Thoughts on financing

[R4744]

I’m new to tractors but I see a lot of 0 down 0% apr financing. The current financing deals are set to end at the end of June. Have these financing deals been typical for kubota in previous years??

I probably don’t have to get a tractor until the fall and probably could swing a better tractor at that time but at the same time I would buy now if it seems likely the financing options particularly the zero apr would be worse once the current offer ends. Especially considering the direction interest rates have been heading in.

 

[NorthwoodsLife]

In this volatile state of the economy, it's hard to say. But Kubota has offered 0% for many years. Sometimes the term gets shorter or longer, such as 60 months or 84 months, but they've kept 0 interest going for a while. You may see a price increase as well by Fall.
Roll your dice and take your chances. Or go buy tomorrow.

Maybe someone on here has an inside line and can tell you with certainty that it will continue into Fall.

 

[TX Chris]

I've purchased two Kubota tractors, a Kubota zero turn mower and a Kubota RTV since 2016. Every one of them were financed at zero percent through Kubota finance.

Both of the tractors were 84 month zero percent, with Kubota's insurance. My first tractor (L3901) was a total loss in a fire and Kubota bought it back via the insurance policy and I replaced it with an MX5400.

 

[KKBL]

With the way things are going now you probably wont do any better by waiting until fall. You can get KTAC insurance when buying it new. It looks like they have the cost of the financing built into the prices now and I don't think they cut any deals, even for cash.

 

[GeoHorn]

All Kubota has to do is Jack the price UP….then offer it for “Zero per cent Interest”….and the American Consumer can’t sign the deal fast-enough.

 

[The Evil Twin]

I would say the chance is good there will be a 0% offer. For what term, is a guess. Then, there is a chance of a price increase too. The only educated way to guess is watch the base rate. If it stays untouched, then K will probably still offer 0%. Rates are a gamble these days.

All Kubota has to do is Jack the price UP….then offer it for “Zero per cent Interest”….and the American Consumer can’t sign the deal fast-enough.

I think that's partly the case with tractors and vehicles. The rates the manufacturers offer make no sense at today's prevailing interest rates any other way.

 

[GreensvilleJay]

It does make cents though.. They get a sale, some coins up front and a steady amount every month for 4-5-7 YEARS. It's that steady income they really want. All in the 'details'..
If YOU made a million $ this year, you pay a LOT of income tax. If you make 50K ,over 20 years(satill a million ) , you pay far less taxes (ONLY on the 50K ).
Alarm monitoring companies figured this out decades ago. Put equipment in at cost (or free ), then get a little EVERY month...forever... nice steady income. Insurance companies do the same....

As for the OP, get it now, USE it this summer....might not be 'your' tractor available come the fall....

 

[fried1765]

With the way things are going now you probably wont do any better by waiting until fall. You can get KTAC insurance when buying it new. It looks like they have the cost of the financing built into the prices now and I don't think they cut any deals, even for cash.

" Zero percent interest" for 64 months, or even 80 months........ Kubota loans money for up to almost 8 years ......at no charge?
I've been looking for a bank that will make interest free loans like that!
Thinkin now.....maybe I should try Silicon Valley Bank?

 

[Runs With Scissors]

I'm also new to tractors, but I ordered mine at the end of December since they were offing O% for 84 months, and I felt reasonably sure they were going to get rid of that. Turns out I was correct (just by chance of course)

I also agree that they build that all into the price.

The way the Fed is raising rates, it's hard to say what is going to happen for sure, but I'm betting on another banner year for inflation, so expect some more price increases and/or shorter 0% terms.

I vote for get it now, but I have a Magic 8 Ball, not a crystal ball...so take that for what it's worth...LOL

 

[R4744]

Yeah the more I think about it, the more I think I should do it now. I would have liked to get an L3560 with a cab but that's offered at 60 months financing, I might have been able to swing that monthly payment once fall rolls around. But will probably will go with the Lx3310 with a cab which will be 6-8k cheaper and can be financed for 72 months now.

 

[jimh406]

I don't think it would be good to wait until Fall. That would only make sense if you only were planning to use the tractor in Winter. Otherwise, you'll miss an entire work season. At least, I use my tractor more during Spring/Summer/Early Fall.

