Time for tractor!?

[PaulL]

This is exactly why I took the Kubota 0% interest vs the $500 discount for cash when I bought my B last year. Easy math. Inflation was 9% last year. Bought my Kubota at the 1/3 point, so in just those 8 months for the remainder of the year the reduction in buying power of the cash I could have bought the tractor with was about $1500. So if I’d paid it off at the end of that first year it would have been with cash that had $1500 less buying power than it did 8 months earlier. I told the sales guy, I’ll take the financing, the tractor and keep my money. Over the 5 year pay back period, inflation will probably accumulate to about 30%, the average dollar in that time frame having experienced about half that decrease in value. That’s a nice discount which beats the heck out of a $500 cash discount and not having the money working for me.

Depends what you're doing with the money.

Hypothetically, if you had the money burning a hole in your pocket / in your bank account, and you're the kind of person who wants your debts backed with cash, then it might not be great. You're taking the payments, but you've left the money in the bank at 2% (actually losing 5% in real terms every year). In that world the money is better off in a tractor, at least the tractor is going up in value at about the same rate as inflation.

Conversely, if you had to borrow to buy the tractor, then better to borrow at the 3-4% Kubota will give you than the 7-8% a bank will want. Kubota are happy with a Kubota tractor as collateral. A bank, less so.

In between is the guy who's going to keep the money and invest it. Who knows what return he's getting on that.....

 

[GrizBota]

Depends what you're doing with the money.

Hypothetically, if you had the money burning a hole in your pocket / in your bank account, and you're the kind of person who wants your debts backed with cash, then it might not be great. You're taking the payments, but you've left the money in the bank at 2% (actually losing 5% in real terms every year). In that world the money is better off in a tractor, at least the tractor is going up in value at about the same rate as inflation.

Conversely, if you had to borrow to buy the tractor, then better to borrow at the 3-4% Kubota will give you than the 7-8% a bank will want. Kubota are happy with a Kubota tractor as collateral. A bank, less so.

In between is the guy who's going to keep the money and invest it. Who knows what return he's getting on that.....

It depends. I was talking about my situation. I can conjure up all sort of hypotheticals that suggest another decision in another case might be a better way to go.

Who knows maybe I’m earning 17% a year buying company stock? Or maybe I’m using it for TP and fire stater.

 

[PaulL]

Or maybe I’m using it for TP and fire stater.

I thought we all did? $1 bills are cheaper than TP these days.

(of course, I live in NZ where we haven't had $1 bills for about 20 years, and most of our money is plastic so would be pretty awful TP. It's the thought that counts).

I'd probably buy outright if I was buying today. But we never had 0% in NZ, and I have enough cash on hand for a small tractor. I agree, not everyone is the same. And 0% money is a pretty good deal if it's still available.

Which reminds me - is the equine discount still going? That's worth looking into @K7G - it used to be a pretty hefty discount just for asserting that you like horses (well, you had to join a club, but apparently you don't need a horse to join a club).

EDIT: answer my own question. $1,000 off just for joining the cutting horse association. I seem to recall it costs about $30 to join. https://www.kubotausa.com/finance/special-offers/detail/2020-equine-membership-purchasing-program

EDIT2: better yet, first year membership is free, $100 per year thereafter. https://www.nchacutting.com/members/getting-started

 

[K7G]

This is exactly why I took the Kubota 0% interest vs the $500 discount for cash when I bought my B last year. Easy math. Inflation was 9% last year. Bought my Kubota at the 1/3 point, so in just those 8 months for the remainder of the year the reduction in buying power of the cash I could have bought the tractor with was about $1500. So if I’d paid it off at the end of that first year it would have been with cash that had $1500 less buying power than it did 8 months earlier. I told the sales guy, I’ll take the financing, the tractor and keep my money. Over the 5 year pay back period, inflation will probably accumulate to about 30%, the average dollar in that time frame having experienced about half that decrease in value. That’s a nice discount which beats the heck out of a $500 cash discount and not having the money working for me.

