Buying Advice - Kioti, LS, TYM Compact Tractors

[jyoutz]

Zero percent financing is never really zero. The purchase price of a zero percent finance machine is always going to be higher than a cash transaction. I realize there may not be many people that can afford to pay cash for a machine.

True, but again the cash discount is minimal, so the cash buyers are subsidizing the people who finance. May as well take the zero percent and invest the cash.

 

[FERLING]

We had a customer who purchased two Mahindras. First one was a 5155 with a hoe. He found it rather exasperating working in the woods with it.
So he came down and said "I'd like another tractor". I told him we'd give him what he paid for his 5155 on a trade as it was only 3 months old.
Then he said "no, I want another one w/o the hoe". He didn't feature taking the hoe on and off. Imagine me telling a customer he was crazy for getting another tractor when he could trade in his first machine and even offering to take back just the hoe at least. I told him he could rent a mini for the once in two years he wanted to clear his drainage ditch.
Nope. He insisted on another tractor as he wanted the hoe for whenever he wanted a tractor with a hoe. He purchased a new 5145 and to this day, I call him "crazy man" and he just laughs.
After that he purchased two chainsaws, a 7000 watt Honda generator, a man cage, a grapple and a Lane shark cutter.
He must like being called "crazy". He stated that his wife calls him that all the time and that he felt I made an honest assessment of his condition. He said he appreciated the honesty and likes dealing with an honest dealership.
I wonder if I should start calling more guys names especially if the wife is there.

He had more money than he had sense. You relieved the pressure on one of those that day. When the customer wants to unload the burden of managing his cash you should be proud of the relief you provided.

 

[Signals]

I bought a Kioti DK4710SE HST a couple years ago, have over 300 hour on it already. Main reason I went with the Kioti over the other brands was lifting capacity. Not sure if it is the same in the CX class, but Kioti lifted more in each class I looked at compared to the others. I can lift full IBC totes of oak firewood, most of the others I looked at couldn't.

 

[ericm979]

Zero percent financing is never really zero. The purchase price of a zero percent finance machine is always going to be higher than a cash transaction.

That's not always true. It depends on where the zero percent financing comes from. If it's from the manufacturer, they may be offering it as an incentive. There may also be a cash incentive, or there may not be. When I was looking to buy about six years ago Kubota was doing that. They had a zero percent loan incentive, but no cash incentive. I asked one of the dealers I was talking to.

Yes it means that the corporation is making less on a zero percent unit than a cash unit, but that's how they decided to structure it.

When my wife bought her last car there was a similar deal with that manufacturer- zero percent loan but no equivalent cash incentive. She was going to pay cash but a zero percent loan is hard to pass up as you can just take the cash and invest it.

 

[arrow]

Yes it means that the corporation is making less on a zero percent unit than a cash unit, but that's how they decided to structure it.

Not necessarily at all. Your key phrase of "how they decided to structure it" hits the mark and structure it they did and of course to their advantage..I know of no finance company corporate or otherwise, that allows anyone to to borrow their money for the item you purchased for nothing.
As I recall and talking to a Kubota insider from 4 or 5 yrs ago, their "zero" percent at the time was really a finance charge of over 8% based on the before incentive inventory pricing. As a customer, you wouldn't tolerate a finance charge of 8% but that can be structured in such a way, you wouldn't even know you're paying that. The company can "structure" their pricing anyway they want to make it seem anyway they want.

In another words, let's say you had an item that had an msrp of $25K. Usually for a tractor, there is mark up of anywhere between 17 to 20%.
The invoice is closer to 20K. Kubota had a strict pricing policy for this incentive meaning, this is the price take it or leave it. So if the sale price is bumped up to 30K and the vaunted "0%" is offered and you are told, "there is no price discount incentive" but their is a 0% incentive that reduces the price by $2000...this means that Kubota has to get the 28K and relies on the "0%" to make it seem the customer is really paying 0%. They sell more tractors this way simply making people believe they are getting the advantage over the company. Never in million years would that be allowed to happen.
So in another scenario, lets say this 25K tractor is sold for 23K with the $2000 discount. If you end up paying 28K out of pocket over the term of the loan, what is your real finance percentage? It's a bit over 8%. Again, you and no one else would bite on that if presented as I just described. So why tell the buying public how I just structured my pricing to make more money than I ever could selling my wares by simply jacking up my price and offering 0% to make it seem like "such a deal".

