Financing How much does 0% cost?

[TXSQBALER]

I'm sure that the dealer participates in the "0" % rate. How much does that affect the pricing of the tractor. I've seen some STEEP discounts for "cash" deals vs the 0% promo.

 

[TripleR]

http://www.tractorbynet.com/forums/kubota-buying-pricing/200987-0-but-no-longer-truly.html

 

[ispan1]

I figure you lose the 1000 cash rebate plus I would have to buy Kubota insurance for another 1000 (not really worth much to me as I don't think I'll probably lose my tractor to theft or tsunami in this lifetime) on a close to $20000 otd l3700 I have been pondering. That's not too bad considering financing that amount at 6 or 7% would cost a couple of grand more over the life of the loan.

 

[TripleR]

I figure you lose the 1000 cash rebate plus I would have to buy Kubota insurance for another 1000 (not really worth much to me as I don't think I'll probably lose my tractor to theft or tsunami in this lifetime) on a close to $20000 otd l3700 I have been pondering. That's not too bad considering financing that amount at 6 or 7% would cost a couple of grand more over the life of the loan.

You might want to check your home owner's policy as it might cover the tractor on your property, ours does.

 

[vjd57]

Could have saved $1,000 if I paid cash for my $40,000 L45. That's less than 1%. Insurance covers everything unlike homeowners ins.

 

[bp fick]

Could have saved $1,000 if I paid cash for my $40,000 L45. That's less than 1%. Insurance covers everything unlike homeowners ins.

That's the math that needs to be done. $750 or $1000 can be computed against your loan and you can decipher what you paid to buy down your interest rate to zero. 1%-2% seems to be average under the current programs.

Kubota Finance does NOT demand you use Kubota Insurance if you can document that the their loan is protected by your own insurance. I did not use the insurance the first time, but did the second time. We changed homeowner companies and I simply did not like the new coverage provided at all. Kubota insurance is a very comprehensive product.

 

[JOHNTHOMAS]

I'm sure that the dealer participates in the "0" % rate. How much does that affect the pricing of the tractor. I've seen some STEEP discounts for "cash" deals vs the 0% promo.

Your surely wrong. The dealer does not participate, doesn't have to. The tractors are "mostly" Kubotas that are on dealers lots. A few under certain circumstances in time are owned by the dealers.
The cash discount now being offered for cash comes from Kubota and is a fixed amount depending on the model tractor. A $10,000 or $20,000 B model is $700. Dealers have a cost price from Kubota so they can sell it for no profit or as much profit as they feel they want to make. Financing has nothing to do with it for the dealer, doesn't cost him nor pay him unless it's a few bucks for doing the paper work which would let the dealer actually make more by financing instead of cash.
Those whopping/steep cash discounts your speaking of are not based on cash over financing except for the Kubota dollar amount. Maybe your calling the $700 and $1000 published amounts as whopping/steep, if so, then you are right on that part but not the dealer incentive/participation part.

 

[JOHNTHOMAS]

That's the math that needs to be done. $750 or $1000 can be computed against your loan and you can decipher what you paid to buy down your interest rate to zero. 1%-2% seems to be average under the current programs.

Kubota Finance does NOT demand you use Kubota Insurance if you can document that the their loan is protected by your own insurance. I did not use the insurance the first time, but did the second time. We changed homeowner companies and I simply did not like the new coverage provided at all. Kubota insurance is a very comprehensive product.

I chose the Kubota Insurance on the RTV that will be off my property but not on any of the other tractors because my home owners covers me for the MOST part, no, not as good as the Kubota Ins but at no additional cost.

 

[TXSQBALER]

Thanks to everyone who chimed in. I was not referring to the Kubota factory rebate. My dealer gave me around a 10% discount off list price plus the 0% Kubota financing.

I saw another dealer advertise an MX4700 for 26% off list price but CASH ONLY, which is why I rightly assumed the zero per cent gimmick costs you something as it should. That being said, it's real convenient to get your financing and tractor at the same place. I took home a $65,000 machine with just a signature (and big payment). Actually they delivered it for free.

 

[JOHNTHOMAS]

Thanks to everyone who chimed in. I was not referring to the Kubota factory rebate. My dealer gave me around a 10% discount off list price plus the 0% Kubota financing.

