Kubota still offering 0 percent financing

   / Kubota still offering 0 percent financing #191  
They are simply putting their finance charge within the purchase price and calling it a 0% loan.
In reality, they are covered legally speaking to do such but it is still an around the bend tactic in my mind.
I will say it is an ingenious plan because it gives the "appearances" that everyone is a winner.
I will add to this the finance charge to each customer is determined by the time horizon they are willing to approve the customer for. When I was crunching the numbers a few months ago a 60 month loan from Kubota for what I was purchasing came out to be somewhere around 4% interest over that 5 year period. That % would obviously drop the longer time horizon you were approved for.

I also liked what you pointed out when you said the following:
I have witnessed no advertising from a bank or credit union that has stated "borrow $10,000 with no interest for 84 months". I would need to be enlightened in that regard.
I have seen this with cars, tractors, furniture where actual goods were being traded.
No, I have never seen that either. And you won't. That was a great point made Arrow.
 
   / Kubota still offering 0 percent financing #192  
Yeah, so does mine. 1.7% or they did 3 months ago when I purchased the wife's new CX 5.
I am not thinking they would offer me what I financed for nothing however.

Jyou, you're an old timer here as i am. Nice to see some of the veterans still around.
Yeah, I joined in 2000, was active for years, then became inactive. When I decided to upgrade my tractor, I decided it was time to become active again. Hello to a fellow old-timer.
 
   / Kubota still offering 0 percent financing #193  
OK to all you 0% non-believers. I don't know exactly what or how Kubota does its financing and forgive me if I doubt that anyone of us actually knows.

One thing is sure: People tend to believe whatever makes them most comfortable, regardless of whether it is true or not. Nothing wrong with that, either. It makes the world interesting.

But do yourself a favor and keep in mind that every investment business big and small has people whose job is simply to make sure that their business investments return more than their loans cost them. They can accept some negatives, but overall they need to stay positive. Banks make a business out of doing nothing else but that.

It is simple to include some zero percent loans in that mix in a way that costs the company nothing. I'm not saying that Kubota does that; I don't know.
But it wouldn't surprise me to find that they do.

Balancing income and expenses is such a common practice that lots of ordinary people do it with household budgets as well as their savings.....so why would Kubota be any different?

If you think it cannot be done, it may be worth your while to look again.

rScotty
 
   / Kubota still offering 0 percent financing #194  
No Scotty. It is quite easy to see what Kubota is doing. They are inflating their purchase price to cover their financing scheme of 0%.
Let's not over think this. You're mixing two different ideas. It is quite fine if you don't believe what I'm stating. I am simply "relaying" from my experience and background knowledge.

The company I work for (Mahindra) does the same thing. I've seen this with my own eyes. A tractor that was say $22K one year, sustains a price increase of $3500 within 6 months or the next model year.
It's the same tractor with a different number variation such as 2816, 3016, 1526,1626, etc. These are all the same tractor just about with a smattering of cosmetic alterations and built by Mitsubishi.
What's different other than the model number: Next to nothing except 0% has been added to the sales scheme at different points on selected tractors. They have it covered

The only difference between Kubota and Mahindra is Kubota sustains their 0% for years while Mahindra seems to go on and off with the scheme.
 
   / Kubota still offering 0 percent financing #195  
SNIP

The only difference between Kubota and Mahindra is Kubota sustains their 0% for years while Mahindra seems to go on and off with the scheme.

Arrow, I'm glad you posted that. It's a difference could explain everything. One really basic interpretation would be that that Kubota has accummulated enough investments that they are able to take a longer view. They no longer have to go on and off with the scheme.
If you look back over our discussion here, you'll see that the size of the account is always the goal that allows a person - or a firm - to ride over short downturns or zero percent income and still stay self-supporting. Pension funds all do that.

It's the same reason that family trust funds after they reach a certain size can carry some family members along who are users rather than contributors. There is a size where it just doesn't matter.

It doesn't surprise me that Kubota could reach that point before Mahindra. Ford Motor Co. reached that point years ago.

