Two (2) less payments to Kubota Credit Corp.

[JOHNTHOMAS]

The kubota finance contract says you are not allowed to sell the unit and if you do you are in default on the loan. I guess what the do not know wont hurt them!

I had the money to pay off the balance of the loan if it had ever been declared due. I guess as long as they get their money they don't care. I've had 15 loan contracts with KCC and currently still have two open on my RTV1140 and the B2620. I've never missed a payment or even been slow on one. The payments are automatically deducted from my checking account. Good credit has great value and great credit is valuable to me.

 

[JOHNTHOMAS]

I think the "sane" comparison is buy now or finance now. With cash purchase you normally get another $500-2500 off the price of the tractor (it was $1000 and $1500 for my two purchases) and there is no KTAC requirement. If you'd get KTAC anyhow, as most do, it really comes down to that initial discount for cash. Or from the other angle, the upcharge for buying on credit.

It's not strictly 0% if they charge you more for the tractor than the cash price would be! As an example, the upcharge on my L3200 would have equated to about 7.5% interest.

In the end, do what you have to do. I won't criticize anyone for buying and enjoying tractors. Heck, I am borderline insane with my chainsaw collection. I'm the only guy in the area that can make a case why at least 4 different chainsaws are needed for any single tree job.....

A few years ago Kubota had "true" 0% interest. All dealers pay the same for the new machines, large and small dealers. Kubota owns almost all of the new machines that are left/displayed on Kubota dealers lots. When a price to buy was given the dealer got the same amount to keep for his/her pockets whether it was a cash or charge deal. Charge deals were usually easier transactions for the dealer, just enter the info in the computer and approval/denial was printed out and delivery or pick up scheduled.
Things change. A couple or so years ago Kubota started offering rebates/cash discounts. There was and probably still is a $700 discount/rebate on a BX. BX1800 or BX25 so $700 discount on a $9000 to $18000 machine. Same rebate/discount on $9000 and $18000 for 60 months is quite a difference in the "true" interest rate. So, the 0% with 0 down for 60 months is no longer a "true" 0% but if one owes any other debts that carry interest and they have cash the interest savings/cost can also have a financial impact.
If one wants to know the "true" interest rate for the current method of financing with KCC then pick the machine, get your actual purchase price and the amount of rebate on that machine and go here and plug in the numbers. The rate will be different on every different priced machine. Amortization Schedule Calculator -- Bankrate.com
Will a Kubota dealer give a discount if you pay cash? If he/she does then they are not being financially wise since the "cash discount" is coming out of their pocket dollar for dollar with no actual benefit to them. These "ain't" cars/trucks and the distribution/floor/business operation plans are not the same. Actually, sometimes in the past car/truck dealers made more money in their hands if customers financed their purchase instead of paying cash because the lenders would "kick back" money to the dealer for getting them the loan and that is probably still happening.
At flea markets, yard sales and neighbor purchases cash is king but most of the business world operates on financing and cash can be a nuisance. You ever had someone give you $180,000 cash on a Friday afternoon after all the banks are closed? What you going to do with it till Monday when the banks open? Some businesses have night deposit available to them but not many individuals do any more or don't know about it. Cash is OK when it's a few hundred or maybe even a couple thousand dollars but the larger the number the more I want it transferred electronically, just sayen.

 

[Gary Fowler]

The only thing I ever got truly 0% financing was on my LS tractor. It was the same price cash as the 24 month with 0 interest. Not much time on it but I was ready to pay cash for it and the dealer told me about the short term loan. So why not use their money for 24 months for free. Most of the 60 month deals aren't really deals and the interest is rolled into the price of the tractor.

I don't think I will be in the market for anything in the near future anyway, got a new SUV for the wife, her old one still has less than 100K on it and I have been driving it to save building the miles on my 2007 truck that has less than 50K on it so we are vehicle poor right now. Got 2 Zero turn mowers and 2 tractors so wont be needing any thing there for a while either. Also got 200 gallons of fuel in storage for the tractors so that is also a none issue.
If there was still some gasoline around that would stay fresh for years, I would stock up on that too while it is only $3.29 per gallon but alas, I have to buy it 10 gallons at a time for my mowers. I can almost see in the future a payment plan at gas stations for filling up your vehicle.

