Financing Kubota Financing

[s219]

We just bought a new B2920 on December 28,2011. Either zero percent financing or $1050 off price for cash. Dealer quoted $16500 for tractor with FEL. We paid cash and he gave $1050 off that price and we paid $15450. Don't know if was good deal or not but here in North Georgia was the best we could do.

Very similar to my deal -- paid $15422 for the B2920 with LA364 front loader a few days before Christmas.

Interestingly, the cash discounts were dependent on how long a given tractor was in inventory. Some had $700 off, some had $1050 off.

 

[GolfAddict]

I guess it may just be a matter of semantics or putting too fine a point on it, but here goes anyway...

When Kubota (or any other company) offers 0% financing, it is 0% financing. That is not to say that the total cost is necessarily neutral. If you can get a cash discount on the purchase price, for instance, you're total cost is less than if you finance at the higher purchase price. But the amount you finance is still at 0% interest - the higher total cost to you is due to the higher purchase price and no additional cost is added from interest.

The 0% interest option allows folks that do not have the cash (or folks with the cash that prefer not to part with it) to still get their tractor, and Kubota is willing to carry the debt and risk to make the sale. It's a win-win.

 

[sadie72]

Bought an L3800 on 12/30/11 to take advantage of 0% for 60 months (now 0% for 48, I believe). I did so after finding the best cash price between three fairly local dealers. You can't beat the 0% if you settle on a cash price, first.

 

[timswi]

I guess it may just be a matter of semantics or putting too fine a point on it, but here goes anyway...

When Kubota (or any other company) offers 0% financing, it is 0% financing. That is not to say that the total cost is necessarily neutral. If you can get a cash discount on the purchase price, for instance, you're total cost is less than if you finance at the higher purchase price. But the amount you finance is still at 0% interest - the higher total cost to you is due to the higher purchase price and no additional cost is added from interest.

The 0% interest option allows folks that do not have the cash (or folks with the cash that prefer not to part with it) to still get their tractor, and Kubota is willing to carry the debt and risk to make the sale. It's a win-win.

Well said.:thumbsup:

 

[JOHNTHOMAS]

Current Kubota Company Interest Rates. Finance Promotional Rates
Always best to go to their site and see for yourself. There are some "buy down" rates that are not shown here. Buy down rates mean lower interest rates with some form of prepaid interest or higher charge for the item being sold and financed. Used to be used often in car and home sales.

 

[LBrown59]

When I bought this new in 2004

http://s283.photobucket.com/albums/kk286/lb59/?action=view&current=100_2460.jpg
and this one new in 2007
The price was the same if I paid cash or went with the 0 percent.
Since it was a no brainer I took the 0 %.

 

[crbr]

Does anyone know about Kubota financing? I had a dealer tell me that Kubota adds a 2% fee into the financing so its not really 0% for 48 months. Anyone know if this is true?
Thanks,

Nothing is free. It's marked up in the price. If not, they'd be out of business quick.. an age-old discussion topic. Search the forum and find plenty of other opinions, same as will accumulate here.

.

 

[timswi]

Nothing is free. It's marked up in the price. If not, they'd be out of business quick.. an age-old discussion topic. Search the forum and find plenty of other opinions, same as will accumulate here.

.

When I was shopping, the rates went from 3% to 0% and the price didn't increase..If that profit is in the price, it's there either way.

Companies like kubota can finance at 0% when they their cost of funds is nearly zero..I'm sure kubota has a nice profic cushon on their stuff...not referring to the dealers.

 

[mikedodd]

Does anyone know about Kubota financing? I had a dealer tell me that Kubota adds a 2% fee into the financing so its not really 0% for 48 months. Anyone know if this is true?
Thanks,

This Kubota page Finance Promotional Rates shows various financing promotions. No mention of increasing the price if you finance.

Some financing is 0% ranging from 24 to 60 months, depending on model. Other financing is low-rate. Both promotions end March 31.

 

[beppington]

I bought a new Kubota this August and the price was the same for cash or the financing at 0%. There was a caveat though. It you use the 0% financing you must carry Kubota insurance. Since they make money (most likely after all they are in the business to make money) on the insurance it offsets the 0% financing. But they can borrow money cheaply now, just like the U.S. banks.

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