Kubota still offering 0 percent financing

[DonaldP]

I just purchased a Kubota skid steer and after we negotiated the price the salesman told me if I qualified I could get 0% financing for up to 48 months so after running my credit he said I was good if I wanted to finance thru them, at that point I asked him what if I wanted to pay cash what could they do? He didn't bat an eye and told me $2700 more off the price on the model that I ordered, so not a lot but every little bit helps.

Great input!!! I think real world experiences like this can tell the true story.

I'm confused though.

You said you reached a price agreement, discussed financing, and THEN the dealer offered you another $2700 discount after everything was done... if you paid cash?

That would indeed be the real world cost of financing!

 

[DonaldP]

Randy ,

Yes, we should all "DARE TO SAY IT!!! "

This is reality. People expressing their beliefs and not being treated as less than viable citizens for expressing that.

It seems that everyone (both the left and the right) is full tilt on getting everyone onto their side of the boat... all at the risk of sinking!

It used to be there was real discussion and debate to support one's premise on everything from farming to right to life or right to choice.

Today it's not that way.

It seems that if you aren't mounting a confederate flag to the bed of your truck and driving through town waving a loaded pistol out the window along with a copy of your 2nd amendment rights and then breaking into the capitol building to "express" your dissatisfaction with an election,

OR,

If you're not burning down police stations and asking for dismantling the police force by actively breaking windows and burning cars on the streets all while expressing that babies can be aborted at 8 months and 25 days because they aren't to be considered a human life until they take their first breath...

Well I think everyone should get the point. We are being forced to reside on one side of the ship or the other and that's not necessarily how this country or our ideals (as individuals or as a country) was built to move forward.

I appreciate your viewpoints...
We should appreciate all viewpoints.

Political Parties... regardless as to what each says, are NOT mutually exclusive. They can co-exist peacefully and thoughtfully of the opposing viewpoints if everyone plays fair.

Problem is, everyone is concerned about the same thing in the political backdrop as they are in private business. That is, self preservation.

John Deer and Kubota or New Holland aren't mutually exclusive brands of equipment either. They can all co-exist together on the same playing field.

10-4 there website is showing $700 rebate now and if I read it right that is with the 0% financing on that model.

That is correct. I received that "discount" when I financed in June of 2020.

 

[Lineman North Florida]

Great input!!! I think real world experiences like this can tell the true story.

I'm confused though.

You said you reached a price agreement, discussed financing, and THEN the dealer offered you another $2700 discount after everything was done... if you paid cash?

That would indeed be the real world cost of financing!

I knew going in from Kubota's website that they were offering 0% financing to qualified buyers OR $2700.00 cash back on the model that I wanted which was a SVL 75-2 compact track loader. I had already shopped locally and none of the dealers ever mentioned the rebate and the prices that they gave me were considerably higher than the out of state dealer that I bought from, I had went to an auction to bid on a skid steer and just couldn't bring myself to give what they were going for, for a machine with no warranty and unknown history, so I just happened to stop in at this Kubota dealer on my way home and within less than an hour had a price that was far less than any local dealer had offered,we discussed the 0% financing and he ran my credit and told me I qualified so it was at that point that I asked about paying cash and he told me about the $2700 cask back or off the price of the machine, well that matched up with what the website program said and I felt like this was the most honest and as fair a price as I had been given so we made the deal. I was going to buy the machine from him whether he gave the $2700 off or not as even without that he beat local by more than 5k, I would have just elected to go with the 0% financing if that had been the case.

 

[jyoutz]

I knew going in from Kubota's website that they were offering 0% financing to qualified buyers OR $2700.00 cash back on the model that I wanted which was a SVL 75-2 compact track loader. I had already shopped locally and none of the dealers ever mentioned the rebate and the prices that they gave me were considerably higher than the out of state dealer that I bought from, I had went to an auction to bid on a skid steer and just couldn't bring myself to give what they were going for, for a machine with no warranty and unknown history, so I just happened to stop in at this Kubota dealer on my way home and within less than an hour had a price that was far less than any local dealer had offered,we discussed the 0% financing and he ran my credit and told me I qualified so it was at that point that I asked about paying cash and he told me about the $2700 cask back or off the price of the machine, well that matched up with what the website program said and I felt like this was the most honest and as fair a price as I had been given so we made the deal. I was going to buy the machine from him whether he gave the $2700 off or not as even without that he beat local by more than 5k, I would have just elected to go with the 0% financing if that had been the case.

Individual dealers seem to have different negotiating strategies. When I was shopping, I found a price range of $5k difference between quoted prices of three dealers. That difference alone indicates that same have more room to negotiate than others.

