Financing Do Kubota incentives last through buying process?

[bluelou212]

The delivery date shouldn't affect financing incentives. What matters is the date of the contract. I bought a BX2670 last December to get the year end incentives but didn't take delivery for a few months. I did the same thing last week, bought an L3901 TLB, locked in the incentives, but prolly won't take delivery until March. Of course, I still have to make the payment while the tractor sits in the dealer's garage.

 

[mljenkins]

The delivery date shouldn't affect financing incentives. What matters is the date of the contract. I bought a BX2670 last December to get the year end incentives but didn't take delivery for a few months. I did the same thing last week, bought an L3901 TLB, locked in the incentives, but prolly won't take delivery until March. Of course, I still have to make the payment while the tractor sits in the dealer's garage.

Dumb question, why would it sit in the garage for 3 months? From what others were saying, I thought they had to have a serial # to lock in the loan which of course begins the payment process. Would it really take that long to build? Mine ended up taking almost a month exactly to build, and about 2 weeks before that to receive from the factory to the dealer.

My biggest gripe was potentially paying on something that could have sat in the shop for a while. Fortunately for me my dealer finally delivered yesterday after determining the hydraulic issue the tractor was having was not anything major. After putting on the third function the backhoe had no flow and they said it was turned out to be the way they plumbed the lines (something about serial versus parallel). I'm still hoping there wasn't any damage to the pump long term with whatever happened. They didn't really tell me much other than they resolved it and were able to deliver it before end of the year.

 

[fishpick]

...while the tractor sits in the dealer's garage...

That's the key - you can't sing the finance contract without a tractor serial number... so for someone like me who is having one built because the dealer (no dealer around here) does not have one - I can't lock in the incentives that made me decide to ask to have it built because the factory has no serial to offer the dealer to put on the contract.
It's stupid. Flat out stupid.
By Kubota Finance running their incentive program this way - the dealer has to take the risk by getting in line for a tractor and then hoping the incentive is available when it shows up at their place and the customer will sign on the dotted line for it.
I said it before - and I'll say it again - they should probably take note of how other business do "special offer financing" and maybe learn some things.

 

[Einthewoods]

Last week I purchased a Kubota with rebates and the 0% financing. It won't be delivered for a couple weeks due to backlog of tractors at the dealer, but the contract is complete as of last week. This means that I get the rebates and financing currently in effect. Now, my dealer had all of the items on hand so serial numbers were available, that is clearly different than your situation.

If I were in your shoes, I would tell the dealer unless you can get it signed now with the current offers, the deal is off. If he is any sort of dealer he will be able to make a call to Kubota and make something happen. Might not change when you get the tractor, but lock in the rebates and financing.

Sorry to hear of your troubles. Nothing worse than wanting something and not having to go through hoops to get it.

 

[fishpick]

Einthewoods - they have called and talked to a bunch of people at "the factory" and "finance" - nothing they can do - period. I feel for them - I do - because they have ordered the **** thing but I'm under no obligation to take it when it arrives...

The reality is - I think everyone will be shocked given the competition in the space if the 84 @ 0% is gone on the 2nd... but it could be. In which case - I'm really not sure what I'll do - I might just wait - I don't know. I might look longer and harder at Kioti (especially if they have 84 @ 0%) - there's options. But it does suck to "go for it" and then be told "wait for it"... reminds me of dating as teen

 

[bluelou212]

That's the key - you can't sing the finance contract without a tractor serial number... so for someone like me who is having one built because the dealer (no dealer around here) does not have one - I can't lock in the incentives that made me decide to ask to have it built because the factory has no serial to offer the dealer to put on the contract.
It's stupid. Flat out stupid.
By Kubota Finance running their incentive program this way - the dealer has to take the risk by getting in line for a tractor and then hoping the incentive is available when it shows up at their place and the customer will sign on the dotted line for it.
I said it before - and I'll say it again - they should probably take note of how other business do "special offer financing" and maybe learn some things.

Oh yeah. I have that issue with the grapple that I havent offically purchased yet. The grapple isn't on site at the dealer so they don't have the serial #. In my case they told me they could do the financing but we couldn't use Kubota insurance on the grapple. So, officially, we are buying the grapple separately from the tractor, after Jan 1. The dealer agreed to honor the exsisting discount and we can get kubota insurance.

 

[bluelou212]

Dumb question, why would it sit in the garage for 3 months? From what others were saying, I thought they had to have a serial # to lock in the loan which of course begins the payment process. Would it really take that long to build? Mine ended up taking almost a month exactly to build, and about 2 weeks before that to receive from the factory to the dealer.

My biggest gripe was potentially paying on something that could have sat in the shop for a while. Fortunately for me my dealer finally delivered yesterday after determining the hydraulic issue the tractor was having was not anything major. After putting on the third function the backhoe had no flow and they said it was turned out to be the way they plumbed the lines (something about serial versus parallel). I'm still hoping there wasn't any damage to the pump long term with whatever happened. They didn't really tell me much other than they resolved it and were able to deliver it before end of the year.

Not a dumb question at all. We don't have a place for the new tractor yet. Still deciding what to build or buy to cover it. I figure we'll have something in place by March or so.

