Kubota still offering 0 percent financing

[Torvy]

If you think about it, we 'borrow' 2000-5000 a month on our credit card every month. We pay it in full every month on auto pay. Ultimately, we use their money for free indefinitely. Toss in the cash back and we actually make a little money on the deal.

 

[arrow]

2 things. It is not complicating things to explain how it actually works. If you told me exactly how logging works, it would sound complicated. If I said ' logging is easy, you just cut the tree and it falls over', it would be about on par with how you are understanding finance. I'm honest-to-god trying to help, but you have to open yourself to the fact that you don't know enough about this topic and some of us do. Let us help.

How what actually works? 0% as it comes to goods and services? Simple, your financing is imbedded within the purchase price.
You have bequeathed to the conversation stating 0% is a good thing. This is where our great divide resides.
As it applies to more business, I agree completely as I have said it is an ingenious way to increase business.
I just delivered a 1626 ystrdy to a Brown University Earth Science professor.
We were conversing about the tractor and other things related to the planet and ended with him saying "hey, if they're giving you free financing, it's no brainer"
I stood dead still and said,"your financing is imbedded within your purchase price". He was rather astounded.
I went on to explain to him how companies do that

So in my vernacular, its an around the bend scheme to sell goods. In other words, people are being lured in and lied to with the inference of "this borrowed money is costing me nothing."
I think it's a rotten thing to do to people simply for commerce.
You think it's a good thing to do simply because of the increase in business it creates and how that trickles down to a myriad of other things. He)), even the victim feels good!

As it applies to this conversation, righteousness is in eyes of the beholder.
I've been in that situation before and have done things never in a million years I would think to do to save something else.
I do not know who is correct here or who even stands on the high ground as a result.
All I can say is "peace to your silly arse" and you can ask me any questions you'd like as it applies to tractors and their purchase.

sp500-investors-lost-201-billion-this-year-on-these-giant-losers

 

[arrow]

5-7, no. 2, yes.

I currently have balances on four CCs that I have not and will not pay a penny of interest on. All offered 0% interest periods on anywhere from 12-24 months based on the amount of the purchase.

All four offered initial bonus, coupon or rebates that have totaled around $600 for me.

I got $600 or so, got the items I wanted and am taking the life of the term to make the payments. I've worked it out to pay all off about a month before the of the terms to avoid any 'balloon' penalties

That's also helping my credit rating so I can take advantge of more similar offers after the first of next year.

That $600, plus more from other bonus or rebate programs has gone into a higher interest savings account to build even more.



Not sure if you're familiar with the US Thrift Savings Plan, basically a 401K type plan for Federal Employees. I was around 15% or more until this past quarter in a fund that tries to follow the S&P. Currently down, but it looks like it will recover some soon.



.

I believe that to be incentive for you to grab their card. Short term sacrifice for their long term gains.
Sort of like the pitcher who sets up his batter with 3 straight fastballs and strikes the guy out with a curvy dropper.

 

[Torvy]

How what actually works? 0% as it comes to goods and services? Simple, your financing is imbedded within the purchase price.
You have bequeathed to the conversation stating 0% is a good thing. This is where our great divide resides.
As it applies to more business, I agree completely as I have said it is an ingenious way to increase business.
I just delivered a 1626 ystrdy to a Brown University Earth Science professor.
We were conversing about the tractor and other things related to the planet and ended with him saying "hey, if they're giving you free financing, it's no brainer"
I stood dead still and said,"your financing is imbedded within your purchase price". He was rather astounded.
I went on to explain to him how companies do that

So in my vernacular, its an around the bend scheme to sell goods. In other words, people are being lured in and lied to with the inference of "this borrowed money is costing me nothing."
I think it's a rotten thing to do to people simply for commerce.
You think it's a good thing to do simply because of the increase in business it creates and how that trickles down to a myriad of other things. He)), even the victim feels good!

