Dealing on new equipment

[kthompson]

As insurance agent read the full details and doubt any home owners policy will cover for damages to the tractor as their coverage does. Most likely only for such as theft, maybe total loss such as fire. But this will vary between states and companies, do what Liberty Mutual (no I do not sell their coverage, have had it and it was good) but read the coverage before you have a claim.

 

[ovrszd]

Pretty hard to compare coverage on a tractor forum thread. My experience with KTAC is mostly from reading posts here. I've not read of any coverage that wouldn't be covered by my policy.

If someone wants to post their KTAC policy I'll certainly compare it to mine. And any comparison not clarified, I'll inquire with my Agent.

 

[jeff9366]

I just bought a BX2670, FEL, MMM, Front Blade, etc. I used my homeowners.

According to my salesman, though, if I drop a load of rocks on my hood, roll the tractor, etc., KTAC covers it. My homeowners would likely stick me with the nasty deductible.

If you pay for KTAC insurance and are enrolled with KTAC, you have KTAC insurance.

If you believe you have KTAC coverage as an alternative or backup, without paying for it, you are making a bad assumption.

All KTAC has $250 deductible.

 

[kthompson]

Pretty hard to compare coverage on a tractor forum thread. My experience with KTAC is mostly from reading posts here. I've not read of any coverage that wouldn't be covered by my policy.

If someone wants to post their KTAC policy I'll certainly compare it to mine. And any comparison not clarified, I'll inquire with my Agent.

Even if a full comparison was done between any two insurance plans here it is only worth something if both are for the same state as coverage can vary between states as laws do and also markets do. Also would be of little worth as many of the companies who offer such coverage do so in a very limited area outside of the companies own by the tractor companies. But the point is a very valid point you should compare the coverage and NOT just the price. I know there is wide variance in my state for I have sold it in time past and there was coverage here that only covered like if fire loss or theft and then there was coverage that cover anything that happened to it as full coverage on a car would. Now you also need to be 100% comparing know how they determine the value of the equipment if a loss happens. Also what kind of term around time for with tractors they are not like cars, the go down and work is not getting done and the ability to rent one is not often there as with a car.

 

[ovrszd]

All very good points.

So it would also be difficult to claim one company is better than all others.

 

[Lilguy]

My homeowners policy will cover loss from theft, fire, accident on my property or while being trailered under my control. They will not cover anything if I'm using it on someone else's property, no material or liability coverage off my property. Need to buy extra coverage to protect me working on other family or friends places.
I had a new Kubota stolen from dealer decades ago. My hop covered, dealer paid deductible as courtesy, had just bought 2 from him.

 

[Lilguy]

With reference to Z drives. We are taking a pass, far to rough a ride to work for us. Rented a Diesel and took it back after 2 hours, shaken and stired to a point of discomfort. We are use to a B and L series with turf tires. How does the 25D ride as mower with that flip seat?

 

[Poopdeck Pappy]

A BX is going to ride just as rough as a zero turn, especially if the BX is equipped with R4 tires (which are very stiff).

A couple of alternatives:

First, look at Ferris zero turn mowers with suspension. The difference in the ride is amazing. I've driven an IS2100 and an IS3100 and you would be shocked at how much better the ride quality is compared to a non-suspension mower.

Secondly, look at a front-mount mower like the Grasshopper front mounts or the Kubota F series mowers. I have a Grasshopper 729BT front mount and I use it to mow a 2.5 acre lot across the street from my house. I've also mowed that lot with my BX2660. The Grasshopper does it in relative comfort. The BX almost beat me to death. The front mount mowers have a much longer wheelbase than a mid-mount mower (or a BX), which greatly improves the ride quality.

Finally, adding a suspension seat to whatever you decide on will add another measure of comfort.

 

[ovrszd]

Finally, adding a suspension seat to whatever you decide on will add another measure of comfort.

Yep, put on my JD2210 and helped a bunch.

 

[oosik]

I have one small pasture - about one acre - that I mow with my JD G100 riding mower. There has never been a question of how fast I mow - anything above about 3-4 mph and the unit tries to relocate my kidneys. I though that a pto bush hog, of some type, on my tractor might be a bit smoother. So one day I drove the tractor around the pasture a couple times - holly cow, much of that and I'd have to put on the seat belt. Needless to say - the pasture is kind of lumpy, bumpy and has a few ruts. At least, there are no big rocks, tree stumps or old barbed wire.

When I bought my Kubota the dealer gave me 50% off on any and all implements included with the sale. Six of one- half a dozen of the other.

 

[coralhead]

I wonder who is making that money, the dealer or the manufacturer? I am searching for a Kubota and the difference between cash back or 0% financing is only $500. Someone is making a lot of money if you buy in cash.

I am also looking at Mahindra and if you pay in cash there is several thousand dollars difference between between cash and taking 0%.

The salesman got back to me today and said he talked with his kubota rep and he said the most he could get me down for a cash buy was $500. He also said that the 60 month warranty he told me about was good to the end of July. Web site it started in June 2016 with no end date. Doing me a great favor. LOL

When I bought my Branson w/cash we went to the far left column of the pricing structure. Much lower than the financed. Same thing when I priced a Mahindra at the same time.

 

[Turbys_1700]

When I purchased my Workmaster 50 a couple months ago the dealership was advertising the tractor with FEL and R4's on Craigslist for $25,500 or $357/mo with no money down with monthly payment not including insurance and possible taxes. I did see them advertise a cash price on Craigslist for $24,800. That was only one time and several months ago. Cash is king and if you can purchase with it you can save some coin. Different manufacturers have different programs but typically 0% financing usually will have a higher retail selling price than cash.

