Financing Finance Kubota or Home Equity?

[MrGreenJeans]

Any opinions on Kubota financing vs. a Home equity for that big mean orange machine?

 

[Anonymous Poster]

<font color=blue>...Kubota financing vs. a Home equity ...</font color=blue>

Kubota 3.99 % vs. Home equity ~~6.5-8.5 %(plus HE loan costs $$$)...

Hummm... What do you think...? /w3tcompact/icons/eyes.gif /w3tcompact/icons/smile.gif

 

[manganos]

I asked myself the same question and in the end I borrowed $12k for the BX22 from Kubota. I still haven't recieved my payment book though...

 

[JohnMiller3]

I'm somewhat curious why anyone would consider a home equity loan for a tractor...? I would think on non-essentials, you'd either pay cash or use mfr. financing... Why would you finance a tractor for 10 or 15 years...(through a home equity loan and a higher interest rate), by the time it's paid off... that's quite an expensive tractor...!

 

[manganos]

The reason I did was because a lot of my money is tied up in the stock market and I didn't want to take a big hit so I rather leave it in there. Another is a home equity loan in my case was tax deductible. It made more sense for me to get the cheap Kubota financing. I wanted to make sure there was no pre-payment penalty as well!

 

[Steven]

as long as you do not have an early pay off penalty with your home equity you can pay it off as fast as you want. you can also write off the intrest on your taxes each year. not sure of the savings comparing both options in the long run but the best way is to pay cash if possible. I hate payments!

 

[JohnMiller3]

<font color=blue>...money is tied up in the stock market ...</font color=blue>

I was at an open house a couple months ago... and that's basically what one farmer was telling another... chickens, cows, pigs... his money was all tied up in the live stock market... /w3tcompact/icons/grin.gif

 

[Buck]

Kubota 3.99 % vs. Home equity ~~6.5-8.5 %

Even. It doesn't matter which path you choose. Unless you have a less than average income.

Buck

 

[frank_f15]

not knowing you deatailed situation i think i would be inclined to suggest kubota financeing.just mho

 

[Anonymous Poster]

What you need to determine is your savings greater by taking the 3.9% or financing the home equity loan at 8% then writing the interest off on your taxes.

All the best!