Financing Anyone know Kubota'a KCC next finance promotion ?
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MessickFarmEqu
Super Member
Re: Anyone know Kubota\'a KCC next finance promotion ?
there are probably only a handful of people in the entire Kubota Corp that have any idea what it might be. Infact even they don't make the final decision till a few days before it expires.
there are probably only a handful of people in the entire Kubota Corp that have any idea what it might be. Infact even they don't make the final decision till a few days before it expires.
ByronBob
Veteran Member
Re: Anyone know Kubota\'a KCC next finance promotion ?
History over the past few years shows that they have been offering low % interest rates of some type for a while. Only 1 that I can remember has the rates creeped up with inflation being the primary cause I think. The Feds (Greenspan) has been upping the lending rate so if anything I would think if they don't stay where they are that they might creep up.
History over the past few years shows that they have been offering low % interest rates of some type for a while. Only 1 that I can remember has the rates creeped up with inflation being the primary cause I think. The Feds (Greenspan) has been upping the lending rate so if anything I would think if they don't stay where they are that they might creep up.
Junkman
Super Member
Re: Anyone know Kubota\'a KCC next finance promotion ?
seems to me that they vacillate between a low rate for a few months and then have a 0% for a 30 - 60 day period before going back to another low % rate. They never let the cat out of the bag before the first of the month. I doubt that it will stay at the 0% next month. Kubota uses the 0% as a sales incentive, but don't expect it to last forever. I don't know if when it is at the 0% rate, if the dealers kick in a "contribution" toward the financing costs to Kubota, or if Kubota eats the whole amount.
seems to me that they vacillate between a low rate for a few months and then have a 0% for a 30 - 60 day period before going back to another low % rate. They never let the cat out of the bag before the first of the month. I doubt that it will stay at the 0% next month. Kubota uses the 0% as a sales incentive, but don't expect it to last forever. I don't know if when it is at the 0% rate, if the dealers kick in a "contribution" toward the financing costs to Kubota, or if Kubota eats the whole amount.
orangebluegreen
Gold Member
Re: Anyone know Kubota\'a KCC next finance promotion ?
I haven’t studied if the Kubota financing is tied to rates in JP or the U.S. I am guessing it is based on Japanese rates? If so, rates in JP have been near zero for years. Have a look at the 6yr rate on bonds, currently shows 1.2%. Kubota is financing for 6yrs at 4.99%, so if rates are based on JP they are actually making money on the deal. I’ve read some comments a dealer will charge more if financing is involved. IMO if rates come from JP they would want everyone to finance, they would make an extra 3.79% on the deal in that particular time frame (4.99% rate - 1.2% cost of money). In reality I believe their cost of money would actually be lower than that, but that is a simplified version.
http://www.bloomberg.com/markets/rates/japan.html
I haven’t studied if the Kubota financing is tied to rates in JP or the U.S. I am guessing it is based on Japanese rates? If so, rates in JP have been near zero for years. Have a look at the 6yr rate on bonds, currently shows 1.2%. Kubota is financing for 6yrs at 4.99%, so if rates are based on JP they are actually making money on the deal. I’ve read some comments a dealer will charge more if financing is involved. IMO if rates come from JP they would want everyone to finance, they would make an extra 3.79% on the deal in that particular time frame (4.99% rate - 1.2% cost of money). In reality I believe their cost of money would actually be lower than that, but that is a simplified version.
http://www.bloomberg.com/markets/rates/japan.html
3030PJ
New member
Re: Anyone know Kubota\'a KCC next finance promotion ?
If you're ready to pull the trigger, why gamble...the terms can't possibly get any better, unless the dealer pays you some money to buy from them. /forums/images/graemlins/cool.gif
If you're ready to pull the trigger, why gamble...the terms can't possibly get any better, unless the dealer pays you some money to buy from them. /forums/images/graemlins/cool.gif
orangebluegreen
Gold Member
Re: Anyone know Kubota\'a KCC next finance promotion ?
