Unbelievable deal

[jyoutz]

Not in this case but sometimes companies offer low or zero interest loans but no cash discount. Kubota was doing that when I was tractor shopping about six years ago. VW had a similar deal when my wife bought one a while ago. Super cheap loan but no cash discount. Rather than paying cash like she'd intended she took the loan.

Either way, it is a discount off the usual price.

That’s how it was when I bought my Kubota. 72 months zero interest, but no cash discount.

 

[diesel466]

Not sure if this is the case everywhere, but when I financed my last Kubota tractor, my dealer required Kubota insurance. Placing it under my homeowner policy or another insurance company was not permitted.

Kubota does make you have insurance but it does not have to be the Kubota insurance plan. Your dealer should have gave you the option of getting your own insurance.

 

[kennyd]

There is no "free" money... $7,000 cash rebate means that the "zero percent" finance = $7k finance

Exactly.

Just like 'free' shipping...there is no such thing.

 

[jyoutz]

Exactly.

Just like 'free' shipping...there is no such thing.

The Amazon Prime free shipping is a bargain even with the annual fee if you order a lot of items over the course of a year. The price is no higher than other sellers who don’t include shipping.

 

[WM75Guy]

Not sure if this is the case everywhere, but when I financed my last Kubota tractor, my dealer required Kubota insurance. Placing it under my homeowner policy or another insurance company was not permitted.

He is making extra money on the deal by selling the policy. Not my dealer. I bought a new RTV-X in February and financed it through Kubota. I didn't want to use Kubota insurance. All I had to do was get a Kubota Verification of Insurance form filled out and signed by my Texas Farm Bureau insurance agent stating my TFB insurance met all of the Kubota requirements. Plus I had to furnish a copy of the rider showing it was added to my insurance policy with Kubota as the lienholder.

 

[bdhsfz6]

Kubota does make you have insurance but it does not have to be the Kubota insurance plan. Your dealer should have gave you the option of getting your own insurance.

I agree.

It isn't clear whether it was the dealer that required Kubota insurance or the Kubota corporation. It didn't matter to me because I planned to pay off the loan within a year.

Also, this was 3 years ago and the rules may have changed since then.

 

[RjCorazza]

The Kubota insurance requirement comes up every once in a while here on TBN. My understanding is that Kubota Credit has never required Kubota insurance, but the dealers push it. I have always provided my own proof of insurance, and they were fine with that.
Not from personal experience, but the Kubota Insurance is supposedly top notch as far as service and what they'll cover.

 

[dodge man]

When I bought my JD there was a $500 discount for taking the 0%. I tried to negotiate a cash discount, they already had discounts, I would have paid more being a cash buyer. It was setup for a once a year payment and I didn’t make a payment for a year. My Kubota trade in was the down payment so I had the tractor for a year with paying a dime.

 

[fishhead]

There is no "free" money... $7,000 cash rebate means that the "zero percent" finance = $7k finance

Even if there were not the $7k rebate; the loan price WILL include "finance" charges.

The cash option is not free either, the exact cost comparison is somewhat involved.
I'm unsure of the price of the insurance - would love to get an idea of the price per thousand of an addition to say a homeowners policy- i imagine it's not much.
One the one side:
Pay cash:
Positives: get 7000$ discount- this is in 2025 dollars (good), may not need/want insurance

Negatives: Lose the opportunity to invest the Total bill-7000 (all expenditures are in 2025 dollars)



The other:
Negatives:
Principal is 7k larger
Insurance of some type is likely required (may or may not be an additional amount)

Positives:
Ability to invest the Principal ( all as 2025 dollars)
Payments effectively decline as inflation takes its toll.

At 7% annual return over 10 years each $1000 dollars invested would yield roughly $1967. So a 20K tractor would require a 13k cash payment which could have become 25.5k if it had been invested. of course long-term cap gains tax would apply but 7% is well under the long term market averages.

regarding the payments, The US long term inflation average is 3.30% meaning the that the $167 payment on that 20k loan at zero percent effectively becomes $120 in current value at the end of the 10yr period.

the higher your rate of return and inflation is the lower breakeven is

 

[Midniteoyl]

Did the 0% for 5yrs deal for the Kioti. No insurance required and it never even came up. I believe at the time the cash discount was only $2600.

