Interest Free Financing

[mx842]

In 2014 when I bought a Kubota 23 hp mower, I was offered free interest for five years, but I had to buy their insurance at 800 dollars per year times 5 years which would be 4000 dollars. I paid cash! My State Farm policy already covered it.

I too had to buy their insurance, but I don't think it was that much. It seems to me it was around $2500.00 for the 5 years. Shortly after I got my tractor, I had problems with the quick hitch and also discovered some scratches on my hood. The insurance put everything back like new and the bill was right at $7000.00 for what they did. That insurance is a good thing because what warranty doesn't cover, they pick up.

 

[mx842]

When I bought a Kubota a month or so ago I got a $3500 discount for cash instead of the 0% interest. It's hard to call a $3500 upcharge "zero interest". Car dealers are the opposite - they practically beg you to get a loan and offer $500 or more off it you finance.

Yes, they do because when they sell the loan they will make more off selling the loan than they make off the car/truck sale.

 

[Will_C]

I bought a Kubota in 2009. I was quoted the same price for cash or 0% financing. The same for my RTV in 2013. When I bought my L3560 in 2018, it was 0% or a $700 rebate. As I was only planning to finance $14,000, I paid cash.
I see now that Kubota offers 0% or a hefty discount for cash.