JOHNTHOMAS
Super Member
- Joined
- Apr 14, 2008
- Messages
- 7,717
- Location
- Somerset, Ky
- Tractor
- F2690 4WD RTV X1140 MX5400 HST ZD1211
Life is so interesting. One tractor owner sees insurance as a bad thing, doesn't want it and feels oppressed by having to have it. Hope they now don't roll their tractor or a tree fall on it.
The next tractor owner wants insurance, sees a need for it to cover a possible catastrophic event in their life and aren't afraid of any rolling tractors or trees falling or floods because they will still have a good working tractor, after full repairs.
I love it!!!!:cool2:
Now as to the 0% interest.
Kubota did have a true 0% interest a few years ago. No cash discount, zero, nada, nothing, zilch, not a penny with cash over credit. Now I see you guys squirming in your seats saying someone has to pay and that's true, either the Japanese Government (which I heard was the case to spur business growth of Japanese products) or all Kubota buyers, cash and credit buyers, were paying the interest but it was built into the price and no one could subtract it out. But, alas, one day a few years ago, 3 or 2 years ago Kubota started giving a cash incentive for cash customers thus making a clear case that 0% interest isn't/wasn't truly 0%. This brings us to how much interest or what percent interest is Kubotas 0% interest, really, really. Lets use real numbers instead of these I dids with no actual numbers to evaluate.
A $16,000 to $10,000 BX tractor had a $700 cash rebate or discount. OK, that's the real actual number. A customer got to charge a $10,000 to $16,000 purchase and pay $166.66 a month on the $10,000 purchase and $266.66 a month for the $16,000 (BX25) purchase.Take the original $10,000 or $16,000 or $9,300 or $15,300 and determine the value of using or investing or CDing for 60 months and the true interest rate is revealed. Amortization Schedule Calculator -- Bankrate.com
Do it your self and you'll see the interest rate charged is almost to small to calculate.
Bottom line. Money wise the zero percent is the better deal any day unless your overwhelmed with cash, owe no debts and have no idea of what to do with money to make it grow. As someone mentioned, buy diesel fuel or almost any nonperishable item and it will increase in price more than the true interest Kubota is charging.
Non of this addresses good sleep or that comfort of not being in debt. Those "feelings" can be priceless but there are some of us that want all of the comforts and benefits and pleasures of life now before we get "old"
and about the only way we can have "them" is to borrow you cash guys money and use it and pay you a bit of interest for using it.:thumbsup: The goal we have is to pay you the least amount we can while getting as much of it as we can while being able to pay you back on the agreed on terms without losing to much sleep and still feeding our children.I've been using tractors now for 11 years and gotten them paid off a few times and actually have 3 that will be paid off in the next couple of months with only one monthly payment left for another 40 some months. Have slept good most nights, never missed a payment, never worried about making the payment and have owed over a half a million dollars at one time and may not be to far from that now but in 8 more years, Lord willing, I'll not owe any money and will have, well a substantial amount coming in each month to then become a lender and not a borrower and Oh bye the way, I have insurance to cover any catastrophic loses and barely resent the $800 a month I pay Ky Farm Bureau for that peace of mind. I'd still have the insurance even if I didn't owe any money. I'd cry if I saw everything I'd worked for gone in a fire and have to start over at my ripe old/young age.
Bottom line, we're different with different needs and different mental make ups. My parents went thru the depression and I heard about it often but I didn't so I'm a bit more willing to "have debt on my back" than they were as long as I can see that I can make the payments while still traveling as often as I want and still have free cash to spend for "stuff". That's my make up and I see that most people have a bit different one way or the other make up. As a Counselor I see it all of the time and it's OK!:thumbsup: Different strokes for different folks is OK. Aslong as you buy Kubotas and not those other off brands with the different colors.:laughing: :laughing: :laughing:
