Financing Do Kubota incentives last through buying process?

[mljenkins]

Started dealing with dealer at the end of October this year. Placed a deposit on my tractor and implements Nov 20 (of course after credit ran and approved for financing), and tractor arrived to dealer around Dec 1, and has been in build since.

Tractor is not ready yet, and they ran into an issue today with the build which they are hoping to resolve by next week. I am concerned if they need parts they are not going to be able to deliver by year end. Dealer said I could sign the contract next week to lock in the incentives, but I am leery to do this after reading another member's story on the forums concerning partial delivery of their tractor and associated implements. The last thing I want is to be paying on a very expensive piece of equipment that is sitting in the shop for 2 months.

Does anyone know if Kubota will honor the incentives past the expiration date if I have already paid a deposit and been approved for credit? Without the 0%, the financing at 6% (no idea what it would really be) would cost over 10K, and at that point I'm not buying, but I don't want to lose my $1,000 deposit.

I'm hoping they deliver next week and this is a moot point, but if not, I've been placed in a real bind.

Thanks in advance,

Matt

 

[fried1765]

Started dealing with dealer at the end of October this year. Placed a deposit on my tractor and implements Nov 20 (of course after credit ran and approved for financing), and tractor arrived to dealer around Dec 1, and has been in build since.

Tractor is not ready yet, and they ran into an issue today with the build which they are hoping to resolve by next week. I am concerned if they need parts they are not going to be able to deliver by year end. Dealer said I could sign the contract next week to lock in the incentives, but I am leery to do this after reading another member's story on the forums concerning partial delivery of their tractor and associated implements. The last thing I want is to be paying on a very expensive piece of equipment that is sitting in the shop for 2 months.

Does anyone know if Kubota will honor the incentives past the expiration date if I have already paid a deposit and been approved for credit? Without the 0%, the financing at 6% (no idea what it would really be) would cost over 10K, and at that point I'm not buying, but I don't want to lose my $1,000 deposit.

I'm hoping they deliver next week and this is a moot point, but if not, I've been placed in a real bind.

Thanks in advance,

Matt

Did you use a credit card for your deposit?
If so, check with your credit card company to see how they would handle the refund of your deposit, should the deal fall through.

 

[mljenkins]

Did you use a credit card for your deposit?
If so, check with your credit card company to see how they would handle the refund of your deposit, should the deal fall through.

Yes I did. But it will be past 30 days and I assumed there was a limit on that, aside from a debate process that could occur with the vendor. I’m hoping it doesn’t come to that and that the financing will still apply past the expiration, but hopefully someone else has experienced getting approved and ordering close to when the incentives end and ran into the same issue.

 

[fishpick]

I went to finalize my deal today on a new L4760 + FEL + snow blower and the tractor will not be delivered until mid Jan... after credit application approval the dealer told me as of Jan1 Kubota might not have the 84 month option - which in turn would spike the deal.
Apparently you need a serial number from a unit to lock in financing terms.

Your situation is a little different but that痴 what I was told today.

 

[mljenkins]

I went to finalize my deal today on a new L4760 + FEL + snow blower and the tractor will not be delivered until mid Jan... after credit application approval the dealer told me as of Jan1 Kubota might not have the 84 month option - which in turn would spike the deal.
Apparently you need a serial number from a unit to lock in financing terms.

Your situation is a little different but thatç—´ what I was told today.

So it sounds like closer to the end of their incentives you would have to buy as is off the lot. They have the serial on the tractor because it is of course at the dealer just not working. I don’t want to sign a contract until it is delivered as that gives me no leverage for it to ever leave the shop. As my wife said, once the sales guy is out of the picture the only person I can talk with is the shop guy who isn’t making anything on the deal.

Crossing my fingers it gets resolved next week...

 

[RickB]

So it sounds like closer to the end of their incentives you would have to buy as is off the lot. They have the serial on the tractor because it is of course at the dealer just not working. I don稚 want to sign a contract until it is delivered as that gives me no leverage for it to ever leave the shop. As my wife said, once the sales guy is out of the picture the only person I can talk with is the shop guy who isn稚 making anything on the deal.

Crossing my fingers it gets resolved next week...

Today´s programs require today’s contract. If you don’t trust the dealer to deliver your tractor you are at the wrong dealership. If you aren’t going to have trust in ANY dealer then you will settle for whatever program is in effect the day your tractor is delivered/ picked up.

 

[mljenkins]

Today´s programs require today’s contract. If you don’t trust the dealer to deliver your tractor you are at the wrong dealership. If you aren’t going to have trust in ANY dealer then you will settle for whatever program is in effect the day your tractor is delivered/ picked up.

Rick, I am new to our area. I spoke with 5 different dealers in a 1 hour radius of my farm, 3 which were Kubota. I went with the dealer that was more local and more responsive and knowledgeable. I did research on them prior to talking pricing. The point here is there is not yet an establishment of trust between myself and any dealer local to me.

