To finance or not to finance ...

[rScotty]

there is a cost. Kubota was $700 cheaper if I paid cash.
Some makers are higher

What you say does make sense to me, and it's what I expected back when I bought our TLB. But it that is how it works now, it does mean that Kubota's policy has changed in the last decade.

It used to be that there was no difference TO THE DEALER between the cash price and the zero percent interest price. That was hard for me to believe, so I looked into it a bit at the time.

When I talked to my dealer about that in 2008 he confirmed that to him it was all the same. If a customer used the financing option, the dealer simply sent the completed contract to Kubota Corporate Office who then wired 100% of the purchase price on the contract directly back into the dealer's bank account. Often it all happened the same day. The dealer never had to handle the note, so to him there really wasn't any difference between cash and financing.

I've got to say that I didn't care much for it. I'm old fashioned enough that I like to bargain using either cash or a loan from my own bank - and Kubota had just taken some of the fun out of the whole bargaining game.
rScotty

 

[GirlWhoWantsTractor]

Not sure this has been mentioned, but Mahindra offers a third option and others probably do too, which is financing at around 4% interest (instead of 0% interest). There was no up front finance charge; instead you pay the cash price, plus a little interest each month. This gives me the option of paying it off early, in which case I will have paid close to the cash price. Or if worse comes to worst and cash is tight, I can continue to just make the payments.

I liked the flexibility of hanging on to my cash for now. But if the economy is looking good a year down the road I can go ahead and pay it off. For me, it was the best of both worlds. Nice to have options.

 

[Maharaja]

I understand that Kubota and MF both reduce discount to dealer for subsidized financing (0%) as it cost manufacturer in my case Kubota Credit.

MF dealer said for 0% he loses maybe 15% so price you pay is 15% higher .
My understanding.

What you say does make sense to me, and it's what I expected back when I bought our TLB. But it that is how it works now, it does mean that Kubota's policy has changed in the last decade.

It used to be that there was no difference TO THE DEALER between the cash price and the zero percent interest price. That was hard for me to believe, so I looked into it a bit at the time.

When I talked to my dealer about that in 2008 he confirmed that to him it was all the same. If a customer used the financing option, the dealer simply sent the completed contract to Kubota Corporate Office who then wired 100% of the purchase price on the contract directly back into the dealer's bank account. Often it all happened the same day. The dealer never had to handle the note, so to him there really wasn't any difference between cash and financing.

I've got to say that I didn't care much for it. I'm old fashioned enough that I like to bargain using either cash or a loan from my own bank - and Kubota had just taken some of the fun out of the whole bargaining game.
rScotty

 

[Shaneard]

I haven't read every post here but I would like to say, you only live once. If you want a tractor by all means buy you a tractor. Your not guaranteed tomorrow, your not guaranteed the rest of this day. What's the point in working/earning money if your not going to spend it? If you don't spend it, when you die, someone will spend it for you. <---that is a guarantee!

 

[Ortimber]

I haven't read every post here but I would like to say, you only live once. If you want a tractor by all means buy you a tractor. Your not guaranteed tomorrow, your not guaranteed the rest of this day. What's the point in working/earning money if your not going to spend it? If you don't spend it, when you die, someone will spend it for you. <---that is a guarantee!

This is exactly how my answer would be!

Save a little, spend a little.

 

[Maharaja]

:drink:

This is exactly how my answer would be!

Save a little, spend a little.

 

[Ortimber]

:drink:

My parents and in laws are in their later 60’s. Worked hard their whole lives. My dad and father in law (health wise) are in trouble. Can’t enjoy their property during “the golden years”

It’s good insight to see how things might be for me or my wife...

Buy (within reason) what you want and enjoy it. Sweating small details is a waste of time.

 

[Maharaja]

I agree.

 

[atsah]

My parents and in laws are in their later 60’s. Worked hard their whole lives. My dad and father in law (health wise) are in trouble. Can’t enjoy their property during “the golden years”

It’s good insight to see how things might be for me or my wife...

Buy (within reason) what you want and enjoy it. Sweating small details is a waste of time.

I agree... My dad retired at 62 and lived with mold spores (invasive aspergillosis) in his lungs from haying all his life and then contracted leukemia which left him with a immune system that couldn't fight the spores and he died.. The sooner you can do something you want to do the better..

 

[Jchonline]

The 0% financing offers have to be looked at with a jaundiced eye, as they are often buy downs in lieu of cash discounts. When I was looking at excavators, JD offered 0% at 72 months, but my credit union at 4.4% was actually a better deal because of the cash in lieu of the JD financing.

Not so with Kubota. Cash offer on my M62 was $900 as opposed to 0% over 60 months. No brainer.

The only negative I came up with was extra insurance costs. If you finance the tractor must be insured. However as a 1st tractor owner I figured it was a good idea for my 斗earning experiences.