 

[mljenkins]

Not a dumb question at all. We don't have a place for the new tractor yet. Still deciding what to build or buy to cover it. I figure we'll have something in place by March or so.

Ah yes I understand that. Good luck with your build.

 

[Goldnrod24]

But it does suck to "go for it" and then be told "wait for it"... reminds me of dating as teen

Only if you were dating Kioti, the worst girl in the class.

 

[Garandman]

Is there a time in the last 3-4 years when Kubota or any other tractor manufacturers ends these incentives? They are usually quarterly but they seem to have been renewed over and over again.

Doesn’t allay the concerns of the OP, the dealer is obliged to get him answers but in my experience regional reps are the last to know.

 

[JOHNTHOMAS]

By Kubota Finance running their incentive program this way - the dealer has to take the risk by getting in line for a tractor and then hoping the incentive is available when it shows up at their place and the customer will sign on the dotted line for it.
I said it before - and I'll say it again - they should probably take note of how other business do "special offer financing" and maybe learn some things.

The dealer takes "no risks" other than losing their profit margin on the sale if you walk away and didn't leave a deposit. The machine is and will be Kubotas until it is sold. The dealer has no money in the pot. Your right that Kubota Company should have a solution for this "problem" which I'm sure comes up from time to time.
Tractors don't have "titles" like cars/trucks and can be "dislocated" easier around the country by dishonest (Thieves) people and creates different financing and insurance issues and concerns which may be the fly in the ointment.

 

[fishpick]

@Garandman - I'm not "really" that concerned - I think the likelihood of them dropping the 0% for 84 months is minimal - but it's silly that they hamsting the buying process at a quarter rollover... 4 times a year they make it more difficult than it needs to be. They control the financing - all they need to offer is a commitment letter - sign on the line - rate lock - whatever you want to call it... problem solved.

@Goldnrod24 - "she looked cute"

@JOHNTHOMAS - your comment about no dealer risk can not be 100% accurate - because if it was - any given dealer would carry at least one of every make and model of every current tractor if there was not financial impact to them carrying inventory on the their lot. I'm pretty sure they own said inventory - which costs them money that they are now NOT going to collect on a sale that's lost because financing terms changed mid-deal and the buyer walked away.
As to the "no title" - yeah - that makes things that cost more than a car but less "trackable" a long game challenge for the bean counters, for sure!

 

[JOHNTHOMAS]

@JOHNTHOMAS - your comment about no dealer risk can not be 100% accurate - because if it was - any given dealer would carry at least one of every make and model of every current tractor if there was not financial impact to them carrying inventory on the their lot. I'm pretty sure they own said inventory - which costs them money that they are now NOT going to collect on a sale that's lost because financing terms changed mid-deal and the buyer walked away.
As to the "no title" - yeah - that makes things that cost more than a car but less "trackable" a long game challenge for the bean counters, for sure!

Hate to dispute your words but your wrong. The new Kubotas are owned by Kubota, the used tractors are owned by the dealers. I'm certain any dealer can not order all the Kubotas they want. I'm sure they can order what their sales volume proves they can likely sell and the machines Kubota wants to introduce to the public. I think you keep wanting to relate tractor sales companys with car/truck dealers which you may have experience with but obviously you've never been in the new tractor business. You do know there are several Kubota dealers that are members and follow the posts on TBN and will dispute false/wrong information, don't you? [/SIZE]

 

[fishpick]

Yup - I知 aware of members here and I respect a lot of their opinions.
And you don稚 seem to be a dealer based on your bio.
Thanks tho!

Happy New Year

 

[Clint S]

Am basing this on my limited knowledge, but the dealers have to sign a contract with said company about inventory. The contract usually states the dealer has x amount of months to move a unit. If the dealer does not move a unit in said amount of time they usually have to start paying some sort of payment on it. The longer a unit sits the more stake the dealer has in it and the harder they will push to move it. Again just my very limited expeience

 

[Peter 315]

Kubota owns the machines and they are on a floor plan. Dealer pays interest every month until the note is due. A Company comes in every month to check inventory to make sure sold machines are paid for.

 

[fishpick]

Thanks Peter 315 - so - it costs the dealers to have a unit unsold on hand. Maybe not inventory cost - but interest against loaned units.
That makes way more sense!

 

[downslope]

Kubota owns the machines and they are on a floor plan. Dealer pays interest every month until the note is due. A Company comes in every month to check inventory to make sure sold machines are paid for.

This sounds exactly the same as how auto dealer financing works. Enforcement methods may be somewhat different however. If inventory discrepancies are found at a new car dealership they are likely to be considered out of trust and the manufacturer will confiscate all the MCO/MSO's.

 

[bluelou212]

Kubota owns the machines and they are on a floor plan. Dealer pays interest every month until the note is due. A Company comes in every month to check inventory to make sure sold machines are paid for.

Why does the dealer pay interest if Kubota owns the machines? That doesn't sound right. I'm going to guess that this works more like other types of asset backed financing. The _dealer_ owns the machines, Kubota or a third party finances the inventory, and the inventory loan is 100% collateralized by the encumbered asset, so the equipment is a restricted asset of the dealer.