I saw another dealer advertise an MX4700 for 26% off list price but CASH ONLY, which is why I rightly assumed the zero per cent gimmick costs you something as it should. That being said, it's real convenient to get your financing and tractor at the same place. I took home a $65,000 machine with just a signature (and big payment). Actually they delivered it for free.

Your right, it does cost you some thing. The amount of the cash discount given by Kubota.
I think your still missing the mark. 10% is considered an average/OK discount by many dealers and some do more and that's cash or financed.
I believe the one your telling about CASH ONLY price is because of the Kubota cash discount. I believe if you had went to their store they would have explained that is the price with the Kubota cash only discount and financed would have been more by the amount of the Kubota cash discount. Dealers make the same amount of profit whether it's cash or financed. They sell the tractor and Kubota sends them their money. I don't think you believe that but it's true. When the dealer processes the transaction cash or finance, he gets the same amount of money. It's not like car lots where the cars are floor planned. Kubota has a different system. The dealer usually has no money in most of the new tractors on their lot. They do some times on some but mostly they don't.

 

[TXSQBALER]

I see what your saying. you give up the cash back by using the zero per cent and your discount is less. I'm dense. you still get a discount but only what the dealer let's you have. you add kubota's $1000 and it's better but you have to use your own financing...or Cash Got it. Thanks for staying with me!

 

[JOHNTHOMAS]

:thumbsup:Glad to help. It's done different than cars and took me a long time and buying a lot of tractors and asking alot of questions to semi understand Kubotas Dealer sales program and their financing. It's different than anything I've dealt with before and the cash discount is fairly new. There was no cash discount before, the price was the price. Cash or finance.

 

[grsthegreat]

All i know is when i bought my tractor, i made the deal, then they cut $2,500 off for an all cash deal. so a 0% loan would have cost me $2,500.

I dont have to worry about those pesky payments for 60 months either.

When i was shopping about 40 days ago or so, JD offered $0.00 for cash discount, Kubota offered me $500.00 for all cash sale.

I am of the opinion that CASH is king. i shopped until i found someone that thought like i did. I made the deal in 20 minutes, paid for it 100%, had it delivered in a few days after dealer added a few things.

 

[Gary Fowler]

If you look at the financing on most of the websites, it plainly states that 0% financing is available for a higher price. Most of those 0 % rates are financed by you by giving more moneyfor the equipment, just a way to finance your interest so you are usually better off to take the cash discount and if you need to finance it elsewhere or just take the regular financing and pay it off early. I did get true 0% rate on my LS but only for 24 months. I was prepared to pay cash for it, but when the dealer said I could get the 0% rate with 10% down for 24 months, I said what the heck, keep my money and earn 1/2% interest.

 

[Reg]

Thanks to everyone who chimed in. I was not referring to the Kubota factory rebate. My dealer gave me around a 10% discount off list price plus the 0% Kubota financing.

I saw another dealer advertise an MX4700 for 26% off list price but CASH ONLY, which is why I rightly assumed the zero per cent gimmick costs you something as it should. That being said, it's real convenient to get your financing and tractor at the same place. I took home a $65,000 machine with just a signature (and big payment). Actually they delivered it for free.

Just to be nit picky about it... (-:
They didn't deliver it for "free".
SOME_how you paid for delivery, though maybe not as a line item on your invoice.

So, how much does $0 delivery cost ?

As I said, just to be nit-picky about it - just for fun.

Enjoy the new toy - whatever it cost, however it cost - it is more important to be happy with what you get than to fret over the pennies (or Kilo bux).

 

[JOHNTHOMAS]

All i know is when i bought my tractor, i made the deal, then they cut $2,500 off for an all cash deal. so a 0% loan would have cost me $2,500.

I dont have to worry about those pesky payments for 60 months either.

When i was shopping about 40 days ago or so, JD offered $0.00 for cash discount, Kubota offered me $500.00 for all cash sale.

I am of the opinion that CASH is king. i shopped until i found someone that thought like i did. I made the deal in 20 minutes, paid for it 100%, had it delivered in a few days after dealer added a few things.

