Kubota 84 month tractor loan

[ahr6912]

I live in South Carolina, getting an 84-month loan from Kubota, they want me to add their insurance for the term of the loan. That is optional coverage. I am covered under the "Personal Property" of my homeowner's policy for 380k. Meaning, under that policy the insurance company will pay up to 10% of the total of the policy for one single loss. (100k policy, with the 10% of the total coverage of unscheduled personal property is 10,000 dollars). They can see I have coverage in case there is damage or loss. Yes, I have to pay the deductible, that's better than paying 3+k over the life of the loan for insurance. I should have the right to decline. Also, that tractor and implements are parked in a garage with monitored security. Do you guys agree with my thinking?

 

[OrangeKrush]

I can't really answer your question but I did look into this when I purchased mine. Your homeowners.. I believe will not cover it off of your property. Plus I think they cover a lot more than your homeowners can unless you pay for the extra. I opted for the Kubota Ins.

 

[Deleted member 47704]

I can't really answer your question but I did look into this when I purchased mine. Your homeowners.. I believe will not cover it off of your property. Plus I think they cover a lot more than your homeowners can unless you pay for the extra. I opted for the Kubota Ins.

Kubota insurance covers everything no hassle.You can opt out, but Kubota insurance is cheap for what it covers.

 

[PortTackFarm]

I also opted for the KTAC insurance. Considering the coverage and the reputation of the insurance, at $500 a year on the nearly $32K package which included the tractor, rotary cutter and box blade over the 7 year life of the loan, it seemed worth it to me. My homeowners policy may provide some coverage, but I don't think it comes close to the coverage of the Kubota policy. Also, the tractor won't be at our primary residence, but rather at our farm and even though we have a barn on the property that currently falls under our homeowners policy with a rider, I am not sure how well the tractor would be covered without buying an additional rider for it too. Of course your situation and homeowners policy may be different.

 

[Trex18]

Yea....it was another 2k on the end of the loan for my on my new 2610. I was initiallly upset cause I didnt know....but....dealer looked at me and said.


Buy once. Cry once.


I thought. I'm 37.....I'm gonna have this thing for a very long time. No biggie.

 

[ddavis83864]

Definitely check into a policy for your equipment. Your homeowners policy is probably lacking in coverage. I have heard nothing but good things about the Kubota KTAC insurance but there are also other companies that offer fantastic farm/ag equipment coverage that is just as good. Either way, get coverage that will replace the tractor if needed.

 

[pjoh784350]

I believe if you get the $0 down and 0% interest loan from Kubota you MUST get the KTAC insurance, also at 0% financing! I have not had to make a claim but I hear all good things and no negative on the KTAC insurance.

 

[Deleted member 47704]

I believe if you get the $0 down and 0% interest loan from Kubota you MUST get the KTAC insurance, also at 0% financing! I have not had to make a claim but I hear all good things and no negative on the KTAC insurance.

Nope, the form I got had the box to check if you didn't want the KTAC.
KTAC is so cheap compared to homeowners. Its 27 bucks for a 22,000 loan.
I've dealt with home owners insurance on claims and they run you through the wringer.After insulting you and accusing you of misconduct they "offer" a paltry amount that is a fraction of your loss.Certainly not a enough to make you whole.

 

[eipo]

You are not required to take the Kubota Insurance, although it is better insurance.

I have a rider on our homeowners policy that covers the original purchase value of the tractor and everything that came with it when it was purchased. This satisfies the insurance requirement.

 

[MadMax31]

I wont pay off my BX23S early as the KTAC insurance is in loan. $250 and anything is covered. It’s actually a great policy to have.

 

[PortTackFarm]

I wont pay off my BX23S early as the KTAC insurance is in loan. $250 and anything is covered. It’s actually a great policy to have.

Not that there's any reason to pay off a 0% interest loan early, but as I read the paperwork, the insurance is in force for the term of the policy even if you paid off the loan balance early. I could be wrong.

 

[Elliott in GA]

Not that there's any reason to pay off a 0% interest loan early, but as I read the paperwork, the insurance is in force for the term of the policy even if you paid off the loan balance early. I could be wrong.

I spoke with KTAC about paying the loan off early, and they advised that early pay off will end the insurance. They advised to pay down to some small amount. and then you can pay it off on the final due date. We will pay down our loan to a couple of thousand within 12-18 months.

 

[PortTackFarm]

I spoke with KTAC about paying the loan off early, and they advised that early pay off will end the insurance. They advised to pay down to some small amount. and then you can pay it off on the final due date. We will pay down our loan to a couple of thousand within 12-18 months.

