member
Location
West Tn
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

Mowingman said:
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.
 

tiedeman

LawnSite Fanatic
Location
earth
I think that is a good rate in my opinion
 
OP
tnpete

tnpete

LawnSite Member
Location
West Tn
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
 

LASTEC

LawnSite Member
Location
Madisonville, KY
tnpete said:
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

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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