Insurance KTAC Insurance: who's read the fine print?

diesel85 · Jan 7, 2019

For some it's good to finance to keep their credit scores up there to have a payment... unfortunately you need to "pay" something to have this.

I buy and finance stuff to have a great credit score. Yet, I do realize that those 0% offers are fake... there is always a catch...

My next thing I'm going to finance is my next tractor.

LittleBill21 · Jan 7, 2019

diesel85 said:
For some it's good to finance to keep their credit scores up there to have a payment... unfortunately you need to "pay" something to have this.

I buy and finance stuff to have a great credit score. Yet, I do realize that those 0% offers are fake... there is always a catch...

My next thing I'm going to finance is my next tractor.

there is absolutely no reason to finance anything to have a great credit score. i have never financed anything in my life, i use credit cards constantly, never paid interest, my score is 821.

nikerret · Jan 7, 2019

falfrenzy said:
0% financing is not truly 0%, I would imagine you realize that?

But, that extra cost does buy peace of mind during the financed period, I understand where you're coming from.

When I bought my tractor was the closest to actual 0% Kubota has ever done. October 01-December 31, 2015, the 0% was the same as cash price. I started shopping in 2013 and almost bought in spring of 2015, but it didn't work out. Every time, it was $500 more, for the 0% versus the cash price. I did have to pay a $65 "documentation fee", but that was well worth the actual 0% interest, for five years. Of course, a few months later, they went to five year powertrain warranties-mine is only two. Oh, well!

atitus74 · Jan 7, 2019

I would not finance something just because. In the case of Kubota there is a document fee for processing the loan application I think it was $150. Each buyer has to decide what is right for them. Personally if I wasn't eligible for a 0% rate and had to pay interest, I probably wouldn't finance it just to get the insurance. But I think its important information that everyone who buys should know. The no depreciation coverage is a really nice benefit, and in my opinion, worth the loan fee especially when it will give you that total replacement for *as long as you are financing it* which could be 72 mos or more at that zero rate.

ZTMAN · Jan 7, 2019

Just as an fyi, you don't need to finance through Kubota to get the KTAC insurance. From their website:

Q & A

Q- Can I purchase insurance through KTAC Insurance Agency if I pay cash for my equipment?
Yes! The Kubota-Endorsed Insurance is available for anyone owning Kubota equipment.

atitus74 · Jan 7, 2019

Hi ZTMAN I think you missed a few of the posts. The point is the insurance has different policies depending on if you finance the machine with kubota or if you don't.

ZTMAN · Jan 7, 2019

Thanks. I must have misunderstood your statement in post 44:

"I probably wouldn't finance it just to get the insurance."

Thanks for clarifying

atitus74 · Jan 7, 2019

Hey ZTMAN sorry if it wasn't clear. What I was trying to say was that if I had to pay interest, the difference between the total replacement and actual cash value policies might not be worth it. With cheap financing, I think its worth it and if I could do it all over again that is the way I would go.

JK22 · Jan 7, 2019

LittleBill21 said:
there is absolutely no reason to finance anything to have a great credit score. i have never financed anything in my life, i use credit cards constantly, never paid interest, my score is 821.

This is true. Financing actually sucks for credit scores because they close the account when you pay it off and there is considerable weight given to the length of your open accounts (longer is better).