 

[rbarker]

The kubota finance contract says you are not allowed to sell the unit and if you do you are in default on the loan. I guess what the do not know wont hurt them!

In this case I think it's what they don't know didn't hurt John. I'm sure I sound like a nagging old know it all but I think it's our responsibility to notify Kubota that we are selling a tractor that they have a lien on. Not that I think John had any intention to cheat them but if something happened to him before the payments were made then what would happen? It all worked out in the end but it's not something I would recommend people do.

Sent from my iPad using TractorByNet

 

[JOHNTHOMAS]

In this case I think it's what they don't know didn't hurt John. I'm sure I sound like a nagging old know it all but I think it's our responsibility to notify Kubota that we are selling a tractor that they have a lien on. Not that I think John had any intention to cheat them but if something happened to him before the payments were made then what would happen? It all worked out in the end but it's not something I would recommend people do.

Sent from my iPad using TractorByNet

Not that I think John had any intention to cheat them but if something happened to him before the payments were made then what would happen? Johns wife would have paid the debt. If I had it to do over, I'd do it over just like I did. KCC loaned the money to get me to buy the tractor. I did and I paid for it just like I said I would on time every time, actually I did it with them 15 times, 15 new Kubotas plus 2 used ones that KCC didn't loan me money for. Never read the contracts so not sure MY contract said I was obligated to pay it off if sold but probably did. Actually this wasn't the first Kubota I sold and finished paying monthly till the debt was paid off and had sold the machine some time before. I may do it again some day and if KCC says pay up, I will but not volunteering to do so.:dance1:

 

[grm61]

Not that I think John had any intention to cheat them but if something happened to him before the payments were made then what would happen? Johns wife would have paid the debt. If I had it to do over, I'd do it over just like I did. KCC loaned the money to get me to buy the tractor. I did and I paid for it just like I said I would on time every time, actually I did it with them 15 times, 15 new Kubotas plus 2 used ones that KCC didn't loan me money for. Never read the contracts so not sure MY contract said I was obligated to pay it off if sold but probably did. Actually this wasn't the first Kubota I sold and finished paying monthly till the debt was paid off and had sold the machine some time before. I may do it again some day and if KCC says pay up, I will but not volunteering to do so.:dance1:

Another reason to buy new!
You can't legally sell something that has a lien on it or is being held as collateral without paying it off at the time of ownership change.
Did the buyer know that you did not legally own the tractor you sold him?
Lucky for him you weren't trying to steal.

 

[JOHNTHOMAS]

Another reason to buy new!
You can't legally sell something that has a lien on it or is being held as collateral without paying it off at the time of ownership change.
Not true. You can sell anything with a Lien on it. A lien is just an interest (usually recorded at the courthouse) against something like a car, property and even a tractor.

Did the buyer know that you did not legally own the tractor you sold him?
Lucky for him you weren't trying to steal.

I did own the tractor but KCC had a legal claim on the ownership interest and had recorded their claim at Frankfort.
Lots of people believe what your saying and for 6 years as a College Professor I had to teach the difference between tales and actual law regarding ownership interests, liens and clear titles.
People buy property every day that do not have "clear" title. If the "cloud" on the title is discovered then lenders will not loan money, usually, against that property since it will put them in second place to be paid if a sale is forced to pay off the liens. Some times they do if the property value is much greater than the original or preceding liens. Some property has many liens against it and actually happens often. The owner of title can always sell their interest. If the seller sells in order to defraud the buyer by knowing that there are other legal claims and the property is foreclosed on then there is a criminal as well as civil violation of the law. Intent to fraud is the key.
For more info concerning liens lien legal definition of lien
Clearly I owned the tractor, had the right to sell my interest and KCC filed a notice that they had an interest sub to my interest and I had no intent to defraud the buyer out of those last few payments.
Some state laws vary and I'm only concerned about Kys.

