0% doesn't always mean 0%

[lambchop]

I had a very similar experience at my local Mahindra dealership. I received what I thought was a fair price for the 30 hp tractor but as soon as I mentioned that I wanted the 0% financing which was advertised on the posters at the dealership, the price went up about $1500. In addition, I had to come up with 20% down even though I have a very good credit rating.

At this point, I was somewhat irritated and decided to look at other brands. The Kubota dealer gave me 0% upfront in the price and I only needed a 10% down payment. The salesman said Kubota tractors hold their resale value whereas the Mahindra's don't, thus the difference in down payments. He then took me out to lot and showed me two used Mahindra's that were less than 4 years old but had turned pink and looked about 10 years old.

He further informed me that Kubota builds all their tractors but Mahindra imports tractors from India, Japan, Korea and China. Kubota also makes their own major attachments such as loaders, backhoes and mowers whereas Mahindra relies upon OEM's to provide their attachments.

I am planning on keeping my tractor for 7-10 years and receiving service down the road is important. Kubota has been in the area for over 30 years whereas there have been 3-4 Mahindra dealers that have either dropped the line or gone out of business. I did like the 5 year warranty offered by Mahindra but found out that the last two years of the warranty were from a third party and not Mahindra and I wasn't comfortable about that.

I am very happy I bought the Kubota over the Mahindra as I feel my tractor will hold its value and service and parts will be available when and if I need them.

 

[LAWALLSTRACTOR]

I had a very similar experience at my local Mahindra dealership. I received what I thought was a fair price for the 30 hp tractor but as soon as I mentioned that I wanted the 0% financing which was advertised on the posters at the dealership, the price went up about $1500. In addition, I had to come up with 20% down even though I have a very good credit rating.

At this point, I was somewhat irritated and decided to look at other brands. The Kubota dealer gave me 0% upfront in the price and I only needed a 10% down payment. The salesman said Kubota tractors hold their resale value whereas the Mahindra's don't, thus the difference in down payments. He then took me out to lot and showed me two used Mahindra's that were less than 4 years old but had turned pink and looked about 10 years old.

He further informed me that Kubota builds all their tractors but Mahindra imports tractors from India, Japan, Korea and China. Kubota also makes their own major attachments such as loaders, backhoes and mowers whereas Mahindra relies upon OEM's to provide their attachments.

I am planning on keeping my tractor for 7-10 years and receiving service down the road is important. Kubota has been in the area for over 30 years whereas there have been 3-4 Mahindra dealers that have either dropped the line or gone out of business. I did like the 5 year warranty offered by Mahindra but found out that the last two years of the warranty were from a third party and not Mahindra and I wasn't comfortable about that.

I am very happy I bought the Kubota over the Mahindra as I feel my tractor will hold its value and service and parts will be available when and if I need them.

Lambchop,
30 years ago Kubota went through the same growing pains that Mahindra USA is going through, but they have overcome it as Mahindra is overcoming it today. Also there is some truth in what your Kubota told you about Mahindra, but there is also plenty in what he told you that isn't truthful. And I have seen Kubota's that were stored outside that weren't so pretty either.

 

[sweettractors]

If you get 0%, you can bet that has been covered in the product being sold. Ken Sweet

 

[DavesTractor]

I had a very similar experience at my local Mahindra dealership. I received what I thought was a fair price for the 30 hp tractor but as soon as I mentioned that I wanted the 0% financing which was advertised on the posters at the dealership, the price went up about $1500. In addition, I had to come up with 20% down even though I have a very good credit rating.

At this point, I was somewhat irritated and decided to look at other brands. The Kubota dealer gave me 0% upfront in the price and I only needed a 10% down payment. The salesman said Kubota tractors hold their resale value whereas the Mahindra's don't, thus the difference in down payments. He then took me out to lot and showed me two used Mahindra's that were less than 4 years old but had turned pink and looked about 10 years old.

