Will 0% Financing Be Around Again This Year?

[two_bit_score]

I am looking at options for new Kubota equipment. Not sure I can decide by the end of June. I know the last time I bought it was in the fall and they offered 0%. Is it common for it to be offered several times during a year?

The companies look at every angle and figure the best outcome for them. You must do the same. But don’t act out of fear that a good deal won’t last or that it will never come around again because it will.

 

[HappyOne]

I bought my SVL having to pay Kubota interest for the first time. I’ve had 5 other zero interest loans from GR2120 to RTV all the way to M7-171 which cost nearly 4 times the SVL but no give on construction.

They are offering 0% for 60 months on SVL's at this time. Pretty tempting offer.

 

[ericm979]

It is only a sales gimmick to generate sales. The 0% financing is merely built into the sale price. There are no free lunches.

Yes and no. Kubota (and many car and truck companies) use low or zero % financing as a factory sales incentive. The list price remains the same but the reduced interest lowers buyer's payments so it's like they lowered the price. Sometimes there is also a rebate for cash buyers.

It is a sales gimmick to generate sales. But so is lowering the price. There's nothing wrong with that. It's how markets are supposed to work.

 

[MHarryE]

That is good. I am paying 4.25% on mine.

 

[Daniel2021]

I'm not sure about the deals but whenever I need money to meet my urgent requirements, I always prefer to choose the services of payday loans in MI online. It is very easy to apply and avail of the loans there online.

 

[two_bit_score]

I'm not sure about the deals but whenever I need money to meet my urgent requirements, I always prefer to choose the services of payday loans. It is very easy to apply and avail the loans there online.

I usually hock my Relux watch to the loanshark on the corner.

 

[Hay Dude]

If I have to finance, I rarely use manufacturers financing. Instead, I negotiate best possible deal with the group of dealers I like, then use a separate financing company that offers me low rates and excellent terms.

 

[5030]

You could have 0% financing even if interest rates are 20%. They just make the purchase price higher.

Interest rates don't concern me all that much anyway. I write them off as a business expense. I'm pretty sure Kubota rolls the 0 interest into the price of a unit.

 

[two_bit_score]

If I have to finance, I rarely use manufacturers financing. Instead, I negotiate best possible deal with the group of dealers I like, then use a separate financing company that offers me low rates and excellent terms.

Back in the early 1980’s under Carter we had high inflation and high interest. I recall Jumbo CD’s paying over 16%. Banks were charging 20% at some point on Real property loans. It was crazy. I was a RE broker and people were actually buying property today because the interest rates might go up tomorrow. It was a frenzy. During that time more and more properties were ‘owner financed’ at below market rates. Prices were inflated to make up the difference.
But if you told a buyer that this property was 100k but the owner would finance with $xx down and 10% interest they were very interested in that property opposed to the bank rates.
Seems like most everything we closed for awhile was on a Warranty Deed with Vendor Lien.

 

[the old grind]

IMO 'beat the system' by getting a lower cash price, put a bunch down, get the best financing rate from your CU or bank and just pay the loan down early. I bet this is what many(!) of us do.

btw, financing will always be about a customer living with the payment negotiated. If a guy is willing to pay more for convenience, take longer, and/or if trading in having less equity it's often just a matter if budget. I'm sure this isn't news to anybody.