New Kubota Financing Requirement, Looks Like an Attempt to Force Buyer To Buy KTAC Insurance

[ultrarunner]

Odd the form is silent on deductible?

Insurance even when spelled out can still be subject to interpretation… guess why this is the reason for courts?

Friend traded in a tractor on a new one and all was good… about a week later is contacted his 10k deductible is too high and he needs to have a 2k deductible and replied this is not the deal.

Buyer dug in and said if you change the terms it’s time to unwind the deal and says he is returning the new tractor and will be picking up his trade in which had already been sold…

It all got worked out and he did not change his farm deductible.

 

[5030]

Intresting, never had Kubota insurance (I have a commercial policy that covers ALL my tractors and implements and Kubota has never questioned it.

 

[bdhsfz6]

If I finance a tractor using Kubota Financing, my dealer requires I have Kubota insurance. I'm not sure if it's a dealer policy or a Kubota requirement, but it's been this way for many years.

I get around this by borrowing elsewhere and using my farm insurance.

 

[5030]

Never had that issue and I've purchased many tractors and implements from my dealer. Think I'm on my 12th tractor presently.

 

[WM75Guy]

If I finance a tractor using Kubota Financing, my dealer requires I have Kubota insurance. I'm not sure if it's a dealer policy or a Kubota requirement, but it's been this way for many years.

I get around this by borrowing elsewhere and using my farm insurance.

That's the dealer requiring it, not Kubota. He gets a commission by selling the insurance. Kubota does require insurance, but I can use my Farm Bureau policy. The Kubota form was just a new hoop to jump thru for using Kubota financing.

 

[5030]

Exactly.. The dealer gets a 'kickback' for coercing you into buying Kubota insurance and that 'kickback' offsets his P&L on the sale. My dealer has never pushed it ever. I call it 'creative financing'...

 

[Wormwood]

I'm not sure how everyone fares with insurance but I have difficulty finding insurance as good as Kubota's for the same price or better... At this point, I'm considering not running insurance on some of the equipment because of the cost to insure.

I'm tired of hearing it's because of where you live, there's always going to be some sort of natural disaster no matter your locale. I think it's just a boogie man for the insurance industry.

Wormwood