Financing Kubota Financing

hhjpg0 · Jan 9, 2012

Does anyone know about Kubota financing? I had a dealer tell me that Kubota adds a 2% fee into the financing so its not really 0% for 48 months. Anyone know if this is true?
Thanks,

abeal · Jan 9, 2012

There currently is a discount/rebate depending on model if you pay with cash, so essentially it is not a true 0%.

TractorTidy · Jan 9, 2012

There is usually never a true or free 0%. It has to be built into the price somehow. Finance compoanies charge the manufactures to do so.

KeithInSpace · Jan 9, 2012

I know it was a long time ago (beginning of '05), but I purhcased my tractor and implements for $15k, paid cash for $10k, and financed $5k.

There was something about the 0% deal that turned us off...we actually did Kubota financing for 4 years at 2.9% or something like that. For the life of me, I don't remember what the issue was, but I coudn't get past it.

My brother is financing $30k at 0% and has no qualms with it.

Of course, I paid off my tractor in about a year, so it was a very small amount to pay in interest. No biggie.

s219 · Jan 9, 2012

When I bought my B2920 in late December, there was between $700 and $1050 discount for paying cash. You don't get that when financing.

If financing, note that they will require you to buy insurance on the tractor while it's under the loan. This is about $15/month for a B-series. Not a bad idea anyhow if you plan to transport your tractor or use away from your home property.

bigbull338 · Jan 9, 2012

when i bought my tractor in 2010.the dealer talked me into going through kub on their 0 0 0 financing.i applyed an was turned down because i pay cash for everything i buy.so i called my banker,an she said write the check.so i went through my bank.

hhjpg0 · Jan 9, 2012

TractorTidy said:
There is usually never a true or free 0%. It has to be built into the price somehow. Finance compoanies charge the manufactures to do so.

That's not entirely true. You actually can get true 0% financing. You just have to be aware of how the business is being done. Some companies actually do a true 0% financing. All you have to do is ask for an amortization schedule to verify how its being processed.

abeal · Jan 9, 2012

hhjpg0 said:
That's not entirely true. You actually can get true 0% financing. You just have to be aware of how the business is being done. Some companies actually do a true 0% financing. All you have to do is ask for an amortization schedule to verify how its being processed.

Yeah when I bought mine about 2 years ago it was 0% and there was no discount for cash. That is how I basically went from initially planning to buy a riding mower, to a BX to finally buying the B.

JOHNTHOMAS · Jan 9, 2012

I just paid off a 42 month 0% loan with Kubota on a F2680. At that time the price was the same cash or finance. In that case it is a true and actual 0%. I think the Japanese Gvmnt is loaning the money to Kubota to stimulate sales. I now have a 48 month 0% loan on a F3080 and the price was the same cash or charge and have about 30 months left on that contract. I also have a 60 month loan at 0% on a BX25 and it is a true and actual 0% loan with about 36 months left on it. I also have a 60 month 0% loan with Kubota on a B2320 with about 50 months left on it and it is not a true 0% loan because there was a $700 discount/rebate that would have been taken off of the sale price if I had paid cash.
Kubota did have true 0% loans at certain times and may again one day but currently it is not truly 0% but it is a really low figure. Oops, I forgot my RTV 1140 which was a 50 month true 0% because there was no cash discount on it and I have about 35 months left on it.
I have purchased Kubotas insurance on the B2320 and the RTV1140 since they will be used off my property but my Homeowners has covered the others at no cost above my regular premium. The Kubota Insurance is very good at a very good price, not as good as free but good if you can't get it free.
Lots of people don't understand financing and say lots of things that aren't true. I'm now retired but I was at one time a Gvmnt Auditor and do understand financing and the principle of using my money and using other peoples money and knowing when to do which one.

As long as I can get free money I'll take it and I'll even take it if it's cheaper than other places I'm paying interest to and use my cash to pay them off (car loans). I usually always finance 100% with Kubota when they are offering a true 0% even when I have equity in the tractor I'm trading in. Actually sold one Kubota and still made the monthly payments and kept the cash for other uses. That one is paid off now.

KYDan · Jan 9, 2012

I bought a new Kubota this August and the price was the same for cash or the financing at 0%. There was a caveat though. It you use the 0% financing you must carry Kubota insurance. Since they make money (most likely after all they are in the business to make money) on the insurance it offsets the 0% financing. But they can borrow money cheaply now, just like the U.S. banks.

timswi · Jan 9, 2012

KYDan said:
I bought a new Kubota this August and the price was the same for cash or the financing at 0%. There was a caveat though. It you use the 0% financing you must carry Kubota insurance. Since they make money (most likely after all they are in the business to make money) on the insurance it offsets the 0% financing. But they can borrow money cheaply now, just like the U.S. banks.

From what I've seen, Kubota's insurance is a relative bargin. I have my RTV insured through them due to financing...My long pad for BX also has a policy with them. $148 per year on the BX.

JOHNTHOMAS · Jan 9, 2012

timswi said:
From what I've seen, Kubota's insurance is a relative bargin. I have my RTV insured through them due to financing...My long pad for BX also has a policy with them. $148 per year on the BX.

Their insurance is very reasonable for the coverage provided.:thumbsup:

MHarryE · Jan 9, 2012

I got the same discount financed at 0% or cash, so I financed. They didn't say anything about having to use Kubota Insurance - mine is on my farm policy but maybe the dealer knew that from previous dealings so he didn't say anything. Recently sorting my paperwork for end of year I found a sales brochure in my packet touting Kubota Insurance but nothing about a requirement.

KubotaToy · Jan 9, 2012

I just bought a L45, dealer offered $1500 discount for cash. Choose to finance. Kubota insurance not required but I was asked to provide a copy of my policy that covers the tractor to Kubota before sale was complete.

daveshoot · Jan 9, 2012

I took the 0% and considered it a great deal- free money is always good. No mention of Kubota insurance that I recall.

Will_C · Jan 9, 2012

When I bought my B2620 in April 2009, I offered the dealer cash if it would make a difference...he said the price was the same-finance or cash.

Will

timswi · Jan 9, 2012

Will_C said:
When I bought my B2620 in April 2009, I offered the dealer cash if it would make a difference...he said the price was the same-finance or cash.

Will

Same thing when I bought all 3 of mine...They didn't care either way.

Howard1 · Jan 9, 2012

We just bought a new B2920 on December 28,2011. Either zero percent financing or $1050 off price for cash. Dealer quoted $16500 for tractor with FEL. We paid cash and he gave $1050 off that price and we paid $15450. Don't know if was good deal or not but here in North Georgia was the best we could do.

equipman · Jan 10, 2012

The current programs on most of Kubota's products offer 0% down up to 48 months. If you want to extend the 0% financing up to 60 months there is an additional 2% charge.

JiminGa · Jan 10, 2012

Howard1 said:
We just bought a new B2920 on December 28,2011. Either zero percent financing or $1050 off price for cash. Dealer quoted $16500 for tractor with FEL. We paid cash and he gave $1050 off that price and we paid $15450. Don't know if was good deal or not but here in North Georgia was the best we could do.

that's about 15% off, sounds good to me. :thumbsup: