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

 

[GManBart]

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

It depends upon the brand, and the financing company. If you finance a Kubota, yes, but not always with other brands.

 

[Gary3032]

I got my insurance thru autowners complete works including comp. $38.00 a year.
Gary

 

[Catoosa]

Your home owners may cover your tractor, mine does.

 

[rScotty]

I would not finance a tractor. The only thing I think it makes sense to borrow money for is a house. I would look into cheaper used tractors if buying a new one with cash is not in the budget.

That's good advice. Listen to bdog here. There are a lot of god used tools that were designed to work well just about forever. And tractors are like that too. It's not surprising to see an old well used ag tractor 20 or 30 years old that works just as well as new.

My advice would be to take cash and buy from the owner rather than a dealer. Old ag tractors are often very reasonably priced. Drive it around for half an hour. If it runs smoothly for that long it will last a decade. Put a new seat and some wide soft turf tires on an old farm tractor and you've got yourself a worker for 10% the cost of new.

There are a ton of good used tractors out there. Save the financing for something where it's needed.
luck, rScotty

 

[Blackcatstrat]

Thought I would update everyone...
Made the 2+ hour drive this morning to Twin State Tractor up in New Hampshire and pulled the trigger and signed for a new CK2510.
Still got a bit of that sickly feeling but its done now...
Got to drive back up Wednesday and give it the once over before it gets delivered. They are going to be changing out the tires (Turf) for a set of loaded Ag tires. Got a cut bar as well.
They couldn't help with delivery because its so far but he is putting me in contact with someone who will transport it for me. Stay tuned
Hopefully everything goes smooth with all that and it makes it here without issue.

I had talked to another dealer a bit closer but it came down to price so I went with these folks instead.
Will be glad when its all done and over.....
I'll put some pictures up when it gets here.

Jer

 

[quotejso]

What you pay for the Kioti? Are you tax exempt? You finance it?

 

[kenmac]

That's good advice. Listen to bdog here. There are a lot of god used tools that were designed to work well just about forever. And tractors are like that too. It's not surprising to see an old well used ag tractor 20 or 30 years old that works just as well as new.

My advice would be to take cash and buy from the owner rather than a dealer. Old ag tractors are often very reasonably priced. Drive it around for half an hour. If it runs smoothly for that long it will last a decade. Put a new seat and some wide soft turf tires on an old farm tractor and you've got yourself a worker for 10% the cost of new.

There are a ton of good used tractors out there. Save the financing for something where it's needed.
luck, rScotty

Yet another winner ! Financing things that typically go down in value tractors, vehicles, boats, etc. isn't a wise choice.

 

[BAP]

What you pay for the Kioti? Are you tax exempt? You finance it?

No sales tax in New Hampshire

 

[fishheadbob]

Thanks for the reply's gents, I'm glad to hear there haven't been any problems so far.
I did talk with my credit union and some of the other local banks but they don't offer anything for tractor loans other than personal loans. 11-15% interest so far.
Jerry

I would loan shop some more. How does 4.49% for an equipment loan for 48 months, 5.49% for 60 months with good credit at my credit union sound. We don't operate in a vacuum and offer competitive rates. What that means is we look at what other credit unions in the area charge for similar loans and charge similar rates. We finance a bunch of small 20 to 30 HP tractors for people like you. I don't want your business as you're way out of our charter area, all I'm saying is shop around a little unless you really like 11.5%.

 

[DavesTractor]

Yet another winner ! Financing things that typically go down in value tractors, vehicles, boats, etc. isn't a wise choice.

It varies by state and tractor size, but about 2/3rds of 20-80HP tractors are bought with financing. Smart or not, it is the way most folks buy.