 

[Lineman North Florida]

Individual dealers seem to have different negotiating strategies. When I was shopping, I found a price range of $5k difference between quoted prices of three dealers. That difference alone indicates that same have more room to negotiate than others.

Or that some are WILLING to negotiate more, that is actually what I believe.

 

[arrow]

Individual dealers seem to have different negotiating strategies. When I was shopping, I found a price range of $5k difference between quoted prices of three dealers. That difference alone indicates that same have more room to negotiate than others.

It's not so much one dealer has "more room". Everyone pays the same amount wholesale wise.
it is more of how close to margin one dealer has chosen over another.
If a tractor wholesales for 25K and there is a 5K mark-up bringing the msrp to say 30K, it is more about that moment in time for the dealer.
Does he weigh out not making a sale? Does he need a sale? Is a payment coming up? Did his kid wreck a car? Did he have a fight with the mate? Does he need more inventory and trying to gain capitol. etc., etc. etc.
You just never know but they're just like the consumer in going thru machinations of life.

 

[rScotty]

Individual dealers seem to have different negotiating strategies. When I was shopping, I found a price range of $5k difference between quoted prices of three dealers. That difference alone indicates that same have more room to negotiate than others.

Yep. You bet it depends on what they pay for the machine. Distributors are always offering deals to their dealers. Sometimes it's extra options that everyone wants anyway - but packaged in kit form so they can be offered with the tractor or sold separately. In fact it is common for the wholesale price to stay the same but the options list and/or mfg. floor plan to be where the difference is. Extra hydraulic kits are a biggie.

There are also special prices to dealers for committing to pre-ordering new models. Pre-ordering discounts are a big part of the draw at conventions. It's advertising for the faithful.
rScotty

 

[Hay Dude]

“need (desperation) to sell” is a big factor at dealerships.

When sitting on inventory for too long, a dealer offering “0% financing” may also turn to “0% financing” OR thousands cash back on slow moving equipment.

On fast moving, popular sellers, they may offer “0% financing” but no option for cash back because they know there’s a guy in the very near future walking through the door that thinks he’s getting the deal of a lifetime by paying “0% interest”, but the price has thousands in profit built into it for the dealer.

It’s so easy to see what’s going on once you realize it’s just a shell game. You pay 0% on more money or cash on less money.

 

[rScotty]

“need (desperation) to sell” is a big factor at dealerships.

When sitting on inventory for too long, a dealer offering “0% financing” may also turn to “0% financing” OR thousands cash back on slow moving equipment.

On fast moving, popular sellers, they may offer “0% financing” but no option for cash back because they know there’s a guy in the very near future walking through the door that thinks he’s getting the deal of a lifetime by paying “0% interest”, but the price has thousands in profit built into it for the dealer.

It’s so easy to see what’s going on once you realize it’s just a shell game. You pay 0% on more money or cash on less money.

Look at it from the dealer's perspective:

It's not a shell game. Different dealers need different sales at different times. The dealer sees it as a wider game than one customer. What the dealer loses on one sale - whether cash or credit - is easier to make up on another than to beat on every deal.
rScotty

 

[Hay Dude]

Wrong. It is a game. its a game of “who’s got a bigger pair” lol
0% financing is a gimmick. You pay more and get 0%, or you pay less if you pen a check IF you know how to negotiate.
I’m sorry I disagree with your opinion and after buying with a check and financing probably close to 50 pieces of equipment over the last 25 years, thats how the “0% financing” game works.

Like I said before, when you accept the 0% financing, most dealers bluff when they say “no, there’s no cash back if you write a check”.

There is. Its just that many people don’t have the mental strength to get up and walk out if the dealer plays his game.

Just ask Lineman North Florida. My experience has been the same. How many deals have you made with dealers lately on financed or non-financed equipment lately? It helps to be a frequent or recent buyer to know how to negotiate
Hay Dude

 

[rScotty]

Wrong. It is a game. its a game of “who’s got a bigger pair” lol
0% financing is a gimmick. You pay more and get 0%, or you pay less if you pen a check IF you know how to negotiate.
I’m sorry I disagree with your opinion and after buying with a check and financing probably close to 50 pieces of equipment over the last 25 years, thats how the “0% financing” game works.

Like I said before, when you accept the 0% financing, most dealers bluff when they say “no, there’s no cash back if you write a check”.

There is. Its just that many people don’t have the mental strength to get up and walk out if the dealer plays his game.

Just ask Lineman North Florida. My experience has been the same. How many deals have you made with dealers lately on financed or non-financed equipment lately? It helps to be a frequent or recent buyer to know how to negotiate
Hay Dude

Dude, I don't doubt that shell game you describe is the one that you play with dealers, and I also understand that because you do it that way, you think yours is the same game that all customers and all dealers play. But it isn't, and it's not. That's just your own perspective. That limitation defines your game.