</font><font color="blue" class="small">( the terms can't possibly get any better, unless the dealer pays you some money to buy from them. )</font>
On what I’ve been looking at I am currently seeing advertised prices 10% lower than I saw in June when I started looking around. Dealers like to play the “it runs out at the end of month” game, or the “selling them faster than we can get them in” game. IMO it’s a buyers market. It would take a 3% increase in interest rate just to cover how fast prices have dropped this time of year and market cycle. The dealer I have in my area has had some of the same tractors sitting on their lot for nearly a year and the paint is fading. I might have to ask them if they want to rent it to me, I don’t think they would bring one out for a test drive. Sure wish we would get a REAL dealer around here. Funny how one ZTR has been sitting all summer with a sold tag on it. Another dealer in Fl who advertises “we won’t be undersold” in full page ads also runs ads for used equipment “priced to sell”. I was there a week or so ago (only because I was looking at Ferris equipment close by) and asked what he had used, I was told they have no used equipment. Guess I imagined all those tractors sitting in the middle of the lot that were obviously used and not customers units in for repair. Maybe the State Attorneys office should have a look? Perhaps he needed to sell some new ones? He did still have a Turf Special sitting, from the looks of the paint I would say it was the same one that was there in June.
</font><font color="blue" class="small">( the terms can't possibly get any better, unless the dealer pays you some money to buy from them. )</font>
On what I’ve been looking at I am currently seeing advertised prices 10% lower than I saw in June when I started looking around. Dealers like to play the “it runs out at the end of month” game, or the “selling them faster than we can get them in” game. IMO it’s a buyers market. It would take a 3% increase in interest rate just to cover how fast prices have dropped this time of year and market cycle. The dealer I have in my area has had some of the same tractors sitting on their lot for nearly a year and the paint is fading. I might have to ask them if they want to rent it to me, I don’t think they would bring one out for a test drive. Sure wish we would get a REAL dealer around here. Funny how one ZTR has been sitting all summer with a sold tag on it. Another dealer in Fl who advertises “we won’t be undersold” in full page ads also runs ads for used equipment “priced to sell”. I was there a week or so ago (only because I was looking at Ferris equipment close by) and asked what he had used, I was told they have no used equipment. Guess I imagined all those tractors sitting in the middle of the lot that were obviously used and not customers units in for repair. Maybe the State Attorneys office should have a look? Perhaps he needed to sell some new ones? He did still have a Turf Special sitting, from the looks of the paint I would say it was the same one that was there in June.
OrangeAlex
Silver Member
Re: Anyone know Kubota\'a KCC next finance promotion ?
I asked the Kubota dealer about this and he said.. "Kubota tends to do whatever to stay competitive with John Deere. When they {JD] lowers their rates, we lower ours. When they raise theirs we raise ours". This made good sense to me... look at what happens in the Automobile market.
Now based on this, you can get a pretty good idea what will happen next based on what JD did recently to their rates. Go look at what the new JD rates are on 60 mo loans.
http://www.deere.com/en_US/homeowners/specialoffers/specials_cut.html?promo=twentyseries_banner
Also, Take into consideration that you will be paying the tractor in USD. Look at what the USD to Yen exchange rate trend has been. The longer the loan is, locked in at a low interest in USD, the less money they are making per monthly payment as the USD continues to weaker against the Yen. Imagine that today you get a tractor worth 1 Million Yen and by the time you have paid out the payment Kubota as made less then 1 Million Yen on payments due to the failing USD to Yen exchange rate. From a Japanese perspective, the revenue is decreasing on a monthly basis (per customer) as the USD continues to weaken. Take into account the potential for rising interest rates and offering a low interest rate or 0% for three years, the fact that your main competitor is raising their rates, and it does not look too good for a repeat of the current promos. But all this does not mean to much as it is only my opinion.
I asked the Kubota dealer about this and he said.. "Kubota tends to do whatever to stay competitive with John Deere. When they {JD] lowers their rates, we lower ours. When they raise theirs we raise ours". This made good sense to me... look at what happens in the Automobile market.
Now based on this, you can get a pretty good idea what will happen next based on what JD did recently to their rates. Go look at what the new JD rates are on 60 mo loans.
http://www.deere.com/en_US/homeowners/specialoffers/specials_cut.html?promo=twentyseries_banner
Also, Take into consideration that you will be paying the tractor in USD. Look at what the USD to Yen exchange rate trend has been. The longer the loan is, locked in at a low interest in USD, the less money they are making per monthly payment as the USD continues to weaker against the Yen. Imagine that today you get a tractor worth 1 Million Yen and by the time you have paid out the payment Kubota as made less then 1 Million Yen on payments due to the failing USD to Yen exchange rate. From a Japanese perspective, the revenue is decreasing on a monthly basis (per customer) as the USD continues to weaken. Take into account the potential for rising interest rates and offering a low interest rate or 0% for three years, the fact that your main competitor is raising their rates, and it does not look too good for a repeat of the current promos. But all this does not mean to much as it is only my opinion.
orangebluegreen
Gold Member
Re: Anyone know Kubota\'a KCC next finance promotion ?
