Financing 0% Financing questions

wk4036 · Jun 5, 2005

New member here with questions about Kubota's 0% Financing.
I would like to talk to someone who has recently bought a new unit and financed it.
What kind of a finance charge is there?
Can payments be doubled up without penalty?
Is there any kind of balloon payment?
Anything hidden in fine print?
Thank's in advance:wk

InlineDieselFan · Jun 5, 2005

We did the 0% for 2 years no early payment penalty. No finance charges/fees. We put $8,500 down so I don't know if that had any bearing on things, once our new place is built we will sell the current home and pay off the Kubota, so no early payment penalty was a big thing for us.

The payment coupons did not show up until the day before the first payment was due. So I called Kubota finance and they said no problem and waived any type of late fee that would have been charged. But you will have to make that call otherwise you will be charged extra$$.

No ballon payments, not hidden anythings as far as we could tell.

steve

Bird · Jun 5, 2005

I have bought two new Kubotas in the past (1995 and 1999) and financed both with Kubota Credit. Unfortunately, they did not have the 0% financing then. /forums/images/graemlins/frown.gif However, I paid off both of them early and there's no early payment penalty. And the payment coupon book does come a little late, so the dealer gave me an account number and address to send the first payment before the coupon booklet arrived, which I did.

MarkOnTheRiver · Jun 5, 2005

Well, I just signed the contract and sent in my down payment for a new outfit. Since Kubota wasn't charging any interest on the loan, I told the dealer I only wanted to pay the minimum down payment and put the rest on charge. Might as well use their money and let mine continue to earn from investments. The dealer obliged by including in the loan the tractor, BH, FEL, a Bush Hog rotary Cutter (guess you can put non Kubota machinery on the loan as well), sales tax, insurance, and finance charges.

The finance charges amounted to a $111 filling fee and a $139 Document Preparation Fee. There are no balloon payments. The break down is

$26,305.26 - Amt Financed
$5,300.00 - Down Payment
$583.48 - 35 monthly payments
$583.46 - Final payment

For fine print, check my earlier post - Kubota Financing, The Fine Print

Mark

seapea · Jun 5, 2005

( The finance charges amounted to a $111 filling fee and a $139 Document Preparation Fee. There are no balloon payments. The break down is )

These sound excessive. Two of the dealers I spoke with said kubota charges a $50 doc fee, and they included it in the quote. They both said there would be no additional fees.

MessickFarmEqu · Jun 5, 2005

The other fee's depend what state you are in. In PA we charge the $50 doc fee, 12.50 to the county and $100 to the state. These fee's occure every time you finance anything over $5000, some places hide the cost in the sale amount.

DUMBDOG · Jun 6, 2005

You can also make the payment online to Kubota Credit at the Kubota web site, once you have the account number. It is easy to sign up and it shows the balance, payment history, interest amounts and the payoff balance.

jim_wilson · Jun 6, 2005

I bought a BX23 last year (July) using the 0% for three years from Kubota Credit. I have been making extra payments and have the tractor about half paid off now - there is no early payment penalty that I remember seeing. Can't see how they could logically charge you a penalty for paying off a 0% loan early - it really is in their best interest.

The only thing I remember was that there was some sort of "doc fee" or some such thing, I can't remember exactly how much it was but it was $50 - $100 or something like that. The tractor also had to be put on my homeowners insurance and they needed proof of that for the financing to go thru.

Bird · Jun 6, 2005

( You can also make the payment online to Kubota Credit at the Kubota web site )

Hey, maybe my complaint to them a few years ago about not having that capability did some good. /forums/images/graemlins/laugh.gif

Gatorboy · Jun 6, 2005

( once our new place is built we will sell the current home and pay off the Kubota, so no early payment penalty was a big thing for us. ) 

It would be to your benefit NOT to pay it off early. If you have the cash, put it in the bank and EARN interest while continuing to pay off a 0% loan. If you were paying interest on the loan, then you would make out by paying it off early (unless the loan % was lower than the interest % you could earn).