My predicament is the deposit as I paid it with the intention, in writing, of getting specific financing. Financially it is unwise to pay full price on something with no guarantee of a delivery date. The package here isn’t a base model subcompact. It is a lot of money and I feel it in my best interest to protect myself financially. I can give countless examples from my vehicles to my home purchase where the final payout hasn’t happened without delivery, despite having a trust with the seller in many cases.

Perhaps I shouldn’t have posted the rest of my story other than to ask the simple question of if the financing will carry over. However I thought the background information regarding the actual build wait rather than receive from the factory could influence the incentive decision.

 

[RickB]

Rick, I am new to our area. I spoke with 5 different dealers in a 1 hour radius of my farm, 3 which were Kubota. I went with the dealer that was more local and more responsive and knowledgeable. I did research on them prior to talking pricing. The point here is there is not yet an establishment of trust between myself and any dealer local to me.

My predicament is the deposit as I paid it with the intention, in writing, of getting specific financing. Financially it is unwise to pay full price on something with no guarantee of a delivery date. The package here isn’t a base model subcompact. It is a lot of money and I feel it in my best interest to protect myself financially. I can give countless examples from my vehicles to my home purchase where the final payout hasn’t happened without delivery, despite having a trust with the seller in many cases.

Perhaps I shouldn’t have posted the rest of my story other than to ask the simple question of if the financing will carry over. However I thought the background information regarding the actual build wait rather than receive from the factory could influence the incentive decision.

I understand. And I was brusque. But my point is finance terms are finite in duration and are applicable to contracts executed while those terms are in place. Executed is the key word. Initiation date does not lock the terms in, execution does. Always has, probably always will. Not a Kubota exclusive, it’s been industry wide for longer than the two plus decades I’ve been a tractor dealership employee. It’s simply the way it works.

 

[mljenkins]

I understand. And I was brusque. But my point is finance terms are finite in duration and are applicable to contracts executed while those terms are in place. Executed is the key word. Initiation date does not lock the terms in, execution does. Always has, probably always will. Not a Kubota exclusive, it’s been industry wide for longer than the two plus decades I’ve been a tractor dealership employee. It’s simply the way it works.

Understood, and it makes sense considering at the end of the line there is a bank whereas the dealers and manufacturers are somewhat middlemen in the financial process. I was talking it over with my wife, and if things take longer than the end of the year, I may try to work something out with the dealer where I could sign the contract, and get a date in writing or otherwise they would be responsible for the payments. Either that or see if they would come down a payment on the total.

 

[RickB]

Consider that there really is no incentive for a dealer to needlessly delay delivery of a tractor/package without a valid reason. They literally have nothing to gain by holding your assets hostage. Serial numbers are listed, leins are filed when financing is involved. Insurance against loss is likely in place. The equipment isn’t going anywhere. Especially in this digital age where unscrupulous tactics can get widespread attention in short order.

 

[oosik]

Seems to me, the easiest way to find your answer is to ask the dealer you are currently dealing with. He is the dealer you have chosen, now would be an excellent time to find out if his word is worth anything.

 

[Wagtail]

Seems to me, the easiest way to find your answer is to ask the dealer you are currently dealing with. He is the dealer you have chosen, now would be an excellent time to find out if his word is worth anything.

I agree. And I also understand where the OP is coming from... and where the dealership is coming from.

So, my advice, after talking with the dealership, is to simply start making the payments on the tractor. Kubota has their reputation to uphold too and I've not heard/read anything to the contrary.

If anything, Messicks is a member of TBN and you could PM them with your question.

 

[JOHNTHOMAS]

I have bought several new Kubotas from Barlows. Some were on the lot and some were not. Steve Barlow and I have made the deals verbally and I've told him I'd sign the paperwork whenever he wants. Sometimes I've signed the paperwork near the end of the month and if terms got better the next month before delivery he gave me the better new terms and if the incentives got worse the next month he gave me the terms of the month I signed the contract and I've never paid a deposit in the past 10 years of 14 years buying from him.
You should be able to sign a contract with current months terms that will be recognized/valid/binding at the date of delivery. Consideration (money usually) is one of the elements that is required for a contract to be legal. The promise of the purchase price is the money aspect and the described item your buying is another required part of the contract. You could believe giving the dealer a dollar at the time of signing makes it more binding but not really a legal part of a contract. Give the dealer a token deposit and determine who trusts who the most. The dealer can't lose if you don't go thru with the deal since he still has everything of Kubotas in his/her possession. If the dealer doesn't understand your concerns then they may need to be avoided. Maybe a couple of hundred dollars deposit for their efforts should you back out on the deal would be fair. The dealer isn't paying for what your buying, it's on Kubotas dime so the dealer is only in for their time. The financing is with Kubota Credit which doesn't kick in until you sign for delivery as does the insurance whether thru KTAC or your private homeowners or other private policy.