That would a great decision. I’ve not absolutely nothing against zero or even 1% f there’s not substantial difference in price. Per Paull’s point, the local guys are likely financing via another source. They‘re putting the focus on the payment and not the terms.

 

[K7G]

I thought we all did? $1 bills are cheaper than TP these days.

(of course, I live in NZ where we haven't had $1 bills for about 20 years, and most of our money is plastic so would be pretty awful TP. It's the thought that counts).

I'd probably buy outright if I was buying today. But we never had 0% in NZ, and I have enough cash on hand for a small tractor. I agree, not everyone is the same. And 0% money is a pretty good deal if it's still available.

Which reminds me - is the equine discount still going? That's worth looking into @K7G - it used to be a pretty hefty discount just for asserting that you like horses (well, you had to join a club, but apparently you don't need a horse to join a club).

EDIT: answer my own question. $1,000 off just for joining the cutting horse association. I seem to recall it costs about $30 to join. https://www.kubotausa.com/finance/special-offers/detail/2020-equine-membership-purchasing-program

EDIT2: better yet, first year membership is free, $100 per year thereafter. https://www.nchacutting.com/members/getting-started

You’re bringing the flour, I already made the cake. Joined the said equine association eariler this week with that free first year!

 

[GeoHorn]

Another question: any warranty service issues if I purchase from another dealer but have it serviced locally? My brother-in-law wanted me to price it at a dealer that his friend manages.

Tell your local dealer you won it in a poker game…and you prefer your local guy for service because of his reputation. Then make certain you hire the local guy for the 50 hr service in order to establish as a “repeat customer” when you have a warranty-issue.

 

[GeoHorn]

There is a story about inflation, in which bread has become so expensive it takes a wheel-barrow full of money to buy a loaf.

One day a wife goes to the store with the wheel-barrow of money…but it won’t fit thru the door….so she.looks left and right…and seeing no one…leaves it on the sidewalk, …dashes into the store, grabs the bread and brings the cashier out to the sidewalk to discover her money is all still there.

Someone has stolen the wheel-barrow.

An example of how Gov’t can take a valuable commodity such as Paper…. and make it worthless by applying ink.

 

[rc51stierhoff]

Another question: any warranty service issues if I purchase from another dealer but have it serviced locally? My brother-in-law wanted me to price it at a dealer that his friend manages.

That’s what trailers are for…frankly speaking either they want service work or they don’t…if you just moved to town would they refuse to service to a new customer? If so it’s better to stay away from them. I use two differently dealers 4hrs hours away from each other. Both are great and both don’t care where I bought…they are happy to have the straight up service work, and KTAC work, and both like to sell stuff as well…parts and machines.

 

[fried1765]

We live about 20 min outside of Auburn/Opelika AL. Proper orange yard art is not only nice but it’s also nearly a requirement.

Whatever you do: "Buy enough tractor" !!!!!

 

[fried1765]

Another question: any warranty service issues if I purchase from another dealer but have it serviced locally? My brother-in-law wanted me to price it at a dealer that his friend manages.

Kubota tractors are very reliable machines.
I would not spend a penny more to buy from a very local dealer.
That dealer could sell out, or go out of business tomorrow.

 

[PaulL]

That’s what trailers are for…frankly speaking either they want service work or they don’t…if you just moved to town would they refuse to service to a new customer? If so it’s better to stay away from them. I use two differently dealers 4hrs hours away from each other. Both are great and both don’t care where I bought…they are happy to have the straight up service work, and KTAC work, and both like to sell stuff as well…parts and machines.

I think they make more money on servicing and parts than they do on the original sale. No reason the service guys care whether or not the sales guys made a sale.

 

[Runs With Scissors]

I can only back up what these guys have already suggested.

I currently dive a manual transmission truck and have driven manual transmission trucks and cars for the last 30'ish years and I love them.

However; I'm glad I went with the HST.

They are rugged, reliable and I would think resale is better if you ever, God forbid, get rid of it or trade it in.

 

[K7G]

We are relatively new in the area having lived out west for 25+ years and are slowly getting to know people. That’s especially important as MrsK7 looks for a job.

