Kubota Insurance Cost

[PSDStu]

Does anyone know the formula KTAC uses for computing the cost of the insurance when financing a tractor?

I have heard it's .001x loan balance, divided by length of loan in months?

Any idea?

Thanks

 

[scdeerslayer]

$1 per $1,000 financed per month. Essentially a 1.2% interest. You will get a refund if you pay the loan early or make an extra payment (according to my dealer anyway).

 

[MessickFarmEqu]

Its $1.30 per thousand.

 

[PSDStu]

So if I finance $44,800 for 60 months I figure the insurance would be around $3494.

Does that look about right?

 

[moship]

According to what a dealer told me 60 minutes ago, the $1.30 per $1,000 is not on loan balance or the amount financed. It's based on the purchase price.

 

[moship]

So if I finance $44,800 for 60 months I figure the insurance would be around $3494.

Does that look about right?

No, it doesn't look right. 44,800x1.35/1,000 = $60.48 or $725.76/yr or $3,628.80 for 60 months.


This seems like very expensive insurance.

Added in edit: When I first read your post misread $3494 as $34.94. In either case you're close for over the life of the loan.

 

[RichM752]

I was quoted $13.60 per $1000 of purchase price. $782 per year for $57,500 tractor.

 

[General Lee]

I pay 293.00 a year now that my tractor is paid off. Thats KTAC

 

[whirly]

I bought a used MX5100 for $26K cash. Kubota insurance is $407/year. Right at what RichM said ... $1.30/mo or $15.60/yr per $1K.

 

[MadMax31]

I was told its based off purchased price, not amount financed. So if I added a Curtis Cab and a RFM, that would be factored into Ins cost. It's annoying but I understand it. Other colors make you purchase a loan protection insurance at around $300. You default, the loan is still satisfied.

My gripe with the KTAC is, they specify coverage so that most homeowners wont cover it. I emailed the details to my current homeowners and the response I got was "How deep are your pockets".

The extra $27 a month in my case, pushes the payment above what I want to spend.