Buy a model sitting on the lot for over a year??

[mrennie]

If I had the money to buy brand new I also wouldn't want to buy a "new" tractor that sat on the lot for years and had paint starting to fade. When you have the coin for new you want to get your money's worth.

Having said that, I bought my first tractor last year and had set a budget and "new" wasn't in the cards for the $$$ I had.

I was looking for a used low hour B21 and found a demo B26 with 27 hours that was just over a year old. The price was within reach and I bought it. For all practical purposes I have a brand new machine that I never could have afforded otherwise. BH bucket had been scratched up from use but the dealer repainted it. At the time I thought the paint job didn't look that great, but last weekend I used the BH for 6 hours and the paint is all worn off, so it really didn't matter.

In my case I am happy there are demo's/NOS units out there. If you can get the price down to make the deal worthwhile then go for it. If not, pay the bit extra for a "fresh from the crate" unit.

 

[rjkobbeman]

Something that complicates the issue is the 0% financing. If you can get NOS you also get the good financing.

If you have to buy used, you don't get the free financing... which can sometimes mean you are paying more than new. It all depends on the situation.

 

[Patches]

Something that complicates the issue is the 0% financing. If you can get NOS you also get the good financing.

If you have to buy used, you don't get the free financing... which can sometimes mean you are paying more than new. It all depends on the situation.

There is no such thing as "free". Tell your salesman you have the cash-in-hand, get his best price and compare it to your free financing

 

[rjkobbeman]

There is no such thing as "free". Tell your salesman you have the cash-in-hand, get his best price and compare it to your free financing

Cash or Kubota financing does not change the price of the tractor.

This has been discussed and debated ad-nauseum. The dealer does not care HOW you pay.

 

[beppington]

If I had the money to buy brand new I also wouldn't want to buy a "new" tractor that sat on the lot for years and had paint starting to fade. When you have the coin for new you want to get your money's worth.

Having said that, I bought my first tractor last year and had set a budget and "new" wasn't in the cards for the $$$ I had.

Looking at new tractors ... What is this "budget" you speak of. :confused2:

 

[beppington]

Cash or Kubota financing does not change the price of the tractor.

This has been discussed and debated ad-nauseum. The dealer does not care HOW you pay.

Well that is certainly different than New Holland & Mahindra. I have a quote in-hand right now for "finance" pricing, both having 0% offers right now. No hard numbers, but the sales guy said pricing for cash is lower.

You're saying Kubota dealers or Kubota manufacturing doesn't care whether you give them 20 grand now or 20 grand over 4 years??????

Bologna!!! Can not be. I'd guess they're just not seeing enough people walking in with 20 grand cash to bother talking about it/ advertising it.

 

[bp fick]

Some color dealers do care about cash vs credit. The difference in price is usually and hopefully stated right up front.

Kubota, in my buying from them twice, with the zero feature, the price was absolutely the same either way. The dealer couldn't care less. I reckon Kubota credit pops the funds into his account right quick. So, speculate if you wish to about it, that's fine. I don't need to guess.

 

[whodat526]

when we sold nh and fords the cash price was always less than if it was needing to be financed no matter what the % cause all the paper work involved with financing and also if payed in cash the dealer gets his profit right then and didn't have to wait for the finace company to pay

 

[Patches]

Well, I guess I mis-spoke, at least in Kubota's case, about money talking. The only thing I can determine from this info, is "everyone" overpays for a Kubota, because no company, no matter how well positioned, is going to "loan" you $15,000/$20,000 for 60 mths. gratis; someone's going to pay for this defered payment plan, and I would have to say, after this revelation, it's everybody who purchases

 

[bp fick]

Well, I guess I mis-spoke, at least in Kubota's case, about money talking. The only thing I can determine from this info, is "everyone" overpays for a Kubota, because no company, no matter how well positioned, is going to "loan" you $15,000/$20,000 for 60 mths. gratis; someone's going to pay for this defered payment plan, and I would have to say, after this revelation, it's everybody who purchases

Don't get me wrong, it might be possible, for whatever reason, to get a few dollars off with cash. You'd also save the "account setup" fee, but that's only like $50.

During a world wide major recession, that borders on a depression, the current interest rates of money is sooooo low, I mean so low, that what else should a company like Kubota do with it? Seriously, the return on cash is less than 1% on any short term instrument. We aren't talking about Kubota taking a huge loss, or having to underwrite a huge subsidy on money as we would if interest returns on cash investments were even 4%.

It has proved to be a good business model, imo. Instead of having cash rotting somewhere at 1%, Kubota is instead keeping their factories and pipelines humming during these tough times. They keep profits flowing from tractor sales. They keep or expand market share. They increase their base for parts sales and service. To me, when, from a holdings point of view, it is virtually worthless to hold cash, better to do what Kubota is doing. To me, it is a smart marketing gimmick that keeps their company running and buyers buying. Frankly, it's about the only corporate sales card to play in these times. Lowering prices? That's anathema.

Can anyone honestly imagine someone paying 7% interest on a tractor right now? What would that do to sales and thus profits? That level of interest rate would absolutely kill sales and floor traffic.