Kubota finance dream

   / Kubota finance dream #21  
Sorry, Arrow, I'm not really sure what you are saying.

However, let me say that I didn't intend for this discussion to be so far off topic. I was only trying to make the point that I have a hard time believing that the Kubota Corp. has made it where the consumer must pay MSRP (or close to it) in order to get the financing incentive, based on my former ties and experience with the auto industry (since the auto purchasing analogy was mentioned early on.)

Then, too, neither a manufacturer nor a dealer trade association can legally mandate what the dealer must sell a vehicle for, as there are strict federal laws against such. To wit, the Manufacturers Suggested Retail Price (MSRP). And I'll wager that it's the same with all manufacturers that sell goods in the U.S., be the item a car, tractor, or a refrigerator. But I don't know that for sure. Advertising prices is a whole nuther issue, by the way.

I have to take exception, though, with your statement "I know the dealerships are regarded lower than a snake belly by the auto companies and the poor saleman lower than that." That is not the case, in my experience. I have seen first-hand that the "Big 3", at least, value and respect their dealer bodies greatly. Of course, they also hold them accountable, and use the Customer Satisfaction Index (a consumer's report cards on the selling dealer) as both a carrot and a hammer. Want more of a hot selling car or truck? Want to add another dealership or franchise? You better not have a low C.S.I.

Perhaps you meant to say that low opinion of dealers and salespeople is the general consensus among consumers? I would certainly agree with that! (a reputation earned by the majority of dealers and salespeople, unfortuantely, but I'll bet we all know of some exceptions as well - I for one know of many!)

As for which is the better deal, zero or low interest financing, or cash incentive, one has to do the math. I haven't been in the business for quite awhile, and when I bought my last vehicle, it was with no "connections" whatsoever (I never had any with Toyota.) The vehicle was in rather short supply and I paid $500 over actual dealer invoice which amounted to about $5500 off the MSRP, and I had a choice of either cash incentive or low rate financing. I chose the fianancing because I was making more return on my investments than I would be paying in interest over the 3-year term. (Your mileage may vary :) )

Hope that helps to clarify. You may have the last say, but then I feel we should return to Kubota purchasing issues for any further discussions.
 
Last edited:
   / Kubota finance dream #22  
Traderrik, I guess our experiences are simply different. I have seen and experienced everything I stated including car companies not giving 2 craps about the dealership. I have experienced and witnessed many a derogatory treatment of Daimler Chrysler toward my dealership. I am glad you did not come away as jaded as my experiences have made me.
Charles I am certainly glad you made your best deal and got the 0% to boot. It helps to understand that no matter what you paid, Kubota made a profit which I have no problem with. In this case, Kubota does not seem to be after the extra loot of financing as much a they are interested in moving product.Good luck with your M59. She must be a beauty. I do think people are triggered into purchasing when they hear 0% and all I'm saying is it is not always magic for the consumer to get 0%. Caveat emptor
 
   / Kubota finance dream #23  
< "I do think people are triggered into purchasing when they hear 0% and all I'm saying is it is not always magic for the consumer to get 0%. Caveat emptor" >

I totally agree, Arrow!

As I said, I'll glady report my Kubota buying experience as well, when and if there is one.
 
   / Kubota finance dream #24  
Oops! I said that I'd give you the last word, didn't I! ;)
 
   / Kubota finance dream #25  
I got the deal I wanted last week. Approximately 9% discount off MSRP, zero percent Kubota financing. (I could have done slightly better elsewhere, but this dealer is nearby and has a great rep.) The dealer said it makes no difference to him whether he gets his $$ from me or Kubota Financial. Same "cash" discount.

No push to sell me Kubota's insurance; dealer said my home owners insurance is acceptable, with adequate policy endorsement (naming Kubota as the "first payee".)

Bottom line: If a dealer tells you there is no discount or less discount when financing thru Kubota, or tries to ram the insurance down your throat, go elsewhere.
 
   / Kubota finance dream #26  
Assuming new cost of $48k, the present value (with 3% inflation ) over a financing term of 42 months is $44.9k. Shouldn't I expect at least an additional $3,100 discount for paying cash? If not, why the heck did I take that economics course?

When I bought my daughters truck I was going to pay cash, till the dealer said I could get an additional $1,500 off by financing at least $5k, which I did. First bill arrived and I payed it off then (and no, there was no prepayment penalty). No wonder Ford is going broke. Has Kubota caught the same disease?
 
   / Kubota finance dream #27  
traderrik said:
Having been in the auto business for years, I can tell you that a new car dealer typically makes money when you finance through them,

We do not make money on financing, infact for many companies (not all) it costs us money as we pay part of the cost of the program. We can make money on extended warrenties, insurance, etc. Its a very minimal amount, but there is some kickback. Thats stuff is actually not all bad, so don't reject just because your opposed to Add-on's. The insurance Kubota offers is very good and often cheaper than an add on to a home owners policy.
 
   / Kubota finance dream #28  
MessickFarmEqu said:
We do not make money on financing, infact for many companies (not all) it costs us money as we pay part of the cost of the program. We can make money on extended warrenties, insurance, etc. Its a very minimal amount, but there is some kickback. Thats stuff is actually not all bad, so don't reject just because your opposed to Add-on's. The insurance Kubota offers is very good and often cheaper than an add on to a home owners policy.

While you certainly know, the experience with my Kubota dealer in Texas also confirms this. Also, I found that the Kubota insurance with a very small deductible was a lot cheaper and had much better coverage than my homeowners.
 
 
Top