Kubota still offering 0 percent financing

[stso9d]

...and rebates / cash back on certain models.

a poor man's perspective: 0% gives the illusion of getting a deal. I know they aren't giving money away and they are only in the buisness to MAKE money. It is a way of justifying the cost even when you know you are bending over. Isn't that the whole purpose of even having it - to create the illusion? I have done all of them - 0%, cash, and rediculous interest rate. anyone with money can brag and beat their chest. i have listened to all the brags and just chuckled to myself. Hell, every dang man with the money will claim they are the victor. It is the poor man that has create his own feel good. all about illusions.

 

[DonaldP]

a poor man's perspective: 0% gives the illusion of getting a deal. I know they aren't giving money away and they are only in the buisness to MAKE money. It is a way of justifying the cost even when you know you are bending over. Isn't that the whole purpose of even having it - to create the illusion? I have done all of them - 0%, cash, and rediculous interest rate. anyone with money can brag and beat their chest. i have listened to all the brags and just chuckled to myself. Hell, every dang man with the money will claim they are the victor. It is the poor man that has create his own feel good. all about illusions.

I agree... money may solve just about all financial issues.

But I can say this... as a newbie 2 years ago, I just recently was awakened to the reality of where we stand today over two years ago...(June of 2020 just as COVID was beginning to take hold).

I wanted to possibly upgrade my Extremely clean and excellently maintained Kubota Grand L3560HSTC/L805 loader/BH92 Backhoe with 517 gentle hours ... for a new Grand L4060 with the same exact accoutrements. I paid $52,000 in June of 2020.

For a modest $3000 difference in the base price between the new L3560 and new L4060, I was handed a $21,000 bill showing my trade in ($45,000 of the $52,000 I didn't when I purchased new), a very generous credit towards new of $5000 from Kubota for service support that I won't go into right now, and matching up COMPONEMTS with the addition of 3 rear remotes and an air ride seat....

$21,000 ... and that was without state taxes of $5500 on the new tractor-so $26,500 to upgrade.

Getting back to the point though... delivery could take up to 15 months.

My concern was twofold:

First, there was no price hold on the tractor or implements once ordered. So any inflationary increases would be at my cost. (Possibly 5% to 6% or about $3500 on delivery - which takes the additional costs up by an additional $3500 to now $30,000 to upgrade)

Second, There was no promise to hold zero% financing going into a period of the feds raising interest rates at a level unprecedented since the 1980's... phat chance zero % would be available in 15 months at the rates they are increasing things right now. I can't see how anyone, including Kubota could hold rates at 0%, unless like most here believe, they just pad the price to hold that 0% in place.

At 2 to 3% rates you can add $5000 over the life of the load so taking that $30,000 upgrade and adding even a $3600 cost to finance I'm up to $33,600 more money TO UPGRADE to a new 4060 from my 2 year old 3560...

That's a ton of money to invest yet again, into upgrading a 2 year old 530 hour machine to new... so to get on board with this order with those three or four things on the table is a risk that's a bit high for my tastes.

I could add a third challenge to this ...

And one that is relatively innocuous from the surface, but much more likely to result in a serious conflict if something goes awry.

The dealer states that I can keep my tractor, and use it u til the new L4060 arrives.

Now that sounds like a great thing... as I will continue to place maybe 250 additional hours on the equipment... but at two years the "bumper to bumper" Kubota warranty will be up right away. Like right Now. Any damages not covered by my inland marine policy or by the base manufacturers drive train warranty (6 years from purchase - or 4 years remaining) would be out of pocket for the L3560 while I'm using it. So basically anything of a Wear and Tear, or cosmetic issue that could make the tractor less valuable in the next 15 months would be on my dime.

So... I might be tempted to buy the Kubota extended warranty for an additional year to cover everything for an additional $1800.

(See the above mentioned proclamation that money usually can solve just about any financial issue!) ugh!!

So add another $1800 to the $32,600 and you get a staggering $34,400 to upgrade a 2 year old L3560 to a New L4060...

What would you do?

The biggest increase by far is the base cost to enter the much higher base rates of inflation now and on the next year.

Folks have said that the best thing to do to try to minimize one's impact by inflation os to not buy anything that's not absolutely necessary. I'm finding that to be a very true sentiment.

If I opted to buy I would be entering into the higher than normal cost structure that is making up the inflationary practices that fuel even more of this craziness.

This is not a "have to do" or "necessary" expenditure. So I'm thinking I do not need to spend that kind of money chasing something new. It's not worth that much to me. It's a portion of my life, not my life. For some it may be worth the expense and that's fine. I can't gauge someone else's needs to my own.

So in the end I may just buy the two year extended warranty for $3250 to cover the equipment (and all implements) for an additional 2 years and keep on keeping on. That's $3250 instead of almost $35,000. That sounds like a pretty cost effective choice for us ...

I may have to sell my Kubota L3560

It's a mad Mad Homestead

Don

 

[jyoutz]

I think where Kubota makes up for the 0% finanacing is the requirement to buy KTAC insurance. It’s good insurance, but not cheap. And the odds are always with the insurance company.

