Financing Kubota Financing on BX tractors . . opinions??

   / Kubota Financing on BX tractors . . opinions?? #1  

AxleHub

Elite Member
Joined
Sep 29, 2011
Messages
2,550
Location
Western Wisconsin
Tractor
Massey scut 2015 GC1715
Greetings,

I'd like to hear from those who either did consider the 60 month 0% financing or who actually are using it.

Everybody knows 0% sounds wonderful . . but what are the negatives or hurdles involved?

Personally I hadn't considered it initially but as I get closer to a decision this week . . there is only a $500 reduction in not using the financing . . . rebates still apply etc..

And using their insurance instead of a "scheduled" homeowners option. Seems to be about the same costs.

Have you had good experiences . . poor experiences . . or did you avoid it completely because . . . . ????

Thanks for your input.
 
   / Kubota Financing on BX tractors . . opinions?? #2  
From speaking with my dealer, most Kubota tractor sales are Kubota financed. They are pretty critical of credit scores.

Mine is financed.

KTAC (kubota Tractor Acceptance Corp.) is comprehensive and reliable paying claims. Basically, KTAC insurance is $400 per hearing, varying slightly by tractor cost.

Here are some KTAC threads from the T-B-N archive: https://www.google.com/search?clien...tractorbynet.com&ie=UTF-8&oe=UTF-8&gws_rd=ssl

All tractor brands define warranty repairs much more strictly than do car and truck brands.
 
   / Kubota Financing on BX tractors . . opinions?? #3  
Just look at the term and payment on 0%, then do the same for outside financing. This is the quick, easy way to see if you're getting hosed or not. Your monthly payment x60 months is how much you pay in the end, and most loans outside 0% were going to cost more than the $500-700 cash discount saved me (for not using Kubota Credit). KTAC was cheaper and more comprehensive than my homeowner's policy. There was just no way to beat the 0% and factory rebates, even if I bought used instead. I'm only 2 years into mine, and absolutely don't regret it. I can pay it off quicker, but feel no need. I get good insurance, which ends when the loan does, so that keeps me from paying extra as well. I'd rather put money toward interest-bearing bills first.

Let's just play with numbers here, based on my quotes:
BX2360, MMM, FEL was $13,900, or 13,200 without 0% financing, a savings of $700.

13,900 for 0% is $231.67 per month. (Actually pay $255.92, due to taxes, KTAC, etc.)
13,200 for 4% is $243.10 per month.

At the end of the 60-month term, I would have paid either $13,900 for the 0% loan, or $14,586 for the 4% one. I would have lost $686, or roughly 2 payments and-a-half. Just to sensationalize it, you would have paid an extra quarter of a year for no reason at all. If you use a normal bank or credit union, they finance tractors as a personal loan, and you will pay 7-10% on that. Then you're really getting screwed!
 
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   / Kubota Financing on BX tractors . . opinions?? #4  
Ditto G31. I bought mine in 2011, will be paid off in 1 year now. At that time the dealer stated price was the same either way so it was a no brainer, use their money instead of mine. 1500 hours later now also. I am about to use the KTAC insurance. I dropped a large limb across the hood plus some other stuff like the hST fan that they will have fixed at $250 deductible. Preliminary from the dealer shop is $3K worth of work. I am pleased with my decision. I bought $8K worth of new implements on the contract also for which I got a 10% discount.

Ron
 
   / Kubota Financing on BX tractors . . opinions?? #5  
That's the other thing, TS. As you found out, they cover nearly everything. Decide to play chicken with the CSX freight train? They will probably cover it. Flip it into a muddy ditch? Covered. My homeowners was quoting a $500 deductible, and NO coverage if it's off my property. Period. I don't want to chance it getting totaled in a car wreck during transport and not being covered.
 
   / Kubota Financing on BX tractors . . opinions?? #6  
Just look at the term and payment on 0%, then do the same for outside financing. This is the quick, easy way to see if you're getting hosed or not. Your monthly payment x60 months is how much you pay in the end, and most loans outside 0% were going to cost more than the $500-700 cash discount saved me (for not using Kubota Credit). KTAC was cheaper and more comprehensive than my homeowner's policy. There was just no way to beat the 0% and factory rebates, even if I bought used instead. I'm only 2 years into mine, and absolutely don't regret it. I can pay it off quicker, but feel no need. I get good insurance, which ends when the loan does, so that keeps me from paying extra as well. I'd rather put money toward interest-bearing bills first.

Good idea, pay off higher interest loans with the cash first, or just leave the money invested and collect interest. 2% on 20 grand over 5 years is over $2100, much more than the cash discount.

Sent from my iPad using TractorByNet
 
   / Kubota Financing on BX tractors . . opinions?? #7  
I've financed 16 new Kubotas with Kubota Credit over the past 12 years. The 0% is a no brainer in my opinion.
When I trade with Barlows I take the cash equity that I have in the trade in and finance the new purchase 100%. I have the KTAC insurance on two of my Kubotas that I take off of home property and home owners covers the one that stays on home property and one has no coverage.
 
   / Kubota Financing on BX tractors . . opinions?? #8  
I am financing mine... I like JT think it is a no brainer as long as the cash discount isn't significant enough to cover the interest. And as Seabee mentioned, the KTAC insurance seems hard to beat... price and coverage wise at least in my case.
 
 
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