[EVT]

I’m looking for some advice from this team of great people. I am in the process of trading in my 2018 1025R for a 2021 2038R with the 220R loader. I also purchased the 270B backhoe but that won’t be in until next month. I’m having the power beyond installed as well as the factory 3rd function SCV to run my grapple. Here’s the issue. I believe the power beyond parts are at the dealer but the 3rd function SCV is back ordered. The dealer is trying to get an ETA on those parts but it’s been rough with all the part shortages every industry is going through. They are trying to get everything installed all at once to avoid repeat trips to the dealer. Makes sense. The issue I have is my first payment is due in exactly 2 weeks and if the parts are still not in, I don’t feel comfortable making a payment on something that’s not physically in my possession. I still have my 1025R as they will trade when the 2038R is delivered. I have bought a LOT of machines and implements over the years from this dealer and they have always treated me like gold. Do I go ahead and make a payment with the tractor still at the dealer or should I have it delivered as is and bring it back when all the parts arrive. The dealer is literally less than 2 miles from my home so I believe they wouldn’t charge me for a pickup, but I should probably speak to them about that. What would you do in my situation?

Thanks all.
Ed T

 

[MarkEagleUSA]

You shouldn't pay for something you haven't physically taken possession of. I'm surprised that they even processed the paperwork. My dealer wouldn't finish the docs until the tractor was ready to be delivered.

 

[EVT]

You shouldn't pay for something you haven't physically taken possession of. I'm surprised that they even processed the paperwork. My dealer wouldn't finish the docs until the tractor wad ready to be delivered.

Thanks Mark. Kind of my feeling as well. I think they thought they could have the SCV in quickly. Since the backhoe is delayed, they did not charge me for that. It will be added later still with the 0% financing.

 

[JimR]

Typically a payment isn't due until 30 days after initial delivery to/acceptance by the customer. I'm not sure why your deal would be any different. You can always ask the dealer about it. I don't see why they'd be offended by the idea of you not wanting to make payments on something you haven't taken delivery of. Let them get Deere Financial to bump things back a month.

 

[Drifterbike]

Is the 1025R financed? if so is the payment your normal monthly payment. When i last traded i waited 6 months for my 2038R i just made payments on my 1025. When the 2038 was delivered
i started making payments of what my 2038R payment would be. Your warrranty starts the delivery day.

 

[EVT]

Typically a payment isn't due until 30 days after initial delivery to/acceptance by the customer. I'm not sure why your deal would be any different. You can always ask the dealer about it. I don't see why they'd be offended by the idea of you not wanting to make payments on something you haven't taken delivery of. Let them get Deere Financial to bump things back a month.

Thanks Jim. I don't think they're offended in any way as they are trying their best to get it done before the payment is due. I will definitely talk to them about moving the payment out.

 

[EVT]

Is the 1025R financed? if so is the payment your normal monthly payment. When i last traded i waited 6 months for my 2038R i just made payments on my 1025. When the 2038 was delivered
i started making payments of what my 2038R payment would be. Your warrranty starts the delivery day.

The 1025R has been payed off some time ago. I don't owe anything on it.

 

[Count Chuckula]

Typically a payment isn't due until 30 days after initial delivery to/acceptance by the customer. I'm not sure why your deal would be any different. You can always ask the dealer about it. I don't see why they'd be offended by the idea of you not wanting to make payments on something you haven't taken delivery of. Let them get Deere Financial to bump things back a month.

Jim is exactly right. Your financing doesn't kick in until you physically take possession of the machine. Until that time, the dealer still owns it and has legal responsibility for insurance, etc. This is covered by the Uniform Commercial Code, which is recognized and followed in New Jersey. Technically speaking, you could "accept" delivery of the 2038R and the Power Beyond kit whenever, but then they have to modify your financing contract and pro rate the payment to exclude the cost of the 3rd SCV and any related labor, since they can't "deliver" that now. That's going to be a hassle for them, so the better option is for them to just keep the machine until it's fully set up as required by your sales contract.

 

[EVT]

Jim is exactly right. Your financing doesn't kick in until you physically take possession of the machine. Until that time, the dealer still owns it and has legal responsibility for insurance, etc. This is covered by the Uniform Commercial Code, which is recognized and followed in New Jersey. Technically speaking, you could "accept" delivery of the 2038R and the Power Beyond kit whenever, but then they have to modify your financing contract and pro rate the payment to exclude the cost of the 3rd SCV and any related labor, since they can't "deliver" that now. That's going to be a hassle for them, so the better option is for them to just keep the machine until it's fully set up as required by your sales contract.

Thanks Count. You bring up very good points I was not aware of. Sounds like it's best we move the payment out if the machine is not ready.

 

[cc1999]

Terms of the contract start the day it is signed and funded.
Possession and location have little to do with the bank contract at least where the item is physically located nor who has possession as far as when payments are due.