 

[Indian MC]

I was told when Kubota financed my B2601 last month, Kubota finance required full insurance. I phoned my homeowners and they faxed a binder for only $130.00 per year. It didn't pass Kubota requirements. Kubota wants the machine fully covered off your property. The only way to get that type of coverage with my homeowners was a seperate Bussiness Policy.

 

[RollingsFarms]

I was told when Kubota financed my B2601 last month, Kubota finance required full insurance. I phoned my homeowners and they faxed a binder for only $130.00 per year. It didn't pass Kubota requirements. Kubota wants the machine fully covered off your property. The only way to get that type of coverage with my homeowners was a seperate Bussiness Policy.

Why couldn't you buy the Kubota insurance and finance it in your payments? That's what I did. Best insurance ever! I wish Kubota sold homeowner and vehicle policies.haha

 

[kthompson]

I was told when Kubota financed my B2601 last month, Kubota finance required full insurance. I phoned my homeowners and they faxed a binder for only $130.00 per year. It didn't pass Kubota requirements. Kubota wants the machine fully covered off your property. The only way to get that type of coverage with my homeowners was a seperate Bussiness Policy.

This is discussed often and often I say the same thing, as an insurance agent who did have agency that sold P&C insurance there is most likely more difference between Kubota's insurance and rider on your homeowners than that. Doubt your homeowners covers damage to the tractor but only lose such as theft or fire if burnt while in insured building. But YOU HAVE TO COMPARE LINE BY LINE THE COVERAGE between the two plans.

 

[Lilguy]

If my tractor is at home it is covered for loss being stolen, damaged from fire,flood and other acts of nature, we have earth quake insurance, and accident damage.While being tranported to and from dealer or other no use locations. I have no coverage for anything if I take it to a family or friends location to work with it onsite.
If I finance it I have to get Kubota Insurance plus pay the finance bump which makes the Zero finance mute
from a pure $$$ standpoint. I could use HELC at 2.9%, home paid for, work a better deal and deduct interest
or pay cash and get the best deal.
I have 2 30+ year old Kubotas that have cost me about 1000.00 in repairs to one tractor in all that time. Extended warranties and insurance for 2-3 grand more minimum is something one has to balance with expectations.
Taking the family out today to decide on a TLB package at our local dealer. Will report with decision.

 

[Indian MC]

Why couldn't you buy the Kubota insurance and finance it in your payments? That's what I did. Best insurance ever! I wish Kubota sold homeowner and vehicle policies.haha

I did! It only raised my % Financing to thee quarters of a pont. The Kubota insurance offered a **** of a lot more than a rider on my homeowners did. Much rather invest In Kubota for Financing and Insurance. Do our part in keeping them around. I put a claim in with my homeowners once in fifteen years, and they treated me like it was my fault. Sure, I could have prevented lightning from hitting my House.

 

[MHarryE]

Financing at zero percent vs cash discount. Let's take an example close to my last large tractor purchase and use round numbers. $100,000 for 5 years at zero percent or $99,000 cash. After delivery I had $100,000 cash vs $1,000 is I paid cash. I invested the difference and, over the past 5 years, I have averaged 9% return on my investment. Not great, but conservative portfolio. S my money went up but I did need to make payments. So to simplify the math and work from the midway point, $50,000. $50,000 at 9% annually is $4,500, or over 5 years $22,500. So over 5 years I have earned $22,500 gain on investment vs $90 interest per year or simplified $450 interest on the cash back. I am over $22,500 ahead having financed. Simplified, although I actually came out further ahead than that because although I averaged 9% on investment over 5 years, I actually made 12% and %15% on the money the first 2 years when I was using more of Kubota's money. That's also without figuring in a tax break I received by spreading payments over 5 years instead of taking a lump sum $100,000 out of the bank. If you don't believe me, have an accountant figure it out for you.

 

[ovrszd]

Financing at zero percent vs cash discount. Let's take an example close to my last large tractor purchase and use round numbers. $100,000 for 5 years at zero percent or $99,000 cash. After delivery I had $100,000 cash vs $1,000 is I paid cash. I invested the difference and, over the past 5 years, I have averaged 9% return on my investment. Not great, but conservative portfolio. S my money went up but I did need to make payments. So to simplify the math and work from the midway point, $50,000. $50,000 at 9% annually is $4,500, or over 5 years $22,500. So over 5 years I have earned $22,500 gain on investment vs $90 interest per year or simplified $450 interest on the cash back. I am over $22,500 ahead having financed. Simplified, although I actually came out further ahead than that because although I averaged 9% on investment over 5 years, I actually made 12% and %15% on the money the first 2 years when I was using more of Kubota's money. That's also without figuring in a tax break I received by spreading payments over 5 years instead of taking a lump sum $100,000 out of the bank. If you don't believe me, have an accountant figure it out for you.

I totally agree when the purchase price is that close regardless of payment method. This scenario is becoming more common.

To use a card game (Poker) term, the manufacturers have went "All In" holding a pair of twos. The rest of the table (Us) have folded.....

Using your thoughts on this. Explain to me how it improves their finances to let you invest your money and make that $22K rather than make it themselves?

 

[MHarryE]

I totally agree when the purchase price is that close regardless of payment method. This scenario is becoming more common. To use a card game (Poker) term, the manufacturers have went "All In" holding a pair of twos. The rest of the table (Us) have folded..... Using your thoughts on this. Explain to me how it improves their finances to let you invest your money and make that $22K rather than make it themselves?

They sell a machine they otherwise would not have. With competitors using the same gimmick, they need to be competitive to stay in business. Borrowing money today is cheap, for an individual or a company. Let's say I put my cash in my savings account rather than invest it. I believe my savings pays about 0.1% or less. On that basis I would be better off with the discount.