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Negative interest on lease machines is now a reality
A negative savings interest rate is nothing new for companies. Individuals are also affected. A negative interest rate for a financial lease of harvesters or tractors is something completely different. It has become a reality in the United States.
American John Deere dealer Heritage Tractor operates 21 locations in the Midwest. In the period around Black Friday, the sales period that also spread from the US to here, the dealer offers customers a negative interest rate on used combine harvesters. Over a period of 60 months -1% interest 'on account' is charged.
Small discount
It is mainly intended as a sales stunt, but can therefore be called special. Will we see a negative lease amount more often in the future? At an average sales price of $200.000 (€167.380) – for a used John Deere combine – you are talking about an amount of more than €1.500. Not very groundbreaking. With a little negotiation, that should work anyway, so is the most heard response on the internet.
Financial leasing of new or recently used tractors, self-propelled machines and large machines has become an indispensable part of agriculture. For some brands, up to 90% of all new equipment sold is leased. Often at relatively competitive rates. This is about 3% to 5%, although there are exceptions of 1% in promotional periods. It is not inconceivable that sooner or later we will also see a negative percentage in the Netherlands.
Not the only one
Sales stunt or not, for Heritage Tractor it turns out positively. In 3 weeks time, the company sold 22 combines through this route, as stated on Facebook. Other dealers in the US, but also Australia, sometimes offer an interest rate below 0%, that is how people respond. Anyone who is in the market for a new tractor or machine in the coming weeks can always try it.
Niels van der Boom
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