The disadvantage of 0% is you have to carry KTAC insurance which you might any way, and you don't get a cash discount. Those might or might not matter to you.

 

[The Evil Twin]

Yeah the more I think about it, the more I think I should do it now. I would have liked to get an L3560 with a cab but that's offered at 60 months financing, I might have been able to swing that monthly payment once fall rolls around. But will probably will go with the Lx3310 with a cab which will be 6-8k cheaper and can be financed for 72 months now.

Ask the dealer if there is a way to stretch the 3560 to 72 months. I don't remember what it was called, but when I bought my mower the sales guy said that you can extend the 0%. Something like paying points on a home. There is a fee involved. I do not know the details but as an example:
Standard 0% for 60 months. No fee
Extended 0% for 80 months. $800
In the end, the total cost ends up like you financed for 1.5%. The fee can be wrapped into the price. So it is still 0 down. If your sales guy doesn't know what you are talking about, I can call mine and get better details.
Disclaimer for the nit pickers- I didn't run the numbers, so the $800 fee is a shot in the dark and the 1.5% was a fabricated example. Point was the ability to extend the 0%

 

[jyoutz]

Ask the dealer if there is a way to stretch the 3560 to 72 months. I don't remember what it was called, but when I bought my mower the sales guy said that you can extend the 0%. Something like paying points on a home. There is a fee involved. I do not know the details but as an example:
Standard 0% for 60 months. No fee
Extended 0% for 80 months. $800
In the end, the total cost ends up like you financed for 1.5%. The fee can be wrapped into the price. So it is still 0 down. If your sales guy doesn't know what you are talking about, I can call mine and get better details.
Disclaimer for the nit pickers- I didn't run the numbers, so the $800 fee is a shot in the dark and the 1.5% was a fabricated example. Point was the ability to extend the 0%

I financed my MX for 72 months, zero interest. The dealer can make that happen.

 

[rc51stierhoff]

I agree with jyoutz and ET…. Id see what the dealer can help with and buy as much as you can even if it hurts a little…before you decide on a price them both and see the difference in the payments if it that tight for you…it’s probably not that much (it’s real money for sure but as monthly or weekly amount it’s not going to be a huge difference) and maybe you find find something better to do without than the tractor you want. The other aspect is to consider that inflation grows and the fed prints money, you are paying off with devalued dollars. Good luck.

 

[The Evil Twin]

The other aspect is to consider that inflation grows and the fed prints money, you are paying off with devalued dollars. Good luck.

Yessir! My dad thought me that a long time ago. At 0%, the money you are paying them a year from now is worth less than it is today! Stretch it OUT!

 

[R4744]

I financed my MX for 72 months, zero interest. The dealer can make that happen.

Interesting, maybe I'll talk to the dealer and see what he can do.

 

[jyoutz]

I would say the chance is good there will be a 0% offer. For what term, is a guess. Then, there is a chance of a price increase too. The only educated way to guess is watch the base rate. If it stays untouched, then K will probably still offer 0%. Rates are a gamble these days.

I think that's partly the case with tractors and vehicles. The rates the manufacturers offer make no sense at today's prevailing interest rates any other way.

Regardless of the pricing games, there is little to no cash discount, so you may as well take the 0% financing.

 

[RBsingl]

Those offers are more likely to disappear as the cost to Kubota corp goes up with rising interest rates. I ordered my F2690 with 72" deck in June and it was delivered in December. No problem with dealer honoring the agreed upon price for the combo but zero percent had fallen from 36 to 24 months for this commercial front mower, if you wanted 36 months @ zero you had to pay an additional amount.

I was fine with 24 months since I would have been OK with writing a check to them had there been a substantial discount for full payment at delivery but that wasn't an option. Car companies have done the same with far fewer long term no interest deals with supply chain issues and increasing costs of providing financing.

This is likely a case of the old adage that "a bird in the hand is worth two in the bush"

Rodger

 

[mcmxi]

The disadvantage of 0% is you have to carry KTAC insurance which you might any way, and you don't get a cash discount.

I didn't get KTAC insurance on any of the last three tractors I purchased, but I got 0% financing for 60 months from Kubota.

 

[jimh406]

I didn't get KTAC insurance on any of the last three tractors I purchased, but I got 0% financing for 60 months from Kubota.

They didn’t require insurance, or you simply got a different brand.