New Tractor Sales Are Declining

[Fixastuff]

Why would they sell it cheaper for cash? They know you are bluffing.

Takeuchi sold me my excavator much cheaper for cash than their 0% offer. Kubota was the only company that wouldn't budge for cash. When I sold equipment the dealer paid the finance company a percentage of the sale for 0% and other low interest options.

 

[2manyrocks]

Yes they do, but even thou it is legal, doesn,t make it ethically correct.
Then again, if you are that hard up to agree to those high rates, then maybe, just maybe, you shouldn,t be buying a vehicle in the first place.

It's certainly not true for every buyer, but there is a group of car buyers who really only care about getting a car financed by someone somewhere because they know they can file chapter 13 and get the rate reduced to just a little over the prime rate. The subprime car lenders know this is going to happen to a certain degree, but make subprime loans anyway hoping that they collect enough high interest overall to be profitable even know they know they are going to get ripped by some buyers.

I doubt there are many subprime loans made for tractors.

I'd like to know just how many sales incentive programs Kubota actually offers. One dealer I spoke with in the Spring of 2022 hadn't heard of the equine discount, but rattled off four or five other discount programs I'd never heard of.

 

[ovrszd]

Takeuchi sold me my excavator much cheaper for cash than their 0% offer. Kubota was the only company that wouldn't budge for cash. When I sold equipment the dealer paid the finance company a percentage of the sale for 0% and other low interest options.

Good stuff. First I've heard of that. Gonna be hard for you to prove to the skeptics.

 

[Hay Dude]

I have almost always found writing a check to the dealer gets me a lower price than financing. You just have to know how negotiation works.
For me, financing comes down to whether or not I have the money to pay cash at the moment of need. If I need to replace a tractor, baler, trailer, truck, whatever it usually has to be done pretty fast since I’m using it to make a living.

I’m doing a tractor auction first week of November for another Case-IH Magnum. For once it’s not a pressure situation. Just an addition. Should be interesting.

 

[drumminj]

I think the finance charge is hidden in the required KTAC insurance. The cash discount isn’t very much

20% isn't very much? (equine discount). Not available with the 0% financing offer

 

[CloverKnollFarms]

Kubota doesn’t offer a 20% discount… last I looked. On an L series its more like a 3.5% discount

 

[buckeyefarmer]

I think the finance charge is hidden in the required KTAC insurance. The cash discount isn’t very much, so Kubota can’t hide too much in the purchase price. Unless the cash buyers are subsidizing the people who finance?

I had a kubota 0% interest loan without KTAC

 

[jyoutz]

20% isn't very much? (equine discount). Not available with the 0% financing offer

Go to the Kubota website and search equine discount. It’s all there on the site with cash discount prices for different classes of equipment. A few thousand dollars; nowhere near 20%.

 

[2manyrocks]

I believe the equine discount has changed. As I recall, it was 20% when I purchased my L2501 in April, 2022. It seems to have been replaced with a flat $1,000 customer instant rebate for cash buyers plus a flat equine discount of $1,000 for the L series. Equine Offer Landing Page.

 

[Cahaba Valley Farm]

Kubota doesn’t offer a 20% discount… last I looked. On an L series its more like a 3.5% discount

Wow, would you look at that. Kubota has now gotten rid of it's 20% equine discount...Dealers must have complained to Kubota about the discount cutting into their bottom line. This surprises me as this industry is headed for a very deep recession come next year.