People fall for this all the time. In this case, the buying public becomes a "captured audience" so to speak having no other choices.
This is usury deception at it finest in my mind, played on the uninformed.
It's a deception that turns my gut and I don't care if the eventual out of pocket comes in exactly the same as a regular loan.
The whole thing is just sneaky and around the bend to me and every body does it for a reason: 0% is like an aphrodisiac to the buying public and yes, some have no problem with that even thinking positive about it calling it, "increased commerce". "Never a bad thing", they'd say.
I'd rather sell my 25K tractor for 23K, offer the 3.99% financing and be straight up about the whole thing.
I'd like to think my honesty and being forthright is the real thing to win over customers for the long haul and make sales without having to fool anyone.

 

[arrow]

True, but again the cash discount is minimal,

This is done by design. It cordones you off to accept the 0% financing.

 

[arrow]

Buy the biggest 4 x 4 tractor you can afford. I own a 2015 New Holland Workmaster 50 and do what you want to do. Never regretted making payments and never have wished I had bought a smaller tractor. Plus with low hours on it I can sell it for what I paid new for it. Keep an eye out for a good used tractor and when available take advantage and purchase it. Took me 3 years of saving, plus right tractor being on the lot, plus a $3,000 discount if I handled my own financing (I borrow from other sources so the dealer just received $26,300 cashiers check (plus tax).View attachment 847997

That's a beautiful unit Ferling.
There is a scenario however of not necessarily buying the biggest tractor you can afford as opposed buying the smaller tractor that will do the job.
My tractoring is done in very dense woods. Just today attempting to maneuver between three tight trees with a "y" turn, I was thankful of not having a larger tractor or else, I could not pull that maneuver and would have to travel another 100' just to get situated as I wanted. I find myself in tight quarters more often than not in these woods.
It's bit of a chore getting stems out through the woods as pictured behind the pile.
I wish they made a 126" tractor that weighed about 8000lbs.

 

[kyryder]

Hi All,

I am wanting to get a compact tractor for some projects around my property, and to have a little fun with. I currently have a 1971 Cub Cadet 128 that's just for fun and a Cub Cadet XT2 for mowing and snowblowing duties.

My main uses for the tractor will be moving soil, rock, and gravel, grading and smoothing the property with a blade, and leveling certain sections of the property for aesthetics. And, well to be honest, to play with and tinker with. I will not be using the tractor for mowing. We have 2.5 acres, but the actual mowable land can easily be handled by the Cub Cadet. I'd also to try and pull down a grove of trees running along my driveway, they are all 6 inches in diameter or less.

I think I have narrowed my choices down to 3 different models.

Kioti CX2510HST
I've been quoted 21,050 at zero %. I like this tractor for the ergonomics of the cockpit and the overall weight of the tractor. Would the weight be a concern at all for the extra strain it will put on the engine over time?

LS MT225S
I've been quoted 19000 at zero %. Lots of things to like about the LS. 3 range, Yanmar engine, good ergonomics.

TYM T264
I've been quoted 16000 at 3.99%. The cheapest in the group, but offers the same features for the most part. Nothing to really not like about the T264.

They all have 6 year warranties, all three dealers are about 45 minutes from my house.

What do you all have to say about these models of tractors? Any model I don't have listed that you would suggest? The 21K mark is just about the top of the price range for me, I can't get too crazy with the spending.

Thanks for your time! Here's a photo of my 1971 128 for the heck of it.

I have the TYM264 and have been very happy.
I have fel, backhoe, 5ft bush hog, and 5ft rototiller.
I am sure the 264 has been discontinued even though it had a better engine than the T25 (model replacement). Major difference T25 has front hydraulic remotes, T264 it is an option.
I would buy the T264 and opt for the front remotes.

 

[jyoutz]

This is done by design. It cordones you off to accept the 0% financing.

I can’t argue that. But since that’s the game, why pay cash?

 

[Williy]

You can check these tractors out have a nice discount and
10 year warranty

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willy