IE. If it had been delivered, and say had a defect right out of the gate, and then was back at the dealer waiting on a part also not in your possession, it still would not matter, you would still legally obligated to the terms of the loan contract you signed, which would state when those payments are due.

I don't think there is really anything to worry about here, other then supply chain delays could continue to cause delays.
If you can use it now and want it now, it is yours, I would have it delivered or pick it up or whatever your situation dictates.

If your other items are present on the original contract but not yet in inventory also they don't have the serial numbers to contract them, those will be added on to your original loan contract once they arrive at a later date.
I believe they call those equity add on's that can only be added if present/listed on the original contract.

IE. I can't add my new 2021 MSL 440R loader to my 2019 4066Rs 0% loan contract, and I will have to pay off the non MSL loader that is on my 2019 0% loan contract in order to trade it in.

Based on what your describing, they have told you correctly how this works. I suppose they could have waited to process everything at once. Not sure why they wanted to process the tractor now. Could be some rule with Deere that if you report a unit as sold and they push it out the door right away to the dealer, maybe they only get some many days to report the completed sale or they have penalties or some thing. I am not sure, just speculating on why they may have wanted to process it right away.

 

[Big]

Don't forget the rear scv's. Very nice to have.

 

[JDLTG]

A friend of mine bought a new Gator. He wanted the 0%/60 month financing and to lock it in, he had to sign the paperwork. It was the last day that interest rate promotion was available. He made 2 payments before he received the Gator. He figured, no big deal, it’ll be paid off 2 months early.

 

[EVT]

Terms of the contract start the day it is signed and funded.
Possession and location have little to do with the bank contract at least where the item is physically located nor who has possession as far as when payments are due.

IE. If it had been delivered, and say had a defect right out of the gate, and then was back at the dealer waiting on a part also not in your possession, it still would not matter, you would still legally obligated to the terms of the loan contract you signed, which would state when those payments are due.

I don't think there is really anything to worry about here, other then supply chain delays could continue to cause delays.
If you can use it now and want it now, it is yours, I would have it delivered or pick it up or whatever your situation dictates.

If your other items are present on the original contract but not yet in inventory also they don't have the serial numbers to contract them, those will be added on to your original loan contract once they arrive at a later date.
I believe they call those equity add on's that can only be added if present/listed on the original contract.

IE. I can't add my new 2021 MSL 440R loader to my 2019 4066Rs 0% loan contract, and I will have to pay off the non MSL loader that is on my 2019 0% loan contract in order to trade it in.

Based on what your describing, they have told you correctly how this works. I suppose they could have waited to process everything at once. Not sure why they wanted to process the tractor now. Could be some rule with Deere that if you report a unit as sold and they push it out the door right away to the dealer, maybe they only get some many days to report the completed sale or they have penalties or some thing. I am not sure, just speculating on why they may have wanted to process it right away.

Thanks for your input cc1999. You are correct about adding parts at a later date. I was concerned I wouldn't get the backhoe at 0% but they did tell me it's an equity add on. Lot's to consider here. Hopefully they get the parts in soon and all this won't be an issue.

 

[EVT]

Don't forget the rear scv's. Very nice to have.

I was thinking of that but it's more parts to wait on.

 

[Jimmy Walker]

I'm curious about the trade in. Does the value of the 1025 go down if you keep using while waiting on the dealer to build the new machine? Even if it takes months or you do another 50 hours on the clock?

 

[MattL]

Hey Ed - Give them a call, you've got a great relationship with them - I'm sure they'll explain the details and it work it out with you. The positive is you could just road the new tractor to them/home when they get the parts in.

 

[cc1999]

I got to thinking that at only 2 miles away, heck you could probably road it there and back whenever needed in under 10 min. Say XYZ parts came in, run it down there get them installed and road it back home. It would take longer to load on a trailer and strap or chain down then it would take to drive it 2 miles.

 

[cc1999]

I'm curious about the trade in. Does the value of the 1025 go down if you keep using while waiting on the dealer to build the new machine? Even if it takes months or you do another 50 hours on the clock?

Very doubtful the value would or even could be changed at this point in the process, it's projected hours were likely factored in the trade appraisal , and likely already shows the trade on the contract, which we know that has already been signed and processed, since a payment is coming due soon.

 

[EVT]

I'm curious about the trade in. Does the value of the 1025 go down if you keep using while waiting on the dealer to build the new machine? Even if it takes months or you do another 50 hours on the clock?

I asked about using the 1025 while I'm waiting. My sales person said that's fine, just try not to put a ton of hours on it. Since I'm a weekend warrior, I won't put a lot of hours on it. The price has already been negotiated, deducted from the 2038 cost and paperwork signed. They gave me 17K for my 2018 1025R with 175 hours on the clock.

 

[EVT]

Hey Ed - Give them a call, you've got a great relationship with them - I'm sure they'll explain the details and it work it out with you. The positive is you could just road the new tractor to them/home when they get the parts in.

Thanks Matt. I do have a good relationship with them and I could literally drive it down the road to their dealership.