Looks like Deere has plenty of room to “play” with new issue at 4.54%....
“New Issue-John Deere Capital sells $300 mln in 3-yr notes
Mon Aug 22, 2005 02:12 PM ET
WHITE PLAINS, N.Y., Aug 22 (Reuters) - John Deere Capital Corp., a unit of Moline, Illinois-based Deere & Co. sold $300 million in three-year medium-term notes, said joint lead manager Credit Suisse First Boston on Monday.
The size of the deal was increased from an originally planned $250 million.
Deutsche Bank Securities Inc. was the other joint lead manager for the sale. BORROWER: JOHN DEERE CAPITAL CORP. AMT $300 MLN COUPON 4.50 PCT MATURITY 8/25/2008 TYPE MED TERM NOTES ISS PRICE 99.889 1ST PAY DATE 2/25/2006 LAST MOODY'S A3 YIELD 4.54 PCT PAY FREQ SEMI-ANNUAL LAST S&P A-MINUS SPREAD 50 BPS NON-CALLABLE“
Looks like Deere has plenty of room to “play” with new issue at 4.54%....
“New Issue-John Deere Capital sells $300 mln in 3-yr notes
Mon Aug 22, 2005 02:12 PM ET
WHITE PLAINS, N.Y., Aug 22 (Reuters) - John Deere Capital Corp., a unit of Moline, Illinois-based Deere & Co. sold $300 million in three-year medium-term notes, said joint lead manager Credit Suisse First Boston on Monday.
The size of the deal was increased from an originally planned $250 million.
Deutsche Bank Securities Inc. was the other joint lead manager for the sale. BORROWER: JOHN DEERE CAPITAL CORP. AMT $300 MLN COUPON 4.50 PCT MATURITY 8/25/2008 TYPE MED TERM NOTES ISS PRICE 99.889 1ST PAY DATE 2/25/2006 LAST MOODY'S A3 YIELD 4.54 PCT PAY FREQ SEMI-ANNUAL LAST S&P A-MINUS SPREAD 50 BPS NON-CALLABLE“
orangebluegreen
Gold Member
Re: Anyone know Kubota\'a KCC next finance promotion ?
Wonder how much Kubota wants to follow JD?
“AP
Deere Posts 3Q Earnings Drop; Shares Fall
Tuesday August 16, 5:24 pm ET
By Jan Dennis, Associated Press Writer
Deere Posts Decline in Third-Quarter Profit As Dry Weather Weighs on Sales; Shares Fall
PEORIA, Ill. (AP) -- Shares in Moline-based Deere & Co. tumbled Tuesday after the equipment maker reported withered third-quarter profits due to dry weather that has gripped parts of the nation and curbed demand for the company's trademark green-and-yellow products.
Deere shares closed down $8.06, or 11.1 percent, to $64.75 Tuesday on the New York Stock Exchange. The company posted profits that dipped 3 1/2 percent from last year and issued weaker fourth-quarter and full-year earnings forecasts. The stock has been trading in a 52-week range of $56.72 to $74.73.
The maker of John Deere tractors and other heavy machinery reported profits slid to $387.1 million for the quarter that ended July 31, down from $401.4 million during the same period last year. Per-share earnings matched last year's at $1.58 but fell short of the $1.90 per share analysts polled by Thomson Financial had been expecting.
Deere said farm equipment sales stalled amid a drought stretching from the Great Lakes to Texas that the U.S. Agriculture Department estimates could trim corn production by 12 percent and soybeans by 11 percent this fall.
Analysts agreed but questioned whether the weather-related downturn could be offset by a $284.4 billion transportation bill President Bush signed last week.
"While drought conditions here and in Latin America will hamper Deere's agricultural segment, the recently passed federal highway bill should boost the company's growing construction equipment business," Morningstar analyst Scott Burns said in a memo to investors.
Agricultural equipment sales rose 9 percent for the quarter, down sharply from a 34 percent increase during the same period last year, when a global economic upturn fueled a buying surge. The company predicted farm equipment sales would be up 8 percent for the year, down from earlier estimates of 9 to 11 percent.
Dealers say the drought has slowed machinery sales in hard-hit Illinois, where farmers are bracing for corn and soybean harvests expected to yield at least 25 percent less than last year.
"We've gone from a very active spring and early summer to basically not much activity at all," said John Kelly, an owner of three central Illinois dealerships.