As it applies to this conversation, righteousness is in eyes of the beholder.
I've been in that situation before and have done things never in a million years I would think to do to save something else.
I do not know who is correct here or who even stands on the high ground as a result.
All I can say is "peace to your silly arse" and you can ask me any questions you'd like as it applies to tractors and their purchase.

sp500-investors-lost-201-billion-this-year-on-these-giant-losers

So not only do you truly not understand how finance works, you share that ignorance with others as if you understand.

It would be accurate to say that those of us who get 0% do so at the expense of those who have been less responsible with their credit. It is not accurate to say that the 0% is built into my price. If that is how it works at Mahindra, that may explain why they struggle in the US market.

 

[rScotty]

One of the great freedoms in working for yourself comes when you realize that it isn't necessary to make a dollar profit on every deal. The only necessity is that the bottom line eventually be positive.

As boss and owner, you even have complete freedom as to how long you want "eventually" to be - as well as how you plan to get there.
And that is just as true for financial businesses.

rScotty

 

[buckeyefarmer]

And Amazon doesn’t have free shipping.

 

[arrow]

So not only do you truly not understand how finance works, you share that ignorance with others as if you understand.

It would be accurate to say that those of us who get 0% do so at the expense of those who have been less responsible with their credit. It is not accurate to say that the 0% is built into my price. If that is how it works at Mahindra, that may explain why they struggle in the US market.

You need to stop with the "you don't know how finance works". I will definitely say I do not know how ALL finance works and would no more question your expertise in finance as i would argue the earth is flat, but your insistence on substantiating some of the other possibilities on how 0% works as a sales initiative on goods and commodities is eye rolling to me.
The lenders and the product sellers join hands to attract buyers. They aim to sell more by not charging any interest.
The catch is in the selling price of the product. As the product pricing remains uniform across the region, buyers do not feel the difference in the pricing easily.

You yourself have stated here that you cannot equate the price of Kubota with what you're seeing as a tractor. We share the exact same thought then and now.
What you are seeing as I did in 2012-13, is the additional mark up to cover their 0% interest financing scheme.
As plain as the nose on your face and what you are forgetting is that dealerships talk amongst themselves whether it'd be Kioti, Kubota or Mahindra. It is basically done the same way amongst dealerships.

What you are also proving to me is your predilection toward arrogance. You just had to throw in that last quibble on your thoughts about Mahindra's declining market share in the United States.
Didn't matter that you could prove your alledged assertion of financial carelessness as a cause, you just felt compelled to throw in that last dig for your own justifications.

For your info, Mahindra's decline in market share here, is due to the intense competition of this particular vehicle commodity. What this is coupled with recently, is the devastating aspects of covid in India basically shutting that country down to extremes we have never experienced here..

The Mahindra dealership I work at has sold Mahindra's since 1995 and has been in business since 1976. This dealership has been in a steady growth oriented direction since its inception. It has succeeded because of the forthright way they treat their customers, exemplary service care, dedication to doing what's right for customers and staff and satisfaction in the products themselves.
I carry on that tradition no matter what your attempts are to besmirch myself, this company or the brand.

 

[arrow]

And Amazon doesn’t have free shipping.

Correct. Plus they charge you additional monies for the privilege of being in the "free shipping"club.

 

[JethroB]

That hi/low transmission is awesome. Do you set yours to shift H/L automatically - or do you prefer to shift it yourself with the lever on the steering column?

It is awesome. The high/low and the small sensitive GO pedal. I tried the automatic high/low early on but didn’t care much for it, the unexpected lurches.

 

[rScotty]

It is awesome. The high/low and the small sensitive GO pedal. I tried the automatic high/low early on but didn’t care much for it, the unexpected lurches.

Same here. I tried the auto shift feature but prefer to use the lever on the steering column.

 

[PreacherM]

The catch is in the selling price of the product. As the product pricing remains uniform across the region, buyers do not feel the difference in the pricing easily.

You yourself have stated here that you cannot equate the price of Kubota with what you're seeing as a tractor. We share the exact same thought then and now.
What you are seeing as I did in 2012-13, is the additional mark up to cover their 0% interest financing scheme.

