promotional rates

[Carter Bamboo]

Dealer today said they thought the 0/60 may return next month.

 

[Snead Tractor LLC]

Thanks JT for crunching those numbers. OK, it is what it is. Next ... how do we "average" this? Flat $450 for all sales? From a $11000 BX to $34000 L?
Is it merely a flat fee? Need more clarification. John's example was on a $18000 purchase. What about those higher, those lower?

Its not a flat fee, its a percentage. If the tractor is $34,000 like you quoted, that tractor will cost you 34,000 for 42 months, or $35,020 for 60 months. The true program where there is no price increase is 0% for 42 months. However, if you want to extend your payments out to 60 months you still can, but there is a price difference in the tractor. Since this came out our customers still seem to lean more toward the 0% 60 months. Plus they are told up front about the cost difference.

 

[bp fick]

Thank you. It is actually very clear and understandable. It would appear to be a choice between:
0 for 42 months
5% (give or take) for 60 months

Perhaps if simply expressed that way, instead of expressing it as the price of the tractor changing, would make more sense. I dunno.

Final question. What's the cash price? Same as 42 month price or even lower?

 

[JOHNTHOMAS]

Thank you. It is actually very clear and understandable. It would appear to be a choice between:
0 for 42 months
5% (give or take) for 60 months

Perhaps if simply expressed that way, instead of expressing it as the price of the tractor changing, would make more sense. I dunno.

Final question. What's the cash price? Same as 42 month price or even lower?

I saw on another post that it was quoted as 3% for 60 months and 0% for 42 months. That's pretty straight forward and up front. The $450 on $18000 is a bit under 3% so either one of them could be a rounded up or down number. This is really rather straight forward and has been used in the north and south for car sales for a few years. So many months financed at a certain rate with the rate increasing as the number or years financed increases. My credit union does this method of higher interest for more years and several car purchases over the past several years have been financed this way either through banks or auto manuf own loan companys. I do believe the 0% for 60 months with Kubota will reappear soon.

 

[bp fick]

JT, you are so right. This is clearly been in the public eye for a long time. Autos have been marketed this way for a long time. For example:

3% for 48
5% for 60
7% for 72

I believe the marketing people in the tractor world just need to state stuff in a similar fashion, which would hopefully be clear for everyone. NO confusion.

Saying the tractor price "changes" based on this or that, might be confusing to some, I believe. Hopefully everyone understands what the total financed price of the tractor is, if taken to full term, under the various rates. In the hypothetical examples it might be:

18000 for cash
18450 for 48
19300 for 60
21000 for 72

This gives the true purchase price. This is what it costs the consumer to purchase, given these hypothetical options. Publishing or openly disclosing the total financed cost is helpful to the consumer. I don't believe any of this need be confusing.

 

[ovrszd]

JT, you are so right. This is clearly been in the public eye for a long time. Autos have been marketed this way for a long time. For example:

3% for 48
5% for 60
7% for 72

I believe the marketing people in the tractor world just need to state stuff in a similar fashion, which would hopefully be clear for everyone. NO confusion.

Saying the tractor price "changes" based on this or that, might be confusing to some, I believe. Hopefully everyone understands what the total financed price of the tractor is, if taken to full term, under the various rates. In the hypothetical examples it might be:

18000 for cash
18450 for 48
19300 for 60
21000 for 72

This gives the true purchase price. This is what it costs the consumer to purchase, given these hypothetical options. Publishing or openly disclosing the total financed cost is helpful to the consumer. I don't believe any of this need be confusing.

Sadly, today few consumers care about any of this. Their primary concern is the amount of the monthly payment. A small portion of them even ask for the length of the terms. This is from a close friend that is a car salesman.

 

[JOHNTHOMAS]

Sadly, today few consumers care about any of this. Their primary concern is the amount of the monthly payment. A small portion of them even ask for the length of the terms. This is from a close friend that is a car salesman.

That's not just today. For several years car sales people have told/asked me how much I'd pay a month and they'd make a deal and didn't want to talk about sales price, rates or term of payments. I won't drive a vehicle till we work out money deal, I tell them I've picked vehicles I'm interested in and which one I buy is all based on the price. If they give a price in my range, then I drive the vehicle, then come back and negotiate a final deal. I've had some tell me I have to drive it or they won't negotiate, I just laugh and tell them that's nice and I'll check with them the next time I'm hunting for a vehicle and start for my car. Never had any yet that stuck to their guns and didn't negotiate without the drive.