He further informed me that Kubota builds all their tractors but Mahindra imports tractors from India, Japan, Korea and China. Kubota also makes their own major attachments such as loaders, backhoes and mowers whereas Mahindra relies upon OEM's to provide their attachments.

I am planning on keeping my tractor for 7-10 years and receiving service down the road is important. Kubota has been in the area for over 30 years whereas there have been 3-4 Mahindra dealers that have either dropped the line or gone out of business. I did like the 5 year warranty offered by Mahindra but found out that the last two years of the warranty were from a third party and not Mahindra and I wasn't comfortable about that.

I am very happy I bought the Kubota over the Mahindra as I feel my tractor will hold its value and service and parts will be available when and if I need them.

You had a good Kubota salesman and a poor Mahindra one, but some of what he said is true. Kubota is to be admired in many ways. But Kubotas fade if left in the sun and never cared for, they just fade to light orange. Red fades to pink...unfortunately. Mahindra did reformulate the paint for the tractors and loaders about 4 years ago and we think the fading will be much, much better. After all, all red cars aren't pink in 5 years.

On the 0%, we can do 0% with nothing down in many circumstances, but the more you finance at 0%, the more costly it is in the background, so some dealers set a higher down payment. It has nothing to do with resale value, that made me chuckle.

I guess burying the 0% into the price and not offering any discounts for the buyer with $100 bills feels better to some.

The good news is that Kubota is a good tractor, so even though the Kubota dealer feed you some nonsense, you will still be fine.

The third party warranty deal is invisible to the dealers. We submit the claim via Mahindra and it is all handled just like the first 3 years, so if there is some re-insurance in the background for the last two years, who cares?

And as far as attachments, we can put Kobota attachments up against Mahindra's OEM units made by Bradco, KMW and Amerequip without worry, and these are made in the USA. There are a lot of USA workers glad that Mahindra buys a lot of USA made product for their tractors. Is it cool that Kubota builds a lot of their own? I think so, but it does not mean they are better.

 

[teg]

You had a good Kubota salesman...

*maybe*

...The Kubota dealer gave me 0% upfront in the price and I only needed a 10% down payment...

Lambchop, when did you have this buying experience??? There was a time where kubota didn't give a discount for cash... we wanted to use cash in 2005 and it didn't matter how we were paying for it, no discount (don't know if it was add in - I know it wasn't cheap ). So we took the 0% on about half the cost.

I don't think I could afford to buy the same tractor now. A friend of mine had bought a kubota since he could afford the payments at the time. It's paid off and he doesn't use it much - but plans to in the future!!!

 

[MAX28XL]

HI what credit score do you need with Agricredit ?

 

[DavesTractor]

HI what credit score do you need with Agricredit ?

I don't think they have an official answer, because if you put 50% down and financed for 24 months they would probably take a lower score then $0 down and 60 months.

700's are generally fine, 500's aren't. Not sure where the break is.

 

[lambchop]

Lambchop,
30 years ago Kubota went through the same growing pains that Mahindra USA is going through, but they have overcome it as Mahindra is overcoming it today. Also there is some truth in what your Kubota told you about Mahindra, but there is also plenty in what he told you that isn't truthful. And I have seen Kubota's that were stored outside that weren't so pretty either.

Hello Galen,

Thanks for your input. I am sure any piece of equipment that sits outside for years will fade. Kubota orange fades to light orange whereas the Mahindra red turns pink. My concern about the new Mahindra tractors on the dealer's lot was that the loaders were already pink and the tractors were a lighter shade of red but hadn't turned pink yet. I have a "barn" so it didn't make sense to purchase a weathered tractor. Most likely I will have this tractor for 10 years or more and from a service and parts perspective, I felt that the local Kubota dealer will be in business to service my tractor if the need arises. The Kubota salesman did not say anything negative about the Mahindra and he encouraged me to do my homework so that I was comfortable. He did correctly point out that Kubota manufactures their own tractors and Mahindra is in fact selling a Mitsubishi built product. After the 0% interest misunderstanding on the Mahindra price and reading about Mahindra's legal issues and lawsuits on their trucks, I think I made the right choice.

