Financing WHY is kubota finance for bx now 42 months, was 48 in '08

[shrekbelly]

guys,
same old intro- am not the brightest bulb in the lamp (took 11 years, 3 schools & 2 majors to earn my sheepskin).
so WHY in these challenging economic times would/did kubota reduce the 0%
financing from 48 months down to 42 months (yes i know, it's not really zero, due the lower cost you could buy the tractor for, were one to have cash in hand).
is the bx that good a seller? at least in my area it's thousand(s sss) less than anything green.
i wasn't an econ major . . . so any insight, theory or explanation from our dealers or those with a better handle on it than me on this site, please weigh in.

p.s. was taking the trash out to the street this am, and could easily see whether or not i had traction with the ags on my bx looking through the lever slots . . . those kubota boys- think of everything! shrekbelly

 

[riptides]

IMHO everyone is trying their best to hoard cash. Lowering months of credit is another attempt at trying to bring in cash.

Good luck with the future BX.

 

[Gator6x4]

I wonder why we did not need "Bail Outs" or tax payer subsidized loans to industry prior to the days when one purchased an automobile or tractor they paid an interest rate of 6-8% for three years. Now we have 0% percent finance rates and finance for six - seven years and everyone needs tax payer money. Does anyone else see a problem with the 0% percent loans? Do we need to return to the days of paying an honest interest rate for money that we borrow rather than inflate the price to conceal what we are really paying and making people think they are getting some thing for nothing?

 

[riptides]

It is what it is, take advantage of it if you think it is a good deal for you.

 

[ChuckinNH]

I wonder why we did not need "Bail Outs" or tax payer subsidized loans to industry prior to the days when one purchased an automobile or tractor they paid an interest rate of 6-8% for three years. Now we have 0% percent finance rates and finance for six - seven years and everyone needs tax payer money. Does anyone else see a problem with the 0% percent loans? Do we need to return to the days of paying an honest interest rate for money that we borrow rather than inflate the price to conceal what we are really paying and making people think they are getting some thing for nothing?

It is what it is, but it sure doesn't help those of us that try to save, and then pay cash for something.

 

[skipperbrown]

I recently purchased a L3940 and offered cash vs. financing. The dealer said the price was the same whether I financed it or paid cash. I financed it. He said the dealer didn't participate in the financing options. The Deere dealer said I'd pay more for cheap financing b/c the dealer paid part of the financing costs.

Different policies for different companies.

Interestingly, I just got a Form 1099 stating I paid 0 interest. Why bother?

 

[Evil the Weasel]

0% for 42 months is still a great deal. If the difference in payment between this loan and the 48 month kills the budget, it's time for a down payment or a lower priced machine. It doesn't help that the credit market is practically frozen right now. I'm sure the 48 month 0% deal will reappear. They change the financing options all the time, so maybe waiting a bit would work. Good luck.

 

[PeterK]

I purchased my BX in 08 and it was 42 months 0%. Price was the same cash or finance.

 

[bandit67]

Also, every winter for the last half dozen years, the rates or term lengths have gone up, only to drop again come springtime when the old man's fancy turns to buying a new tractor.

Since sales are a bit slow in winter, maybe mfr's figure the folks buying in the 1st quarter really need a machine and can't necessarily wait, so are willing to pay a bit more in finance charges. Come spring, when buyers are out shopping in full force, demand requires the best possible financing to help seal the deal.

 

[johnny_law]

HEY I just got ripped. I bought a BX24 2 days before Christmas '08 and Offered Cash. The price was the same as financing so I financed it but they only give me 36 months. I think larger loans had longer terms. Now I check the Website at KubotaCreditUSA and they aren't offering 0% financing just three programs 2% adjustable rate, 0% for 7months then 7.99% and then a parts and service rate.

I'm a bit confused, apparently they don't advertise their different promotions 0% promotions on their website? It doesn't bother me much since I was going to pay cash but now I just need a 1/3rd sitting in a savings account to make the auto payments for the year. The rest doesn't make much interest anyhow so it is not much different.

Johnny