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Should You Choose 0% Financing or Pay Cash for Your Equipment?

Is 0% financing a good option? Or should you pay cash up front? Both options have unique benefits. We help you understand each choice, so you can select what works best for your needs.

When it’s time to invest in new equipment like a compact tractor, Gator utility vehicle, or mower, you may face a big decision: Should you use 0% financing, or pay cash up front?

This article will help you understand each choice, so you can select what works best for your unique situation.

What Is 0% Financing?

0% financing means you can purchase equipment and pay for it over time without paying any interest on the balance. Many dealers, including Koenig Equipment, offer special promotions on items like John Deere compact tractors, Gators, and mowers.

How does Zero Percent Financing work? 

  • You make regular monthly payments for a set period (often 60, 72, or 84 months).

  • You borrow the purchase amount with no extra interest charges.

  • At the end of the term, you own your equipment.

 

What Are The Benefits of 0% Financing?

  • No Interest Costs: You'll pay only the price of the equipment. There's no added interest over the financing period.

  • Keep Your Cash: Keep your savings or working investments available for other expenses or emergencies, rather than tying up funds in equipment.

  • Budget-Friendly Payments: With a financing option, you spread costs over time, making high-quality equipment more affordable per month.

  • Immediate Ownership: You take home your equipment now, even if you don’t have all the money upfront.

  • Build Credit: Making on-time payments can positively impact your credit history which can assist with other areas of life.

Example:
If a compact tractor costs $15,000, 0% financing allows you to split that into predictable monthly payments with no interest added. This gives flexibility if you want to reserve your cash for other needs like repairs, supplies, or unexpected farm costs.

Learn how to put your money to work when using 0% financing as a tool > 

 

Benefits of Paying Cash

  • No Monthly Payments: Pay once and own your equipment outright, with no future obligations.

  • No Loan Approval Needed: Skip paperwork, credit checks, and possible financing eligibility requirements.

  • Cash Discounts: There are typically extra savings for buyers who pay the full amount from the start.

  • No Risk of Missed Payments: No risk of late fees or a negative impact to your credit score in the event there's a missed payment.

  • Immediate Ownership: IT'S 100% YOURS. 

Example:
If you have $10,000 saved and pay cash for a riding mower, you avoid monthly bills and can use or sell your mower freely from day one.

 

Which Option Is Right for You?

Ask yourself these questions:

  • Do you want to keep your cash available for other uses?

  • Are you confident you can make monthly payments on time?

  • Is 0% financing being offered for the equipment you want?

  • Do you prefer to avoid any type of loan or payment plan?

 

Frequently Asked Questions

  • Is 0% financing really interest-free?
    Yes, legitimate 0% financing does not add interest.

  • Can I pay off 0% financing early?
    Most programs allow early payoff with no penalty, but always check your agreement first.

  • Are there eligibility requirements for financing?
    Most lenders require a credit check and basic financial information. Learn more about John Deere Financial and get approved.


Choosing between 0% financing and paying cash depends on your financial priorities and the offers available.

Koenig Equipment will be here to help you find the right solution for your next compact tractor, Gator, or mower purchase.

If you want to explore current financing offers or equipment options, contact Koenig Equipment for personalized assistance.