promotional rates

[reeltime]

do you guy think that kubota will extand 60 month interest free or what

 

[robertwhite]

I hope so because the way it looks is that I won't be able to get a new tractor until May or so. One good thing is the economy still sucks and inflation is coming right around the corner. It would be in Kubotas best interest to keep it in place.

 

[JOHNTHOMAS]

do you guy think that kubota will extand 60 month interest free or what

Yes, extend.

 

[Thomas]

First off welcome to TBN Reeltime.
I have feeling going to depend on which models..some rates better than others.

 

[MessickFarmEqu]

Yea, I'll be surprised to see it on the level that we do now. Lots of people buying tractors right now. We are swamped. The deals have not been this good in awhile.

 

[1TMatthews]

Well its true no more 0 % for 60 months. **** I waited too long.

 

[sbakf]

Just got home from my closing on 40 acres. Held off on buying the tractor until a few problems were settled on the land purchase. If there's no 60 months/0% interest, then there's no purchase of a brand new L5740 (with implements) for me. Their sales, I'm guessing, will plummet.

 

[kinglake]

The Kubota website confirms they ARE still offering 0% but now the max term is 42 months instead of the 60 months offered before.

 

[bxowner]

Was told yesterday you can still get the 60 mo. 0%, but you have to pay a one-time 3% fee. So, for $10k borrowed, you (or the dealer) have to throw down an additional $300 toward the down payment.

 

[JOHNTHOMAS]

I think they do this, not positive, at the first of the year when promo rates end. Then later in the month or next month introduce the promo rates again. The 42 to 60 months may vary and per model. If sales drop I believe they'll reintroduce the rates so my advise is wait a month if you can.

 

[Snead Tractor LLC]

You can still get the 0% for 60 months now. However, there is a price that goes with that rate. The price is going to be in what the tractor cost at 60 months compared to 42 months.

 

[JOHNTHOMAS]

You can still get the 0% for 60 months now. However, there is a price that goes with that rate. The price is going to be in what the tractor cost at 60 months compared to 42 months.

Do what??

 

[Snead Tractor LLC]

Do what??

Lets say you want a certain tractor, and your dealer quotes you 18,000.00 and 0% for 42 months. But, you want that tractor with 0% for 60 months, that tractor is going to cost you more. The price will change from $18,000 to $18450 when you go with 0% for 60 months

Hope this helps

 

[bp fick]

So, zero isn't really zero. At least if you want a longer period. Anybody got a sharp pencil to figure that 450 bucks just for carrying the loan out from 42 to 60? Seems relatively steep for an additional 18 months, or am I missing something?

 

[Evil the Weasel]

Lets say you want a certain tractor, and your dealer quotes you 18,000.00 and 0% for 42 months. But, you want that tractor with 0% for 60 months, that tractor is going to cost you more. The price will change from $18,000 to $18450 when you go with 0% for 60 months

Hope this helps

What a deal... pay the difference up front. Or maybe you are saying by the time the 0/60 deal comes back around the price of the tractor will have gone up so you didn't gain anything and maybe lost by waiting.

 

[JOHNTHOMAS]

So, zero isn't really zero. At least if you want a longer period. Anybody got a sharp pencil to figure that 450 bucks just for carrying the loan out from 42 to 60? Seems relatively steep for an additional 18 months, or am I missing something?

You must be missing something. That would be about 1.7% APR on $18000 for the additional 18 months. Some would say the interest would be on the unpaid balance after the 42 monthly payments but I'm not sure that would be a legitimate method to determine the true APR with the 0% for the 42. But if you do calculate it that way then it 5.5% for the $5400 for the additional 18 months. That's still not 0% but still fairly cheap. Or .005% APR of the $18000 for the entire 5 years. Or most simply $450 to borrow $18000 for 5 years or $450 more to spread an $18000 loan out over 60 months instead of 42. Or $428.57 mo for 42 months or $307.50 a month for 60 months, an additional $7.50 a month for 60 months (the $450). None of the interest rates seem bad to me or the simple $450 to extend an $18000 loan to 60 instead of 42 months.