 

[DonaldP]

I didnt have to buy KtAC insurance for the 0%.

I purchased my own I got an inland marine policy at $245/year ($1800 over 7 years) and it covers the same equipment... just not all managed in house via Kubota. It definitely beats the $5,500 Kubota would have charged me and rolled into the financing to cover the unit and the implements for the 7 or so years of the 0% financing.

 

[Torvy]

@DonaldP. Lots to say in that post.

I am guessing that you would get more selling your tractor than trading it.

If you are not married to the orange paint, you could get a tractor with same or better features for much less. For about $34k, you could get T494H, B4820H, or MT347 and still have your existing tractor to sell. Bh would be another $7K or so. Even if you only sold your existing tractor for the trade offer, you would be +4k in your pocket, have more HP. That's about a $25k savings and you get a new tractor and new warranty.

Where are you that taxes tractor sales...can you get an ag exemption?

Spending by individuals does virtually nothing to inflation. Inflation is primarily about the money supply and that is the Fed and the Treasury. Against trillions, we could all buy or not buy new tractors and it would do nothing.

 

[Torvy]

I didnt have to buy KtAC insurance for the 0%.

I purchased my own I got an inland marine policy at $245/year ($1800 over 7 years) and it covers the same equipment... just not all managed in house via Kubota. It definitely beats the $5,500 Kubota would have charged me and rolled into the financing to cover the unit and the implements for the 7 or so years of the 0% financing.

You may want to check with the insurance company, not your agent, about inland marine coverage. Unless you are using your tractor for business or the tractor is in transit between locations, you may not actually be covered. Read your policy in detail.

I have heard a lot of people who have this insurance, but may be at serious risk of non-payment because it is the wrong type of policy.

Inland Marine Insurance: What It Covers, How to Get It - NerdWallet

Inland marine insurance is business property insurance covering materials and equipment in transit or away from primary locations. It also covers special items.

www.nerdwallet.com

 

[DonaldP]

You may want to check with the insurance company, not your agent, about inland marine coverage. Unless you are using your tractor for business or the tractor is in transit between locations, you may not actually be covered. Read your policy in detail.

I have heard a lot of people who have this insurance, but may be at serious risk of non-payment because it is the wrong type of policy.

https://www.nerdwallet.com/article/small-business/inland-marine-insurance[/URL

It's true... one of the biggest positives is that I have 3 properties and it requires trailering to one and driving to the other.

Additionally, when it's used on one of the other properties it's not on the "home" insurance so it's covered under the inland marine policy.

Additionally, I was doing some downed tree log removal for a town near me. I had mentioned to my carrier that it was a personal agreement and not a business agreement that I would removed the downed trees (from a storm) at no cost to the town, while I would be able to use the materials for firewood.

This was considered something that would fall under my home insurance police as it's not a commercial agreement.

However in transporting the tractor to and from the site, the tractor would be covered under the inland marine police. Any other damages would be covered under my homeowners policy.

Were I to do commercial work and the tractor was damaged that would also be covered as far as the tractor, under the inland Marine policy.

Any damages outside of the tractor would be covered under my regular business policy.

 

[stso9d]

I agree... money may solve just about all financial issues.

But I can say this... as a newbie 2 years ago, I just recently was awakened to the reality of where we stand today over two years ago...(June of 2020 just as COVID was beginning to take hold).

I wanted to possibly upgrade my Extremely clean and excellently maintained Kubota Grand L3560HSTC/L805 loader/BH92 Backhoe with 517 gentle hours ... for a new Grand L4060 with the same exact accoutrements. I paid $52,000 in June of 2020.

For a modest $3000 difference in the base price between the new L3560 and new L4060, I was handed a $21,000 bill showing my trade in ($45,000 of the $52,000 I didn't when I purchased new), a very generous credit towards new of $5000 from Kubota for service support that I won't go into right now, and matching up COMPONEMTS with the addition of 3 rear remotes and an air ride seat....

$21,000 ... and that was without state taxes of $5500 on the new tractor-so $26,500 to upgrade.

Getting back to the point though... delivery could take up to 15 months.

My concern was twofold:

First, there was no price hold on the tractor or implements once ordered. So any inflationary increases would be at my cost. (Possibly 5% to 6% or about $3500 on delivery - which takes the additional costs up by an additional $3500 to now $30,000 to upgrade)

Second, There was no promise to hold zero% financing going into a period of the feds raising interest rates at a level unprecedented since the 1980's... phat chance zero % would be available in 15 months at the rates they are increasing things right now. I can't see how anyone, including Kubota could hold rates at 0%, unless like most here believe, they just pad the price to hold that 0% in place.

At 2 to 3% rates you can add $5000 over the life of the load so taking that $30,000 upgrade and adding even a $3600 cost to finance I'm up to $33,600 more money TO UPGRADE to a new 4060 from my 2 year old 3560...

That's a ton of money to invest yet again, into upgrading a 2 year old 530 hour machine to new... so to get on board with this order with those three or four things on the table is a risk that's a bit high for my tastes.

I could add a third challenge to this ...

