Repo

[Doughknob]

All hat, no cattle. That's funny

 

[sorleski]

What is the worst case scenario if Kubota is not able to repo?
Hard times
COVID-19

I worked in collections (auto loans) a couple decades ago. Here is what happens 1) they take the tractor from you, and it goes to your credit report 2) they have to hire someone to repo and store the tractor, these fees are added to your loan amount 3) they sell that tractor at auction 4) you still owe any difference between the loan amount + the fees, and the selling price at auction. So, say you owe 10K, and they have 3K in fees, so your owing amount is now 13K, (and yes the fees are that high, so by turning the tractor in, you can save on some fees), the tractor sells at auction for 8K, you still owe 5K. If you don't pay it, it is written off and you are 1099'd on it, so it is listed as income to you, so then, the paperwork is sent to the IRS, and you will get a 1099 early next year from the bank.

 

[Number15]

Besides the moral issues the real life problem last for years. If they have to do revendication it will be worse. Forget getting any loans in the future and you will end up owing way more than if you just do the right thing.

 

[MHarryE]

It’s interesting, OP joined the 15th, one short post, now 5 pages of lots of info. No indication the OP has a tractor, is in danger of a repo, but lively discussion. Much more response than the swizzle-ma-jig on my B9800 fell on the ground - where did it fall from?

 

[Rob REECE]

What is the worst case scenario if Kubota is not able to repo?
Hard times
COVID-19

I can’t believe you are asking a question like that on this forum. Just face your responsibilities.

 

[JRH02]

They are among us.

The people who game the system, their family, friends or any one they can sooner or later get justice. And it may not be civil justice. It doesn't take long to recognize the type even in simple conversation. As for me I keep my distance in a polite way.

 

[Have tractor did travel]

Many seem to think all you need do is give the tractor back. I think not. You signed a contract of indebtedness for a certain amount of money, that was secured by the tractor. You give the tractor back, the dealer resells it at a public auction, but for less than you owe. You are under contract to pay the difference. I was in the "buy here, pay here" used car business. We repo'd, sold at auction, and sued the debtor many times. Our judgment, in my state, stood for 20 years. AFter 20 years, the judgment could be renewed for another period of time (I can't remember how much time). There are service providers that for less than $1.00 will report to the creditor any time your social security number shows up in their software, connected to an employer. Employers don't like employees whose wages are garnished - more paper work and makes them doubt your ability to manage your money and pay your indebtedness.
Finance your needs
Pay cash for your wants.

 

[blueman2]

What is the worst case scenario if Kubota is not able to repo?
Hard times
COVID-19

Sell it and pay off the balance due.

 

[DonaldP]

Honesty and integrity is what life is all about .. for most people.
Kubota trusted you and in turn you trusted them to deliver a solid well performing technically proficient product.

So now, who is the first party to hiccup in this deal of trust and honesty…the very trust and honesty that drives all of mankind forward -hopefully to a better place and not backwards.

We all make choices in life, what you decide to do will make or break you as a son/brother/father/grandfather and as a human being, for the rest of your life.

Choose carefully, and good luck!!

 

[fishdrivel]

What is the worst case scenario if Kubota is not able to repo?
Hard times
COVID-19

Lot of good advice on here already, with the best talking to the lender 1st.
If you decide to "give it back" you should know that "voluntary repossession" can be worse for your credit than if you let them just come get it. Talking to a lwayer is the 2nd thing to try. You can use a lawyer referral service to get a half hour on the cheap. Write down a 1/2 hours worth of questions. If your situation won't allow you to do that, it could get very expensive tying to be your own lawyer.

Word of advice, You will never regret doing the right thing.

 

[ragingrooster]

Regrettably, I've experience with similar situations and there's a chance that they won't take the tractor back. They will typically fight to get the original contract paid and use repossession as an absolute last resort.

My 2¢ to the original post - reassess this situation. Things might not be as dire as you think. Scrape change together, finance elsewhere (i.e. CC's, Home, etc.) and try to get through.

In the mean time, investigate selling the equipment. I offer this as a secondary fix due to the fact that tractors can be Very illiquid (depending on lots of variables) and take a long time to get what you need.

But, yes to trying to communicate with Kubota. Lots of times they'll negotiate as well as far as you follow through.

 

[MidwestMike]

Sell it and pay off the balance due.

Can you sell a tractor that you don't own? I was warned when looking for used Kubotas to be very careful, since with Kubota's long financing you may be buying a tractor that the other person doesn't actually own.

 

[249DSam]

What is the worst case scenario if Kubota is not able to repo?
Hard times
COVID-19

Contact Kubota, they WILL work with you in good faith, they did with me back in 2008. They are good people, with full intentions to help customers as much as possible. Always within reason of course.

Do NOT hide the tractor. Give it back if your plan is to be a jackass.

 

[RickB]

The dealer has no skin in the repo game unless the dealer himself financed the sale which all but never happens. Dealer can and does bill the finance company for retrieving the item, any pre-liquidation repairs or cleanup and in some instances storage fees.

 

[ArlyA]

And the OP is nowhere to be seen.

 

[RickB]

Prolly didn’t like the collective response.

 

[Flad]

Hi' Repo companies make at least 10 to 15% of the value of the repo then there is the cost the financiers have to send it to auction where there is a sellers premium paid by the sellers another 15% on average to the auction house it all starts to add up and that's before any other legal costs you will end up paying, so there is a bare minimum of an extra 30% on top of what you owe plus legal costs and the difference of what the auction brings and what you will be left with to pay.
Auctions don't always get the market value and the finance companies don't care because you will end up paying or go bankrupt, but there goes any future financing you may later need.

Every one is doing it tough including Tractor dealers and Financiers so if you can do a deal they would most likely take interest only payments as a repo is not the end of your financial problems but only the beginning.
Its smarter to take the tractor back your self if you can that way you wont need to pay for the repo pick up.

 

[RickB]

So I just found a post even dumber than#1 in this thread.

 

[Brily Farms]

Repossessions are covered by state laws. When a vehicle/tractor is repossessed, the finance company is obligated to obtain at least 3 sealed bids or sell the asset at auction. As previously mentioned here, the proceeds of the sale of asset are applied against the balance due on the asset. If the proceeds are less than the balance, the creditor (borrower) is legally obligated to payoff the difference. Conversely, if the proceeds of the asset sold at auction exceed the balance due the finance company, the borrower is credited back the difference. These laws can vary slightly from state to state, however, in general, all repossessions are treated the same. Most often, the last thing the finance co wants is a repo'd asset. By contacting the finance co early on when financial difficulties arise, the FC will make all effort to work with the borrower. Finally, unless the dealer has a partial or full recourse agreement with the lending company, the dealer is not financially effected by a repo. Most dealers have non-recourse agreements in place for this reason.

 

[macdoesit]

I don't know how old you are but guessing you are late 20's early 30's. You need to grow up NOW, take responsibility, do the right thing, call the people you borrowed from, tell them you will deliver the tractor, if you have a trailer, if not let them come get it, Do Not do any harm to the tractor, clean it up. You will feel better knowing you did the right thing. Start rebuilding your credit. God first, credit 2nd, family 3rd. Your credit tells what kind of person you are. Used to be a deal was made on a hand shake and a 45.