Combines Deere taking Case 2388 s for very little diff

ihc_afc

Guest
It's like this. Deere is -buying- market share. Same story when they take a red tractor on trade. Seems the only thing keeping that company afloat is the insurance division. They aren't sitting on top looking down on every other brand anymore. They have some real competition now, and may find themselves in the n2 spot again!. (Or 3 or 4)
 

SilverTurnedGreen

Guest
I agree with ihc-afc! As far as I'm concerned, Deere is pulling the same trick as they did when the Magnum's first came out. In fact, my neighbor systematically traded between Deere and CaseIH every year, simply because it was so cost effective to do so.
 

Deerebines

Guest
Figure it out. It's a pretty decent deal. Combines in our area are being rented out for 100 bucks an hour with a minimum requirement of 100 hours on the lease. There is the 10,000. The next 100 hours you put on is free. Deerebines
 

obsltd

Guest
If you consider the interest on your investment, say $150000 that eats up the other $10000. Plus rent is a 100% expence in Canada.
 

Deerebines

Guest
If your talking interest on two years I'd say it's close. Figuring on 5 percent is 7500 dollars interest a year. But.....think about it. If someone can really afford one of those machines for that kind of money do you really think he's worried about the 7500 a yearIJ True.....rent is deductible here as well but if you need a machine and you need it now and it's not coming off lease from someone else to you for another week it's times like that it is damm nice to own you own. Not to mention the fact something that I have hated for years about rent. That money is gone....never to be recovered. You can lease a new machine every year for the next 10 years or you can actually own one and when you get done you will still get some return out of it. The rented one is gone along with the rent money......I don't know. There always seems to be alot of discussion on rent or own anymore it seems. I guess it just boils down to who thinks they can afford it and who thinks they are better off investing cash somewhere else. I just hate writing a check and not having anything to show for it. Deerebines
 

Big_Al

Guest
Where are these JD dealers that have taken in a 2388 with 200 hours I am looking for a low houred 23 on a JD lot because their finance programs on used combines is much better then Case. My own opinion is those trading numbers are just an urban myth.
 

Deerebines

Guest
Owen I completely agree with you. 100 to 200 hours a year does not constitute the need for a 150000 dollar machine. I'm finding out that a little over 200 hours a year and it's even hard to keep an 80000 dollar machine around. I also failed completely to think about interest until you brought that subject up. The rates here are so poor that anytime someone talks about interest their mentioning a loan and not a cd. 5% was actually a gracious figure. I think my passbook is not drawing around 2.5% and a 1 year cd is around 3.25 to 3.75%. A bank that I know of will let you draw 7% on a cd but it has to be a minimum of 10,000 dollars and I believe it runs for 18 months. long time to keep money tied up but I suppose no worse than buying machinery. I guess what I'm saying is I really do agree with you. To much money for what you are getting. Better to save it and run an older one if that's all the hours a year a fellow is going to put on. Have a good one
 
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