Insurance john deere vs kubota ins

[CHDinCT]

No mandatory insurance if you pay cash.

Nor is it mandatory to take the KTAC insurance. You can get insurance anywhere you want as long as it meets KTAC's minimum requirements and they are named as a loss payee. Basically, same thing as getting a mortgage on your house. Ain't gonna happen without evidence of insurance.

 

[ranchland]

They "dealer" said I could provide my own if I wanted but no one would do a stand alone policy. Oh well, It averages about a dollar a day. Not as if I can't afford it but would liked the deere price better.

 

[econometrics]

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.

This is correct. Deere's insurance is very, very good. And for a $500 one-time charge, I most definitely took it.

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.

This is not true across the board. I would have saved $1K if I paid cash, that is it. (Like ranchland mentions here below).

Usually the 0% from a manufacturer is their attempt to get you to buy something new from THEM vs. buying it slightly used from another machinery dealer or a private party. This is exactly what happened to me. I was looking at used 5075Es in the 150-300 hour range, and began to realize that I could buy a new 5075E with ZERO hours for just a few $K more. The 0% was just a nice cherry on top for me.

I think 0% less desirable on a car or truck, because you will take a big depreciation hit on it, and you are then paying for a depreciated vehicle. I like buying slightly used and paying cash with vehicles.

Tractors, however, do not depreciate very quickly. Thus, I believe 0% is a better option with tractors vs. cars/trucks. (I am not trying to start up the ole 0% convo here, honestly. Just stating that it is not a bad option for everyone all the time)

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

 

[murphy1244]

The zero percent kills used tractor values.

 

[GManBart]

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.

I financed some of my LS, and they didn't require an extra $500, or $2k in insurance. If the tractor gets trashed, and I don't pay the note, they can send collections after me, ruin my credit rating, and sue me....plenty of remedies for them.

 

[GManBart]

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

Did the $27,800 include the insurance, or is the premium added to monthly payments?

Your numbers are similar to others I have seen....the tractor, FEL with QA, and dual remotes is close to $30k.

 

[econometrics]

The zero percent kills used tractor values.

It sure hasn't seemed to put a dent in the used utility market here in TX. Most used 5075E's I was looking at in the >300 hour range were in the $27-$29K range.

I got a new 5075E for $32K. :thumbsup:

 

[murphy1244]

It sure hasn't seemed to put a dent in the used utility market here in TX. Most used 5075E's I was looking at in the >300 hour range were in the $27-$29K range.

I got a new 5075E for $32K. :thumbsup:

Which did you buy?

 

[econometrics]

Which did you buy?

The new one, of course.

But, honestly... I bought it new NOT because of the 0%. But because my tractor was very well cared for, and I could not verify the same with a used machine.

That, and I wanted the PowrReverser - which was new this fall.

 

[Fallon]

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

The insurance stuff is unrelated to the 0% interest stuff. The actual cost of the "0% interest" shows up as the cash discount. If you were motivated you could easily figure out the interest rate by calculating the cash discount price vs. the asking price. Probably need to figure in compounding & junk, but I don't like math.

While the 0% interest thing is a bit of a misdirection, it isn't an outright lie & most of the manufacturers seem to be doing it. As I said I went for it knowing full well what was going on behind the scenes.