Kubota retail price versus dealer quote. What to offer?

[BrokeFarmerJohn]

I have settled on a configuration for my Kubota L6060 cab model. Thank you all for helping.

The tractor, with some land pride equipment, retails for about $65,000. I can pay cash or finance.

The dealer is quoting about $62,000, either for cash or Kubota 0% financing. I like the idea of KTAC insurance so I will probably add that as well.

What are your thoughts about an appropriate cash price or maybe choosing the 0% financing? And about the KTAC insurance? My property is in a forested area and has a very old structure and *nobody* will ever write a new insurance policy if my current one gets cancelled. So I am reluctant to even inquire about adding the tractor to my homeowner policy. Finally, I own two properties that can use a tractor. The L6060 will be used primarily at the first one where the old residence is, but I want the option to occasionally use it at the second location also. I think I read somewhere that KTAC insurance will cover more than one location whereas homeowners is covering only the insured location?

Your ideas?

The one who owns the cash is king.

That being said I would deff shop Kubota dealers and see which one is the most hungry, use other offers against other dealers and be prepared to walk away if they don't accept your offer and my guess is they won't let you leave the parking lot if you walked out the door.

As for insurance, I called my insurance company (Allstate) and they said my tractor is covered under home owners insurance but they do not offer a policy on a tractor. So if I take it off my property and it gets damaged I'm SOL. If your towing and it falls off the trailer ext it's covered under auto insurance as far as I understand.

You can get up to 0% for 84 months with 20% down if you wanted but I 100% understand wanting to pay cash and getting the tractor off the books, I would do the same if I could.

I have never made a large cash deal like this but I have heard in the car business they penalize you more on cash deals because like someone said before they lose the money they would make from financing but who knows, if I were you I would beat them up till they gave me one at $500 above there cost or find a dealer willing to.

 

[motownbrowne]

The one who owns the cash is king.

That being said I would deff shop Kubota dealers and see which one is the most hungry, use other offers against other dealers and be prepared to walk away if they don't accept your offer and my guess is they won't let you leave the parking lot if you walked out the door.

As for insurance, I called my insurance company (Allstate) and they said my tractor is covered under home owners insurance but they do not offer a policy on a tractor. So if I take it off my property and it gets damaged I'm SOL. If your towing and it falls off the trailer ext it's covered under auto insurance as far as I understand.

You can get up to 0% for 84 months with 20% down if you wanted but I 100% understand wanting to pay cash and getting the tractor off the books, I would do the same if I could.

I have never made a large cash deal like this but I have heard in the car business they penalize you more on cash deals because like someone said before they lose the money they would make from financing but who knows, if I were you I would beat them up till they gave me one at $500 above there cost or find a dealer willing to.

Just be sure you check and double check the insurance thing. My auto policy will cover liability for my tractor falling off a trailer, but they sure as heck won't pay for a replacement tractor. I think you'd need a fairly expensive commercial policy or something of the like to get that kind of coverage. I'm not an expert, though. Just make sure you know what your insurance actually covers.

 

[Luke'sScreenName]

Just be sure you check and double check the insurance thing. My auto policy will cover liability for my tractor falling off a trailer, but they sure as heck won't pay for a replacement tractor. I think you'd need a fairly expensive commercial policy or something of the like to get that kind of coverage. I'm not an expert, though. Just make sure you know what your insurance actually covers.

X2!!!

KTAC is really a bargan IMO.

 

[BrokeFarmerJohn]

Just be sure you check and double check the insurance thing. My auto policy will cover liability for my tractor falling off a trailer, but they sure as heck won't pay for a replacement tractor. I think you'd need a fairly expensive commercial policy or something of the like to get that kind of coverage. I'm not an expert, though. Just make sure you know what your insurance actually covers.

When I have plans of moving the tractor more in the spring todo more work I will look into it, right now it sits in my barn and I pull it out to work on my property, only reason it leaves is to buy diesel at the local gas station.