 

[smilykubota]

I guess I got lucky on B3200HST to get the 60mt 0%.
However they require insurance on the loan until it is paid off.
Mine is like 1250 for the whole 5 year term.

Did everyone else pay this?
Is it covered by homeowner's insurance by any chance?

 

[bp fick]

I guess I got lucky on B3200HST to get the 60mt 0%.
However they require insurance on the loan until it is paid off.
Mine is like 1250 for the whole 5 year term.

Did everyone else pay this?
Is it covered by homeowner's insurance by any chance?

This insurance issue has been covered many times here. Kubota is no different than any other borrower. They want "their" tractor insured. It isn't really ours until we have it paid for, if you know what I mean.

Home Owners policies seem to be all over the map. But GENERALLY no, your basic policy isn't designed to cover a tractor of this expense. A couple of options, especially for liability sake. Get a rider on your home owners. Or, get a separate Inland Marine type policy, similar to what you'd put on your boat, motorhome, or other big ticket item. Kubota's insurance comes with some perks, however. There is a seemingly built in repair aspect on certain items that a lot of guys have benefitted from greatly.

 

[bp fick]

Dealer today said they thought the 0/60 may return next month.

Speculative. We shall see. I'm not holding my breath.

 

[JOHNTHOMAS]

This insurance issue has been covered many times here. Kubota is no different than any other borrower. They want "their" tractor insured. It isn't really ours until we have it paid for, if you know what I mean.

Home Owners policies seem to be all over the map. But GENERALLY no, your basic policy isn't designed to cover a tractor of this expense. A couple of options, especially for liability sake. Get a rider on your home owners. Or, get a separate Inland Marine type policy, similar to what you'd put on your boat, motorhome, or other big ticket item. Kubota's insurance comes with some perks, however. There is a seemingly built in repair aspect on certain items that a lot of guys have benefitted from greatly.

I have 3 Kubotas and each time I buy one my Farm Bureau agent faxes info that my homeowners covers it to the Kubota (Barlows) dealer. Now 2 of them are not located on my home property. I asked my agent last week if they are covered on homeowners if I'm transporting them out to storage units for storing. He said yes. I also asked about if I leave them out at other property for use and they're stolen off of other property. He suggested I get the inland marine policy and he said it is really cheap, to get tractor id numbers and value and he can give me a quote. Haven't done it yet but plan on doing it soon. Got quotes from Kubota insurance last week so will compare. Believe the Kubota insurance coverage will decline with the amount owed and the Inland Marine should be for a set amount of coverage like $14000 or $12000. I'd hate to end up owing like $1200 and it be stolen, then they happily send me a check for $1200 and I do believe that's the way the Kubota insurance works. Not 100% sure but believe so.

 

[bp fick]

JT I honestly do not know. That would be an extremely strange methodology. Unpopular as well.

 

[Big Bri]

That's not just today. For several years car sales people have told/asked me how much I'd pay a month and they'd make a deal and didn't want to talk about sales price, rates or term of payments. I won't drive a vehicle till we work out money deal, I tell them I've picked vehicles I'm interested in and which one I buy is all based on the price. If they give a price in my range, then I drive the vehicle, then come back and negotiate a final deal. I've had some tell me I have to drive it or they won't negotiate, I just laugh and tell them that's nice and I'll check with them the next time I'm hunting for a vehicle and start for my car. Never had any yet that stuck to their guns and didn't negotiate without the drive.

about 4 or 5 years ago a Friend of mine went to the ford dealer ship and told the sales man that he wanted a car for his wife, he told the sales man that he could pay $500 per month and wanted to know what he could put him in. Sales guy did his job and stuck him in a Taurus with a 5 year note he never asked the price, i'm sure he paid sticker with all sort of add on.

 

[Snead Tractor LLC]

The Kubota insurance is really a great deal, because no matter what, you are covered with mishaps or mistakes that may occur with your tractor. With your farm policy or home owners policy the correct coverage may not be there when you need it. Two of the most commons areas where you are not covered under your policy is while transporting and if you use the tractor on any other property other than yours, such as your neighbors.

