Does this sound right to you?

[turbotom1052]

On June 17th 2020 I applied for 0 percent financing on a Kioti CK10 series tractor through Kiotis finance company. My application was approved but was told by my dealer that they didn't have the tractor in stock, and wouldn't be able to deliver until August. I was in agreement with that and left the dealership to go home and patiently, or perhaps not so patiently wait until August delivery. Since that day Ive received from Kiotis finance arm, a copy of the amortization schedule with the first payment scheduled for July. In effect they want me to begin making payments on a piece of machinery that they have yet to deliver, and will not be able to deliver until August. At the end of the day, or by the end of the loan term, it will not cost me any more money, but it just seems like BS to me. What say you???

 

[deezler]

Welcome to TTBN. I say BS! I would most CERTAINLY never start paying for a piece of equipment you have yet to lay eyes on.

Shoddy work on the dealer's part. The purchase contract should not have been finalized until the tractor was delivered, in my opinion. At the very least it should have been dated into the future, say mid august.

What if it gets damaged during delivery? Has immediate and obvious build quality issues? Never makes it to your dealer?

If you add your location to your TBN profile, many users might be able to help provide experiences at your regional dealers. Do you have others nearby? They seriously couldn't get their hands on a CK2610 for over a month? hmmmmm.....

 

[Roadworthy]

It's not right but sounds normal. It's a classic case of one hand not knowing what the other's doing. Tractors come from one place, bills from another. Hopefully things go smoothly. Talk to the dealer.

 

[BrkMstr]

It should be easily corrected by the dealer - dealer most likely dated contracted improperly or did not notify finance of delivery date - if you state that you'll finalize contract / start payments only upon delivery / inspection - I'm sure they will change it they are not going to lose a sale over it......

 

[arcadelt]

Was the zero percent offer time limited? Is it possible that if the contract was dated after the delivery in August you might have missed a deadline and the interest rate may be different?

 

[turbotom1052]

I have no ill will towards the dealer. As a matter of fact ive got a good feeling about the dealer. They were up front with me about the delivery schedule, and it was I who chose to do the deal in spite of the delay. My issue is with the finance company, who wants me to begin the payments BEFORE I assume delivery. I could probably rectify this by insisting that payments don't begin until AFTER I accept delivery. The problem arises when it comes to the finance terms. Kiotis 0 down 0 percent for 84 months is due to expire at the end of June. These are the only terms that will work for me and would hate to miss out on this finance deal. Im fairly certain that I could easily get out of this contract if I chose to, but concerned that these loan terms will not be available comes August, when the tractor makes it to the dealership. As mentioned in my original post this deal is not costing me any more money. My issue is based more on principal than anything else. I suppose there is the possibility that the finance company knows nothing of the delayed delivery, and that a simple phone call would straighten this all out. Now that im thinking about it more with a cooler head, perhaps I jumped the gun by coming here and posting my story. On the other hand they could just be holding me to an amortization schedule as of the contract signing date regardless of delivery date.

 

[turbotom1052]

Was the zero percent offer time limited? Is it possible that if the contract was dated after the delivery in August you might have missed a deadline and the interest rate may be different?

This sounds plausible

 

[jcbGM]

Couple things....

1. You said you “applied” for 0%. This is different than signing final finance docs. An application just allows them to pull your credit and determine if your a suitable credit risk.

2. Receiving a notice if payment and amortization schedule implies that someone signed finance documents. This would be you acceptance of the terms of finance which includes material acceptance (you have the machine). These documents will include the serial number of the asset. Did you sign final finance docs? Do the papers you have include the serial number?

This is a VERY slippery slope. Regardless if 0% is available in August, the dealer can not legally invoice the machine and initiate finance without delivery and your acceptance of the asset. If they did, your dealer committed a felony and is SoT (selling out of trust). 20 years running and owning dealerships and I’ve never seen a dealer franchise agreement that didn’t immediately cancel a dealer if they were SoT.

The dealer has been paid for the tractor (by finance) if you are receiving a payment schedule, yet he doesn’t have the asset to sell to you and hasn’t been invoiced by Kioti. He has likely had these funds wired into his account and is using them to operate his business.

The dealer could have done this to get you the current promotional offer and it may all be fine, but in doing so he has defrauded the finance company (because they think you are in possession of the asset). You can play along and hope he delivers in August, but be aware, SoT is common when dealers are in financial trouble. They may be using the funds from your deal to make payroll and keep the lights on this month and come August, he may or may not have enough cash to pay Kioti for the tractor that you ordered and the house of cards begins to collapse.

Send me a PM and I can walk you through this potential mess.

 

[jcbGM]

It's not right but sounds normal. It's a classic case of one hand not knowing what the other's doing. Tractors come from one place, bills from another. Hopefully things go smoothly. Talk to the dealer.

Has nothing to do with one hand and the other. The dealer had to submit signed finance docs to the finance company to initiate payment the payment stream. This is NOT innocent and a “classic case”.

 

[turbotom1052]

Couple things....

1. You said you “applied” for 0%. This is different than signing final finance docs. An application just allows them to pull your credit and determine if your a suitable credit risk.

2. Receiving a notice if payment and amortization schedule implies that someone signed finance documents. This would be you acceptance of the terms of finance which includes material acceptance (you have the machine). These documents will include the serial number of the asset. Did you sign final finance docs? Do the papers you have include the serial number?

This is a VERY slippery slope. Regardless if 0% is available in August, the dealer can not legally invoice the machine and initiate finance without delivery and your acceptance of the asset. If they did, your dealer committed a felony and is SoT (selling out of trust). 20 years running and owning dealerships and I’ve never seen a dealer franchise agreement that didn’t immediately cancel a dealer if they were SoT.

The dealer has been paid for the tractor (by finance) if you are receiving a payment schedule, yet he doesn’t have the asset to sell to you and hasn’t been invoiced by Kioti. He has likely had these funds wired into his account and is using them to operate his business.

The dealer could have done this to get you the current promotional offer and it may all be fine, but in doing so he has defrauded the finance company (because they think you are in possession of the asset). You can play along and hope he delivers in August, but be aware, SoT is common when dealers are in financial trouble. They may be using the funds from your deal to make payroll and keep the lights on this month and come August, he may or may not have enough cash to pay Kioti for the tractor that you ordered and the house of cards begins to collapse.

Send me a PM and I can walk you through this potential mess.

We did sign whatever docs were required to receive an amortization schedule. As far as serial numbers, the only one that was listed was for the loader. The spot for a serial number for the tractor was left blank. Since my last posting Ive had opportunity to speak with the dealer. I voiced my discomfort in making a payment on a piece of equipment that I have yet to accept delivery on. I also made it be known that if the finance deal that was originnaly offered, and which expires on June 30th was no longer on the table comes July 1st (before my first payment is due) that i would be walking. Dealer was understanding of that but seemed pretty confident that the finance deal would be renewed. I guess Ill know exactly were I stand in a couple of days.