One of the guys is a high level person in a local bank. We’ve been going to their church and yesterday, I mentioned that I was looking for a tractor. He volunteered to let me look at his green machine and he’d share his knowledge with me. He grew up less than 25 miles from where I grew up on the small family farm.

His tractor is. John Deere 3032E with a loader, rotary cutter and two range hydrostatic transmission. I drove it a bit and got familiarized with its operation. Nice tractor and he offered his truck, tractor, trailer and implements anytime I need them. Extremely nice guy.

We talked for about three hours. MrsK7 asked when we have our next date. (We‘ll take a day trip to Barber Motorsports for a track day visit on the 17th. )

I’ve got a late morning appointment and then, I’ll stop at the local dealer. I’ll call the other dealer via my brother-in-law this afternoon.

 

[chim]

Some random thoughts in no particular order that may or may not be useful:

You won't find an L-sized tractor too large. I went through a few tractors on that journey.

Get bigger doors or another storage option.

Look at a rear finish mower. (Note - any worthwhile deck won't fit your door even if the tractor does.)

Consider used. Although I bought new a couple times, the current tractor had under 1,000 hours on it when I bought it.

Hydrostatic is a winner, especially when you need to do something requiring fully controllable speed or precision movement.

If it isn't an emergency, save up for it. If you need it NOW, get something that's OK to fill in till you get the cash together. Anyone who can afford payments can afford to make "payments" into his own bank account AHEAD of making the purchase.

Maintain it well, according to the manufacturer's recommendations.

Don't lend it to anyone unless you will go along as the operator.

A cab is nice for dealing with heat, cold, insects and pollen. Also very nice when spraying chemicals you prefer not to wear or breathe in.

 

[fried1765]

Some random thoughts in no particular order that may or may not be useful:

You won't find an L-sized tractor too large. I went through a few tractors on that journey.

Get bigger doors or another storage option.

Look at a rear finish mower. (Note - any worthwhile deck won't fit your door even if the tractor does.)

Consider used. Although I bought new a couple times, the current tractor had under 1,000 hours on it when I bought it.

Hydrostatic is a winner, especially when you need to do something requiring fully controllable speed or precision movement.

If it isn't an emergency, save up for it. If you need it NOW, get something that's OK to fill in till you get the cash together. Anyone who can afford payments can afford to make "payments" into his own bank account AHEAD of making the purchase.

Maintain it well, according to the manufacturer's recommendations.

Don't lend it to anyone unless you will go along as the operator.

A cab is nice for dealing with heat, cold, insects and pollen. Also very nice when spraying chemicals you prefer not to wear or breathe in.

Excellent guidelines !!!!

 

[K7G]

Expanded the search to used. In for a penny….. size be damned, budget still set.

 

[PaulL]

We are relatively new in the area having lived out west for 25+ years and are slowly getting to know people. That’s especially important as MrsK7 looks for a job.

One of the guys is a high level person in a local bank. We’ve been going to their church and yesterday, I mentioned that I was looking for a tractor. He volunteered to let me look at his green machine and he’d share his knowledge with me. He grew up less than 25 miles from where I grew up on the small family farm.

His tractor is. John Deere 3032E with a loader, rotary cutter and two range hydrostatic transmission. I drove it a bit and got familiarized with its operation. Nice tractor and he offered his truck, tractor, trailer and implements anytime I need them. Extremely nice guy.

We talked for about three hours. MrsK7 asked when we have our next date. (We‘ll take a day trip to Barber Motorsports for a track day visit on the 17th. )

I’ve got a late morning appointment and then, I’ll stop at the local dealer. I’ll call the other dealer via my brother-in-law this afternoon.

Nothing wrong with the 3032E. I think it's a bit smaller than the L. My personal opinion (on the orange tractor forum) is that in this size range the Kubota is a more refined machine. But to be fair the L is in the economy range anyway, so you're not getting all the refinement in terms of creature comforts.