 

[scootr]

Bought a used machine off a dealer once. They offered $5k off to take the then 15% finance. Upon inquiry I learned there was no prepayment penalty.
I took the $5k discount and the horrible finance deal. 2 months later I paid the loan off. Thank you very much

 

[caver]

Back in the 90's I said I would never buy a new pickup again. Well 2015 I ate those words as people wanted crazy money for used trucks. It was a plain Jane truck F250 XLT 4x4 with regular cab. Ford had discounts if I financed through them with no penalty but more than one dealer said make a few months payments then you can pay it off. Ford credit said you can pay it off today before the first payment is due. So I did.

 

[LittleBill21]

The Amazon Prime free shipping is a bargain even with the annual fee if you order a lot of items over the course of a year. The price is no higher than other sellers who don’t include shipping.

absolutely not true. I switch between multiple amazon accounts daily and routinely see different prices for prime, then for 3rd party sellers.

 

[FullMetalBucket]

Bought a used machine off a dealer once. They offered $5k off to take the then 15% finance. Upon inquiry I learned there was no prepayment penalty.
I took the $5k discount and the horrible finance deal. 2 months later I paid the loan off. Thank you very much

Cash is no longer king with vehicles. I use dealer financing as a way to get money off. Then I just either pay it off or refinance in 2 months to a credit union which usually has better rates. That being said I paid cash for both my tractors because they were already priced as low as they were going to get.

 

[jyoutz]

absolutely not true. I switch between multiple amazon accounts daily and routinely see different prices for prime, then for 3rd party sellers.

The differences are minor, but paying shipping for third party sellers is more expensive overall.

 

[jyoutz]

Back in the 90's I said I would never buy a new pickup again. Well 2015 I ate those words as people wanted crazy money for used trucks. It was a plain Jane truck F250 XLT 4x4 with regular cab. Ford had discounts if I financed through them with no penalty but more than one dealer said make a few months payments then you can pay it off. Ford credit said you can pay it off today before the first payment is due. So I did.

I never pay cash for anything if the finance cost is less than I can make investing my cash. I like to hold on to cash. Payments are just another deduction from my paycheck and those come and go every two weeks. Meanwhile the cash stays invested.

 

[LittleBill21]

The differences are minor, but paying shipping for third party sellers is more expensive overall.

they are absolutely not, they completely build the shipping cost in. Its not all the time, but I routinely see it. I have seen it at least 10 times in the last year for certain items. generally not, but I usually see it on larger ticket items

 

[Tinhack]

Are there any tractors left? I'm ready. Is it only certain models--Bare bones or the entire line. I want a cab with loader.

 

[caver]

I never pay cash for anything if the finance cost is less than I can make investing my cash. I like to hold on to cash. Payments are just another deduction from my paycheck and those come and go every two weeks. Meanwhile the cash stays invested.

Grok says: Paying cash for a new vehicle avoids interest and debt, saving money long-term, especially if you have the funds without depleting savings. Financing can make sense if you get a low interest rate (like 0-2%) and invest the cash elsewhere for a higher return, but it risks depreciation and being underwater on the loan. Consider your financial situation: if you finance, ensure payments fit your budget and prioritize a shorter loan term to minimize interest. Data shows new car loans average 6.5% interest over 68 months, adding thousands to the cost. Cash is simpler and safer if you can swing it.

 

[jyoutz]

Grok says: Paying cash for a new vehicle avoids interest and debt, saving money long-term, especially if you have the funds without depleting savings. Financing can make sense if you get a low interest rate (like 0-2%) and invest the cash elsewhere for a higher return, but it risks depreciation and being underwater on the loan. Consider your financial situation: if you finance, ensure payments fit your budget and prioritize a shorter loan term to minimize interest. Data shows new car loans average 6.5% interest over 68 months, adding thousands to the cost. Cash is simpler and safer if you can swing it.

But if my cash is earning 6-10%+ and the financing is zero or less than 6%, it doesn’t make sense to spend the cash.