Another confused first timer

[Hoodoo]

I will also recommend you consider looking at financing through a local credit union as you can often times get rates as low as 2.3%. So since you think you will get a Kubota what I would do is get an equestrian membership which will allow you to take the cash offer of 20% off MSRP and then finance it through a local credit union at hopefully a 2.3% rate.

Both of the dealers I'm looking at (Kubota & Kioti) are offering$0 down, 0% financing for 7 years. I wonder how long they will offer that with the upcoming inflation?

 

[Hoodoo]

Looking at Kioti now because their model 2510 comes with a front loader, rear gannon and brush hog for $18490. The Kubota is over $21k with only the loader. I will need another larger trailer to haul it to the Kioti dealer, but 1-1/2 hours is not too bad and it's a beautiful drive....

 

[Cahaba Valley Farm]

Both of the dealers I'm looking at (Kubota & Kioti) are offering$0 down, 0% financing for 7 years. I wonder how long they will offer that with the upcoming inflation?

Don't know but you need to understand that those are not true 0% offers. Deere is the only manufacturer that I am aware of that offers a true 0% finance offer.

 

[paulfun9]

Don't know but you need to understand that those are not true 0% offers. Deere is the only manufacturer that I am aware of that offers a true 0% finance offer.

Sorry but no one has shown me that it’s a true 0 % offer to date.
I have proven to myself that the same price cash or credit is false simply by shopping around but no matter how I slice it they have to have thier profit built into the machine sale somehow. You won’t be able to stay in buisness at zero percent loans if it’s not.
Understanding how a buisness breaks down the finance department would be nothing but a big drain on profits and in today’s buisness model they would get shut down or revamped in quick order.

 

[Cahaba Valley Farm]

Sorry but no one has shown me that it’s a true 0 % offer to date.
I have proven to myself that the same price cash or credit is false simply by shopping around but no matter how I slice it they have to have thier profit built into the machine sale somehow. You won’t be able to stay in buisness at zero percent loans if it’s not.
Understanding how a buisness breaks down the finance department would be nothing but a big drain on profits and in today’s buisness model they would get shut down or revamped in quick order.

Good point. They don't seem to jack up the price as much as Kubota but probably because the price is already jacked up. There doesn't seem to be any difference in their cash offer versus their finance offer. I will look into it now that you have mentioned it.

 

[rScotty]

Both of the dealers I'm looking at (Kubota & Kioti) are offering$0 down, 0% financing for 7 years. I wonder how long they will offer that with the upcoming inflation?

To answer your question, I can only answer that for Kubota - and at that only by what Kubota's history has been. Future scenes in my crystal ball have been sort of fuzzy lately...

Anyway, back in 2008 Kubota offered 0% down 0% financing but only 5 years.
So although we originally bargained with the dealership for a specific new tractor on their lot on a cash-on-the-table basis, we ended up taking him up on his offer to finance our M59 that way.

It worked just like the dealer said it would. After a few weekends of friendly dickering, the dealer wrote down our final cash offer on a sales sheet and said, "Done. Will that be cash? or 0% financing?"
We chose financing & that's what the payments were...exactly our final cash offer divided by 60. Exactly; nothing extra.

I've been on this and various other tractor forums since before that time, and Kubota has offered that same program continuously through the years in spite of variations in inflation and interest rates since 2008. That's no guarantee, but still a fairly impressive track record.

I have no idea how Kioti's program works and would like to hear. It wouldn't surprise me if it were at least as good. They also make a good tractor - although it has fewer of the options that we wanted.
rScotty

 

[Hoodoo]

Don't know but you need to understand that those are not true 0% offers. Deere is the only manufacturer that I am aware of that offers a true 0% finance offer.

Please explain...maybe I'm dense, but when someone tells me it's 0% for 7 years, I expect them to take the final sales price and divide it by 84. Period. What am I missing? Is there some trickery going on?

 

[rScotty]

Not for our purchase. Read message #147 for our experience with 0%.

