Kubota still offering 0 percent financing

[Diggin It]

Not sure what all the fussin', huffin' and chest thumpin' ia all about, but it's all too common lately and is dragging the tone of board down.

Many of us here have claimed or even bragged about not paying interest on credit cards and even earning money off them by use of rewards points. That alone proves that lenders do in fact lend money without profit from the borrower. They get at least part of it from the merchant agreements and swipe fees. I have to believe that vehicle dealers from motorcycles, to cars and trucks to tractors boats and planes have similar agreements with lenders. There have to be some participation fees involved.

Then there's the ratings mentioned. When I was shopping, the JD dealer asked me what my credit rating was. When I told him, he said approval would be automatic and I wouldn't even have to do a full application showing income and expenses. In fact that's exactly what happened with AgDirect and my LS loan. Simple application with basic ID information. Approved within a couple of hours, no other questions asked.

Someone with a credit rating in the 500-600 range would have a harder time getting approved and would end up paying a higher rate. If you look at these 0% deals, they all say 'with approved credit' or similar wording and many of them specify a rating over 750.

Lenders can and do fund deals at 0% for very low risk borrowers knowing they'll make money on higher risk borrowers. I don't really know the percentage of high to low risk borrowers, but lenders must be making money somehow, so I have to believe they have more borrowers paying interest than those who do not.

But people really need to get off their high horses and realize that their opinions and experiences are just that, theirs and are not fact across the board regardless of details and variations.

 

[rScotty]

What if the dealers salesmen have monthly meetings and they all agree to price their tractors at a preset price that assumes the “0% financing” offer will be used? This is the oldest sales trick in the book.

Look at it this way: it’s obvious that if the manufacturer is offering “0% percent financing for 84 months” that 99% of buyers that walk in the door would opt for it!
After all, who wouldn’t opt for 84 months of “0%” payments instead of writing out one huge check?
In the case that one odd-ball buyer says “yeah, I’ll skip the 84 months at 0% and write a check for $50,000”, they can either let him do it or negotiate a lower price if he looks like he will walk out the door.

I mean come on guys, you really think a manufacturer is going to just give away money on 0% financing versus writing a check for the entire amount?

I have no idea how a foreign manufacturer decides on their pricing. And I doubt that many people in this country - or here on TBn - do either. My guess is it has a lot to do with financial arrangements a foreign manufacturer has with their own central bank, politics, and their country's export policies. Tariffs can have a huge effect, and vary on a whim. I'm not privy to any of this stuff, but have noticed that all of these differ a lot in other countries.

Frankly, I expect a tractor to work hard, economically, and last for decades with minimal attention. Those things come first and are what are important to me. Being focused on small differences in price is a peculiarly local sport, and in my opinon it is spending time on the wrong thing. The initial price is much less important that just about every other aspect of tractor ownership, and cash vs credit cost even less so.

rScotty

 

[Snobdds]

Not sure what all the fussin', huffin' and chest thumpin' ia all about, but it's all too common lately and is dragging the tone of board down.

Many of us here have claimed or even bragged about not paying interest on credit cards and even earning money off them by use of rewards points. That alone proves that lenders do in fact lend money without profit from the borrower. They get at least part of it from the merchant agreements and swipe fees. I have to believe that vehicle dealers from motorcycles, to cars and trucks to tractors boats and planes have similar agreements with lenders. There have to be some participation fees involved.

Then there's the ratings mentioned. When I was shopping, the JD dealer asked me what my credit rating was. When I told him, he said approval would be automatic and I wouldn't even have to do a full application showing income and expenses. In fact that's exactly what happened with AgDirect and my LS loan. Simple application with basic ID information. Approved within a couple of hours, no other questions asked.

Someone with a credit rating in the 500-600 range would have a harder time getting approved and would end up paying a higher rate. If you look at these 0% deals, they all say 'with approved credit' or similar wording and many of them specify a rating over 750.

Lenders can and do fund deals at 0% for very low risk borrowers knowing they'll make money on higher risk borrowers. I don't really know the percentage of high to low risk borrowers, but lenders must be making money somehow, so I have to believe they have more borrowers paying interest than those who do not.

But people really need to get off their high horses and realize that their opinions and experiences are just that, theirs and are not fact across the board regardless of details and variations.

I love that you think finance companies are generous and give out free money and credit just because of a good credit score. America is dependent upon you to keep the gears turning.

 

[5030]

(Hay Dude)....Not sure why you are concerned anyway... It appears to me that you only buy used.

 

[Hay Dude]

(Hay Dude)....Not sure why you are concerned anyway... It appears to me that you only buy used.

Just bought a 2020 Ram and a 2021 Kaufman trailer NEW in last 2 years sidecarflip

 

[5030]

I have no idea how a foreign manufacturer decides on their pricing. And I doubt that many people in this country - or here on TBn - do either.

All I know for sure is my dealer (and his only salesperson is him, the owner) can set his selling price at whatever level he wants to (I presume within the guidelines set by Kubota USA in Irving, Texas.). because as an authorized dealer, he has certain guidelines he has to abide by.

My intent in starting the thread was just to inform potential buyers that Kubota was continuing their 0 percent finance and rebates on select models as well and nothing more and the resultant dissecting of the comment I posted (I am the OP), far as I'm concerned was unwarranted.

It appears to me that most every thread lately turns into an adversarial discussion. Too bad really.

 

[5030]

Just bought a 2020 Ram and a 2021 Kaufman trailer NEW in last 2 years sidecarflip

There you go, off on a tangent again. My original post concerned Kubota Tractors and the continuing rebates / 0 percent financing, not motor vehicles or trailers.

As an aside, I also have a Kaufman GN and I had to add triangular steel gussets to the spring mounts as they were twisting from being loaded (or overloaded in my case) when negotiating turns. At least on the one I own, the spring mounts were welded to the main frame rails with no gussets so I added them. Good trailers, mine just needed some additional gussets welded in, yours may not but it bears looking underneath.

 

[5030]

Hay Dude.. How are you doing on diesel fuel? Getting pretty high around here. ORD is bumping $4.85 per gallon. On road is $5.25 currently.

 

[Hay Dude]

1. There you go, off on a tangent again. My original post concerned Kubota Tractors and the continuing rebates / 0 percent financing, not motor vehicles or trailers.

As an aside, I also have a Kaufman GN and I had to add triangular steel gussets to the spring mounts as they were twisting from being loaded (or overloaded in my case) when negotiating turns. At least on the one I own, the spring mounts were welded to the main frame rails with no gussets so I added them. Good trailers, mine just needed some additional gussets welded in, yours may not but it bears looking underneath.

1. You made the insinuation that I buy everything used. I was correcting your misinformation.
2. off on your tangent in your thread, but no problems yet with my Kaufman.

 

[5030]

1. You made the insinuation that I buy everything used. I was correcting your misinformation.

I guess I should have distilled my comment further to state, ag equipment not cars or trucks. Far as I can ascertain, all of your ag related stuff is previously owned. Like that big square baler with the moldy wad stuck in it you had to dig out...lol