LS or Kubota

[jyoutz]

This is the part of buying a tractor nobody seems to understand and admittedly it took me too long to figure it out myself. There is no such thing as zero percent financing. When you figure out what the cash price is versus the finance price that's when you understand how much interest the manufacturer is really charging you to finance through them versus an outside lender. You are exactly right, at the end of the day it is exactly the same in most cases. You didn't really save any money buying the value brand other then getting more standard features. Not saying that isn't worth anything because it is but they come out about the same.

There is no big difference in cash prices. I was offered $500 less for cash purchase. It’s no difference to dealers. They get paid either by cash or from Kubota credit. 6 years no interest is far better than a $500 discount.

 

[Cahaba Valley Farm]

There is no big difference in cash prices. I was offered $500 less for cash purchase. It’s no difference to dealers. They get paid either by cash or from Kubota credit. 6 years no interest is far better than a $500 discount.

Yes I'm aware of the $500 cash discount shenanigans that the dealers try to deceive customers with But what I was referring to was the ACH discount.

 

[Cahaba Valley Farm]

I don’t like to finance, I buy in cash but a lot of people are not in a position to do that. With that said, 0% is the same as buying in cash! If you can finance for 0%(which is hard to find right now) then why wait to same the money. Makes no sense! I don’t agree with saving up to purchase in this case.

There is no such thing as zero percent.

 

[Cahaba Valley Farm]

In spite of the fact that Ginop still has the big New Holland sign out front, they do not sell New Holland any more. I asked, why the sign then? They said it belongs to New Holland, and they have so far refused to remove it, and Ginop doesn't want to shoulder the cost of removal. I am disappointed, as I have a New Holland TC30, and now the distance to the nearest new Holland dealer has tripled.

Did they say why they dropped them?

 

[Mud2Money]

When I priced tractors out after the new year. The kioti current offers were the 0 percent and then cash back up to 6500 if you went regular finance/cash option. If you are like myself and pay loans off in 2 years or less you can save a few grand going with cash option.

 

[Jstpssng]

Well willy willy, the extra gears are very useful when you are trying to get a certain ground speed, at engine "pto" speed.

SR

I’d never heard of the HST plus but it sure sounds handy for plowing, when you are going forward under load but backing up empty.

 

[rScotty]

I’d never heard of the HST plus but it sure sounds handy for plowing, when you are going forward under load but backing up empty.

It's also handy when pulling a load uphill or pushing into a pile. It's darn near instantaneous, fingertip, and the auto-throttle simultaneously does its trick of compensating without having to move your foot on the treadle. So what it feels like is that someone just leaned down and gave your tractor a bunch more HP. What actually happened is it shifted down half a gear - but so smoothly you hardly noticed.
rScotty

 

[jrsavoie]

My LS MT225S was 4300 cheaper than Kubota B2601. I prefer dual pedals over the treddle peddle also.

There isn't much I like about my wife's Kubota LX2610.
I'll never buy another Kubota.

Of course in my present physical condition, I don't think I will be buying anything.

 

[jrsavoie]

You don't see them for sale because we like them so much, we hang onto them.

If you are financing the LS at 5% for 84 months, at the end, you will have paid $43k. Basically the exact same price as the Kubota at 0%.

From a financial standpoint, (no, I'm not a financial planner), and with the financial mess that is the global economy right now (can you say recession right around the corner?) I would recommend saving your monthly payments until you can pay cash for the tractor. LS gave me a $2k discount for paying cash, further increasing the difference in price with the Kubota. Kubota offered no cash discount.

If the bottom of the economy does fall out in the next 6-18 months, like it's looking like it very well may, you may find a lot of dealers happy to make a sweeter deal. As my dad always says, buy low, sell high. Right now, prices are at all time highs.

But, if you feel you have to have it now, if it's Kubota at 0% versus LS at 4-5%, the final dollar amount is going to be within a grand or so.

If I were in that situation, I probably would have gone with Kubota because of the good, established dealer in my area.

Not long ago we were making 5% on our money. So we went 0%>. It's kind of nice to pay something off over time and still have your original and possibly more.

 

[rScotty]

There is no such thing as zero percent.

Well, of course there is such a thing as zero percent. It's not common in the USA, but Japan has been right at zero percent on their domestic bank loans for almost 20 years now. Their banks also pay close to zero percent interest. So they have a few decades of experience with low interest rates that we don't.

The Japanese inflation runs less than 2% per year and often less than 1%. This year is projected to be an all time high at about 2%, but bonds for the following years - 2023 & 2024 are already being traded at under 1%. The bond market is an interesting hobby.

In another difference worth pondering, in the USA we have roughly doubled the amount that our population is carrying as a credit or debt load in the last decade - but Japan's per capita credit is even higher than ours.

Just pointing out that different national economies work in different fashions. And Kubota is a Japanese company. So what we have learned through the experience in our own econony doesn't necessarily apply. Not completely. We have to pick and choose the pieces that do and don't work the same.
rScotty