Cash vs financing
- Thread starter Pburchett
- Start date
My dealer told me that in the recent past there have been discounts for cash, but that this wasn't the case currently. Also that Kubota changes incentives quarterly, and I purchased this current quarter. Where are you seeing this price difference?
BAP
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2012 Kubota 2920, 60MMM, FEL, BH65 48" Bush Hog, 60"Backblade, B2782B Snowblower
Rarely is 0% financing "Free" financing. They usually make up for it one way or the other. Either financing charges or increase in the sales price over cash.
85Hokie
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BX-25D ,PTB. Under Armor, '90&'92-B7100HST's, '06 BX1850 FEL
This is true!
Kubota is making their money - it does not matter how you slice it up, buttttttt on the flip side - the "How much for cash price" can often knock off 10% on most items, I have seen few that got anything like that @ Kubota. I was offered $500 less when I purchase mine.
At 0% interest - there is NO incentive to pay off the loan......none! Yes it is a pain in the butt to cough up 350+ a month on a new machine, but there is no reason to pay off early, no reason for a down payment!
If you buy a 20K tractor at 0% - your payments (forget tax and ins for the moment) will be about $333 a month for 60 months.......
Now if you could get that $500 off, and still had to borrow that money - O lets say a whopping 1%
.......you guessed it .......that total amount of monies you paid back .....20K almost on the nose! 18K at %4.25 gets you ......20k at the end also...........
UNLESS you have money growing on trees - the 0% is the way to go - pure and simple, UNLESS you have a hellva friend that owns the Kubota dealership!
Nonsense. It is ALWAYS better to just purchase outright if you have saved your pennies and can afford it. Financing should be your last choice although it is easier if you have a commercial interest to fund it.
Dieselbob
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BX 2230, LA211 loader, 60†MMM, 2†wheel spacers, grille guard, gauges, bucket e
NOBODY hates making payments any more than I do, but from a purely greed standpoint, I think the SMARTEST thing to do if you had the full purchase price would be to put that money in some sort of interest bearing account, take the 0% financing, and make the payments. Why NOT get the interest on that money for yourself? If the money is in something that you cannot access monthly, take out six months or so worth of payments at a time. Of course this is predicated on no discount for paying cash.
This site shows current cash and financing rebates:http://www.kubota.com/Finance/finance-customer-rebates.aspx
If you have the cash then yes it's best just to buy it with cash, but if you don't, it's almost certainly going to cost less at the end to take the lesser rebate at 0% than to take the higher rebate at whatever rate you can get at a bank. This is ignoring the KTAC insurance costs though, which is basically 1.2%. If you can get a good loan with the bank and not have to pay more for insurance or very little then that could work out better.
If you have the cash then yes it's best just to buy it with cash, but if you don't, it's almost certainly going to cost less at the end to take the lesser rebate at 0% than to take the higher rebate at whatever rate you can get at a bank. This is ignoring the KTAC insurance costs though, which is basically 1.2%. If you can get a good loan with the bank and not have to pay more for insurance or very little then that could work out better.
85Hokie
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BX-25D ,PTB. Under Armor, '90&'92-B7100HST's, '06 BX1850 FEL
"If you have the cash then yes it's best just to buy it with cash, "
I disagree !!!
Those who buy lots of big $$$$ items, rarely pay cash IF THEY can get a low, low rate .......or in this case a ZERO % rate.....
WHY?
CASH value is what the item is worth that day - IN today's dollars.......
NOW lets look at something, in 5 years time, the so called American dollar will be worth a little lesssss than it is today! Let's say it goes down a penny a year, so a year from now the DOLLAR is only worth 99 cents........ 2 years, 98 cents ....etc......so add it all up. year 5 is worth 95 cents! AND you will be paying with a dollar from old that is costing you less every year!
SO paying cash day 1 will actually cost you more!!!!
Most big farmers and businessmen would take the 0% simply because they could take it off their taxes over the 5 year period, and MORE importantly - the money that they WOULD put down on a new tractor, would be used for something ELSE that would NOT be a ZERO % loan.
Someone would be better off to place the large sum in a bank - draw 1% and after 5 years , they would still have a few dollars left! After the loan was paid off!
I disagree !!!
Those who buy lots of big $$$$ items, rarely pay cash IF THEY can get a low, low rate .......or in this case a ZERO % rate.....
WHY?
CASH value is what the item is worth that day - IN today's dollars.......
NOW lets look at something, in 5 years time, the so called American dollar will be worth a little lesssss than it is today! Let's say it goes down a penny a year, so a year from now the DOLLAR is only worth 99 cents........ 2 years, 98 cents ....etc......so add it all up. year 5 is worth 95 cents! AND you will be paying with a dollar from old that is costing you less every year!
SO paying cash day 1 will actually cost you more!!!!
Most big farmers and businessmen would take the 0% simply because they could take it off their taxes over the 5 year period, and MORE importantly - the money that they WOULD put down on a new tractor, would be used for something ELSE that would NOT be a ZERO % loan.
Someone would be better off to place the large sum in a bank - draw 1% and after 5 years , they would still have a few dollars left! After the loan was paid off!
85Hokie
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Staff member
Lifetime Member
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BX-25D ,PTB. Under Armor, '90&'92-B7100HST's, '06 BX1850 FEL
It seems to always be there in some sort of way - I rarely have seen it NOT be available - IF you are talking the duration of the loan, typically 5 years.
http://www.kubota.com/Finance/finance-promo.aspx
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I pay cash.
I was offered a better deal by paying cash, I did not have to pay for the Kubota insurance (my homeowners covers a crash or loss or liability, just not repairs).
I also hate writing a check every month. I was able to write off the tractor against my taxes in the first year instead of in drips and drabs while I gained equity. This year, I get the energy credit for new windows.....
I was offered a better deal by paying cash, I did not have to pay for the Kubota insurance (my homeowners covers a crash or loss or liability, just not repairs).
I also hate writing a check every month. I was able to write off the tractor against my taxes in the first year instead of in drips and drabs while I gained equity. This year, I get the energy credit for new windows.....
i put $5k down on my 1870 payments under $200 i hate payments too but i would rather keep money on hand for outer expenses and i could pay off sooner and i will, just at this point in my life i want funds on hand,even with the cost of the Kubota insurance i will get the money back on the money in the bank i did not spend.
There are different offers for different models. As an example on the BX series the rebates are the same whether you finance at 0% or pay cash. On the B series the implement rebates are less than the BX but if you pay cash you get a $500 rebate.
Make sure you match the offer to the model.
Make sure you match the offer to the model.
I fianced and i got $1k off that is why i bought mine,and it is fully optioned but snow blower,and sweeper
Yep... me too.
There shouldn't be a difference. It's the dealer who is giving you the price. SO... if it's cheaper to go cash... it's just the dealer who doesn't want to do the paperwork.
To me... If the rate is low... why use your own money ????? And when it's 0%... its just STUPID to use your own money.