Insurance john deere vs kubota ins

[94BULLITT]

From what I have heard on here and from dealers KTAC insurance is very good. I think the JD insurance price was wrong or covered less.

 

[Tx Jim]

I don't know if JD insurance has changed ownership since I worked for a JD back in the late 80's but JD formed and owned their own insurance company. Back then JD insurance was very good.

 

[GManBart]

Hello all,
i am new to this forum but have been following the threads closely as I am about to make my first tractor purchase. Here is where i am confused. I decided to bite the bullet and start my search for a 50 hp utility tractor and narrowed it down to john deere 5055e and kubota mx 5100 hst. I decided on the 5055e and started the financial process through deere credit. I was approved and the sales person told me on the 60 month loan I was required to insure the tractor for the life of the loan. I said ok and they told me it was $500.00, i thought thats reasonable and the deal was done.
ok, part of the deal was that I wanted r4 tires not r1. They told me it would be november before they could order the tractor from factory with r4s and delivered to me sometime before christmas.
I cancelled the order and went down the street and bought the kubota mx5100 hst that already had r4s on it.
when we did the loan through kubota credit, the insurance was $2000.00 for the life of the loan (60 months).
The tractor will be delivered by the end of this week after tires are loaded for weight and remotes added to rear.
Anyone know why there is such a huge difference in insurance prices?
thanks to any and all for your knowledge about this.

First off, welcome!

I have to wonder about the dealer not being able to order the tractor with R4s until November, and then a delay of a month before delivery. Why not just swap the tires on an existing tractor? It's really not that big a deal.

An additional $2K for mandatory insurance, on top of prices that are already expensive compared to competitive models from other brands is ridiculous. Out of curiosity, what did the final price wind up being for the MX5100? The topic of MX5100 pricing has come up a bunch lately, and some folks claim they're going out the door with typical options (SSQA on the FEL, remotes, etc) for $26-27K, but the last couple of cited purchase prices have been considerably higher.

If you wanted the insurance, it would be one thing, but making it mandatory is a bit much. There are people who could pay cash, but want to take advantage of low/zero interest rates....they are essentially self-insured in situations like this, but they'd get stuck with an extra $2k in addition to the higher price the dealer charges for financed machines.

 

[hixter]

I purchased a JD 5085E. My salesmen told me about Deere's insurance and the price. I had already contacted my agent that I have my farm policy with and got a quote on what it would be to drop the tractors I was trading and adding the Deere. When my salesman told me the price of their insurance I couldn't hardly believe how cheap it was. So I quized him and asked for a copy of the policy to have my agent look at. My agent said it was better coverage than what I was going to have from him. My salesman said the reason it is so cheap is they have their own insurance company and that Deere credit eats part of the premium to help them insure that the tractor will be insured for the life of the loan. In my case after four years i will have to add it to my farm policy. But for four years i will have saved that much money.

 

[bigbull338]

as ive said before i have my 7040SU ins through my farm policy for $180 a yr.

 

[Fallon]

First off, welcome!
An additional $2K for mandatory insurance, on top of prices that are already expensive compared to competitive models from other brands is ridiculous. Out of curiosity, what did the final price wind up being for the MX5100? The topic of MX5100 pricing has come up a bunch lately, and some folks claim they're going out the door with typical options (SSQA on the FEL, remotes, etc) for $26-27K, but the last couple of cited purchase prices have been considerably higher.

If you wanted the insurance, it would be one thing, but making it mandatory is a bit much. There are people who could pay cash, but want to take advantage of low/zero interest rates....they are essentially self-insured in situations like this, but they'd get stuck with an extra $2k in addition to the higher price the dealer charges for financed machines.

No mandatory insurance if you pay cash, which is the same as any auto loan (not considering govt mandated liability) or home loan. If you trash the tractor, there is no insurance & you stop making payments, they have no collateral (tractor) & no money. There are costs to borrowing money & not all of them are necessarily the interest.

And speaking of interest, all the 0% interest is a bit of a crock. They calculate the interest into the base price of the tractor, which is why you end up with hefty discounts for paying cash. That 5% interest rate or what not is actually there, just disguised. Of course I can't complain to much I ended up financing at 0% & going with a new L3200 rather than paying cash for something used as I'd originally planned.

 

[ranchland]

Tractor and ssqa on fel was $27800, I added rear remotes, cutter, box blade, post hole digger. That brought total to $32925.00. I asked if I were to just pay cash for tractor and fel how much discount would I get he said $1500.00.
The deere was 5% down and 0% for 60 months, didnt ask cash price.
I have everything I own through AAA and they do not ins tractors. Not going to start changing policies. I do beleve as fallon stated "the 0% interest is a crock" and they it figured in somewhere and it very well could be the kubota ins. Notice I said if I paid cash they would give me a $1500. Discount

 

[ranchland]

Tractor and ssqa on fel was $27800, I added rear remotes, cutter, box blade, post hole digger. That brought total to $32925.00. I asked if I were to just pay cash for tractor and fel how much discount would I get he said $1500.00.
The deere was 5% down and 0% for 60 months, didnt ask cash price.
I have everything I own through AAA and they do not ins tractors. Not going to start changing policies. I do beleve as fallon stated "the 0% interest is a crock" and they it figured in somewhere and it very well could be the kubota ins. Notice I said if I paid cash they would give me a $1500. Discount

 

[ranchland]

I forgot 1 implement on that list ,(forks). I called every ins co I could and none would do a stand alone policy. They all wanted me to do an umbrella.

 

[ranchland]

My appologies, my wife just reminded me that deere said they would take off $1000. If I paid cash.