Buying Advice kubota L3560 - 2% upfront financing fee

[RSR]

Nothing is zero percent finance!
If your paying the same amount as the so called zero percent guy your getting ripped off!

 

[HKUSPnut]

I did the math and with the difference in cash vs financed rebates as well as the misc. fees I am being charged, I have an effective interest rate of 1.25% for 84 months which includes deferred payments for 90 days. Not really something I can complain about. There is no free lunch as others have pointed out, but at the end of the day this is not too far off for the quality of product I am buying. From what I can tell, a tractor like this will hold its value far better than a new car........

 

[Maxify55]

Give me the price and I'll take the tracotr.
I care little, to none, about whatever you call your pricing.

Your "Asking Price" is exactly whatever you need to allow me to park your machine in my garage.
Life is simple.
Don't complicate it.

 

[spb1971]

Was told by dealer that to get the 84 month 0% financing for this model I would need to pay 2% fee up front. I am putting 20% down. Anyone know if this is a legit fee from Kubota or is the dealer trying to make extra $$?

The 2% is legit. Base program is 0% for 60. Dealer Participation (DP) is 2% if they want to extend 0% out to 84 months.

 

[two_bit_score]

I agree with that... Finance would be rolled into the price of it. Just like Everything Attachment's "Free Shipping"...

It’s amazing how people react when they find out they are paying for the “free lunch”.


TBS

 

[ericm979]

In the past Kubota's 0% has been a spiff from the company. It didn't cost the dealer any more. Kubota covers the interest.

It's a "free lunch" in that Kubota is giving it to buyers as an incentive. Of course they could have a cash discount that's their cost of making the loan 0%, and I'm told that sometimes they do. The plan changes quarterly.

 

[MessickFarmEqu]

Odds are what you are seeing is the result of the governments truth in lending rules. The states doc fee's, UCC's, finance charges, etc are all factored into the rate you see on the contact. None of the 0% loans, will say 0% on the contract.

 

[MechanicalGuy]

It was explained like this to me.

If you buy it on financing, you MUST pay the small amount for the KTAC insurance (which is 10000% worth it btw).

If you pay cash, you don't see any additional money added onto the tractor price, but you are not insured either.

It's better to finance and pay for insurance. KTAC is great.

 

[s219]

It was explained like this to me.

If you buy it on financing, you MUST pay the small amount for the KTAC insurance (which is 10000% worth it btw).

If you pay cash, you don't see any additional money added onto the tractor price, but you are not insured either.

It's better to finance and pay for insurance. KTAC is great.

Somehow I think you are confused. You can still get KTAC even if you pay cash. And, there is ALWAYS a price break if you pay cash. ALWAYS. Just look at Kubota | Finance - Promotions & Special Offers and sort through the details.

Every Kubota I have bought has either had a big rebate -or- small rebate and low % financing -or- no rebate and 0% financing. When you go with their 0% offer, you lose the rebates.

If you finance, you are required to get KTAC. If you pay cash, you can still get KTAC. Price for KTAC is the same either way.

When I bought my most recent Kubota, an L3200, back in 2013, there was a $1000 rebate for straight cash purchases. If I had taken 0% financing instead, the tractor would have cost $1000 more, and that is commonly referred to as the "penalty" for their "free" financing.

I got KTAC and have renewed it every year.

 

[MechanicalGuy]

Somehow I think you are confused. You can still get KTAC even if you pay cash. And, there is ALWAYS a price break if you pay cash. ALWAYS. Just look at Kubota | Finance - Promotions & Special Offers and sort through the details.

Every Kubota I have bought has either had a big rebate -or- small rebate and low % financing -or- no rebate and 0% financing. When you go with their 0% offer, you lose the rebates.

If you finance, you are required to get KTAC. If you pay cash, you can still get KTAC. Price for KTAC is the same either way.

When I bought my most recent Kubota, an L3200, back in 2013, there was a $1000 rebate for straight cash purchases. If I had taken 0% financing instead, the tractor would have cost $1000 more, and that is commonly referred to as the "penalty" for their "free" financing.

I got KTAC and have renewed it every year.

What would I be confused about? Of course you can purchase insurance if you pay cash. You are not obligated though.

I do not know if there is a cash discount or not. We settled on a price, and then ktac was added onto that price.