I just pulled up my finance contract and you are correct. It does cancel as soon as the loan is paid in full. Thanks for pointing that out - another reason not to pay it off early. Then again, at 0% we won't be paying off early a I like using someone else's money any time I can.

 

[Porcupine]

FWIW:

I use Farm Bureau for everything. Auto, homeowners, and farm. They did me right on a seperate rider for my 2501 and the front loader (two separate line items).

When I told my dealer I was already with FB, he said KTAC is fine, but he prefers FB and uses them too.

 

[DustyRusty]

When Kubota started the KTAC insurance, you could buy it for any Kubota that you owned. Now, it is only available to tractors that are financed by Kubota. I don't know if the insurance is available for used tractors that are sold by a Kubota dealer, but if it is, it is the best deal for insurance on a tractor.
I purchased a separate policy for my tractor for physical damage, and my homeowners insurance covers me for liability while on my property. I still can't get an answer if my tractor is covered on an adjoining property that I own. The nice thing about the KTAC insurance is that it covers the tractor no matter where it is when it gets damaged.

 

[Elliott in GA]

When Kubota started the KTAC insurance, you could buy it for any Kubota that you owned. Now, it is only available to tractors that are financed by Kubota. I don't know if the insurance is available for used tractors that are sold by a Kubota dealer, but if it is, it is the best deal for insurance on a tractor.
I purchased a separate policy for my tractor for physical damage, and my homeowners insurance covers me for liability while on my property. I still can't get an answer if my tractor is covered on an adjoining property that I own. The nice thing about the KTAC insurance is that it covers the tractor no matter where it is when it gets damaged.

You should get an endorsement from your insurer for the adjacent property. This presumes that you do not have structures that are already insured on the adjacent property.

I cover my property and the steel sheds in Northern Georgia via my homeowners policy on my house in Savannah, GA. It costs me $50 a year.

FWIW, my KTAC insurance provides 200K in liability insurance. My insurance carrier also gave me an endorsement on my umbrella; thereby, my umbrella covers me beyond 200K. There was no charge for adding the tractor, but there was a charge when I added my boat.

 

[Henro]

I spoke with KTAC about paying the loan off early, and they advised that early pay off will end the insurance. They advised to pay down to some small amount. and then you can pay it off on the final due date. We will pay down our loan to a couple of thousand within 12-18 months.

Not sure if this applies, but I thought if I paid a lump sum towards loan I took out to buy the property I bought next door, my monthly payment would lower, on a home equity loan.

Well, it doesn't work that way in some cases, as what happened was the payment stayed the same, and the term shortened. That was not my goal...

So I would suggest you double check if you goal is to reduce the monthly payment, while maintaining the term the same.

 

[ahr6912]

Hey, since we're on a roll here. The question is,
Doesn't the dealer have to honor Kubota's Current price from its website?
The dealer is quoting higher, items for items. Strange?.
Is there a Kubota number to call to get confirmation of the correct MSRP?

 

[Elliott in GA]

Not sure if this applies, but I thought if I paid a lump sum towards loan I took out to buy the property I bought next door, my monthly payment would lower, on a home equity loan.

Well, it doesn't work that way in some cases, as what happened was the payment stayed the same, and the term shortened. That was not my goal...

So I would suggest you double check if you goal is to reduce the monthly payment, while maintaining the term the same.

When you pay extra, you do not change the terms of the loan. Instead, you will see the due date for your next payment changing to a later and later date; you are essentially paying future payments in advance. With a 0% loan, their is no impact on principle/balance. If you look at a Kubota finance account, you will see a lower pay off balance, but this is caused by an early and full payoff ending the KTAC insurance early.

 

[DustyRusty]

Not sure if this applies, but I thought if I paid a lump sum towards loan I took out to buy the property I bought next door, my monthly payment would lower, on a home equity loan.

Well, it doesn't work that way in some cases, as what happened was the payment stayed the same, and the term shortened. That was not my goal...

So I would suggest you double check if you goal is to reduce the monthly payment, while maintaining the term the same.

Since that loan was for property, and has interest on the loan, you saved yourself a lot of money over the time of the loan. If you wanted to lower your payments, then you would have to have asked for that loan to be retired, and rolled it into another loan. Sometimes, this can trigger closing costs, since it was on land. Best to always ask if what you are intending to do will ultimately accomplish the end result that you desire. Sometimes, the answer will be yes, and other times, it will be no, depending on the policies of the lender.