Others do it differently and for different reasons. Deals that other TBNers put together between dealers and customers could be similar to yours - or they could be entirely different. In my case, it's very different.
rScotty

 

[Hay Dude]

Dude, I don't doubt that shell game you describe is the one that you play with dealers, and I also understand that because you do it that way, you think yours is the same game that all customers and all dealers play. But it isn't, and it's not. That's just your own perspective. That limitation defines your game.

Others do it differently and for different reasons. Deals that other TBNers put together between dealers and customers could be similar to yours - or they could be entirely different. In my case, it's very different.
rScotty

Theres only a few ways to purchase: check or finance (leaving trade in out as it just complicates things). So theres only a few ways to buy.
Here in this topic, we are talking about 0% financing . Only a very foolish seller supplied by a manufacturer would off both 0% and cash back.
Theres more money there. You just have to know how to get it.
North Florida Lineman just showed us exactly what I’m saying.
Are you saying he’s wrong?

 

[jyoutz]

Theres only a few ways to purchase: check or finance (leaving trade in out as it just complicates things). So theres only a few ways to buy.
Here in this topic, we are talking about 0% financing . Only a very foolish seller supplied by a manufacturer would off both 0% and cash back.
Theres more money there. You just have to know how to get it.
North Florida Lineman just showed us exactly what I’m saying.
Are you saying he’s wrong?

He’s not wrong. But that sort of thing isn’t universal, and it depends on what equipment Kubota is offering incentives on at the time. It changes periodically. There are machines that don’t even qualify for 0% periodically, then they will come back on incentives. This is reflected in the Kubota website and I’ve watched incentives come and go online for about a year before making my last purchase.

 

[rScotty]

Theres only a few ways to purchase: check or finance (leaving trade in out as it just complicates things). So theres only a few ways to buy.
Here in this topic, we are talking about 0% financing . Only a very foolish seller supplied by a manufacturer would off both 0% and cash back.
Theres more money there. You just have to know how to get it.
North Florida Lineman just showed us exactly what I’m saying.
Are you saying he’s wrong?

There is no way that "Lineman North Florida" can be wrong. Back in message #80 he simply reported how a transaction worked between himself and his dealer.
The key is that is how it worked between himself and his dealer.

It was you, who then immediately - in the very next message - took what Lineman said, blended it with your own purchasing philosophy, and tried to make the resulting shell game sound like all of these buying and selling deals involving cash and financing worked the same way.

But they don't, and thinking that they do is simply your own perception.
And that is the limitation.

Think about it,
rScotty

 

[Torvy]

Math is a thing. 0% is an advertising technique, but it is also a way for lenders to make more total dollars available to lend. (That part is a regulation thing)

You have to do the math on every deal. In some cases, the 0% is still a way better deal than the cash back. In some cases it is not. Most of the time you are better off taking the 0% and investing the cash. 36-84 months from now the recently dropped stocks will rebound. Over the last 50+ years the market has averaged over 10% ROI. If I buy a 100k tractor over 7 years, that would allow me to invest that money and make something in the neighborhood of 50k over those years...after losing some to inflation. Paying cash, even getting $10k cash back would still be a losing option financially.

All dealers do NOT pay the same wholesale. Most manufacturers offer their best dealers all sorts of incentives. Sometimes they also offer incentives to new dealers to help them get started moving product. On top of that, some dealers go for higher volumes with lower margins; others want higher margins and sell fewer units.

Dealers also market to different types of customers. Up where I grew up, it is mostly rural and many farms are 300+ acres. They sell a higher percentage of big AG tractors. Small tractors are 2nd (or 3rd+) and used to clean up around the farm stead or assist with pulling trailers or wagons while the big tractors are working. In suburban areas like I am in now, most tractors are small and spend most of their time landscaping. Dealers here sell few AG tractors as they are too big for the properties. Margins are larger on the big stuff, so they can sell fewer and still make payroll.

 

[Hay Dude]

Math is a thing. 0% is an advertising technique, but it is also a way for lenders to make more total dollars available to lend. (That part is a regulation thing)

You have to do the math on every deal. In some cases, the 0% is still a way better deal than the cash back. In some cases it is not. Most of the time you are better off taking the 0% and investing the cash. 36-84 months from now the recently dropped stocks will rebound. Over the last 50+ years the market has averaged over 10% ROI. If I buy a 100k tractor over 7 years, that would allow me to invest that money and make something in the neighborhood of 50k over those years...after losing some to inflation. Paying cash, even getting $10k cash back would still be a losing option financially.