My feel is that Kubota have been making basically the same tractors for 20-30 years, incrementally improving them every 4-5 years. They're very very well made. The Japanese are like the Germans in that - slow continuous improvement over time results in a very very good product. I've never particularly liked the green 10 series, but the 30 series seem sound, and have been around for a fair while.

 

[K7G]

Nothing wrong with the 3032E. I think it's a bit smaller than the L. My personal opinion (on the orange tractor forum) is that in this size range the Kubota is a more refined machine. But to be fair the L is in the economy range anyway, so you're not getting all the refinement in terms of creature comforts.

My feel is that Kubota have been making basically the same tractors for 20-30 years, incrementally improving them every 4-5 years. They're very very well made. The Japanese are like the Germans in that - slow continuous improvement over time results in a very very good product. I've never particularly liked the green 10 series, but the 30 series seem sound, and have been around for a fair while.

Thanks all.

I visited the local dealer yesterday and had the opportunity to drive a L2501.
I didn’t see any L2502. It seemed to fit nicely without all of the extras ie arm rests, adjustable steering, etc. I’m not making a living on it so it’s not a big deal. Maybe the next one.

The L2501 seemed a bit more substantial that the John Deere I drove on Sunday especially in the loader attachments. I’m a novice so what do I know? The specs indicate that the Kubota weighs a bit more but the John Deere is slightly larger in length and width.

I’ve had several calls with the dealer today looking at various options and opted for the L2501, loader, RCR1560 and a box blade. With the rebate on the second implement, the box blade net price was $300. A land plane would have been nice but it pushed me over my intended budget . My friends have plenty of other rear implements including the planes/graders and make it clear that I’m welcome to them anytime.

72 months at 0%, healthy rebates, a better price than the local guys and I don’t have to dig into our cash to pay for it. All things considered, I feel good about everything especially being retired with a wife that’s looking for a job. We lived such a conservative lifestyle to get to this point and now, we can enjoy a few nice things.

Again, appreciate everyone’s advice!

 

[rc51stierhoff]

What

Thanks all.

I visited the local dealer yesterday and had the opportunity to drive a L2501.
I didn’t see any L2502. It seemed to fit nicely without all of the extras ie arm rests, adjustable steering, etc. I’m not making a living on it so it’s not a big deal. Maybe the next one.

The L2501 seemed a bit more substantial that the John Deere I drove on Sunday especially in the loader attachments. I’m a novice so what do I know? The specs indicate that the Kubota weighs a bit more but the John Deere is slightly larger in length and width.

I’ve had several calls with the dealer today looking at various options and opted for the L2501, loader, RCR1560 and a box blade. With the rebate on the second implement, the box blade net price was $300. A land plane would have been nice but it pushed me over my intended budget . My friends have plenty of other rear implements including the planes/graders and make it clear that I’m welcome to them anytime.

72 months at 0%, healthy rebates, a better price than the local guys and I don’t have to dig into our cash to pay for it. All things considered, I feel good about everything especially being retired with a wife that’s looking for a job. We lived such a conservative lifestyle to get to this point and now, we can enjoy a few nice things.

Again, appreciate everyone’s advice!

congratulations and good luck. I’d encourage you consider you will use a QH, Pats, or none of above prior to have PTO shaft set up for your machine on your cutter. If you are planning to share implements IMO pats would be handier than a QH. I have both and would not buy a QH again. You can always change your mind or decide later but cut require another PTO shaft. I am not sure this helps or not. Enjoy that new orange smell.

 

[PaulL]

Sounds like good choices, and it'll be a great machine. I think the L is more stout than competing models at a similar price point, sounds like that's what you felt sitting on it. The JD 3 series I think is more comparable to the LX machines.

72 months at 0%, healthy rebates, a better price than the local guys and I don’t have to dig into our cash to pay for it. All things considered, I feel good about everything especially being retired with a wife that’s looking for a job. We lived such a conservative lifestyle to get to this point and now, we can enjoy a few nice things.

72 months 0% sounds good. Perhaps if you stay well under budget the wife won't have to find a job....that'd make the home front much happier.