Financing Financing experience's

[timswi]

I've used Kubota credit several times. Not a single issue.

Same here..4x. Pretty good operation.

 

[oosik]

I used Kubota credit to purchase my M6040. The interest rate was far better than anything I could get at the bank.

 

[check]

A few people have mentioned here on TBN that their dealer quoted them prices and said that the price would be the same cash or 0% finance. That was a big surprise to me, and if that was the case I would of course finance, for obvious reasons.

 

[Blackcatstrat]

Good morning everyone, thanks very much for all the information you all have provided. There is a lot more to tractor financing than I imagined.
Cash price vs financed priced, insurance etc...

I really have weighed out buying used vs new and from what I have seen so far people are asking so much for used equipment in my area that for 3-4 k more you can get new.
Doesn't seem to make sense, plus yes there is always that risk with used.
Good deals are far and few between and you have to be ready with cash and trailer and jump on them.

I certainly could just pay cash for new but that would clean me out and leave me with no emergency money. I get nervous when I don't have something to fall back on.
Although I agree if you can pay cash and avoid more debt than do it. For me the pro's just don't out weigh the cons's.
Lets just say my financial situation tanks, loss of job or something...if you finance than the worst thats going to happen is they repo the tractor. If I keep my on hand cash safe than at least I can feed the kids and pay the mortgage. That just my thoughts on it. I think everyone has to do what works best for them and their personal situation.
I do keep my eyes open though for a good deal on used but really nothing so far.

So far there are very few options for me since i'm not a "farmer" The farm credit network, AG Direct etc don't want to talk to me since I'm not. No banks or credit unions offer loans for a tractor other than personal loans. Just cant justify those kinds of interest rates. More than likely I will have to go with DLL Finance regardless if I like it or not.
Right now I am trying to figure out how much I have to put down, the insurance thing and working the numbers. I got a cash price for a new Kioti CK2610 with a loader for 16,700 before taxes. The finance price from what I am seeing is about 18k. Seems like after taxes and insurance and all the extra crap I am looking at almost 20K
Dang...
Thanks again for all the info gents, I am learning a lot. Have a great holiday.

Jerry

 

[cford36]

Check out AgDirect. I've used them twice and they have been very easy to work with. You can get a person on the phone right away, and their rates have been very competitive.

Correct me if I'm wrong but I was looking at them also, but you need to go thru the dealer to apply for the loan. You can't go directly to AgDirect, or that's what I was told when I contacted them.

 

[cford36]

You mentioned you had the cash so this may not apply, but you also need to decide how long you are looking to finance. If your staying within 4-5 years then your options are pretty open. If you want to push it out to 84 months then your probably limited to the manufacturers financing or one that deals with farm equipment for the most part.

 

[GManBart]

Correct me if I'm wrong but I was looking at them also, but you need to go thru the dealer to apply for the loan. You can't go directly to AgDirect, or that's what I was told when I contacted them.

I'm not sure if things have changed, but that was true as of maybe two years ago.

With that said, at one point I was looking at a machine at a dealer that didn't normally work with AgDirect, so I called both the dealer, and AgDirect about it. AgDirect said it was a pretty easy process for them to add a new dealer, and it could be done quickly (couple of days it sounded like). The dealer I was talking to said they wouldn't have a problem setting up an account with AgDirect, so it couldn't have been too much of a problem.

The one limitation I know of with AgDirect is you have to have enough land and plans for crops of some kind to qualify, although they didn't mention a minimum acreage they require.

 

[Blackcatstrat]

A few people have mentioned here on TBN that their dealer quoted them prices and said that the price would be the same cash or 0% finance. That was a big surprise to me, and if that was the case I would of course finance, for obvious reasons.

So far I am getting a higher price if I finance over cash. This was the case at two dealers I talked to. I agree that if it was the same price I would hop on that.
Pretty frustrating, add tax, higher financing price etc and it puts me out of budget.
Take care.

Jerry

 

[ransonjd]

The local Mahindra dealer quoted me 0% and 5.9% (cash) prices today that resulted in identical monthly payments. There's no good reason to go with 0% with cash incentives like that. However, the Kubota dealer said that their 0% pricing was less than a grand over cash pricing, which made a pretty strong incentive for going with 0%.

--John

 

[Blackcatstrat]

As I have learned when you finance a tractor you have to have insurance? When purchased through the finance company did this add lot to the cost/payments?
Trying to crunch numbers and get an accurate feel for the monthly payments
Will be glad to get this mission behind me.
Many thanks

Jer