Kubota still offering 0 percent financing

   / Kubota still offering 0 percent financing #2  
...and rebates / cash back on certain models.

Zero percent loans on cars, trucks and tractors were big rip offs. The price was increased on the product to cover the finance charges.

We as a result today have 100,000 dollar trucks and cars.

The last figures I saw showed astronomical monthly payments for vehicles. A lot also we’re being financed for 72 months.

“The average monthly car payment was $644 for a new vehicle and $488 for used vehicles in the U.S. during the fourth quarter of 2021, according to Experian data. The average lease payment was $531 a month in the same period.”
 
   / Kubota still offering 0 percent financing #4  
Not germane to my comment at all. You make your best deal on a Kubota tractor and then pursue the rebate cash back option / zero percent finance.


“How Do 0% Car Deals Work?”

“Since you’re not giving the bank any incentive to lend you money, you might be wondering just how it’s possible to get a 0% car deal? The answer comes down to this: It usually isn’t the bank doing the lending but rather the automaker itself. It’s called captive lending.

That’s why you often see Ford Credit, Honda Financial Services, GM Financial, and others offering to finance a vehicle at the dealership.

The way an automaker makes money with a 0% deal is simple: The money does not get made on financing but rather the car itself. Dealers will try to sell you extras to make up the difference, including extended warranties for your vehicle.

Also, the cost of financing gets built into the price of the car. If you obtain a 0% financing car deal, you likely will not get any other incentives on top of that. And that means the automaker still pockets a nice profit on the sale of the car despite not making any profit on the financing.

If you have the cash to buy a car outright, you might be better off taking advantage of bonus cash incentives rather than 0% financing.”
 
   / Kubota still offering 0 percent financing
  • Thread Starter
#5  
Again, what do car deals have to do with Kubota tractor deals?... NOTHING.
2 entirely different things. Far as cars go, not in the market for one anyway and when I do buy a car or truck, I only buy off lease and pay cash.
 
   / Kubota still offering 0 percent financing #7  
...and rebates / cash back on certain models.

"Kubota still offering 0 percent financing"​

Yes, and they probably always will.

Since retirement a few years ago I've been studying other financial systems. Japan's system of debt and payment is set up much differently from the US. What works for other countries and for their companies is built around their way of looking at things - which then affects their cental banking and their politics. Ours too, of course.

But it doesn't work to measure one system by the standards of another, just figure out how it affects your tractor purchase. That's all that matters.
rScotty
 
   / Kubota still offering 0 percent financing #8  

“How Do 0% Car Deals Work?”

“Since you’re not giving the bank any incentive to lend you money, you might be wondering just how it’s possible to get a 0% car deal? The answer comes down to this: It usually isn’t the bank doing the lending but rather the automaker itself. It’s called captive lending.

That’s why you often see Ford Credit, Honda Financial Services, GM Financial, and others offering to finance a vehicle at the dealership.

The way an automaker makes money with a 0% deal is simple: The money does not get made on financing but rather the car itself. Dealers will try to sell you extras to make up the difference, including extended warranties for your vehicle.

Also, the cost of financing gets built into the price of the car. If you obtain a 0% financing car deal, you likely will not get any other incentives on top of that. And that means the automaker still pockets a nice profit on the sale of the car despite not making any profit on the financing.

If you have the cash to buy a car outright, you might be better off taking advantage of bonus cash incentives rather than 0% financing.”
Sorry, but this was clearly written by someone who has never worked in auto finance.

0% is mostly a way for lenders, including captives, to appease regulators and make more money available to lend to others. People outside the business think in terms of one deal. For every 0% deal, there is someone (or 9) with less than perfect credit on whom they make bank.

Most of the captives sell your loan to banks and keep the bump (up to 2% they can wiggle your rate). The dealer already knows the options he has from 3-5 lenders before you sign.

Except the part about many lenders, all personal loans work like this. The only way people with bad credit are able to get any loans is that lenders loan money to people with great credit. Often, those people don't need a loan, so 0% gets them to finance which helps the risk portfolio and the regulators stay happy.
 
   / Kubota still offering 0 percent financing #9  
Not germane to my comment at all. You make your best deal on a Kubota tractor and then pursue the rebate cash back option / zero percent finance.
0 percent Captive lending be it from GM, Ford, Chrysler, Toyota, Harley, Kubota, John Deere, Mahindra, etc for a motorcycle, car, truck or tractor is all the same.
 
   / Kubota still offering 0 percent financing #10  
....Still offering 0% financing and rebates / cash back on certain models....

Yes they are. I just made a deal for a BX23at Mason Tractor Cumming Georgia.
 
 
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