Kubota Credit - New Lower Rates

[jambx]

rider9403 and jambx. When sales are good incentives decline. Spring is when sales increase so incentives decline. You should have bought or tried to negotiate that "deal" in the late fall or winter. Guess most of us will stay with orange. I think some of the off brands are offering your desired financing. I for one won't go from what I know is good to something I don't think is as good for a few hundred dollars in financing. Looks like Kubota sales are continuing.

I totally am in agreement with your assessment however I am not sure one can use past metrics in this present economy - with the Dow approaching low 7000's - I am betting this spring will not reflex the typical spring sales spikes of capital equipment (even for the likes of our beloved Kubota) - then again, maybe Obama's stimulus package will help capital purchases .

 

[MessickFarmEqu]

My understanding is that there are no incentives to dealers from Kubota Financing.

Is this so?

No kick backs, but more importantly no expense to the dealer. Thats becomming more unusual every day.

 

[Gator6x4]

A magical finance rate is often not all its cracked up to be. Often the really outstanding terms are paid for in the cost of the machine. I can sell you any machine you want at any term by buying down the interest rate. Rate shopping is not the smartest thing to do, you really should be shopping for the best overall value.

I agree with this. I heard a business owner tell a customer that he would sell him anything he wanted to buy at 0% for as many years as he wanted to finance it, for a very much different price than he would sell him one for cash. 0% perecnt financing requires the manafacture /dealer to increase the cost of all stocked items sold to cover financing and incentives. Then we as consumers wonder why each year the cost of something increases astronomically.

 

[JOHNTHOMAS]

Let's get simple because it's necessary in financing. My neighbor owned a furniture store. I found a chair I wanted that was a Lazyboy. Let's say it was $360 at another furniture store. I told my neighbor I preferred to buy from him and the other store was offering 0% financing for 6 months. Would he match the deal. He said he wouldn't and that I would be paying the interest in the purchase. His chair was also $360. He was wrong. I bought the chair from the other store and paid $60 a month for 6 months. From my neighbor I would have paid probably $75 a month for 6 months. They were both the same model Lazyboy recliners. It's important that it was the same chair at both stores. Not a Kubota compared to a Kioti. When you get your bottom cash price then your monthly payment and period of time you know exactly what you are paying total for the product. Add another month or increase the monthly payment then that changes your total. I've bought over 100 cars so I've had to deal with financing alot. Also was an auditor. Again, keep it simple. Start with total purchase price then how much for how long to compare apples to apples. Sometimes the I'll give you any interest rate you want is hype because you just multiply payments time months. That's your total. We also did it in selling houses. Kubotas is a true 0% for what ever period and that's why I owe then for 3 tractors now. I had my purchase price determined with no mention of financing. Then the paperwork was processed. All companies have to make a profit to stay in business. Kubotas price increase may be to make up for their 0% financing.

 

[JJZ 109]

A magical finance rate is often not all its cracked up to be. Often the really outstanding terms are paid for in the cost of the machine. I can sell you any machine you want at any term by buying down the interest rate. Rate shopping is not the smartest thing to do, you really should be shopping for the best overall value.

Good advice. I once bought a new Ford F150 with Ford Credit, which was a little higher rate than I could get elsewhere. But with the money that Ford knocked off of the truck price for using their financing, the payment was less per month for the exact same term of months as the lower interest place. That equaled lower total cost for the same loan term.
Sometimes you have to do the math for the longer term. Lower interest isn't always a good deal if the item's price stays up higher.

 

[ChuckinNH]

Though I believe most of what has been said here is true, I get a little ticked off when a Kubota salesman tells me he can sell me a Kubota that is financed cheaper than he can sell me one if I pay cash. I get pretty darned tired of subsidizing some of these finanacing deals with my cash purchases. I worked hard, and long for that money. I did buy a Kubota last spring, and paid cash, but I did wait until the Kubota deal offering a bigger refund on a financed tractor than they did for one paid for with cash was over.

 

[JJZ 109]

Though I believe most of what has been said here is true, I get a little ticked off when a Kubota salesman tells me he can sell me a Kubota that is financed cheaper than he can sell me one if I pay cash. I get pretty darned tired of subsidizing some of these finanacing deals with my cash purchases. I worked hard, and long for that money. I did buy a Kubota last spring, and paid cash, but I did wait until the Kubota deal offering a bigger refund on a financed tractor than they did for one paid for with cash was over.

While I agree with your sentiment, I guess for me it would have depended on when I wanted/needed the tractor. I just paid cash for one also, but there were no incentives that I was made aware of to do otherwise.
I think that if I'd been in your situation, I'd have taken the zero financing with a bigger refund and then paid the loan off in a week or two because my dealer told me that there was no penalty for early payoff if I was financing.
Or was Kubota's deal only for those who financed and got into payments with interest rather than zero percent? If so, I'd say you made the right move.

 

[MessickFarmEqu]

We've asked for more meaningful Cash discounts for a long time, however they just don't seem interested in doing that. The financed price is never cheaper than paying cash because of the state fee's and the typical minimal cash discount (except for a 3 month period about two years ago when there was a promo to setup a Kubota credit card). The best thing for anyone to do is finance a tractor at 0%, keep your money in the bank and setup automatic monthly payments. You'll make some interest and improve your credit score that way.

 

[rickster]

48 months @ 0.99%: 60 months @ 1.99% Whats wrong with these rates? They may go down if you wait or they might go back up!

 

[newbury]

<snip>The best thing for anyone to do is finance a tractor at 0%, keep your money in the bank and setup automatic monthly payments. You'll make some interest and improve your credit score that way.

Exactly - I've financed my last two new cars by saving up more than enough to pay cash then taking that cash to the Navy Federal Credit Union, depositing it at X% in 1 year cd's
then taking a loan out at about X-0.75%. Thus depending on taxes I just about break even, BUT come an emergency I've got that money in the bank.