 

[lambchop]

*maybe*
Lambchop, when did you have this buying experience??? There was a time where kubota didn't give a discount for cash... we wanted to use cash in 2005 and it didn't matter how we were paying for it, no discount (don't know if it was add in - I know it wasn't cheap ). So we took the 0% on about half the cost.

I don't think I could afford to buy the same tractor now. A friend of mine had bought a kubota since he could afford the payments at the time. It's paid off and he doesn't use it much - but plans to in the future!!!

Hello TEG,

I purchased the tractor around March 10th of 2012.

 

[lambchop]

You had a good Kubota salesman and a poor Mahindra one, but some of what he said is true. Kubota is to be admired in many ways. But Kubotas fade if left in the sun and never cared for, they just fade to light orange. Red fades to pink...unfortunately. Mahindra did reformulate the paint for the tractors and loaders about 4 years ago and we think the fading will be much, much better. After all, all red cars aren't pink in 5 years.

On the 0%, we can do 0% with nothing down in many circumstances, but the more you finance at 0%, the more costly it is in the background, so some dealers set a higher down payment. It has nothing to do with resale value, that made me chuckle.

I guess burying the 0% into the price and not offering any discounts for the buyer with $100 bills feels better to some.

The good news is that Kubota is a good tractor, so even though the Kubota dealer feed you some nonsense, you will still be fine.

The third party warranty deal is invisible to the dealers. We submit the claim via Mahindra and it is all handled just like the first 3 years, so if there is some re-insurance in the background for the last two years, who cares?

And as far as attachments, we can put Kobota attachments up against Mahindra's OEM units made by Bradco, KMW and Amerequip without worry, and these are made in the USA. There are a lot of USA workers glad that Mahindra buys a lot of USA made product for their tractors. Is it cool that Kubota builds a lot of their own? I think so, but it does not mean they are better.

Hello Dave's Tractor,

Thank you for the information. The Kubota salesman encouraged me to do my research on Kubota and Mahindra so I did. From what I could determine, Kubota builds the majority of the their tractors in Japan and some models in Thailand at a Kubota factory they recently opened. I don't believe Kubota sell their tractors to any other companies. Mahindra builds tractors in India and China and also receives some models from a Korean company and from Mitsubishi in Japan. Kubota also manufactures their major attachments such as loaders at their plant in Georgia where they also produce lawn mowing units and their RTV's. So Kubota has the advantage of designing and manufacturing their attachments and Mahindra has to source out all of their attachments and rely on another company's engineering. It also reasonable to think that parts availability would be better from Kubota than they would be from Mahindra. Kubota has four parts centers in the US and Mahindra only has one. From the information I could get over the internet and from a book called the Official Tractor Guide, a five year old Kubota would have a little better resale value than a Mahindra but I am sure condition of the tractor is most important determining factor. I think in my final analysis, both companies have good tractors. I decided on purchasing the Kubota because the local Kubota dealer has been in business for about 30 years and I anticipate he will be in business if my tractor needs service in the years to come.

 

[DavesTractor]

Hello Dave's Tractor,

.... I decided on purchasing the Kubota because the local Kubota dealer has been in business for about 30 years and I anticipate he will be in business if my tractor needs service in the years to come.

Lambchop,

Buying a good quality unit from a reputable local dealer makes a lot of sense to me. We could slice and dice your analysis, because there are some issues to speak about, but when it comes right down to it, Kubota has a lot to offer and we all wish you the best.

Just take good care of it in case you ever want to trade it in on a new Mahindra....

Dave

 

[Richard R.]

a red green fan !!!!

