Financing Issue(s) getting financed?

[hystyk24]

Its not their fault you didn't pay your mortgage , and if you default on one thing in their eye you could default on another obligation

I think you missed the point. Kubota would be in a much better position on the new loan then the current one which would be left in place for another two years if I bought nothing... There is no downside to writing the new loan as structured, moving another new unit, facilitating the sale of the mower and keeping a loyal customer happy... So, tell me the downside? Exactly...

 

[Trillium Farm]

Very interested in crazy stories anyone had with Kubota (or other's) financing process. One Kubota salesman told me a few wacky stories he had before I experienced first hand the way Kubota Central Loan wanted to structure my deal or deals in a way that just defied reason... I like the dealer very much, have a history with them, so did not want to cancel and walk away from units they ordered and a trade that they picked up and already sold a week earlier. This could have been very problematic for the dealer... They are delivering the main piece (RTV-X1140) today. I refused their financing, paid the balance in full and canceled the Z411 that was suppose to be part of the deal. Anyone experience one of these things that just make you shake your head? :mur:

Are we getting the full/whole story here?

 

[M5farms]

I think you missed the point. Kubota would be in a much better position on the new loan then the current one which would be left in place for another two years if I bought nothing... There is no downside to writing the new loan as structured, moving another new unit, facilitating the sale of the mower and keeping a loyal customer happy... So, tell me the downside? Exactly...

I understand what your saying but from a credit standpoint your toxic. I Have known several loyal customers over the years that have stiffed their bills to my company and ive had them say "I always paid my bills before" But if they buy anything from me now they pay cash. They blame us but its their fault for not doing what they should in the first place. Im sorry you had a foreclosure but you also have to look at the fact you were paying for equipment during this foreclosure when you could have sold that and maybe not lost your home then once on your feet that excellent credit score would have been beneficial.

 

[hystyk24]

Are we getting the full/whole story here?

Well, I haven't been back checking on the post before giving members an opportunity to share, so it's clearly not an emotional issue for me, nor an issue I was in a hurry to disclose. This wasn't supposed to be about my interaction, however, the posts indicated members wanted me to expand on the details. The inherent flaws, financially speaking, on not writing a new loan should be evident to anyone with a minor understanding of finance. But I would much rather hear first hand of others' experiences like some of the ones the salesman shared with me...

 

[hystyk24]

I understand what your saying but from a credit standpoint your toxic. I Have known several loyal customers over the years that have stiffed their bills to my company and ive had them say "I always paid my bills before" But if they buy anything from me now they pay cash. They blame us but its their fault for not doing what they should in the first place. Im sorry you had a foreclosure but you also have to look at the fact you were paying for equipment during this foreclosure when you could have sold that and maybe not lost your home then once on your feet that excellent credit score would have been beneficial.

I think some of you are missing the point. Kubota didn't find me to be toxic. They agreed to write the loan. As long as I put both purchases together in a single deal, giving them 22/23k of collateral for a little 7k loan. I wasn't throwing hundreds of dollars of wasted mandated insurance away to structure the loan in an absurd fashion. The point you seem to be missing is they are left with a current loan in place for another 24 months should I have told them to pound sand. The new deal I proposed would have LESS money out (smaller balance then current loan) and a piece of equipment collateral (RTV) worth 2.5k MORE then the BX on the current loan. They enhance their position in writing the new deal. Plus, I was buying a 6k zero turn mower for cash in a separate deal. Again, show me a downside to writing that loan?

Let's assume all your concerns come true and I default on my life next week. Tell me how Kubota would be in a worse position? Same money out there as old loan, more value in what they reposes, and another unit (mower) sold and paid for... That is the undeniable point.

 

[LD1]

Soooooo,,,, where's the value in that?

The value in that is with a credit card that offers perks. Be it cash back, points to some vender, airline miles, whatever.

I am the same way with my CC, debt free other than the card. But buy EVERYTHING with the card aside from cash dealings like craigslist, or places that charge a fee to use the card like the BMV or property taxes.

The money is gonna be spend one way or the other. Be it cash, check card, check, or credit card. If I am gonna eat out, get groceries, pay bills, etc. The money is gonna be spend. Might as well use the payment method that gives me a perk (points, 1-2% cash back, airline miles, whatever your flavor). Then pay the balance in full every month and have no interest. I pay all my bills, groceries, gas, literally everything I can use the card on, I do. Then make one payment from the checking account every month to cover the CC. Same money spend no matter how you roll the dice. But you have to have the discipline.