 

[Tomtint]

A friend of mine bought a BX25 last year. He financed about 22k @0% for 60 mos with extra attachments, tax etc. he sold it on CL about a week or so ago. Buyer had cash (18,900) and I'm almost certain the note was not paid off when the tractor left. I think he was planning on KCC being his 0% personal loan for the next 48months. I don't agree with this thought process but I'm sure it happens more than some people realize. Many things could happen, especially to the new owner if the original one stops making payments for any reason. Imagine buyer #2 bringing a tractor in for service and the VIN is run, KCC would see a tractor that was held as collateral that was delinquent. Next thing you know it is reposed and the new "owner" is left holding the bag....just a bad situation all the way around.

 

[JOHNTHOMAS]

A friend of mine bought a BX25 last year. He financed about 22k @0% for 60 mos with extra attachments, tax etc. he sold it on CL about a week or so ago. Buyer had cash (18,900) and I'm almost certain the note was not paid off when the tractor left. I think he was planning on KCC being his 0% personal loan for the next 48months. I don't agree with this thought process but I'm sure it happens more than some people realize. Many things could happen, especially to the new owner if the original one stops making payments for any reason. Imagine buyer #2 bringing a tractor in for service and the VIN is run, KCC COULD IF THEY HAVE THIS PROCESS IMPLEMENTED AT KUBOTA DEALERSHIPS BUT WOULDN'T HAPPEN IF TAKEN TO NON KUBOTA AUTHORIZED DEALERwould see a tractor that was held as collateral that was delinquent. Next thing you know it is reposed and the new "owner" is left holding the bag....just a bad situation all the way around.

Not disagreeing with anyone that this can be bad for a buyer that buys from a scoundrel or even some changes in life situations (death, divorce, male menopause, mid life crisis, bad money manager, person of no integrity). First the loan is made to an individual with the tractor as collateral to be repoed if the debt isn't paid. There are people in civil court every day lined up trying to collect a debt (like money owed from non paying renters:thumbdown and it is very difficult even after a Judge gives a ruling that the debtor is to pay but very little enforcement or even way to enforce. Police have other things of more importance than to help someone try and collect a debt or force an eviction.
I usually always buy new and if I bought a used tractor I'd do my due diligence to try and ensure there are no legitimate liens against it or I'd keep out the amount of the lien and get assurances from the lien holder that there will be no issues in getting a lien release with a certain dollar amount. Liens need to be recorded to be enforceable but that's not always 100% and like tractors the recording isn't in the county of purchase but at the state capital. Bottom line, never buy a used tractor unless it's from your Dad, if he's an honest man and won't get mad at you and stop making the payments. This is a Big Boy world and if you don't know what your doing you can end up paying several times for an education.

 

[coobie]

Not disagreeing with anyone that this can be bad for a buyer that buys from a scoundrel or even some changes in life situations (death, divorce, male menopause, mid life crisis, bad money manager, person of no integrity). First the loan is made to an individual with the tractor as collateral to be repoed if the debt isn't paid. There are people in civil court every day lined up trying to collect a debt (like money owed from non paying renters:thumbdown and it is very difficult even after a Judge gives a ruling that the debtor is to pay but very little enforcement or even way to enforce. Police have other things of more importance than to help someone try and collect a debt or force an eviction.
I usually always buy new and if I bought a used tractor I'd do my due diligence to try and ensure there are no legitimate liens against it or I'd keep out the amount of the lien and get assurances from the lien holder that there will be no issues in getting a lien release with a certain dollar amount. Liens need to be recorded to be enforceable but that's not always 100% and like tractors the recording isn't in the county of purchase but at the state capital. Bottom line, never buy a used tractor unless it's from your Dad, if he's an honest man and won't get mad at you and stop making the payments. This is a Big Boy world and if you don't know what your doing you can end up paying several times for an education.

The buyer should have his local Kubota dealer run the serial numbers to see if there is a lien on the tractor.This is what I do and suggest everyone else do the same to be sure your NOT getting scammed or stuck with a tractor that has a lien on it.