That's how I understand it also. How many threads do you see come up where someone is comparing kubota to some 'other' brand. One of the 'pros' that almost always comes up for the Kubota is the 0% financing. Makes me wonder how many they'd sell without it.

 

[Cahaba Valley Farm]

https://money.usnews.com/investing/stock-market-news/slideshows/best-performing-stocks-of-the-past-30-years

I'm glad you shared this because I have seen many of these same type of articles and the question I am always left with is how or why would any investor make a $10k investment in a company that they know nothing about and has no track record or history to it?

Very recently I was reading about a company out in Arizona called Enphase. It's a solar panel company that has skyrocketed in value over the last 10 years without much explanation other then a so called battery storage technology that they have supposedly come up with. And an article almost identical to yours was saying that if you had of made a 10k investment in the company 10 years ago it would be worth 25 million today. The problem is who in the hell would have picked an obscure solar panel company out in the middle of the Arizona dessert to make such an investment?? And if they did then why?? In case you haven't noticed, solar panels are not mainstream and I have never seen anyone out in my part of the country buying them. Then add to all this Solendra which went bankrupt...so why would anyone make such an investment?

This is where all this turns into a type of lottery. If you pick the winning stock then you could get rich. The problem is who knows what and where those stocks are going to be. Even with the article you sent me it has Monster at the top of the list. Dude, I have been seeing that brand for years in all the gas stations and they have many competitors in the same market as them such as Red Bull. Why would anyone have invested 10k in a energy drink company in 1995? There was no established market for energy drinks back then. The same is also true for Bitcoin. The few hundred people that bought shares in Bitcoin when it first went public had no clue that it was going to become the speculative circus that it has turned into. It was nothing more then a total crapshoot like pulling a level on a slot machine. There was ZERO investment strategy that went into that. But now the financial media will hold them as some genius investors which they weren't and still are not.

 

[Cahaba Valley Farm]

It would be accurate to say that those of us who get 0% do so at the expense of those who have been less responsible with their credit. It is not accurate to say that the 0% is built into my price.

It is built into the price depending on the term they approve you for.

 

[Torvy]

It is built into the price depending on the term they approve you for.

I have done the math on many different combinations with Kubota. The cash and credit price difference, when present, still considerably favor using the credit IF you have excellent credit. Straight up, you will pay less with zero percent than you would paying the interest. That is an even better deal if you have the foresight to use safe investments. In reality, the cash 'discount' is just a reduction of the cash penalty to mollify the buyer who insists on cash. If you have less than excellent credit, you may be better off using cash...every lender defines excellent differently, but typically, 800+ scores (average the 3 big credit bureaus) will almost always get you there. I have not investigated Mahindra and based on what arrow says about this own employer, I would guess maybe they have a bigger difference cash vs credit? Even if the discount was exactly the same as the interest saved, you would still be better off with 0% ( again, if you have good credit). Maybe after I retire I will spend the time researching a brand I would never buy.

The deception is not there on the rate. They are up front about the credit worthiness requirements and the cash discount. Things get muddled when people fail to read disclosures and assume they have excellent credit, but do not qualify. My preference would be for them to put the possibility of 0% in the fine print rather than the other way around. That part is marketing and like most marketing, it tries to make any product sound more appealing.

 

[Torvy]

I'm glad you shared this because I have seen many of these same type of articles and the question I am always left with is how or why would any investor make a $10k investment in a company that they know nothing about and has no track record or history to it?

Very recently I was reading about a company out in Arizona called Enphase. It's a solar panel company that has skyrocketed in value over the last 10 years without much explanation other then a so called battery storage technology that they have supposedly come up with. And an article almost identical to yours was saying that if you had of made a 10k investment in the company 10 years ago it would be worth 25 million today. The problem is who in the hell would have picked an obscure solar panel company out in the middle of the Arizona dessert to make such an investment?? And if they did then why?? In case you haven't noticed, solar panels are not mainstream and I have never seen anyone out in my part of the country buying them. Then add to all this Solendra which went bankrupt...so why would anyone make such an investment?