I appreciate that you are in a position to give us some insights. But I don't think that because Mahindra does it a certain way that necessarily says Kubota does it the same.

rScotty
 
   / Kubota still offering 0 percent financing #196  
No Scotty. It is quite easy to see what Kubota is doing. They are inflating their purchase price to cover their financing scheme of 0%.
Let's not over think this. You're mixing two different ideas. It is quite fine if you don't believe what I'm stating. I am simply "relaying" from my experience and background knowledge.

The company I work for (Mahindra) does the same thing. I've seen this with my own eyes. A tractor that was say $22K one year, sustains a price increase of $3500 within 6 months or the next model year.
It's the same tractor with a different number variation such as 2816, 3016, 1526,1626, etc. These are all the same tractor just about with a smattering of cosmetic alterations and built by Mitsubishi.
What's different other than the model number: Next to nothing except 0% has been added to the sales scheme at different points on selected tractors. They have it covered

The only difference between Kubota and Mahindra is Kubota sustains their 0% for years while Mahindra seems to go on and off with the scheme.
Thanks for adding some sanity to the “0% financing” scheme discussion. I have never believed 0% financing is true. It’s “(pay a higher price and we will give you) 0% financing”.
 
   / Kubota still offering 0 percent financing #197  
Oh I see.
It is of little wonder that you would bet your new house since you have no sentimental attachment as yet...
Also, what bank do you know of that is simply in the business of making money, offers 0% loans directly?
Heck, I'll bet my current house. I worked in banking for nearly 30 years. Both top 10 U.S. banks. Both had deals. Auto loans are not typically direct, though there are some that do direct loans. Banks make the offer. Dealerships typically have up to 2% more they can add in. Dealerships make money on that. The trick for them is if they push on a super prime customer, they will walk. The bank can encourage the dealer to remain at 0% on those customers and make it their margin on others.

I am sorry if I sound arrogant. If you would open your mind to our knowledge of banking and finance, like I open my mind to your knowledge of logging, perhaps it would not sound so much like arrogance. I come here to learn about what I don't know in exchange for sharing what I know. I have no interest in you or anyone else here being taken advantage of.
 
   / Kubota still offering 0 percent financing #198  
Thanks for adding some sanity to the “0% financing” scheme discussion. I have never believed 0% financing is true. It’s “(pay a higher price and we will give you) 0% financing”.
Except that the cash discount is negligible. So the higher price is just part of buying Kubota. Periodically they run better cash discounts. I think another part of the 0% financing is that the buyer must buy KTAC insurance during the finance period. And of course the financial odds are always with the insurance company.
 
   / Kubota still offering 0 percent financing #199  
I will add to this the finance charge to each customer is determined by the time horizon they are willing to approve the customer for. When I was crunching the numbers a few months ago a 60 month loan from Kubota for what I was purchasing came out to be somewhere around 4% interest over that 5 year period. That % would obviously drop the longer time horizon you were approved for.

I also liked what you pointed out when you said the following:

No, I have never seen that either. And you won't. That was a great point made Arrow.
Nearly every bank offers 0% loans. Use a credit card. You use the banks cash and pay nothing for 30-45 days. As long as you pay in full, you pay nothing extra.

The time horizon on loans actually varies. Sometimes you get a better rate with shorter terms, less often with longer terms, but it does happen. Check Bankrate.
 
   / Kubota still offering 0 percent financing #200  
Except that the cash discount is negligible. So the higher price is just part of buying Kubota. Periodically they run better cash discounts. I think another part of the 0% financing is that the buyer must buy KTAC insurance during the finance period. And of course the financial odds are always with the insurance company.
If one is paying a higher price and has to buy their overpriced insurance, then your vaunted “0%” Kubota financing is just a scheme.
KTAC insurance was much more expensive than what my insurance company charges when it was offered to me, so they are making even more off their 0% buyers forced into accepting it. I have bought a new M-7040, L-39 and M126X over the last 20 years and their insurance offer was significantly higher.
 
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