 

[Snead Tractor LLC]

You must be missing something. That would be about 1.7% APR on $18000 for the additional 18 months. Some would say the interest would be on the unpaid balance after the 42 monthly payments but I'm not sure that would be a legitimate method to determine the true APR with the 0% for the 42. But if you do calculate it that way then it 5.5% for the $5400 for the additional 18 months. That's still not 0% but still fairly cheap. Or .005% APR of the $18000 for the entire 5 years. Or most simply $450 to borrow $18000 for 5 years or $450 more to spread an $18000 loan out over 60 months instead of 42. Or $428.57 mo for 42 months or $307.50 a month for 60 months, an additional $7.50 a month for 60 months (the $450). None of the interest rates seem bad to me or the simple $450 to extend an $18000 loan to 60 instead of 42 months.

You are exactly right, its still a great deal for the additional 18 months. Also, your giving a great example with your figures.

Guys there's a dozen ways you can look at the additional cost, but taking the 7.50 a month over a 60 month period is not bad at all. Plus, what if the rates go from 42 and 60 back to 36 and 42. That 7.50 a month will look REAL cheap then.

We carry MF as well, and we can still do 0% for 60 months with no increase in price. We can even do 0 for 72 months on the MF compacts.

 

[JOHNTHOMAS]

You are exactly right, its still a great deal for the additional 18 months. Also, your giving a great example with your figures.

Guys there's a dozen ways you can look at the additional cost, but taking the 7.50 a month over a 60 month period is not bad at all. Plus, what if the rates go from 42 and 60 back to 36 and 42. That 7.50 a month will look REAL cheap then.

We carry MF as well, and we can still do 0% for 60 months with no increase in price. We can even do 0 for 72 months on the MF compacts.

I might could have found a couple more ways but I couldn't find a dozen ways. Maybe if one has other debts I could have found a dozen ways.

 

[kinglake]

You must buy tractors (and other things) different than we do down south. We negotiate the price. We then figure out how it will be paid for. It is completely unacceptable for someone to try to change the price after it was agreed upon because they decided to finance for 60 instead of 42 months. It almost seems unacceptable. If it is discussed up front, that is fine, but that is not the custom down here. They do generally ask if you are financing or paying cash but that is completely different that what was stated above.

 

[bp fick]

You must be missing something. That would be about 1.7% APR on $18000 for the additional 18 months. Some would say the interest would be on the unpaid balance after the 42 monthly payments but I'm not sure that would be a legitimate method to determine the true APR with the 0% for the 42. But if you do calculate it that way then it 5.5% for the $5400 for the additional 18 months. That's still not 0% but still fairly cheap. Or .005% APR of the $18000 for the entire 5 years. Or most simply $450 to borrow $18000 for 5 years or $450 more to spread an $18000 loan out over 60 months instead of 42. Or $428.57 mo for 42 months or $307.50 a month for 60 months, an additional $7.50 a month for 60 months (the $450). None of the interest rates seem bad to me or the simple $450 to extend an $18000 loan to 60 instead of 42 months.

You are exactly right, its still a great deal for the additional 18 months. Also, your giving a great example with your figures.

Guys there's a dozen ways you can look at the additional cost, but taking the 7.50 a month over a 60 month period is not bad at all. Plus, what if the rates go from 42 and 60 back to 36 and 42. That 7.50 a month will look REAL cheap then.

We carry MF as well, and we can still do 0% for 60 months with no increase in price. We can even do 0 for 72 months on the MF compacts.

Thanks JT for crunching those numbers. OK, it is what it is. Next ... how do we "average" this? Flat $450 for all sales? From a $11000 BX to $34000 L?
Is it merely a flat fee? Need more clarification. John's example was on a $18000 purchase. What about those higher, those lower?