This is where all this turns into a type of lottery. If you pick the winning stock then you could get rich. The problem is who knows what and where those stocks are going to be. Even with the article you sent me it has Monster at the top of the list. Dude, I have been seeing that brand for years in all the gas stations and they have many competitors in the same market as them such as Red Bull. Why would anyone have invested 10k in a energy drink company in 1995? There was no established market for energy drinks back then. The same is also true for Bitcoin. The few hundred people that bought shares in Bitcoin when it first went public had no clue that it was going to become the speculative circus that it has turned into. It was nothing more then a total crapshoot like pulling a level on a slot machine. There was ZERO investment strategy that went into that. But now the financial media will hold them as some genius investors which they weren't and still are not.

You missed the point. Monster is just a part of the S&P. When you invest in this type of fund, you get all 500+ stocks, not just one. These span many industries and tend to be among the more stable companies. You are not going to get 35% on the whole fund. This just explains why the fund still makes 10% regularly, even if Disney (or whomever) has a bad stretch. I am with you on investing in individual companies. It can be done, but many are just rolling the dice. It takes a lot of knowledge and work to do it correctly.

 

[Torvy]

You need to stop with the "you don't know how finance works".

I call it as I see it. You say things that are clearly false and continue to spread that falsehood here and to others. I am giving you the benefit of the doubt that you telling these things comes from a lack of understanding rather than a malicious attempt to smear the competition. Math is easy enough to do. The 0% is still a better deal than paying interest or paying cash (provided you have excellent credit).

As for Mahindra, you should probably report to yourself to Admin as an Advertiser. You have a horse in this race, I don't. I am only slightly more likely to buy Kubota because they are closer to me. Odds are good that I would not buy either.

Advertising expenses are baked into every product everywhere. Calling out your competition for doing so is not appropriate on this forum as you have a vested interest as an employee of their competition. Repeating your company's talking points about the competition as if you are just another tractor enthusiast is wrong. People sometimes complain about EA doing so, but at least they are upfront about their status as an advertiser.

 

[arrow]

I call it as I see it. You say things that are clearly false and continue to spread that falsehood here and to others. I am giving you the benefit of the doubt that you telling these things comes from a lack of understanding rather than a malicious attempt to smear the competition. Math is easy enough to do. The 0% is still a better deal than paying interest or paying cash (provided you have excellent credit).

As for Mahindra, you should probably report to yourself to Admin as an Advertiser. You have a horse in this race, I don't. I am only slightly more likely to buy Kubota because they are closer to me. Odds are good that I would not buy either.

Advertising expenses are baked into every product everywhere. Calling out your competition for doing so is not appropriate on this forum as you have a vested interest as an employee of their competition. Repeating your company's talking points about the competition as if you are just another tractor enthusiast is wrong. People sometimes complain about EA doing so, but at least they are upfront about their status as an advertiser.

You wouldn't last two seconds on a logging landing and not for any physical prowess you may lack or are endowed with. You are far from "call it as i see it" type individual. Instead you are a "throw it at the window and see what sticks" type of person..

You are incumbent with innuendo and falsehood that is so full of bs that you make up as you go along, simply to give your nonsensical notions credence. I've called no one out and stated quite plainly previously in other threads, that I felt Kubota is one of the best tractor brands. But what else to expect from an individual that continues with deceit and elusive hints of non truths. You would shine as a politician.

The 0% continuum is not about competing rates of interest. It is to get people into the door on a false premise.
Continue to live the 0% lie anyway you wish.

 

[arrow]

I'm glad you shared this because I have seen many of these same type of articles and the question I am always left with is how or why would any investor make a $10k investment in a company that they know nothing about and has no track record or history to it?