All dealers do NOT pay the same wholesale. Most manufacturers offer their best dealers all sorts of incentives. Sometimes they also offer incentives to new dealers to help them get started moving product. On top of that, some dealers go for higher volumes with lower margins; others want higher margins and sell fewer units.

Dealers also market to different types of customers. Up where I grew up, it is mostly rural and many farms are 300+ acres. They sell a higher percentage of big AG tractors. Small tractors are 2nd (or 3rd+) and used to clean up around the farm stead or assist with pulling trailers or wagons while the big tractors are working. In suburban areas like I am in now, most tractors are small and spend most of their time landscaping. Dealers here sell few AG tractors as they are too big for the properties. Margins are larger on the big stuff, so they can sell fewer and still make payroll.

Depends on interest rates of course.
Back about 2 years ago, if you were financing, it was an easier decision to take the cash offered by dealer and finance through a business line.
Now that rates have doubled or tripled in the “new economy”, taking the 0% is probably going to result in less interest paid over the life of the loan, even though the up front price paid will be higher. Still a good idea to calculate both and see what the results are.

Then there’s personal loan guarantees and other issues that come into play.
I have a line with no personal loan guarantee and I will not borrow money under anything other than my corporation or LLCs name. No personal signature guarantees signed for business equipment and I never will.

 

[Hay Dude]

There is no way that "Lineman North Florida" can be wrong. Back in message #80 he simply reported how a transaction worked between himself and his dealer.
The key is that is how it worked between himself and his dealer.

It was you, who then immediately - in the very next message - took what Lineman said, blended it with your own purchasing philosophy, and tried to make the resulting shell game sound like all of these buying and selling deals involving cash and financing worked the same way.

But they don't, and thinking that they do is simply your own perception.
And that is the limitation.

Think about it,
rScotty

I have thought about it-many times in the last 30 years.
All I can comment on your last response is, if you and your likers enjoy giving the dealer more money than you should, that’s your right.
I will fight for every dollar, and will continue to do so as I have through my 30+ years in business.
I became friends with a Kubota tractor and equipment salesman who recently retired and became a pastor. He was able to share with me many things unknown to me about the business that surprised me.
And BTW: I don’t play a shell game with the dealer-they try to play it with their buyers.

 

[Hay Dude]

He’s not wrong. But that sort of thing isn’t universal, and it depends on what equipment Kubota is offering incentives on at the time. It changes periodically. There are machines that don’t even qualify for 0% periodically, then they will come back on incentives. This is reflected in the Kubota website and I’ve watched incentives come and go online for about a year before making my last purchase.

Whats the old saying? “Theres a sucker born every minute“
Sure there’s always the possibility there’s no incentives from the manufacturer, but the dealer has a markup. If he won’t move, knowing how to get up and walk away is part of negotiation. Last deal I made, I walked away and the salesman called me while driving home with a better offer. A sucker would sit in the chair and accept.
It’s knowing how to negotiate the markup that separates the suckers from the successful.
Have fun being in the former category. I’ll try to be in the latter.

 

[rScotty]

SNIP

Then there’s personal loan guarantees and other issues that come into play.
I have a line with no personal loan guarantee and I will not borrow money under anything other than my corporation or LLCs name. No personal signature guarantees signed for business equipment and I never will.

Whats the old saying? “Theres a sucker born every minute“
Sure there’s always the possibility there’s no incentives from the manufacturer, but the dealer has a markup. If he won’t move, knowing how to get up and walk away is part of negotiation. Last deal I made, I walked away and the salesman called me while driving home with a better offer. A sucker would sit in the chair and accept.
It’s knowing how to negotiate the markup that separates the suckers from the successful.
Have fun being in the former category. I’ll try to be in the latter.

We run our businesses very differently as regards loan guarantees. And that is probably reflected in how we work with suppliers and dealers as well.

We disagree on much. I work in a business world that is not limited to suckers vs non-suckers - although I admit to encountering some of each. There are many different values and ways to work a deal for both parties.
Business is just not that simple or all about profit - even 0% finance is not so simple.

rScotty

 

[jyoutz]

Whats the old saying? “Theres a sucker born every minute“
Sure there’s always the possibility there’s no incentives from the manufacturer, but the dealer has a markup. If he won’t move, knowing how to get up and walk away is part of negotiation. Last deal I made, I walked away and the salesman called me while driving home with a better offer. A sucker would sit in the chair and accept.
It’s knowing how to negotiate the markup that separates the suckers from the successful.
Have fun being in the former category. I’ll try to be in the latter.

Please describe your recent experience with buying a NEW machine. Lots of big talk, but have you executed? Describe your masterful negotiation. Not buying something used, but new. People are waiting to hear. Or is it all theories with you?