Kubota Financing is insane

[Staggerlee1976]

This story does not really surprise me. On the surface, the OP looks like a prudent borrower who, given their credit score, has likely not defaulted on a commitment recently, if ever. That alone doesn't always look like a good risk profile to a lender, especially for 0% or similar promotional rates.

Larger installment loans and mortgages over a period of time really illustrate the risk profile of a borrower. If you've held credit lines for years, it speaks volumes. The ability to actually service the debt plays a factor here as do assets. At 47 years old and 30 years after my first car note (and many, many since), plus years of mortgage payments, I am finally in a place where I don't sweat over credit decisions, but that is only a recent development.

 

[SteveBX23]

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.

Personal home will cost you money everyday, think it’s as simple as that from a liability standpoint. Perhaps the day you turn around and sell it, then it becomes the asset

 

[The Evil Twin]

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.)

Eh, most lenders really don't let you do that for small purchases like this. Those that do, see it as an obvious liability. So someone that barely qualifies for financing is going to be less qualified by taking on another debt. Large equipment purchases are

 

[LFP57]

I've heard a number of times recently that lenders are tightening up loan standards as well.

 

[Mrlunchbox]

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

Yeah good point. I know when I talked to the finance folks they were telling me they're pretty good with some past dark spots on your credit... so I am surprised they wouldn't give him the loan. It sounds like his credit isn't bad all at all. This whole FICO crap is ridiculous anyways. Need to go back to the days before it existed lol

 

[D2Cat]

Personal home will cost you money everyday, think it’s as simple as that from a liability standpoint. Perhaps the day you turn around and sell it, then it becomes the asset

If you're speaking of cost everyday being taxes, ins. upkeep.... as long as the value is greater then what you're calling "liability" (those everyday cost) that property is an asset even possible at the moment of purchase. You do not have to sell it to become an asset. Selling it turns the asset into cash.

 

[GeoHorn]

Eh, most lenders really don't let you do that for small purchases like this. Those that do, see it as an obvious liability. So someone that barely qualifies for financing is going to be less qualified by taking on another debt. Large equipment purchases are

He doesn’t “barely qualify for financing”. Kubota has placed an undue exigency on the sale if financed thru Kubota.
Having worked for years as a vice-pres for a bank I am relying upon what our loan-committee looks at and taking a second lien on a new purchase by an established bank-customer who has deposits with us…. No Problem…. However, the bank would hope you’d consider the entire financing pkg with the bank, of course.

 

[Kurtee]

Explore a bank loan and pay the cash price. Most likely equal out or be better than Kubota finance. I have used Kubota credit and Deeres credit also buying Kubota for cash. Ask the difference between cash and credit. If the dealer doesn't want to cooperate find another dealer. You are paying plenty for the 0% interest on Kubota or Deere. If the credit score is as posted it should not be any issue. Get the needed insurance from a local agent. Insurance with Kubota is part of a loan issue requirement, Deere will require an affidavit.

 

[jyoutz]

K

Explore a bank loan and pay the cash price. Most likely equal out or be better than Kubota finance. I have used Kubota credit and Deeres credit also buying Kubota for cash. Ask the difference between cash and credit. If the dealer doesn't want to cooperate find another dealer. You are paying plenty for the 0% interest on Kubota or Deere. If the credit score is as posted it should not be any issue. Get the needed insurance from a local agent. Insurance with Kubota is part of a loan issue requirement, Deere will require an affidavit.

Kubota has little to no cash discount

 

[fried1765]

Explore a bank loan and pay the cash price. Most likely equal out or be better than Kubota finance. I have used Kubota credit and Deeres credit also buying Kubota for cash. Ask the difference between cash and credit. If the dealer doesn't want to cooperate find another dealer. You are paying plenty for the 0% interest on Kubota or Deere. If the credit score is as posted it should not be any issue. Get the needed insurance from a local agent. Insurance with Kubota is part of a loan issue requirement, Deere will require an affidavit.

"You are paying plenty for the 0% interest on Kubota or Deere"

No!...No!...No!... how can that be?
Most here on OTT, want me to believe that Kubota 0% interest means that Kubota financing is FREE!
At Kubota......Cash or credit......price is the same?

ie: Folks like me, who would pay cash are stupid!