Dry weather also hampered sales of Deere's lawn-care equipment, which were down 3 percent in the third quarter. Consumer equipment sales are now expected to dip 5 percent for the year, compared with a 3 percent increase in earlier estimates.
The worst drought since 1988 has driven down lawn equipment sales 35 percent at his four central Illinois locations, Deere dealer Mark Kleine said.
"We've got people who haven't mowed grass for a month and a half," Kleine said.
Revenue rose 11 percent to $6.01 billion for the quarter, up from $5.42 billion a year ago. The company said price increases and overseas currency translations helped boost revenues.
Deere predicted full-year profits of about $1.4 billion, matching last year's record earnings but short of earlier estimates of $1.5 billion to $1.6 billion.
The company expects fourth-quarter sales will decline about 9 percent, with a 23 percent production decrease to better align inventory with demand. Chairman and CEO Robert W. Lane said reducing inventory also will set the stage for new tractors and other equipment that will be launched in 2006.
"We're confident these advanced products will enhance our market leadership and deliver even more value and productivity to our growing global consumer base," Lane said in a statement.
Along with farm and construction equipment, the company makes consumer products that include mowers, chain saws and snow blowers.
Wonder how much Kubota wants to follow JD?
“AP
Deere Posts 3Q Earnings Drop; Shares Fall
Tuesday August 16, 5:24 pm ET
By Jan Dennis, Associated Press Writer
Deere Posts Decline in Third-Quarter Profit As Dry Weather Weighs on Sales; Shares Fall
PEORIA, Ill. (AP) -- Shares in Moline-based Deere & Co. tumbled Tuesday after the equipment maker reported withered third-quarter profits due to dry weather that has gripped parts of the nation and curbed demand for the company's trademark green-and-yellow products.
Deere shares closed down $8.06, or 11.1 percent, to $64.75 Tuesday on the New York Stock Exchange. The company posted profits that dipped 3 1/2 percent from last year and issued weaker fourth-quarter and full-year earnings forecasts. The stock has been trading in a 52-week range of $56.72 to $74.73.
The maker of John Deere tractors and other heavy machinery reported profits slid to $387.1 million for the quarter that ended July 31, down from $401.4 million during the same period last year. Per-share earnings matched last year's at $1.58 but fell short of the $1.90 per share analysts polled by Thomson Financial had been expecting.
Deere said farm equipment sales stalled amid a drought stretching from the Great Lakes to Texas that the U.S. Agriculture Department estimates could trim corn production by 12 percent and soybeans by 11 percent this fall.
Analysts agreed but questioned whether the weather-related downturn could be offset by a $284.4 billion transportation bill President Bush signed last week.
"While drought conditions here and in Latin America will hamper Deere's agricultural segment, the recently passed federal highway bill should boost the company's growing construction equipment business," Morningstar analyst Scott Burns said in a memo to investors.
Agricultural equipment sales rose 9 percent for the quarter, down sharply from a 34 percent increase during the same period last year, when a global economic upturn fueled a buying surge. The company predicted farm equipment sales would be up 8 percent for the year, down from earlier estimates of 9 to 11 percent.
Dealers say the drought has slowed machinery sales in hard-hit Illinois, where farmers are bracing for corn and soybean harvests expected to yield at least 25 percent less than last year.
"We've gone from a very active spring and early summer to basically not much activity at all," said John Kelly, an owner of three central Illinois dealerships.
Dry weather also hampered sales of Deere's lawn-care equipment, which were down 3 percent in the third quarter. Consumer equipment sales are now expected to dip 5 percent for the year, compared with a 3 percent increase in earlier estimates.
The worst drought since 1988 has driven down lawn equipment sales 35 percent at his four central Illinois locations, Deere dealer Mark Kleine said.
"We've got people who haven't mowed grass for a month and a half," Kleine said.
Revenue rose 11 percent to $6.01 billion for the quarter, up from $5.42 billion a year ago. The company said price increases and overseas currency translations helped boost revenues.
Deere predicted full-year profits of about $1.4 billion, matching last year's record earnings but short of earlier estimates of $1.5 billion to $1.6 billion.
The company expects fourth-quarter sales will decline about 9 percent, with a 23 percent production decrease to better align inventory with demand. Chairman and CEO Robert W. Lane said reducing inventory also will set the stage for new tractors and other equipment that will be launched in 2006.
"We're confident these advanced products will enhance our market leadership and deliver even more value and productivity to our growing global consumer base," Lane said in a statement.
Along with farm and construction equipment, the company makes consumer products that include mowers, chain saws and snow blowers.