 

[fishpick]

...You should be able to sign a contract with current months terms that will be recognized/valid/binding at the date of delivery...

That's apparently part of the challenge here - I agree 100% you SHOULD - but you CAN'T sign a contract for Kubota financing without a units serial number - and if the period rolls and the financing that was part of the deal changes prior to the serial number being issued to sign the agreement - you lose.
While I agree with @RickB

Todayｴs programs require today痴 contract.

I also don't agree that never ever have terms not been carried over for a deal started in a prior period - there should be a way to "commit" in the current period and complete execution at delivery. Maybe in the tractor world you can't - which would be stupid - but with autos (my friggin truck cost LESS than this tractor) - the dealer can and has been able to ensure a late month deal that completes the process in the next period with different financing programs is allowed to use the program that made the deal.
From my perspective - of all the things that can and do go wrong in a deal Kubota Financial doesn't do their dealers any favors by doing this - there are folks that the "monthly payment" IS the deal - and switching out terms on them is obviously a deal killer.

 

[mljenkins]

The financing is with Kubota Credit which doesn't kick in until you sign for delivery as does the insurance whether thru KTAC or your private homeowners or other private policy.

John you said something here which greatly peaks my interest and would eliminate my concerns. If I sign the contract, hence locking in financing and locking in the loan, is that different than signing for delivery? Or are you just using these two things interchangeably?

Let’s say worse case something is majorly wrong with the tractor and it sits in the shop for 1-2 months. I don’t want to be paying for something not in my possession nor have the insurance and warranty periods reduced that time frame.

 

[fishpick]

...Or are you just using these two things interchangeably?
...

Based on what my dealer said yesterday regarding my new purchase - they are one in the same - the financing + insurance if you opt for it through Kubota, is "started" at delivery - with the serial number of the item(s) in the delivery that are under the finance / insurance agreement.

There's not a way to "start it" early to lock in a favorable financing term... i.e. - I can't "sign in 2017" to guarantee the 84 month @ 0% terms... I have to hope that those terms exist when the tractor is ready for delivery sometime in mid-January...

 

[JOHNTHOMAS]

The dealer (Almost certain) can get the serial number when the dealer places the order (If the machine has started production or produced) and then the contract which includes financing terms is "locked in". Many deals are made near the end of the month and if a dealer were to have to tell a customer they didn't know what financing would be when the machine arrives, well that would never work. There may be a glitch if an order is made and the machine isn't currently in production for some reason but the manuf should probably still know what the next serial number is going to be.
Again as I said before, I've bought many new Kubotas near the end of the month and have sometimes straddled the incentives/financing by having guarantees at the time of the deal and then a redo if the machine comes in during another month and terms have changed to my good. It's not difficult because the first "deal" is voided and a new contract is written. One time it saved me $700 which is covered in one of my older posts done at the time.
Any thinking about how car/truck deals are done will confuse the issue. Nothing like car deals/financing. Tractor deals and tractor financing and tractor franchises.

 

[fishpick]

I知 simply telling you what my dealer told me and what my issue is.
Factory has no serial to give. Won稚 have a delivery until mid/late Jan and the dealer has said the current 84 month deal ends when the ball drops on NYE.
It may or may not be there in 2018.
So - I知 an end of month deal that has no clue what terms may or may not be available when the tractor serial becomes available.
My point about autos was - maybe the much smaller tractor market could learn a few best practices.

 

[JOHNTHOMAS]

I知 simply telling you what my dealer told me and what my issue is.
Factory has no serial to give. Won稚 have a delivery until mid/late Jan and the dealer has said the current 84 month deal ends when the ball drops on NYE.
It may or may not be there in 2018.
So - I知 an end of month deal that has no clue what terms may or may not be available when the tractor serial becomes available.
My point about autos was - maybe the much smaller tractor market could learn a few best practices.

Looks like you may need to search more dealers to find an on lot machine that has a serial number.
Dealers can get machines from other dealers but most of them don't like to because the dealer aquiring has to pay the transportation charges which can run into a few hundred(s) of dollars. Usually works best to locate a machine and then negotiate with the dealer that has it on hand.
Doubt any tractor dealer has any interest in gearing their business model to reflect the car/truck selling model. Guess they would sell cars/trucks instead of tractors if they wanted to do that. I've bought over 180 cars and trucks in my life time and it was an adjustment for me to make the transition to tractor buying trading about 14 years ago. Finally got it out of my head and don't think of the two of them being in any way similiar other than the 4 wheels part, well also oil changes and brakes and throttle pedal.

 

[David_Kb7uns]

I always though the incentives were to move the machines already on the lot?

David