promotional rates

[Carter Bamboo]

Dealer today said they thought the 0/60 may return next month.

 

[Snead Tractor LLC]

Thanks JT for crunching those numbers. OK, it is what it is. Next ... how do we "average" this? Flat $450 for all sales? From a $11000 BX to $34000 L?
Is it merely a flat fee? Need more clarification. John's example was on a $18000 purchase. What about those higher, those lower?

Its not a flat fee, its a percentage. If the tractor is $34,000 like you quoted, that tractor will cost you 34,000 for 42 months, or $35,020 for 60 months. The true program where there is no price increase is 0% for 42 months. However, if you want to extend your payments out to 60 months you still can, but there is a price difference in the tractor. Since this came out our customers still seem to lean more toward the 0% 60 months. Plus they are told up front about the cost difference.

 

[bp fick]

Thank you. It is actually very clear and understandable. It would appear to be a choice between:
0 for 42 months
5% (give or take) for 60 months

Perhaps if simply expressed that way, instead of expressing it as the price of the tractor changing, would make more sense. I dunno.

Final question. What's the cash price? Same as 42 month price or even lower?

 

[JOHNTHOMAS]

Thank you. It is actually very clear and understandable. It would appear to be a choice between:
0 for 42 months
5% (give or take) for 60 months

Perhaps if simply expressed that way, instead of expressing it as the price of the tractor changing, would make more sense. I dunno.

Final question. What's the cash price? Same as 42 month price or even lower?

I saw on another post that it was quoted as 3% for 60 months and 0% for 42 months. That's pretty straight forward and up front. The $450 on $18000 is a bit under 3% so either one of them could be a rounded up or down number. This is really rather straight forward and has been used in the north and south for car sales for a few years. So many months financed at a certain rate with the rate increasing as the number or years financed increases. My credit union does this method of higher interest for more years and several car purchases over the past several years have been financed this way either through banks or auto manuf own loan companys. I do believe the 0% for 60 months with Kubota will reappear soon.

 

[bp fick]

JT, you are so right. This is clearly been in the public eye for a long time. Autos have been marketed this way for a long time. For example:

3% for 48
5% for 60
7% for 72

I believe the marketing people in the tractor world just need to state stuff in a similar fashion, which would hopefully be clear for everyone. NO confusion.

Saying the tractor price "changes" based on this or that, might be confusing to some, I believe. Hopefully everyone understands what the total financed price of the tractor is, if taken to full term, under the various rates. In the hypothetical examples it might be:

18000 for cash
18450 for 48
19300 for 60
21000 for 72

This gives the true purchase price. This is what it costs the consumer to purchase, given these hypothetical options. Publishing or openly disclosing the total financed cost is helpful to the consumer. I don't believe any of this need be confusing.

 

[ovrszd]

JT, you are so right. This is clearly been in the public eye for a long time. Autos have been marketed this way for a long time. For example:

3% for 48
5% for 60
7% for 72

I believe the marketing people in the tractor world just need to state stuff in a similar fashion, which would hopefully be clear for everyone. NO confusion.

Saying the tractor price "changes" based on this or that, might be confusing to some, I believe. Hopefully everyone understands what the total financed price of the tractor is, if taken to full term, under the various rates. In the hypothetical examples it might be:

18000 for cash
18450 for 48
19300 for 60
21000 for 72

This gives the true purchase price. This is what it costs the consumer to purchase, given these hypothetical options. Publishing or openly disclosing the total financed cost is helpful to the consumer. I don't believe any of this need be confusing.

Sadly, today few consumers care about any of this. Their primary concern is the amount of the monthly payment. A small portion of them even ask for the length of the terms. This is from a close friend that is a car salesman.

 

[JOHNTHOMAS]

Sadly, today few consumers care about any of this. Their primary concern is the amount of the monthly payment. A small portion of them even ask for the length of the terms. This is from a close friend that is a car salesman.

That's not just today. For several years car sales people have told/asked me how much I'd pay a month and they'd make a deal and didn't want to talk about sales price, rates or term of payments. I won't drive a vehicle till we work out money deal, I tell them I've picked vehicles I'm interested in and which one I buy is all based on the price. If they give a price in my range, then I drive the vehicle, then come back and negotiate a final deal. I've had some tell me I have to drive it or they won't negotiate, I just laugh and tell them that's nice and I'll check with them the next time I'm hunting for a vehicle and start for my car. Never had any yet that stuck to their guns and didn't negotiate without the drive.

 

[smilykubota]

I guess I got lucky on B3200HST to get the 60mt 0%.
However they require insurance on the loan until it is paid off.
Mine is like 1250 for the whole 5 year term.

Did everyone else pay this?
Is it covered by homeowner's insurance by any chance?

 

[bp fick]

I guess I got lucky on B3200HST to get the 60mt 0%.
However they require insurance on the loan until it is paid off.
Mine is like 1250 for the whole 5 year term.

Did everyone else pay this?
Is it covered by homeowner's insurance by any chance?

This insurance issue has been covered many times here. Kubota is no different than any other borrower. They want "their" tractor insured. It isn't really ours until we have it paid for, if you know what I mean.

Home Owners policies seem to be all over the map. But GENERALLY no, your basic policy isn't designed to cover a tractor of this expense. A couple of options, especially for liability sake. Get a rider on your home owners. Or, get a separate Inland Marine type policy, similar to what you'd put on your boat, motorhome, or other big ticket item. Kubota's insurance comes with some perks, however. There is a seemingly built in repair aspect on certain items that a lot of guys have benefitted from greatly.

 

[bp fick]

Dealer today said they thought the 0/60 may return next month.

Speculative. We shall see. I'm not holding my breath.