Financing 0% financing

Anonymous Poster · Apr 8, 2003

FYI For anyone contemplating buying through the 0% interest. Kubota charged me $445.23 for insurance for the life of the loan. This is understandable when financing this much cash; however, I just wanted other folks to have this info. I just didn't think of it and it added a bit to the loan. I also wanted to know from other buyers if this was what you paid and if there is cheaper insurance which Kubota would agree too. I asked the dealer but they didn't have an answer. The insurance covers fire, collision, upset, theft, and (other risks?)?.

Anonymous Poster · Apr 8, 2003

Kubota undoubtedly requires the insurance because so many folks do not take out insurance specifically on their tractors and the Kubota finance types need to secure their interest in the loan. For automobiles, insurance is easier to deal with as at least the liability portion is required by laws and it's easy to "insure" that collision and comprehensive coverages are added in favor of the lien-holder--they just tell your carrier to add them on and adjust the coverages if they are not up to the lender's minimum requirements.

If you had the ability to shop for the insurance, that would make it possible for a potentially lower premium. It would be worth someone asking Kubota Finance about that! (Not that there are large numbers of insurers just waiting for your business...)

thcri · Apr 8, 2003

I am sure they have to have some kind of protection. When I bought my TC21D New Holland they asked for my insurance agent and policy number. When I traded my TC21D in before the contract was up they asked again for my TC29D. But I didn't have to put any money out for it. I wonder if Kubota would waive that if you showed proof of insurance?

just snooping in the Kubota Section.

murph

Anonymous Poster · Apr 8, 2003

My Experience... My M4900 w/FEL costs about $180 per year for Kubota Insurance. I got 72 month financing--not the 0%. I called my Homeowner Policy to see about adding it on. They would do it for $300 per year. My understanding from the Dealer that the Kubota Insurance covers almost anything that could happen to the Tractor (guess they want to make sure they get their money).

Didn't bother to call around to other insurance companies. I could probably get a good policy from one of the Farm Outlets in our area.

frank_f15 · Apr 9, 2003

all i had to do was give them a copy of my homeowners ins. and that the machine was covered.

Anonymous Poster · Apr 9, 2003

( all i had to do was give them a copy of my homeowners ins. and that the machine was covered. )

Same here.

surfran · Apr 9, 2003

I don't know how to link another thread from the forums, so I will just throw in you may want to look at the thread titled "Insurance Help Needed" in the Kubota owning/operating forum. Good discussion on this and shows many differences to policies and what coverage is needed.

Mark_in_NH · Apr 9, 2003

The loan insurance from NH on my TC35D added about $12 a month to my payment. Total is around $900 for the 72 months. My local insurance carrier wanted in the vicinity of $25 per month. or $1,800 for the 72 months. At the time, NH didn't care where or how it was insured, only that it was and with the required coverage..

theboman · Apr 9, 2003

It's a very common thing and most places (banks, GMAC, etc) require the insurance to be sure they get the loaned money paid back.
Would you loan somebody you don't know your brand new tractor? Would you loan somebody $25,000 and have no clue on the person's health?
I bet if Kubota gave you 6% APR, you'd still have to have the insurance policy.

thcri · Apr 9, 2003

You have to have proof in vehicles, so why not in tractors?

murph

equipman · Apr 9, 2003

RebelYell
Yes, Kubota Credit does require insurance on financed equipment to protect their investment. If you have a policy to cover the equipment, all you have to do is give policy information on the contract. Some policies may be different if the machine is being used commercially. I have found Kubota insurance to be cheaper than adding the equipment to a home owner's policy in a lot of cases.
Lewis

BillyP · Apr 9, 2003

John Deere requires insurance too. My homeowners (farm policy) wouldn't cover it unless I payed extra ($184 per year). I took the JD insurance at $272 for 5 years of coverage.

Anonymous Poster · Apr 9, 2003

I thought my post would get misunderstood, especially the deeper in the thread we go. My F.Y.I. was to let other buyers know of this added expense. In my mind was 14990BX22+1500mmm(coulda been cheaper)+750tax+1250trailer but then they added 50thisfee+20thatfee+20anotherfee+445insurance. I looked at the Kubota website. The insurance they offer is a group rate which is maybe, probably, could be cheaper than others. I will check my homeowners and call Kubota if my homeowners will cover it. However, I am looking at the possibilty of using it semi-commercially when I am better trained on the equipment IE: getting it off the trailer properly /forums/images/graemlins/blush.gif.

Anonymous Poster · Apr 9, 2003

I see you bought a trailer. Is this to haul the BX22? I am planning to do the same thing. What type and kind of trailer did you get. My Kubota dealer says the problem is the length of the BX with loader & backhoe. Thy have hauled them with the loader raised so you don't need as long a trailer. Any thoughts?

Anonymous Poster · Apr 9, 2003

Just got a call back from my insurance agent (State Farm) and they assured me that the tractor would be covered by my home owners policy; no extra charge. All I need is send them a copy of the bill of sale. /forums/images/graemlins/ooo.gif My nickel's worth

Anonymous Poster · Apr 9, 2003

Thank you, HansC. I also have State Farm. To answer your question Supernug, Gatormade 16' by 6 1/2'. We are discussing this on the Kubota owner/operating forum, see BX22 thread started by me.

MarkV · Apr 12, 2003

Many homeowners' insurance policies will cover a tractor but make sure you understand what exactly is covered. Most I have heard of will cover you on your property only. If you are grading or doing snow removal on the neighborhood road you may not be covered. Some will cover you during transport to other property you own if that property is also covered under the same policy. Mine covers me for fire and theft but forget roll over or other damage. My understanding is that the Kubota policy is much more comprehensive and covers the tractor regardless of where it is being used.

Some one mentioned the possibility of using their tractor on a semi-commercial basis. I believe you will find that as soon as you are doing any work for money all bets are off with homeowners' or the Kubota insurance.

MarkV

5030 · Apr 12, 2003

( John Deere requires insurance too. My homeowners (farm policy) wouldn't cover it unless I payed extra ($184 per year). I took the JD insurance at $272 for 5 years of coverage. )

Remember to read the fine print. Your coverage on the unit is probably decreasing value so if you have a loss, the carrier will only pay off the loan, not cover the replacement tractor.

My tractor as well as implements and contents of outbuildings is covered on my Farmowners policy. That coverage covers replacement costs as well as payoff. Of course it's more expensive than the tractor store insurance but if your tractor is stolen, burns or gets wrecked and you have decreasing coverage, you are Sh. out of luck and no tractor.

Remember, you only get what you pay for.

Daryl
Forage Services, L.P.

BillyP · Apr 12, 2003

Your coverage on the unit is probably decreasing value so if you have a loss, the carrier will only pay off the loan, not cover the replacement tractor.


Nope, done looked into that. It pays actual cash value at time of loss. If you do not agree with blue-book value, you have the option of having it appraised by an independent appraisor. It's also covered within or while in transit in the US and Canada. The only thing not covered is liability.

Good advice though, Daryl. Always read your policy because some agents don't always know what they are selling.