My understanding is we are talking about Kubota financing and only Kubota financing in this Kubota Owners Forum. Are you also talking about Kubota financing on the tractor you bought. If not, then it has nothing to do with the Kubota financing that's being talked about here.
Yes, those pesky payments are a real bother. I have to deduct the same amount from my check book register each and every months. I'm so tired and wore out doing that every month.
Love you cash is King guys. You subsidize us chargers that buy our stuff now instead of waiting years until we can pay cash for it.
I don't pay cash, I call on the phone or drop by the lot and ask how much and sign the papers as soon as the printer spits them out. Not sure the cash way could in any way be faster.:thumbsup: Maybe if charging was a bit slower I could not have as many Kubotas, note Kubotas.

 

[JOHNTHOMAS]

Just to be nit picky about it... (-:
They didn't deliver it for "free".
SOME_how you paid for delivery, though maybe not as a line item on your invoice.

So, how much does $0 delivery cost ?

As I said, just to be nit-picky about it - just for fun.

Enjoy the new toy - whatever it cost, however it cost - it is more important to be happy with what you get than to fret over the pennies (or Kilo bux).

Being nit picky back. Delivery actually doesn't cost me anything. It's the same price (money out of my pocket) if I pick it up or have it delivered to my home or my business.
Now it does cost the dealer and the dealer has to make a profit to stay in business and he has to add all costs to his total overall costs to determine his profit margin. So, we all pay for everyones delivery. Barlows does not deliver free farther than so many miles. Delivery will be on the totals sheet.
Being real nit picky one could say free hats are not free, or a free cup of coffee or a heated/cooled parts dept or even sweeping the floors. See how far this it isn't really free idea can go?

 

[grsthegreat]

My understanding is we are talking about Kubota financing and only Kubota financing in this Kubota Owners Forum. Are you also talking about Kubota financing on the tractor you bought. If not, then it has nothing to do with the Kubota financing that's being talked about here.
Yes, those pesky payments are a real bother. I have to deduct the same amount from my check book register each and every months. I'm so tired and wore out doing that every month.
Love you cash is King guys. You subsidize us chargers that buy our stuff now instead of waiting years until we can pay cash for it.
I don't pay cash, I call on the phone or drop by the lot and ask how much and sign the papers as soon as the printer spits them out. Not sure the cash way could in any way be faster.:thumbsup: Maybe if charging was a bit slower I could not have as many Kubotas, note Kubotas.

first off...the topic just said what does 0% cost....not what Kubota's 0% really cost. sorry for my confusion. I really didnt know that only Kubota offered 0%.

Second, i also listed the $500.00 that Kubota was willing to deal for an all cash sale.

 

[CBW1999]

JOHNTHOMAS.....have you considered being a "broker" between buyer and dealer on Kubota Tractors? Bet you would get LOTS of business from TBN alone!!!!

Certainly, you posess the knowledge and tact, having purchased so many tractors over the years.....:laughing:

If I pay you more compliments, would you get me a really super deal?

 

[JOHNTHOMAS]

JOHNTHOMAS.....have you considered being a "broker" between buyer and dealer on Kubota Tractors? Bet you would get LOTS of business from TBN alone!!!!

Certainly, you posess the knowledge and tact, having purchased so many tractors over the years.....:laughing:

If I pay you more compliments, would you get me a really super deal?

I have done that.:thumbsup: Between my retired Marine Nephew and Barlows on a B2360 last year. When he got "ripe/ready I took my BX2660 to his house, down the street and let him try it. He tried mowing his whole yard but I finally got him off. He then asked me to meet him at Barlows, which is on my way to "work". I did that and showed him around the lot and then turned him over to Steve Barlow. I requested one hat for my commission which I rec'd.
I'm now brokering a deal between my neighbor and Barlows. I've got neighbor how much Barlows will give him for his BX2350 MMM FEL 247 hours, looks new and a F3080 60"eck and the price for it. Have also let my neighbor try my F3080 and he fell in love with it. Did my work while at Barlows doing my B2320 deal. Actually got my neighbor to Barlows lot on the Golf cart trade and Steve didn't close the deal. Looks like I'm going to have to get the paperwork printed out and take it to my neighbor to get it closed.:laughing:
I was a Real Estate Broker before retirement, one of my former "jobs/hobbies".
I will get you the the same super deal I get.:thumbsup: What have you got and what do you want?:thumbsup: