Financing Kubota Financing

[JOHNTHOMAS]

Are you sure about that wrt Auto Dealers , John ?

Don't know what you are asking? New car dealers in US "sort" of buy the new cars from the Manuf and are paying interest "floor plan" on the vehicles. They have an "invoice" with cost of auto. At the end of the year they get a percentage back from the Manuf called "hold back" say 2%, different per car/company.
Franchised Kubota Tractor dealers do not "usually" buy the tractors (in US). The Company owns the new tractors on the lot for a period of time. Don't know how it's determined how many Kubota tractors a dealer can have, a dealer will have to give further details which I'm sure they won't. My understanding is that eventually the tractor will be moved to another lot either thru dealers trading them (using Company Computer program showing availability) or Company "arranges" the transfer from a dealer that hasn't sold it to a dealer with a sell or maybe a dealer that has a better sales record. Again I don't know those specifics, I just know Barlows says he can get from another dealer a specific tractor, sometimes and sometimes he says he has to get it from the Warehouse (Company). I also understand that the Company will not leave a tractor with a non-selling dealer forever. I think after a certain period of time it's return or buy.
Messicks (Great major Kubota Dealer) can dispute/correct any errors if they deem appropriate.

 

[MessickFarmEqu]

We are pretty much just like car dealers, but our 'free' time of having inventory is longer. We get anywhere from 3-12 months, after that point we start paying interest on it. Its partly because of the seasonality of the business. Typicaly car dealers have a very short period (if any at all). You can have as much equipment as your credit line will allow. We keep about 200-250 Kubota's at a time.

We do sell one line of specialized harvesters that the company does own the inventory, but what they do is reinvoice those machines every year and tack the interest cost to the invoice. We don't carry the debt load, but we still need the turn over to manage our profitability.

The Manufacturer does not do anything with our inventory once its shipped. Any movement is one dealer calling another and asking a favor. They don't typically pay trucking or encourage transfers in anyway. There are some dealers who make a habit of trying to time price increases and happily sit on inventory thats year old to gain a price advantage. Other than managing your own floor plan and business relationships, there is no requirement for one dealer to help out another.

A straight hold back is uncommon. Many companies do a bonus to the salesmen, or pay volume bonus's on the quater or year. We've never had a straight percentage hold back that I've seen.

This is not about Kubota specificly, more the norms of equipment companies.

 

[JOHNTHOMAS]

We are pretty much just like car dealers, but our 'free' time of having inventory is longer. We get anywhere from 3-12 months, after that point we start paying interest on it. Its partly because of the seasonality of the business. Typicaly car dealers have a very short period (if any at all). You can have as much equipment as your credit line will allow. We keep about 200-250 Kubota's at a time.

We do sell one line of specialized harvesters that the company does own the inventory, but what they do is reinvoice those machines every year and tack the interest cost to the invoice. We don't carry the debt load, but we still need the turn over to manage our profitability.

The Manufacturer does not do anything with our inventory once its shipped. Any movement is one dealer calling another and asking a favor. They don't typically pay trucking or encourage transfers in anyway. There are some dealers who make a habit of trying to time price increases and happily sit on inventory thats year old to gain a price advantage. Other than managing your own floor plan and business relationships, there is no requirement for one dealer to help out another.

A straight hold back is uncommon. Many companies do a bonus to the salesmen, or pay volume bonus's on the quater or year. We've never had a straight percentage hold back that I've seen.

This is not about Kubota specificly, more the norms of equipment companies.

Thanks.:thumbsup: Straight from the horses mouth or the colts mouth.

 

[OrangeRidge]

Sorry , terminology ; wrt --- with regard to .

 

[crazyal]

Here's the link to Kubota's rebates if you don't use the 0% finance.

Finance Customer Rebates

 

[Idahoguy]

New guy here, so if this has been discussed already please excuse me. I just bought a M series......negotiated the best price, then discussed the financing with the dealer. I took the 0% financing, not that I needed it, but because their money is good for my cash flow. I also elected to do annual payments because I don't like to mess with the monthly payments and we get paid annually and the timing of my payment to Kubota fits with my income payment. Besides with no interest accruing it doesn't cost me any more. It does take 20% down to have them do the annual payment. Bottom line is the dealer didn't flinch, try to up the price or do anything different when I said I wanted to take advantage of the 0% financing. The best deal you can get is the one you're happy with.

 

[tjwoody]

I bought a BX2360 in October with 60" MMM, price was $11500, about $840 in tax. Financed with Kubota for 0%. Additional cost for doing so $48 for recording fees and $601 for Kubota insurance (60 month). Final cost a little over $13000. The only significant added cost is the KTAC insurance which seems to be a good buy considering all that it covers. Run into a tree and break an axle - covered. Covers almost everything that can happen to your tractor to cover the financing agency.