 

[M5farms]

I think some of you are missing the point. Kubota didn't find me to be toxic. They agreed to write the loan. As long as I put both purchases together in a single deal, giving them 22/23k of collateral for a little 7k loan. I wasn't throwing hundreds of dollars of wasted mandated insurance away to structure the loan in an absurd fashion. The point you seem to be missing is they are left with a current loan in place for another 24 months should I have told them to pound sand. The new deal I proposed would have LESS money out (smaller balance then current loan) and a piece of equipment collateral (RTV) worth 2.5k MORE then the BX on the current loan. They enhance their position in writing the new deal. Plus, I was buying a 6k zero turn mower for cash in a separate deal. Again, show me a downside to writing that loan?

Let's assume all your concerns come true and I default on my life next week. Tell me how Kubota would be in a worse position? Same money out there as old loan, more value in what they reposes, and another unit (mower) sold and paid for... That is the undeniable point.

Your not seeing the point they would only loan you becusre they were secure with high collateral , if that doesn't say your a credit risk I don't know what does.

 

[ovrszd]

Your not seeing the point they would only loan you becusre they were secure with high collateral , if that doesn't say your a credit risk I don't know what does.

Yeah, I still don't see what the problem is?

 

[ovrszd]

The value in that is with a credit card that offers perks. Be it cash back, points to some vender, airline miles, whatever.

I am the same way with my CC, debt free other than the card. But buy EVERYTHING with the card aside from cash dealings like craigslist, or places that charge a fee to use the card like the BMV or property taxes.

The money is gonna be spend one way or the other. Be it cash, check card, check, or credit card. If I am gonna eat out, get groceries, pay bills, etc. The money is gonna be spend. Might as well use the payment method that gives me a perk (points, 1-2% cash back, airline miles, whatever your flavor). Then pay the balance in full every month and have no interest. I pay all my bills, groceries, gas, literally everything I can use the card on, I do. Then make one payment from the checking account every month to cover the CC. Same money spend no matter how you roll the dice. But you have to have the discipline.

I wonder what percentage of card users thinking just like you that don't pay the card off???

The first hit of an addictive substance is always free.

 

[GAFarmer2]

Sorry to have been away and not responding to this thread... Let me first say I called it Kubota Central Loan, meaning their own financing arm. BUT my question was more about listening to others, not my issue specifically. I do realize many here wanted to know specifically my issue.

I am a person with an 820-830 credits score my entire adult life, but currently have an ongoing (3 years) foreclosure. For that reason I would never fill out a credit application even though I have a 640 credit score with excellent marks in all categories with ONE derogatory entry, the mortgage in foreclosure. HOWEVER, I have a 60 month history with Kubota. After 24 months of 0% financing on a small tractor, I traded up on another BX25D exactly 36 months ago and have now paid on Kubota loans without issue for 60 months. My current balance was $6900. The deal I had in place was for trading in the BX on a new RTV-X1140. After calculating the deal a balance of just under 10k was the amount due. EVEN though I had a perfect credit history with Kubota I wanted to put another $3000 cash into the deal to keep the new loan at the same amount as the current one that would be paid off, essentially giving Kubota no reason not to finance the balance. After all, their position is enhanced, a greater equity in the collateral (new RTV) being held then what they had in the current loan...

Kubota rejected the loan citing the foreclosure. The dealer requested them to reconsider because I was ALSO buying a Z411 zero turn mower in a separate deal, paying cash. Kubota agreed to finance the lousy 7k for 48 months, IF I put both units in a single deal with the same 10k cash down. They wanted 23k worth of collateral for writing a 7k loan, which would have forced me to spend $410 in unwanted insurance on the mower. REMEMBER, we're talking about a monthly payment roughly half of what my current loan is, a loan secured by collateral with a value 3k less then the RTV, a loan they would have to continue for another 2 years should I cancel any new purchase and again, a 5 year pristine credit history with Kubota.

Am I the only one that thinks this is a head-shaking moment? Am I wrong to question the value Kubota puts on customer loyalty? Or is this maybe a single loan agent missing the big picture? As originally posted, I rejected their small loan, paid the new RTV off in full and cancelled the mower on principle. I would have cancelled the entire deal, but I really like the dealer/customer relationship I have with Franz Tractor in Bradenton, Fl and my salesman Bill. I guess I like to remain loyal to those that have been good to me...

I guess I'm being dense here. I'm one of these folks who doesn't use credit...and it has me in high insurance premium land...so maybe my opinion ain't worth much. I think you're asking the wrong questions here. Kubota is a free business. They are not required to loan you money at all. They do so as a business to make money. They are well aware that if your home is foreclosed on, they could easily be the "next on the list". As your foreclosure drags on, each day it makes you look worse to any potential lender.

I know it isn't my place...but why are you worried about new equipment if you're under foreclosure? Financially, you are already in a "loan hole"...why dig it any deeper?

Not trying to be a butt..but I think you asked a "loaded question" here. Kubota, in my opinion, was well within their rights to require whatever they felt most comfortable with on the loan. You can always get financing elsewhere...