 

[tlbuser]

I agree to some extent, but when financing comes into play, the only way to compare from one brand to another is to decide how many months you want to pay for it in, and compare the monthly payment for that many months. Between % rate, buy downs, and rebates, it only leaves the monthly payment for x number of months as an accurate comparison.

Cash price = cash price, easiest way to get a head to head comparison. If a 30 hp hydrostat brand x is cash priced at 11,000.00 and brand y 30 hp hydrostatic is 11,000.00 and brand z is 11,500.00. What is different ?

 

[LAWALLSTRACTOR]

Cash price = cash price, easiest way to get a head to head comparison. If a 30 hp hydrostat brand x is cash priced at 11,000.00 and brand y 30 hp hydrostatic is 11,000.00 and brand z is 11,500.00. What is different ?

If you are financing, the only true way to compare is to get the monthly payment and multiply it by the chosen number of months. Mo Payment X loan duration in months = comparable number.

 

[teg]

Cash price = cash price, easiest way to get a head to head comparison...

Hidden costs, Smoke and Mirror crap *IF* you finance - which is the question as the title implies; "0% doesn't always mean 0%".

 

[DavesTractor]

Hidden costs, Smoke and Mirror crap *IF* you finance - which is the question as the title implies; "0% doesn't always mean 0%".

Actually I will finance people at the cash price, it just isn't a subsidized low interest rate. So when I advertise a tractor for $15,000 with all cash discounts applied, the same price applies at the 5.79% rate, or whatever the standard rate is at the moment. If a person wants 0%, the rebates/discounts go away and the tractor price goes up to where it was before we discounted it down for the cash buyer.

 

[Richard R.]

I just pulled the trigger on the 5035 with the Ml 130 FEL. and as is posted here. I found out that 0% is not 0% the price of the tractor was $31,345.00
if I used the 0% they took $1,000. off
If I used the 4.25% financing they took $2,000. off
If I paid cash they take $3,000 off which makes the tractor $28,345. in addition to that savings I don't have to carry there insurance at $1,475. and I save there credit procesing fee of $250. So by paying cash I saved $4,725.00 Now if you say I don't have that kind of cash. you can still get your own loan from you credit union and carry the insurance on your home insurance. as long as you give them the check there paid off !!!!
Richard

 

[tedhrs]

Here is my dealings so far with the interest and payments etc.... All of this based on a 4035 pricing wise:

Dealer can give me a base price of say $25000 for cash (pay them a check, no matter where it comes from, but take your financing through 3rd party in to consideration - mine was going to be 3.5% for 60 months, so total for me would end being $27288 total at the end but a monthly payment of $455)
Add a $1000 to the price bringing to $26000 for the rate of 2.99% for 72 months (breaks down to a total of the tractor being $28,434 when done with a monthly payment of $395)
Add another 1000 to that price bringing to $27000 for the 0% for 60 months (total of tractor bening $27000 all said and done with a monthly of $450)

per their program for getting 0% for longer terms, there is a buy down, so lets take that under consideration next:
Take your $27000 price and add on another $1200 for rate buy down for an 84 month term, this would bring your total tractor price to $28200 with a monthly payment of $336.

Obviously if you can for the money for the 0% for 60 you will be seeing it at the cost with a higher monthly payment than that at the 0% for 84 months. What you have to think about is your budget. Can you suck it up and pay the higher monthly or is it worth it to you to pay an extra $1200 to get a monthly payment in your budget.

 

[kootch88]

Bought a p/u last week and negotiated a cash price since I already had financing. Dealer still matched my 1.9% for up to 72 months (only did 48). A lot of discussion has been had that cars are no different, if you finance you pay more. Just pointing out that that is not the case and never has been in my experience buying new vehicles over the past 30 years. Tedhrs did a nice job showing the 0% still works out nicely as a total package.

 

[tedhrs]

Funny thing is....just made me think of not buying a 4035 based on this breakdown. Am now looking for a little less tractor.