I was surprised when the bank accepted my home owners insurance as coverage and didn't make me get a separate policy on the tractor.

Here another thought, I went tax exempt on the tractor claiming it was for farming use, feeding and raising livestock and not for residential use, which is true besides moving personal items here or there with the FEL. But how do I go about proving that if I'm ever looked into? This is the first time raising cows (3) and I plan to bump that number up next year, I have never sold beef before nor have I been exposed to the process or even what to charge the customer.

That's a huge turn on the subject but there close to being ready, I would say a few weeks away, month at the most.

 

[smstonypoint]

Here another thought, I went tax exempt on the tractor claiming it was for farming use, feeding and raising livestock and not for residential use, which is true besides moving personal items here or there with the FEL. But how do I go about proving that if I'm ever looked into?

I assume you are talking about a sales tax exemption for ag. use. Requirements (e.g., income, acreage, etc.) for an exemption differ across states, so you need to check with the revenue department in Ohio. You may need to provide a Schedule F.

Steve

 

[BrokeFarmerJohn]

I assume you are talking about a sales tax exemption for ag. use. Requirements (e.g., income, acreage, etc.) for an exemption differ across states, so you need to check with the revenue department in Ohio. You may need to provide a Schedule F.

Steve

Yeah sales tax, I paid tax on all the fence, feeders, waterers, vet ext. the tractor I did not. Here is Ohio's definition

Ohio Agricultural Sales Tax Exemption Rules | Ohioline

I never saw anything about land requirements just that it was used for farming, which it is, just at a small scale right now. I'm gonna end up making my land into a feed lot lmfao. I wish I had the issues a lot of guys on here have where they have 50 or 100 acres, I would be in trouble with that lol would be cleared for pasture and I would farm it.

 

[murphy1244]

Yeah sales tax, I paid tax on all the fence, feeders, waterers, vet ext. the tractor I did not. Here is Ohio's definition

Ohio Agricultural Sales Tax Exemption Rules | Ohioline

I never saw anything about land requirements just that it was used for farming, which it is, just at a small scale right now. I'm gonna end up making my land into a feed lot lmfao. I wish I had the issues a lot of guys on here have where they have 50 or 100 acres, I would be in trouble with that lol would be cleared for pasture and I would farm it.

Do you have a vendors number?

 

[s219]

KTAC is a bargain if you finance. If you want it, you'd better finance. After the tractor is paid off the price will triple, or more, in price.

I don't think that's true -- I requested a KTAC quote when buying my first Kubota 5 years ago and they didn't care how I paid for the tractor (I was considering both financing and cash, and ended up paying cash). I'm on my second Kubota now, an L3200 also paid in cash, and KTAC is about $275/year.

 

[gwdixon]

I think, and it's my opinion, that these 2 statements are related, cause and effect. If you have car insurance and get into a "couple of" accidents, your rate will be going up. :2cents:

I don't think that's true -- I requested a KTAC quote when buying my first Kubota 5 years ago and they didn't care how I paid for the tractor (I was considering both financing and cash, and ended up paying cash). I'm on my second Kubota now, an L3200 also paid in cash, and KTAC is about $275/year.

See posts #27 and #28 (and #30) from this thread to read the response from "KTAC", a TBN sponsor.

http://www.tractorbynet.com/forums/kubota-owning-operating/273895-protect-your-equipment-ktac-insurance-3.html?highlight=ktac+gwdixon

 

[s219]

See posts #27 and #28 (and #30) from this thread to read the response from "KTAC", a TBN sponsor.

http://www.tractorbynet.com/forums/kubota-owning-operating/273895-protect-your-equipment-ktac-insurance-3.html?highlight=ktac+gwdixon

From what they said in those posts, it's because the financing has a 5-year commitment and there's a multi-year discount. Nobody mentioned it specifically, but I assume the multi-year discount is the same for finance or cash. I'll ask them -- need to call in next week to renew on my L. I can tell you that when I priced it back in 2011 it didn't matter.