Will 0% Financing Be Around Again This Year?

[HappyOne]

I am looking at options for new Kubota equipment. Not sure I can decide by the end of June. I know the last time I bought it was in the fall and they offered 0%. Is it common for it to be offered several times during a year?

 

[sea2summit]

I’ve had Kubota’s since ‘09 and I think there’s always been a 0% option at some length. But it’s an odd market right now.

What type of equipment?

 

[HappyOne]

The ultimate toy. Skid Steer.

 

[Ortimber]

I do know that 0% isn't always available on construction equipment (skid steers and excavators).
On the AG side, it's always available to my knowledge.

 

[celtsrevenge]

It is only a sales gimmick to generate sales. The 0% financing is merely built into the sale price. There are no free lunches.

 

[Hay Dude]

You could have 0% financing even if interest rates are 20%. They just make the purchase price higher.

 

[JJZ 109]

With excellent credit I was at 4.8% for a 28 hour used BX2380 in June 2020 with KCC. Not sure if that was because it was considered "used" or if the zero percent just wasn't being offered at the time. I paid up front to have a loader installed instead of financing it with the tractor. Those 28 hours saved me a few thousand over buying new, even with a $600 delivery fee because the dealer was a few states away.
But yesterday I paid it off 3 years early so the rate has become null & void. I have no proof that the 2 posts previous to this one are true about the zero percent just being factored into a higher purchase price. But I can't say that I'd be shocked by that.

 

[MoKelly]

But yesterday I paid it off 3 years early so the rate has become null & void. I have no proof that the 2 posts previous to this one are true about the zero percent just being factored into a higher purchase price. But I can't say that I'd be shocked by that.

Every company in the US has paid off all their older, higher interest rate bonds early - and reissued long term under current interest rates. It’s a no-brainer. It’s historically low.

Businesses have competent finance people. They look at total profitability per unit sold - purchase price, interest received from customer, holding costs, etc. If purchase price goes down, they need higher interest to offset. If interest goes down, they need higher purchase price. As the late, great Milton Friedman said “there is no such thing as a free lunch”.

Today, holding costs are almost zero as demand is well above inventory.

MoKelly

 

[MHarryE]

I bought my SVL having to pay Kubota interest for the first time. I’ve had 5 other zero interest loans from GR2120 to RTV all the way to M7-171 which cost nearly 4 times the SVL but no give on construction.

 

[two_bit_score]

You could have 0% financing even if interest rates are 20%. They just make the purchase price higher.

I saw an email from Bobcat offering 0% for 84 months on new compact tractors. It’s always in their interest when they offer it.

JD was only offering 2% for 48 months on CTL’s.