Financing Financing problems/caution....

[MotorSeven]

I just wanted to inform the readers here to be carefull when thinking that a company's financing offer that looks too good, may be too good to be true. No, i am not talking about Kioti, but before i ordered my CK30, i hyped myself into thinking that i needed a bigger HST tractor. What caught my eye was the "84 months @ 4.99% w/10% down". It is on their website, so i called a dealer and the salesman said, "Yep, the offer is good until the end of the month, but they have been extending it for quite some time." So we worked up the figures on a 3810 HST FEL 4x4 along with the usual implements. The total was over $22,000(Gulp!), but with the difference in interest rates and term, i was looking at a $35-40 payment bump from the CK30. I plan on paying off the tractor in a little over a year, but until then i wanted to tie up their money...not mine.
Sooo, i went for it, only to have the salesman call me back the next day to say that this other [orange] company would only go 72 months, and wanted a down payment of $4,000. The excuse that i was given was since i applied for the sales tax (farm) exclusuion, then the Company looked at the sale as a "Business not Personal Use", therefore the 84 month rate would not apply. It does say "personal/household use" on their website, but my paying sales tax or not has no bearing on the finance end of the deal. I gave the salesman another day to attempt reconcilliation, but i had to call him the next afternoon only to be told, "I told you they weren't going to change their mind" !!! ??? /forums/images/graemlins/confused.gif
I don't mind saying that this really ***, but i did calm down, gave myself a reality check on really needing a 38hp HST, and decided to go with the CK30. Then something really funny happened.....Kioti approved the financing that same day EXACTLY as they advertized! Now i am not slamming the other Company's product, because i think they build a fine machine(hey i was gonna buy one), but how good is their product if the customer can't get the "advertized deal". After that experience i would not consider any of their products because i won't do business with a company that plays these types of games. Apparently it was more important to gig me for a 1% interest rate than to make a 22K sale.
I guess that is what i get for straying from the Kioti pack!.....Forgive me /forums/images/graemlins/tongue.gif

RD

 

[DrewL]

A good heads up. After market ANYTHING has many downsides. Particularly after market warranties

 

[strokerduster]

i bought an orange one this month. i printed the credit ap off factory website, filled it out and faxed it to the dealer. before i made the final deal. that way he knew i was not a tire kicker and could qualify for the finances. when i said yes, it took about 5 minutes to complete everything. it was exactly as orange advertised and painless. i beleve you have a dealer problem not an orange problem. my purchase was also tax exempt..........

 

[MessickFarmEqu]

Your dealer was mistaken, filing tax exempt does not automaticly move financing off the consumer terms. It is not uncommon for them to ask for a higher down payment, they are more picky about credit than some other companies.

As for the price bump between those two tractors, there should be a substantial one as an L-series machine is much more tractor than a CK30. It compares to the L3400/2800 and larger B-Series tractors more directly.

 

[DrewL]

Who does Kioti/Kioti dealers use (which bank) to finance buyers?

 

[mathey]

My Kioti was financed through Agricredit

 

[MotorSeven]

If that was the case, the salesman did quite a bit of damage. I have seen poor salesmanship in the auto industry, but frankly i was shocked to run into this at a rural tractor dealership. Live and learn.........

Yes, Kioti used Agricredit...i don't know who the other credit company was.

RD

 

[MotorSeven]

Also, unless i'm doing something wrong-

$16,000 @ 72 months @ 5.99 = 265.09
$20,000 @ 84 months @ 4.99 = 282.58

The difference in payments between a GrandL3830HST and
a Kioti CK30Hst under the current offer from both Company's is $17.49 a month. I etimated the $30-40 based on the higher cost of the larger implements for the GrandL.

RD

 

[Highbeam]

Bait and switch. I generally think most salesmen are sleaze and that includes marketing departments. I have been pleasantly surprized how most tractor salesmen are fine examples of how it should be.

At car lots they really irritate me.

 

[RedRocker]

I think you'll be happy with your CK30, welcome to the Kioti Klub.

 

[MotorSeven]

One more thing to ponder....

I subscribe to a credit monitoring service, it appeares that 'Bota also uses Agricredit.

Hmmm.....makes me think it was a dealer induced problem.

RD

 

[gamble77]

Here is something to consider because I know how agricredit usually works.

With Agricredit when you go to finance for 84 months the financing gets kind of complicated. As long as you stay with 72 months or under agricredit will finance up to 110% of the DEALER COST of the machine. Now, when you go to 84 months or over the Agricredit can only finance up to 90% (I believe) of what DEALER COST is. 84 months is more of a risk for Agricredit and therefore they want more $ down. So that is why they wanted you to pay more down or to change the finance length.

Thats my take, because 10% down won't cover the cost difference that Agricredit is looking for.

 

[MotorSeven]

Gamble,

Ahh...Ha, thanks for the info, it makes sense! What does not make sense is that tractor copmpany's offer that fails to notify the buyer of those MINOR details. Also the failure of the dealer/salesman to provide a reasonable explanation.

BTW, i think your Ck's are being delivered ahead of mine....that's what i get for wasting time getting an education in tractor finance 101 /forums/images/graemlins/frown.gif /forums/images/graemlins/grin.gif

It should be in during the 2nd week of OCT. The dealer in Sneedville has been a pleasure to work with!

RD