And one that is relatively innocuous from the surface, but much more likely to result in a serious conflict if something goes awry.

The dealer states that I can keep my tractor, and use it u til the new L4060 arrives.

Now that sounds like a great thing... as I will continue to place maybe 250 additional hours on the equipment... but at two years the "bumper to bumper" Kubota warranty will be up right away. Like right Now. Any damages not covered by my inland marine policy or by the base manufacturers drive train warranty (6 years from purchase - or 4 years remaining) would be out of pocket for the L3560 while I'm using it. So basically anything of a Wear and Tear, or cosmetic issue that could make the tractor less valuable in the next 15 months would be on my dime.

So... I might be tempted to buy the Kubota extended warranty for an additional year to cover everything for an additional $1800.

(See the above mentioned proclamation that money usually can solve just about any financial issue!) ugh!!

So add another $1800 to the $32,600 and you get a staggering $34,400 to upgrade a 2 year old L3560 to a New L4060...

What would you do?

The biggest increase by far is the base cost to enter the much higher base rates of inflation now and on the next year.

Folks have said that the best thing to do to try to minimize one's impact by inflation os to not buy anything that's not absolutely necessary. I'm finding that to be a very true sentiment.

If I opted to buy I would be entering into the higher than normal cost structure that is making up the inflationary practices that fuel even more of this craziness.

This is not a "have to do" or "necessary" expenditure. So I'm thinking I do not need to spend that kind of money chasing something new. It's not worth that much to me. It's a portion of my life, not my life. For some it may be worth the expense and that's fine. I can't gauge someone else's needs to my own.

So in the end I may just buy the two year extended warranty for $3250 to cover the equipment (and all implements) for an additional 2 years and keep on keeping on. That's $3250 instead of almost $35,000. That sounds like a pretty cost effective choice for us ...

I may have to sell my Kubota L3560

It's a mad Mad Homestead

Don

So many choices but it sounds like the additional warranty will be needed to insure the deal. The fact that everything in the deal is dynamic and changes due to delivery timeframe is new to me. Since You cant lock In, that would cause me to wait because of my finances. I have to know what i am committed to. But that is me… i wish you luck and good results…

 

[DonaldP]

@DonaldP. Lots to say in that post.

I am guessing that you would get more selling your tractor than trading it.

If you are not married to the orange paint, you could get a tractor with same or better features for much less. For about $34k, you could get T494H, B4820H, or MT347 and still have your existing tractor to sell. Bh would be another $7K or so. Even if you only sold your existing tractor for the trade offer, you would be +4k in your pocket, have more HP. That's about a $25k savings and you get a new tractor and new warranty.

Where are you that taxes tractor sales...can you get an ag exemption?

Spending by individuals does virtually nothing to inflation. Inflation is primarily about the money supply and that is the Fed and the Treasury. Against trillions, we could all buy or not buy new tractors and it would do nothing.

I could ask several questions with respect to your comments about inflation.

Are you saying that if there is more money, such as the $ injected into the system by the govt between MAR of 2020 and DEC of 2021, that Inflation went up due to that?

Or are you saying that due to the very low supply side of materials and labor during that time that inflation went up for to lack of availability and the same amount of demand?

With respect to your thoughts about individual decisions not making a difference in inflation....

Are you saying that individuals purchasing items regardless as to price during inflationary times like this has no impact to the overall inflation rates?

Im looking at the real estate market..... I see hundreds of thousands of "individuals" buying homes at the highest rates in years during the 2020 to 2022 timeframe, regardless as to the asking prices.

Granted... they are individuals so assuming your thought process that these are "individuals", then we can assume that the increase in real estate values in that time frame (inflation) are not driven by demand because these are individuals?

I do agree that low interest rates (and available money supply) begat the initial phase of inflation...but I disagree that we as individuals can't impact the direction of inflation per the choices we make to pad our own desires over the good of our communities as a whole. No I'm not a socialist, but I do agree that personal choices can be made that positively impact not just ourselves, but all of those that we share this country with along with the world as well. example: purchasing Chinese goods and services vs American goods and services...

Were we to be competing against ourselves, and maybe not in a world where social communities like China beat out our American labor rates because they could care less about their air and water with non managed environmental controls that could but do not prevent dumping pcb's or other toxic materials that makes its ways to the farm fields and waters that grow the foods we import and feed to our families.

In reality, I think "individual" choice can only be available to us in its purest form if we each lived isolated on our own planets, maybe with only our families, where the choices we make only impact those we love most.

 

[Hay Dude]

I didnt have to buy KtAC insurance for the 0%.

I purchased my own I got an inland marine policy at $245/year ($1800 over 7 years) and it covers the same equipment... just not all managed in house via Kubota. It definitely beats the $5,500 Kubota would have charged me and rolled into the financing to cover the unit and the implements for the 7 or so years of the 0% financing.

Same here. Bought new Kubota M-126X and financed. Told KTAC to pound sand when they demanded insurance. I proved my own insurance and 10 years later I’m still running it. Tractor has been vandalized and had a tree fall on it while in transport and all was covered.