I don't usually get loans to buy stuff but I think with the 0% deal now, it might be better not to use my savings and get it financed. So what kind of info would I have to take to the Kubota dealer to do the loan paperwork and do they have a payment method where they can just take the payments automatically out of your checking account?
Dumb finance questions
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85Hokie
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Staff member
Lifetime Member
Equipment
BX-25D ,PTB. Under Armor, '90&'92-B7100HST's, '06 BX1850 FEL
That can be done easily - I did, and am doing that right now.(paying online - autodraft)
As far as info - they much like a bank, take your info, ss# and then plug it in to the ol' credit machine and come back quickly with an answer.
I think by the time I signed something and was approved was like, 5-10 minutes. You really do not need to "present" anything to them, at least I did not.
AND unless you get a hellva kickback for cash, then 0% is the ONLY way to go....save your cash, and before everyone chimes in on how Kubota is still making money, that is true, but 0% is @#%$@#$ 0% - you have ZERO money tied up, cash in the hand for something else....etc.
ON another note -get ANY and all other goodies while there !
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Thanks for the great info!! Sounds like it's pretty simple unlike getting a loan for a house. Now, I just have to figure out what loan duration to go for and decide on a MX5800 or M6060/7060.That can be done easily - I did, and am doing that right now.(paying online - autodraft)
As far as info - they much like a bank, take your info, ss# and then plug it in to the ol' credit machine and come back quickly with an answer.
I think by the time I signed something and was approved was like, 5-10 minutes. You really do not need to "present" anything to them, at least I did not.
AND unless you get a hellva kickback for cash, then 0% is the ONLY way to go....save your cash, and before everyone chimes in on how Kubota is still making money, that is true, but 0% is @#%$@#$ 0% - you have ZERO money tied up, cash in the hand for something else....etc.
ON another note -get ANY and all other goodies while there !
Technical Ted
Member
Equipment
L3560/cab LA805 loader LandPride RCF2060 rotary cutter, HLA hyd angle snow blade
When I bought my L3560 this June the dealer told me that the package would cost me ~$1000 less if I paid cash. So, that's something to figure into your decision... You might want to start your dealings with paying cash and see how much, if any, the price goes up when you start talking 0% interest.
Good luck and have fun with the new tractor!
Ted
Good luck and have fun with the new tractor!
Ted
Creature Meadow
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Lifetime Member
Equipment
2012 L4600, Disk, Brush Hog, GB60 Garden Bedder, GSS72 Grading Scraper
I would also recommend taking a copy of a pay stub, they use that to calculate what your annual income would be. If self employed and it varies carry a copy of your 1015 tax return just in case.
OK, that's a good idea and might save me a extra trip to the dealer. Never hurts to be prepared. Thanks.
85Hokie
Moderator
Staff member
Lifetime Member
Equipment
BX-25D ,PTB. Under Armor, '90&'92-B7100HST's, '06 BX1850 FEL
Once you start getting kickbacks in the 4 digit range, then the 0% changes the what you really are saving or spending - Personally - if I HAD to, I would have paid "cash" - taken the rebate, then placed the "loan" on my very low % home equity line.
here are some real numbers (in case anyone "cares" )
lets say new machine at $25,000
over 6 years - total payout - 25K at 0%
got a $1000 kickback - but had to finance at 24k @ 3% - total with interest = $26,254
Even at 2% - total payout $25,488 ........
Even at 1.5% interest, you STILL END UP paying more!!!!! $25,111
Let's say that some local Kubota dealer was gonna give you a hellva deal, they were gonna give you $2.5K as a kickback, BUT you had to still borrow the money on a home equity loan, $22,500 at, lets be nice, 3% ......is $24,600....
Until the kickback starts to get a little bigger, the ZERO% is much mo' better.
Now those of us that have 25k just laying around, shoot - I would not care if it was paid in cash or not!
Unlike ALL other loans, ONCE you lock in at ZERO % - you are never in a hurry to pay the loan off!!!! I keep thinking to myself, "I ought to just pay this thing off!".....but hell, WHY? the payment is the same whether I pay it all or little at a time.
bambam31
Member
Equipment
L3800HST 4x4,R1,FEL, 6'disc, 5'bush hog,piranhaTB,6'grader,6'rake, 48"forks
I keep thinking to myself, "I ought to just pay this thing off!".....but hell, WHY? the payment is the same whether I pay it all or little at a time.[/QUOTE]
It is my understanding that once you pay off the Kubota loan you also lose your Kubota insurance. Someone correct me if I'm wrong.
It is my understanding that once you pay off the Kubota loan you also lose your Kubota insurance. Someone correct me if I'm wrong.
If I had $25,000 invested over 5 years earning somewhere above 3%, I believe I would take the 0% all day long.
Sent from my SM-G920P using Tapatalk
Sent from my SM-G920P using Tapatalk
Yes, I believe you are correct. The Kubota insurance is only for the amount owed on the loan. The dealer quoted me ~$2,300 for the Kubota insurance (over the life of the loan) and I was only financing about $11k after trade for 84 months. I was able to take out a policy with my insurance company for $22K (fire, theft, damage, etc..), the price of the entire package, for $136 per year with $250 deductible.
I was happy to go that way for insurance. Only thing dealer wanted was my Insurance Company name, address, phone, and reps name.
Easy as pie !
EZ
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I was like you when i got my mx5800 last month. I ended up compromising. Paid half and financed half. As I recall they required a minimum of 20% down. And i set it up for auto withdrawl. You will get mail from them giving that as an option.
Please don't fill out the Kubota online application! You create more work for the dealer to try to pull it.
2 different applications one commercial and one personal. If you are farm or are a non taxable entity then the commercial will have to be filled out.
All you need is drivers license and to fill out the application fully including knowing the nearest relative not living with you information. The rest is the dealerships information on the unit/ units and potential insurance information. Which has no bearing on the credit decision. The KTAC has the final say on the credit decision!
Pat
2 different applications one commercial and one personal. If you are farm or are a non taxable entity then the commercial will have to be filled out.
All you need is drivers license and to fill out the application fully including knowing the nearest relative not living with you information. The rest is the dealerships information on the unit/ units and potential insurance information. Which has no bearing on the credit decision. The KTAC has the final say on the credit decision!
Pat
Thanks everyone for all the great info!
And good to know about the info about the nearest relative.
Thanks again!!!
And good to know about the info about the nearest relative.
Thanks again!!!
If the cash price and financed price are equal, when you factor in the rapid depreciation of our currency, you are actually making out by taking the 0% financing. Your monthly payment will have less purchasing power several years from now and therefore you will effectively pay less for the machine than if you had paid cash up front.