Full figured 25hp Tractors

[donotlickthetractor]

I don’t know where people are finding big cash discounts? Every place I looked, the price was the same, cash or financing. There were a few specials but even they weren’t significant cash discounts.

I bought a ck2620 and received it yesterday. They (Kioti Canada) were offering ak discount for the loader and 2.99 for 84 months.

 

[arrow]

Kubota runs their own bank, don't they? I know Deere does, so that probably affects things.

Honda power sports side does, and they offer better intrest or no required extra insurance, and other incentives, to prop up their sales.

I recall a study done on their financing several years ago.
Their "0%" came out to be the equivalent of an 8% straight up loan.
All they needed to do was move pricing around and increase their msrp.
So their $25,000 tractor became a $28,000 tractor a year later when incorporating the 0% financing.
I think every tractor manufacturer does this and is where the real cost increases are manifest.
We had one tractor that went up $1500 in a month. You cannot tell me that was about increased production costs when this same tractor had steadily gone up in price all along with the biggest jump happening when it entered the 0% realm.
All it is and will always be is a pricing scam to lure in buyers. Some think that's just fine to do as it moves the economy.
For me its akin to seeing that beautiful woman in the doorway of the cabin in the woods seductively luring you into her home, only to find out she is just an ugly old witch once inside that plans to put you in her kettle.
I only got fooled once with that scheme cuz as a former logger, you're always in the woods that have plenty of cabins with witches living inside.
"Phew", I escaped a close one on that day.

 

[Rdrcr]

I’m sure that the required KTAC insurance pays for part of the financing. But I’m good with that. The insurance is pretty good.

This is the only issue I have with Kubota financing…the forced KTAC insurance. It should be optional assuming the buyer has an equivalent homeowners insurance policy.

I cancelled the KTAC insurance on both new Kubota tractors I purchased. Both were paid off in 12 months so it wasn’t a big deal either way.

Mike

 

[jyoutz]

This may be true, but st

I recall a study done on their financing several years ago.
Their "0%" came out to be the equivalent of an 8% straight up loan.
All they needed to do was move pricing around and increase their msrp.
So their $25,000 tractor became a $28,000 tractor a year later when incorporating the 0% financing.
I think every tractor manufacturer does this and is where the real cost increases are manifest.
We had one tractor that went up $1500 in a month. You cannot tell me that was about increased production costs when this same tractor had steadily gone up in price all along with the biggest jump happening when it entered the 0% realm.
All it is and will always be is a pricing scam to lure in buyers. Some think that's just fine to do as it moves the economy.
For me its akin to seeing that beautiful woman in the doorway of the cabin in the woods seductively luring you into her home, only to find out she is just an ugly old witch once inside that plans to put you in her kettle.
I only got fooled once with that scheme cuz as a former logger, you're always in the woods that have plenty of cabins with witches living inside.
"Phew", I escaped a close one on that day.

This may be true, but many brands don’t offer a significant cash discount, so why not take the 0%?

 

[paulsharvey]

Saw this while messing around, Foothills Tractor, Massey 2860E HST, $35k cash or $38k with Subsidized interest

 

[jyoutz]

Saw this while messing around, Foothills Tractor, Massey 2860E HST, $35k cash or $38k with Subsidized interestView attachment 1057343

One thing to keep in mind is that prices in the southeast are generally cheaper than the Rocky Mountains and west coast.

 

[CloverKnollFarms]

I don't know that I believe a dealer just "absorbs" the financing cost, to charge the financed the same as cash. It's probably more like the cash buyers pay for the financing if the financed buyers. That is more believable

 

[paulsharvey]

So, there is also a lot of middle ground between Cash and 0% manufacter loan; there are Farm Credit equipment loans with fairly low rates, conventional rate loans, ect. Mine is through a Credit Union in another state that does equipment and Ag loans, in addition to normal car loans.

If you have a credit union, it probably worth discussing what a loan looks like from them.

 

[arrow]

This may be true, but st

This may be true, but many brands don’t offer a significant cash discount, so why not take the 0%?

That’s the design of it. They make it up w increased msrp’s but they disguise that with the insignificant cash differences corralling you into the 0% scheme.
In other words it gives the 0% credence and you tell all of your friends how great it is.
I don’t care how financing is paid for. What bothers me the most is the underhanded methodology that is based on a falsehood that this purchase is costing you no money.
It’s a lie and we have enough of that going around in todays existence.

 

[arrow]

I don't know that I believe a dealer just "absorbs" the financing cost, to charge the financed the same as cash. It's probably more like the cash buyers pay for the financing if the financed buyers. That is more believable

Depends on the tractor kick backs. If your product goes up say $2000 in a year, some of that goes back to the dealer. So if it’s say a $1300 difference between cash and 0% and the dealer is going to get $800 back from the manufacturer, then he is only making up $500. That figure is made up with the additional profit on the machine and he gains a customer with nothing coming out of his pocket. The dealer looks like a good guy.