Went into my local Kubota dealer with a 750+ credit score and my wife 780+ score. Had a 20% cash down payment on a L5201dt. "$30k total" My credit got denied because I havent financed anything over $15,000. I have nearly $50k in liquid assets and about $80k in physical. Still no luck. The asked for 50% down $14,650 which seems insane to me. No financing options out of the 50% down
Kubota Financing is insane
- Thread starter MikeRawling
- Start date
They are happy to do so…if you have credit scores such as that…. and they take a second lien.
But the simplest thing is to put it on a low/no interest credit card. (assuming he still wants to deal with kubota finance.)
PortTackFarm
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Tightening credit requirements allows Kubota to still get you interested in a new Kubota with the advertised deals but only finance the least risky customers. With rising rates, unfortunately slow pays and defaults are increasing in the finance world so it's not surprising.
GreensvilleJay
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why not pay cash ? If you go the credit route, they slap a lien on the machine(then still OWN it...), you have a debt and credit rating is 'altered'.
fried1765
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A buyer (he/she) cannot pay cash,...... if they do not have the cash!
GreensvilleJay
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One way to borrow money to do as you wish, is with a home equity line of credit. If you own (part of) a home, you can generally borrow against the equity that exceeds 80% the value of the house. $100k house, owe $40k on it you can borrow, for example: (100k-40k)-(100k*(1.00-0.80)) = $40k. You can do what you will with that and you only pay interest after you’ve taken it out of the line of credit, not from the day the loan docs were closed. And it’s probably tax deductible if you don’t take the standard deduction (which nearly anyone with a gross income of less than about $400k/year does take the standard deduction since the last major Fed personal income tax overhaul several years ago).
Very handy way to buy a car for “cash” and then deal with it afterwards to pay the HELOC back. Maybe you buy a $35k car and have $20k saved. You buy the car with the HELOC, then pay back $20k to the HELOC the next week and pay the balance off as per the terms of the HELOC agreement. I do this every time I buy a car so that I can transfer funds around after the fact rather than having to be ready with funding at that moment. A single check is all it takes.
Very handy way to buy a car for “cash” and then deal with it afterwards to pay the HELOC back. Maybe you buy a $35k car and have $20k saved. You buy the car with the HELOC, then pay back $20k to the HELOC the next week and pay the balance off as per the terms of the HELOC agreement. I do this every time I buy a car so that I can transfer funds around after the fact rather than having to be ready with funding at that moment. A single check is all it takes.
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Actually is was “…nearly $50k in liquid assets…” Always good to keep liquidity available. You never know what will happen tomorrow. The OP may not want to reduce their liquidity by 60%, or I’ll bet we wouldn’t have read this post.
I read that assets are things I own that make me money and liabilities are things I own that cost me money. In which case home = liability, commercial property = asset. Interesting line of logic to me. I got lots of shekels tied up in my home.
GreensvilleJay
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from the original post.....
....about $80k in physical ....
that says to me he has $80K in cash in the bank or under the mattress.
if not then he should explain it better
....about $80k in physical ....
that says to me he has $80K in cash in the bank or under the mattress.
if not then he should explain it better
North Idaho Wolfman
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Physical wealth consists of houses, cars, land, property, furniture, appliances, and the whole array of satisfaction-generating physical goods.
How is a home a liability----unless you owe more on it than it's worth? A commercial property could be a property that is a liability also---if you owe more on it than it's worth.
fried1765
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"80K in physical assets"
He should sell his house/land/car/truck/etc. to get cash for a tractor purchase?
Mrlunchbox
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Just spent almost 30k with them the other day... 0% down 0% financing. Mid 700's credit score. No issues whatsoever.
Yeah, but the OP has only borrowed $15K in the past. Lenders like seeing an applicant that has previously borrowed and paid a similar amount that is being requested in the past.
He’d probably get approved through Kubota finance if he had a $20-25K loan previously.
Mike
Hey, I’m not asking you to agree. Said I read it and found that line of thought interesting.
The “problem” with equity in a house, is you either have to borrow against it or sell it to access it. But I don’t mind having such a “problem”.
Isn't that true with all equity? To acquire it's value you "sell" the item (at least a portion) be it a home, savings bond, mutual fund.....
For the record, I'm not a financial advisor and don't play one on tv. Any way ....
The credit system is pretty crazy. The more you borrow the more you can borrow.
There isn't any advantage to having assets unless you want to pay cash for everything. I expect all the Dave Ramsey followers get killed by this every time they want a loan. Of course, you also have an "issue" once you retire if you don't have a consistent distribution or a "pension". It doesn't matter how many assets you have if you can't produce a consistent distribution.
In general, I think it's better to get loans from time to time and invest to cover the amount you lose by having a loan. I don't make the rules, but since I understand them, I play by the rules.
Finally, I didn't finance my Kubota, so I have no dog in the Kubota financing fight.
The credit system is pretty crazy. The more you borrow the more you can borrow.
There isn't any advantage to having assets unless you want to pay cash for everything. I expect all the Dave Ramsey followers get killed by this every time they want a loan. Of course, you also have an "issue" once you retire if you don't have a consistent distribution or a "pension". It doesn't matter how many assets you have if you can't produce a consistent distribution.
In general, I think it's better to get loans from time to time and invest to cover the amount you lose by having a loan. I don't make the rules, but since I understand them, I play by the rules.
Finally, I didn't finance my Kubota, so I have no dog in the Kubota financing fight.