 

[jerald2021]

Well here's the story....I have a 5 acre place in N Central Az. All flat, about 2 acres is horse pasture. Well not grass pasture, but dirt and rock. The other 3 acres are 'grassy' but not nice grass. Plus there are spots with rocks that need to be cleared and always DG to spread. I currently have a riding mower, but the mower deck just crapped out, and I use it more for dragging and cleaning the pastures anyway. My neighbors are great and stop by to help out with stuff, but I really need my own tractor, most people around here use them almost every day for something.

So after much searching, I basically know nothing much more than when I started looking. What I do know is that tractors are expensive!

Here are my parameters: Decent HP (24?) - 4x4 - rear box scraper - front bucket - canopy - mower deck. Other than that I'm flexible. Budget is under $20k. I'd like to go new to get a warranty, plus most manufacturers are offering $0 down and 0% financing which makes it doable....

Brand choice is another matter. John Deere is way too pricey, Kubota is a possible, Yanmar also.
What should I know or do to get this going? I'd like to have one by next spring.

All advice appreciated!

TYM is having a sale. I just bought a new one. LS is reasonable also.

 

[coobie]

It's not just the tractor. It's the dealer network, parts availability, long term support, long term likelihood of still having a dealer, ect ect ect
Daewoo/Doosan (the parent of kioti) makes a fine machine. Where they fall down is on long term support. The kioti tractors haven't been around long enough for it to be an issue yet. But a lot of the Daewoo (pre-Doosan branding) construction equipment is already running into parts no longer being available. Give it another 10 years or so and chances are you will start having trouble getting parts for your earlier kioti tractors.
And they are probably the best alternative of the lot. I'd be shocked if you could get much of anything for a 20 year old LS or Mahindra.

Where as with Deere you can walk into the tiniest small town middle of nowhere dealer and have parts for just about any tractor they ever made within a day or two. Some dealers still stock parts for the two cylinder tractors made in the 40s and 50s! Not can order in, keep them in stock.
Same deal with caterpillar in construction equipment. That is why people pay the premium for them.

And that is well proven to translate into resale value. Look at ag tractors from the 60s and 70s. A nice 20 series Deere is bringing $15-20,000 these days. The equivalent International, Case, or Allis Chalmers you'd be lucky to get $5000 for.


This isn't falling for marketing... And as I said there are reasons to go with other brands at times. And I don't really care what anyone else chooses to buy. Just make sure you are really aware of all the factors before you write that cheque.
The dealer is the most important factor if buying new. Easily so. Especially if you are planning to trade in on a new machine before it gets too far off warranty.
If you are buying used or planning on keeping a machine long term, think real hard about what you will still be able to buy parts for and still have a dealer for in 25 years.

To funny ..Keep them coming.. I have waited on Deere parts back in 2012 for 2 plus weeks for my JD X740 My kioti parts were here in 3 days.But in the same breath you dislike the union employees at John Deere for a new contract from your previous posts.Go figure ??

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[paulfun9]

Good point. They don't seem to jack up the price as much as Kubota but probably because the price is already jacked up. There doesn't seem to be any difference in their cash offer versus their finance offer. I will look into it now that you have mentioned it.

I have had dealers tell me the cash and credit price is the same while other dealers gave me a different price for cash? Kind of proves there is a difference someplace.
You speak about prices for kubota being jacked up but my experiance is unless your looking at the cheapest model, JD seems higher around me?

 

[Cahaba Valley Farm]

You speak about prices for kubota being jacked up but my experiance is unless your looking at the cheapest model, JD seems higher around me?

What I meant and I should have clarified is Kubota jacks up the price if you take the zero percent versus the cash offer. However that is to be expected. But undoubtedly JD is higher then Kubota. Now I will mention that JD offers services that Kubota does not such as the ability to demo any of their equipment on your property before purchase with no obligation to buy and they also have a 30 day customer satisfaction money back guarantee also something you will not get with Kubota. So to offer that costs money and that has to be priced into the cost of the machine up front.