 

[civlized]

"You are paying plenty for the 0% interest on Kubota or Deere"

No!...No!...No!... how can that be?
Most here on OTT, want me to believe that Kubota 0% interest means that Kubota financing is FREE!
At Kubota......Cash or credit......price is the same?

ie: Folks like me, who would pay cash are stupid!

Haha!
Yeah, all of those 0% do cost plenty. Free! The closest thing to free would be walking out. Nothing is free!

 

[SteveBX23]

If you're speaking of cost everyday being taxes, ins. upkeep.... as long as the value is greater then what you're calling "liability" (those everyday cost) that property is an asset even possible at the moment of purchase. You do not have to sell it to become an asset. Selling it turns the asset into cash.

Id view an asset as anything that makes me money. My home does not make me money in my normal lifestyle, it costs me money daily. How is that an asset? And yes, my homes value is far greater than what I owe on it, but I still don’t view it as an asset. It’s a building that takes money from me

 

[Kurtee]

K

Kubota has little to no cash discount

OK, times must have changed

 

[GreensvilleJay]

Your house is a liability until you sell and make money on it THEN it's an asset.
same as everything you 'own' like trucks, tractors, paintings on the wall, even stocks and other 'paper' products.

 

[D2Cat]

Have you ever figured your net worth?

Net worth is the value of all the non-financial and financial assets owned by an individual or institution minus the value of all its outstanding liabilities. Financial assets minus outstanding liabilities equal net financial assets, so net worth can be expressed as the sum of non-financial assets and net financial assets.

 

[GreensvilleJay]

I've never bothered to figure out my net worth, though it should be easy as I have zero liabilities.

 

[lynnmor]

I've never bothered to figure out my net worth, though it should be easy as I have zero liabilities.

What isn’t easy is to figure what you have after income taxes on you savings, real estate taxes and fees to sell real property and numerous other expenses before you can arrive at the amount coins you can put in your piggyback.

 

[GrizBota]

K

Kubota has little to no cash discount

When I bought my B in April of ‘22 my choice was $500 off for cash or 0% interest. That $500 was eclipsed by inflation in ‘22 by a factor of better than 2 in 7 months. I came our way ahead holding on to my money and using Kubota’s. Not always that way, but it was for me.

 

[The Evil Twin]

He doesn’t “barely qualify for financing”. Kubota has placed an undue exigency on the sale if financed thru Kubota.
Having worked for years as a vice-pres for a bank I am relying upon what our loan-committee looks at and taking a second lien on a new purchase by an established bank-customer who has deposits with us…. No Problem…. However, the bank would hope you’d consider the entire financing pkg with the bank, of course.

That wasn't the best choice of words. What I was getting at is that if they don't qualify for the best finance offer, adding another debt is likely to change the T&Cs of the Kubota offer. They already see them as a risk. It would be adding more risk for K.
We definitely don't know the whole story. Probably never will. I'd be surprised if he makes more than the one post.

 

[RBsingl]

I looked at several dealers before buying my F2690 during the tail end of the pandemic and no additional cash discounts were available. 0% on Kubota's dime was better than pulling it out of one of my investment accounts so that was the move I made. At that point, Kubota had also dropped the 36 to 24 months free on this model which was fine. I suspect things will change as supply catches up and then exceeds demand.

GMAC had one of the funnier offers when I bought my 2018 Sierra Denali diesel HD pickup. The cash discount offer was $500 OR if you financed at least $1,000 at 3.9, you got a $2,000 discount. There was no penalty for early payoff so I financed $1,000, took my $2,000 discount, and paid off the loan before the first payment was due thus no interest or other cost

You really have to look at all of the options and fine print to make the best choice. One of the big camera retailers was offering to cover sales tax IF you bought on credit through their partner bank. The interest rate was ridiculously high but there was no early payment penalty. I used that offer to buy a pair of camera bodies and three telephoto prime lenses that cost, as a group, far more than most new vehicles and that cost the bank a lot when they had to cover the sales tax. I paid off the balance as soon as the order arrived, they then retaliated by canceling my credit line but it worked fine for what I needed for a big one time purchase. They make their money off the suckers that don't pay it off immediately and end up with a crazy high finance charge.

Rodger