Also, with the Kubota insurance, there's not gonna be any haggling, because its their product they have insured. Where your insurance company may not want to cover a claim. For instance, if the tractor fell off of your trailer while transporting it, and your insurance company finds a reason to not pay that claim, because they say you did not have it binded correctly,what are you going to do?

Also, another good reason to carry the Kubota insurance, is because you can get the tractor into your local dealer and have it fixed within a reasonable amout of time. With your local insurance company, don't be in a hurry, because it will be a while before you get your tractor back. We have a unit in our shop now that has been in there for 3 months now waiting for a local insurance to decide what they want to do. Thats not what a customer wants to see!!!!

 

[MessickFarmEqu]

Believe the Kubota insurance coverage will decline with the amount owed and the Inland Marine should be for a set amount of coverage like $14000 or $12000. I'd hate to end up owing like $1200 and it be stolen, then they happily send me a check for $1200 and I do believe that's the way the Kubota insurance works. Not 100% sure but believe so.

Thats not correct. The Kubota coverage is for the replacement of the tractor. Ie, your machine gets stolen with $1200 left on the payments, and Kubota gives you a new tractor.

 

[bp fick]

Thats not correct. The Kubota coverage is for the replacement of the tractor. Ie, your machine gets stolen with $1200 left on the payments, and Kubota gives you a new tractor.

That sounds better.

 

[JOHNTHOMAS]

Thats not correct. The Kubota coverage is for the replacement of the tractor. Ie, your machine gets stolen with $1200 left on the payments, and Kubota gives you a new tractor.

That does sound better. Some insurance policies, like when you buy a home and take the insurance, the insurance declines with the payments. I had always informed individuals to buy a term policy for a set amount which would stay level and was usually cheaper than that sold by the lender.

 

[JOHNTHOMAS]

The Kubota insurance is really a great deal, because no matter what, you are covered with mishaps or mistakes that may occur with your tractor. With your farm policy or home owners policy the correct coverage may not be there when you need it. Two of the most commons areas where you are not covered under your policy is while transporting and if you use the tractor on any other property other than yours, such as your neighbors.
My agent told me I would be covered.

Also, with the Kubota insurance, there's not gonna be any haggling, because its their product they have insured. Where your insurance company may not want to cover a claim. For instance, if the tractor fell off of your trailer while transporting it, and your insurance company finds a reason to not pay that claim, because they say you did not have it binded correctly,what are you going to do?
There are bad insurance companies so if you have one now, then change to a good one. Your local agent is alot like your Kubota dealer as far as servicing the customer.

Also, another good reason to carry the Kubota insurance, is because you can get the tractor into your local dealer and have it fixed within a reasonable amout of time. With your local insurance company, don't be in a hurry, because it will be a while before you get your tractor back. We have a unit in our shop now that has been in there for 3 months now waiting for a local insurance to decide what they want to do. Thats not what a customer wants to see!!!! I think you went way to far here. Your telling an actual experience but this is not the way all or probably most insurance companies work. There are Bad Apple insurance adjustors just like there are Bad Apple Kubota dealers.

I don't work (now) for any insurance company so I don't get any commission or profit from promoting any insurance. I suspect you do when the customer takes the Kubota insurance so I'm not to sure your not a bit biased for the Kubota insurance.

 

[MessickFarmEqu]

I don't work (now) for any insurance company so I don't get any commission or profit from promoting any insurance. I suspect you do when the customer takes the Kubota insurance so I'm not to sure your not a bit biased for the Kubota insurance.

We do... bit its a totally insignifcant amount. Not enough to make us push it for sure. In all honesty I think its a great coverage for the money, but I am hesitant to give it a hard sell because its one of those things that people are always skeptical about (rightly). I feel like one of those car dealers that wants to change you $1000 for some undercoating... its just not my style.

 

[Snead Tractor LLC]

I don't work (now) for any insurance company so I don't get any commission or profit from promoting any insurance. I suspect you do when the customer takes the Kubota insurance so I'm not to sure your not a bit biased for the Kubota insurance.

No, not bias, just stating the facts. Like Messick said the amount is an insignifcant amount. Our customers want us to look out for there best interest, and if they are not sure of there coverage, we are going to recommend Kubota's insurance. If a customer wants to carry there own insurance, that is totally fine with us. Just make sure you are 100% covered with your local company.