Financing Watch that financing!

[MessickFarmEqu]

I know this has been posted before, but Kubota's financing expires July 12th. They choose this date because Deere and NH both expire just a few days before and its they choose based upon what the other companies do. Well, New Hollands rates are now set 0-36 though 7/31 and then 0-12 there after. Any higher terms all of interest attached. Its a good bet that 0-36 from Kubota may go away all together.

 

[Junkman]

I know in the auto industry that the dealers participate in the free financing by picking up some of the "actual" finance costs. These costs reduce their actual profits and if you don't finance, they are willing to cut you a better deal on the price. In the tractor industry, do the dealerships also pick up a part of these true costs of finance when they offer 0 percent financing? Might this be part of the reason that so many tractor dealers aren't willing to deal on new tractors?

 

[MessickFarmEqu]

Yes, dealer partisipation is common but its not always the case. It does make pricing difficult. We offer a price well below MSRP and a partisipation charge can take a huge chunk out of the margin. One ZTR company that we deal with charges us 25% of our margin to do the financing.