 

[Cahaba Valley Farm]

Please explain...maybe I'm dense, but when someone tells me it's 0% for 7 years, I expect them to take the final sales price and divide it by 84. Period. What am I missing? Is there some trickery going on?

We had another thread where we were talking about this recently. What my experience has been with Kubota is when you go to the dealer they will ask how you want to pay for it and if you choose to finance it they will charge a higher price then if you were to pay cash simply because in reality you are paying the interest. 0% interest is nothing more than a gimmick/marketing lie to trick you into thinking you are getting a free lunch. They do the same thing in my industry with "free shipping". There is no free shipping it's just built into the front end price of the product. It's just a lie and for the record, as a business owner I do not engage in dishonest marketing tactics like that. What I offer instead is what I call "true cost shipping" where I charge the customer my commercial rate.

 

[Cahaba Valley Farm]

To funny ..Keep them coming.. I have waited on Deere parts back in 2012 for 2 plus weeks for my JD X740 My kioti parts were here in 3 days.But in the same breath you dislike the union employees at John Deere for a new contract from your previous posts.Go figure ??

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Coobie I can see and hear your passion for Kioti. Please join my thread: Value Proposition: What Makes Your Brand Of Tractor Better Than The Others?

 

[rScotty]

We had another thread where we were talking about this recently. What my experience has been with Kubota is when you go to the dealer they will ask how you want to pay for it and if you choose to finance it they will charge a higher price then if you were to pay cash simply because in reality you are paying the interest. 0% interest is nothing more than gimmick/marketing lie to trick you into thinking you are getting a free lunch. They do the same thing in my industry with "free shipping". There is no free shipping it's just built into the front end price of the product. It's just a lie and for the record, as a business owner I do not engage in dishonest marketing tactics like that. What I offer instead is what I call "true cost shipping" where I charge the customer my commercial rate.

Good for you. As for Kubota dealers, I have no doubt that what you say is true of some Kubota dealers some of the time. But obviously not for all.

In any negotiation where some bargaining is going on, some of the responsibility falls on both parties. It seems to me that if anyone feels that a deal is unfair, they shouldn't continue.
rScotty

 

[Cahaba Valley Farm]

Good for you. As for Kubota dealers, I have no doubt that what you say is true of some Kubota dealers some of the time. But obviously not for all.

In any negotiation where some bargaining is going on, some of the responsibility falls on both parties. It seems to me that if anyone feels that a deal is unfair, they shouldn't continue.
rScotty

Hey Scotty please don't think I am singling Kubota out. The whole equipment industry is doing it and now I am starting to see the automotive industry doing it.

 

[coobie]

Coobie I can see and hear your passion for Kioti. Please join my thread: Value Proposition: What Makes Your Brand Of Tractor Better Than The Others?

No passion for any brand.I buy what works for me.I don't follow threads.Sorry..

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[Cahaba Valley Farm]

No passion for any brand.I buy what works for me.I don't follow threads.Sorry..

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The Kioti is your choice of compact tractor and you seem to be staunch supporter of it so please share with others why you choose them over the competition.

 

[Cahaba Valley Farm]

By the way that's a beautiful yard you got there with the Ingersoll.

 

[rScotty]

Hey Scotty please don't think I am singling Kubota out. The whole equipment industry is doing it and now I am starting to see the automotive industry doing it.

As you say, it isn't one single make or model or even tractors vs autos. Some outright deception has become the way business is done today. Is it more than it used to be? I don't know; some deals are always better than others. It's hard to measure how much.

And is it really new? There will always be people who take advantage if they can. In the final price, how much of the responsibility for a purchase falls on the dealer and how much on the buyer? Sales agreements are pretty simple to read. Anyone can calculate interest.

50 years ago it was assumed that it was common sense to go into any business deal with the assumption that each party was going to try to maximize their profit.

Customers didn't hate dealers for being that way, or vice versa. But it was understood that both parties had an obligation to protect themselves. The common saying was, "Buyer Beware." Seems like little has changed.

rScotty