Very recently I was reading about a company out in Arizona called Enphase. It's a solar panel company that has skyrocketed in value over the last 10 years without much explanation other then a so called battery storage technology that they have supposedly come up with. And an article almost identical to yours was saying that if you had of made a 10k investment in the company 10 years ago it would be worth 25 million today. The problem is who in the hell would have picked an obscure solar panel company out in the middle of the Arizona dessert to make such an investment?? And if they did then why?? In case you haven't noticed, solar panels are not mainstream and I have never seen anyone out in my part of the country buying them. Then add to all this Solendra which went bankrupt...so why would anyone make such an investment?

This is where all this turns into a type of lottery. If you pick the winning stock then you could get rich. The problem is who knows what and where those stocks are going to be. Even with the article you sent me it has Monster at the top of the list. Dude, I have been seeing that brand for years in all the gas stations and they have many competitors in the same market as them such as Red Bull. Why would anyone have invested 10k in a energy drink company in 1995? There was no established market for energy drinks back then. The same is also true for Bitcoin. The few hundred people that bought shares in Bitcoin when it first went public had no clue that it was going to become the speculative circus that it has turned into. It was nothing more then a total crapshoot like pulling a level on a slot machine. There was ZERO investment strategy that went into that. But now the financial media will hold them as some genius investors which they weren't and still are not.

Funny you should bring up Enphase. There is a facility in Arizona built in the 80's that relies on mirrors. I visited this facility when I had a stint as an energy manager for school systems and municipalities a few years ago. This entails pointing out energy waste and suggesting efficiency in energy product utilization.

At any rate, I felt we were juxtaposed to going the renewable energy route long before all of the election crap filling the airways at the time. Luckily, this direction happened to be solidified when Biden got in. However one feels about that point is not germane here.
It was simply pure logic. Knowing what I know about solar manufacturers and the plethora of companies building panels, I decided to go another route and that was not to invest in solar panel companies per se (especially after the Solindra debacle) but to invest in the company that makes regulatory controls for solar management instead. Weren't too many companies doing this and Enphase had a head start in the field.
It was sort of like not buying stock in the table manufacturers that hold the department store merchandize, but buying stock in the company that makes the brackets that hold the tables together. Everyone was making tables and using the bracket company to put them together.
Based on this, I purchased Enphase when it was $49 per share and have the inclination that a type such as "Torvy", would blame me for insider trading.

 

[Diggin It]

I have done the math on many different combinations with Kubota. The cash and credit price difference, when present, still considerably favor using the credit IF you have excellent credit. Straight up, you will pay less with zero percent than you would paying the interest. That is an even better deal if you have the foresight to use safe investments. In reality, the cash 'discount' is just a reduction of the cash penalty to mollify the buyer who insists on cash. If you have less than excellent credit, you may be better off using cash...every lender defines excellent differently, but typically, 800+ scores (average the 3 big credit bureaus) will almost always get you there.

How many people do that? I'm guessing not enough and if more did, we wouldn't keep seeing these threads.

I laid it all out on a spread sheet. Compared every way I could think of across the three or four models I was looking at.

I even looked at various interest rates available at the time including JD's 0%. Once I saw the variable rate at AgDirect and found out I could qualify, that seemed to be the best for me. It saved money over the life of the term as well as giving me more each month that I could do something else with.

As it turned out, the rate went up a couple of points for a while then dropped to below what it was initially. It stayed low (just over 2%) for most of the term and only recently went back up to around 4 which is where it started. I kept making the same flat payment every month ... about $40-50 over the statement amount and with the interest drop, I was able to pay it off earlier than expected.

In my case, I came out ahead of the 0% rate from JD by quite a bit and I didn't have to pay their prescribed insurance rate on top of the payments.


Like so many other discussions here, there is no one answer that fits everybody. You have to explore options and work out what's best for YOUR situation.

 

[Torvy]

Glad that you found a deal that worked for you. Variable rates can be risky. If you do them, you need to make sure the changes are infrequent and limited. I would definitely avoid them now given the inflation issue.