Pulled the trigger!

[Bing187]

Sooo.....After agonizing for the better part of a year, looking at Craigslist til I was just about blind, looking at used machines, comparing .......

I filled out the credit ap, and my semi-local Kubota dealer will be delivering a new B3300su to my house a week from Thursday.

I'm like a little kid. Very excited. Soo many things I've wanted to do, but needed a machine.

Kubota financing made it tough to walk away....0% for 7 years??? Uhhh....ok!!

Wondering if anyone here has same tractor, and if they might have any advice or input. Only accesory I bought was B76 backhoe, came with LA504 loader. Toying with adding quick connect to bucket, and forks. Seem like big $, but would get well used.

Mike

 

[doall]

congrats. Mike that's a nice machine.

 

[BigD23]

Welcome to club Orange!:thumbsup: Looking forward to the pics.

Don

 

[OrangeRidge]

0% for 7 years ......... there's either a **** of a lot of profit , or the
Company is trading in the red .

 

[johnrex62]

Oh, sure they loose a lttle money on each tractor sold, but they make it up in volume. :laughing:

 

[TripleR]

Congratulations on your new tractor, I really like the B Series even though I have never owned one, nice little machines.:thumbsup:

 

[JDGreenGrass]

Congrats.!!

7 years 0%.....Wicked.!!

 

[crazyal]

I saw an ad on TV from NH offering both 72 and 84 months at 0% as well. I figured the others would also be matching that offer.

Congrats on the new tractor but is doesn't count until you post a picture once you get it.

 

[ecoslik]

0% for 7 years ......... there's either a **** of a lot of profit , or the
Company is trading in the red .

Since this a comment that is often posted, I will copy the following into a new thread:

If you figure that typical interest would be compounded annually and the annual rate might be in the range of 7%-10% ... the comparable effect if they charged interest but lowered the price would be a price reduction of about 13%-16%. The volume of this promotional/financing activity represents less than 1% of Kubota's annual operating expenses. Unfortunately, the money that makes it possible to offer 0% comes from a different source than what it would take to make it possible to just lower the price at the dealership; besides, it is the specific goal of Japanese monetary policy to keep prices stable (not discounted).

Manufacturers of heavy equipment typically have 10%-30% (depending on competition and inflationary/deflationary pressures) margin on sales (operating "profit" that is pretax, pre-amortization, pre-interest). In looking at Kubota's financial filings for 2010 that analyze 2009, there was approximately 20% and 30% decline in demand for equipment under 40HP and over 40HP, respectively.

Kubota had approximately a 7.5% operating profit. This rate includes the cost of the "zero interest" promotion. In my judgment, there is neither high profit built into the tractor nor is there a relatively high cost of this promotion.

Disclaimers:
(1.) I only spent a few minutes looking over a 100 page report, so I may have made mistakes or not have been thorough.
(2.) Kubota shareholders are dominated by Japanese banks (at least 30% of total ownership), and the Japanese government still has large ownership stakes in these banks as a result of Japan's own bank failure and prolonged recovery of the 1990's. This promotional/financing activity is wholly owned activity of Kubota, but I suspect that the availability of such cheap debt is a pass-through of the nearly 0% interest that is and has been available to/from the shareholders/government for nearly 14 years of their economic recovery.

 

[ITHINKICAN]

...my semi-local Kubota dealer will be delivering a new B3300su to my house a week from Thursday.

I'm like a little kid. Very excited. Soo many things I've wanted to do, but needed a machine.

Kubota financing made it tough to walk away....0% for 7 years??? Uhhh....ok!!

Wondering if anyone here has same tractor, and if they might have any advice or input. Only accesory I bought was B76 backhoe, came with LA504 loader. Toying with adding quick connect to bucket, and forks. Seem like big $, but would get well used.

Mike

Mike, Congratulations. I bought my first tractor recently too. I was like a little kid and I was very excited too - truth be told - I still feel like a little kid and have a tough time working my day job - all I can think about is my orange toy!! It is a total blast. I hope your tractor brings you an equal amount of happiness/enjoyment!

Good luck! Enjoy!! :thumbsup:

Don't forget to post pics as soon as possible...