Buying Advice Kubota or Kioti or Mahindra or LS or McCormick????

[Gittyup]

I believe in capitalism and competition. I don't want any more government intrusion on our way of life than we already have. The LAST thing we need is ObamaCare for Tractors.

Seriously, as Bart has pointed out, there are finance companies that don't require insurance on a tractor loan. So what's the beef? I think the beef is that people want the Kubota 0% interest, but not the insurance. Well, that ain't the way it works. That's like GM offering 0% and no rebate on a Silverado, and Toyota offering 3.9% and a $4,000 rebate on a Tundra, and being mad at GM for not offering 0% AND a $4,000 rebate.

P.S.: An insurance policy covering loan defaults would be more expensive than an insurance policy just covering the collateral from theft, flood, fire or other damage.

Who said anything about the government? The government's only role here is to require that insurance be from someone other than the loan company. The loan company can simply offer some independent insurance company options or the buyer is free to provide their own. The lender just needs to specify what kind of coverage is required. The buyer then provides proof of coverage. This prevents lenders from gouging on insurance rates and hiding so-called "interest free" costs.

Now if lenders wanted to offer insurance that gets rebated back to the buyer when the loan is paid off, I could get behind that. Many short-term loans at big box stores sorta work like this. No interest as long as you pay on time; be late and it'll cost you dearly. I'm OK with this tactic as long as it's clear up front.

Cost of insurance against loan default vs. costs to cover loss will vary from situation to situation. Insurance is all about assessed risk. Risks are very unique to each situation. In some cases the risks of default are higher. In others, the risk of loss are higher. Risk: This is what all insurance is about, including healthcare.

 

[TomSeller]

Other companies finance tractors at 0%, and they don't require insurance, but you want to use houses, and automobiles to suggest the Kubota program is reasonable?
.

GManBart,
When you buy the Kubota you've always wanted, maybe you should finance it elsewhere and pay cash.

 

[arlen4720]

GManBart,
When you buy the Kubota you've always wanted, maybe you should finance it elsewhere and pay cash.

I had him figured for a closet John Deere guy.

 

[TomSeller]

I had him figured for a closet John Deere guy.

I am pretty sure GManBart will carry the LS flag no matter what. They are good tractors and he is a proud owner. It is just that if someone doesn't like Kubota's financing, finance it elsewhere and pay cash at the dealer. The best of all worlds.

 

[Poopdeck Pappy]

Who said anything about the government?

You did. I.e.,:

The government's only role here is to require that insurance be from someone other than the loan company.

See, I don't want the government involved in my tractor buying process. I want the free market forces to sort out bad ideas from good ones. If buyers don't like Kubota's policy of requiring insurance, they'll either go buy a different tractor or they'll finance it elsewhere. It's really that simple.

I'm in the homebuilding business. I've seen the government mandate that loans must be available to people who had no business borrowing money or owning a home. Those loans were called "subprime" loans. Then, when a huge number of the subprime loans went bad, the government targeted homebuilders and lenders for selling homes and making loans to people who had no business borrowing money or owning a home. :confused2:

Keep the government out of tractor buying. All they will do is regulate it completely to h-e-l-l and all the way back, and the cost of tractors will increase.

 

[GManBart]

GManBart,
When you buy the Kubota you've always wanted, maybe you should finance it elsewhere and pay cash.

Tom, after years of saving, and hard work, I can write a check for any Kubota made, and I still bought other brands (three times).

I gave the OP links to the info, and said I think it's ridiculous....nothing more. For whatever reason, a couple of you want to try pointing the discussion at me...there is no need for that, and it adds nothing to the thread. Suggesting I didn't buy what I really want, or anything else is ridiculous.

It's kind of curious that when you guys can't address actual facts, you start posting stuff like this.

 

[Poopdeck Pappy]

. . . It is just that if someone doesn't like Kubota's financing, finance it elsewhere and pay cash at the dealer. The best of all worlds.

Ding, ding, ding. We have a winner. Well said.

 

[GManBart]

I'm done with this discussion. I'm not willing to continue beating myself in the head with a hammer on the premise that it will feel good when I stop.

Reminder?ou were the one to engage on the topic, so acting like you're bothered by it now is a bit much.

The OP asked for info, I gave him the links, and said I think it's ridiculous?othing more than an opinion. You replied, and disagreed, making the case that my opinion is wrong?so that's where we are. It just happens that my opinion matches the practices of many other tractor brands/finance companies, as well as many other kinds of finance companies, and all the debate in the world won't change that fact.

 

[Gary Fowler]

Well after reading all the opinions and rhetoric, I can say that I have never seen ANY finance company that doesn't require insurance of some type to insure that the loan is paid off if borrower doesn't pay. As far as I know, you can furnish the insurance thru anyone that meets the lenders requirements. To my knowledge the government doesn't require that the lending agency cant provide the insurance(KTAC, GMAC etc). Homeowner's insurance will suffice for the lender as long as it is sufficient to cover the load amount. HOI is generally limited to 10% of the insured value of the home. When I bought my LS, my home insurance would not cover the $35K 0% interest loan so I had to get additional coverage. Allstate insures my home and autos but their rate was higher than what LS insurer quote was so I just got it with them. NOW that it is paid off, I don't carry any separate insurance policy on any of my tractors since the HOI will cover about $28K. I can absorb any loss above that and accidental loss or theft is going to be about 0 incident rate.

I would almost bet that a finance company that doesn't require you to have insurance has it hidden in the loan cost. No financially responsible company is going to loan you money and not be assured that they will get their money back. Credit card companies (I don't consider them to financially responsible) get their money from defaults by charging 30-40%interest on unpaid balances which is approaching loan shark rates. This high rate is indicative of what they are loosing to unpaid credit card debt from dead beat card holders. It is their own fault by giving credit to non-credit worthy individuals, but then everyone pays for their loss.
I only use my credit card to buy off internet sites and then pay it off when billed. That give me a little leeway in reproaching anyone who might present fraudulent services.
As for automobiles, I carry insurance on them even if they are paid off just to protect myself from the other guy. I have too much to loose without having some liability and uninsured motorist insurance

 

[art]

The Kubota policy is a good one and if you do pay off your tractor, you don't have to pay for the it anymore! We have had some people want to have it extended past the contract length and the Kubota company does not own it! It is written by another company but handled by Kubota.
We have seen it work, we have seen damage that the new owners didn't have the money to fix and it actually took them longer to get the 250 dollar deductible together then the repair!!!
I've only seen a couple of policies that can come close to matching it but they did not pay replacement value!