Pro / Cons of KTAC?

[Fallon]

Generally there is an extra cash discount if you pay in cash/check vs financing. Financing is assumed to be the default. Different dealers may be more or less willing to do it.

Nothing in this world is free, 0% financing included. Its there, just bundeled into the default price, even with discounts. Not a bad thing & I'm still making payments on my L4060. I thought about paying it off, but there is no benefit. Dumping spare cash into paying off the 4% or so 12 year mortgage on my solar panels on the other hand or the mortgage on the house does save me interest in the long run. I hear other factors like SWMBO kicking in though. Some quality of life things aren't financial.

 

[mljenkins]

For those that do get KTAC, do they mail you the policy paperwork? I never got anything when I signed the contract with the dealer. I assume there has to be something saying what they cover and describe how to use it. Thanks.

 

[Rock Crawler]

For those that do get KTAC, do they mail you the policy paperwork? I never got anything when I signed the contract with the dealer. I assume there has to be something saying what they cover and describe how to use it. Thanks.

Yes, they should have mailed it. Call them up and ask them to kindly mail it to you.

 

[KenB2920]

Yes hey do mail it. From what I recall there is a list of non covered circumstances too. I read them and if I recall, one is an act of terror or war. Or something along those lines. Not funny, but funny. Also hoping if it ends up in that situation the machine is hopefully the least of my worries.

 

[mljenkins]

Yes, they should have mailed it. Call them up and ask them to kindly mail it to you.

Good deal. It hasn’t been long enough so I’ll give it a month and then pester them if I don’t get anything. Thanks everyone!

 

[cold1313]

Yes, that's pretty much what I explained... But your term depreciated value is misleading. You set that value, not them. When I bought my used BX25D and called them after learning about the insurance, the guy asked me to state what the insured value would be. I stated the value as $2000 more than I gave for my 4 year old tractor with 92 hours on it. So it prices out at a flat value per thousand dollars that you want insured, based on how many thousands of dollars you wish to have it insured for.

If my new to me used tractor burned to the ground, I would make money on the deal and go buy a newer/lower hour used tractor. I don't see that as being a bad deal at all.

I bet your 3rd party insurance works in a similar fashion, you provide a value to be insured. The difference is that KTAC works very smoothly with any Kubota dealership and it gets you taken care of quickly and painlessly in the event of a covered loss.

I'd still take the KTAC over another insurance policy.

In inquired about this to KTAC and their response (I used an example of a stated value of $30,000 and what would happen if 15 years from now it is totaled) :
"The policy you purchase direct from KTAC is a depreciated policy and you renew it every year. So, whoever said you will get $30,000 15 years from now is wrong for two reasons. 1. You renew your policy every year so the value may change year over year. 2. You get what the equipment is valued at the time of loss so you shouldn't insure equipment for a lot more than the value thinking you are going to get whatever you insure it for. If you ensure your equipment for $30,000 and it is totalled 11 months from now, you may only get $29,000 (for example) or whatever the equipment is valued at that time.

The policy you can purchase as part of financing (include in a retail contract) will pay you the original sales price if you purchase another Kubota. These are two different policies.
"

 

[Atchuuu]

A good warranty and insurance policy is the only reason I am considering buying new. Otherwise I would save some money and take a little of the risk. KTAC sounds like a great selling point and many of you have pointed to experiences where they stood behind the policy. Can someone give me a general range of what this insurance costs. I keep hearing just x more per month but I wan't a dollar number. Assume a $25,000 purchase price. Thanks

 

[Rock Crawler]

My memory is getting foggy, but it's right around $16.70 per thousand dollars covered, per year. Let's shoot it high at $17 and use your $25,000.... $425 per year, times your years financed. But I'm a few dollars high on that estimate.

So let's assume you take advantage of the 20% down (or more) and 0% financing for 84 months... 7 years times $425 is $2975 added to your loan bring that you prepay for the entire loan period at the time of purchase.

If you pay that entire loan balance off early, you can call and cancel the policy and get a refund check for the unused portion, but then you can also add it back (minus the full replacement coverage part of the loan) and you would prepay for 12 months and renew every 12 months... Forever.

 

[Atchuuu]

My memory is getting foggy, but it's right around $16.70 per thousand dollars covered, per year. Let's shoot it high at $17 and use your $25,000.... $425 per year, times your years financed. But I'm a few dollars high on that estimate.
.

Thanks Rock Crawler - At the time of my original post I did not realize you could purchase KTAC even if you purchased used. While I don't have a warranty I do have KTAC. The price was not the cheapest I could find but I chose KTAC based on the good reviews by TBN members and the fact that Brian, KTAC operations manager, visits and responds from time to time. Annual premium worked out to be $16.00 per thousand.

 

[check]

Same here. I got $2997 off of MSRP on the B2650 I have ordered, and then the $1000 Kubota rebate. The price as ordered, prior to rebate was $31,247. So it's $27,250 before taxes, trade and deposit. Total loan is $8,707 at 0% for 84 months. The breakdown of the ordered modules is attached.<img src="http://www.tractorbynet.com/forums/attachment.php?attachmentid=533913"/>

Now that's a deal I can respect!