Kubota Finance Question

NorthwoodsLife

Active member
Lifetime Member

Equipment
Kubota B7100, Kubota LX2610
Oct 15, 2021
169
136
43
Wisconsin
So, I'm about to bite on a new Kubota.
Going to put at least 50 percent down..

My question is, in your experience, does Kubota Finance offer zero APR if you put a chunk down? Or is it zero APR only with zero down?

I'm talking to my highly rated dealer tomorrow. They'll fill me in, but I'm a bit giddy with excitement as IT'S IN STOCK.
 

Orange man

Active member

Equipment
Kubota L2501 LA525 loader , woods prd6000 mower
Jul 23, 2014
114
49
28
WNY
They will gladly take as much as you want to put down, I bought one and put down about 60% of selling price.
 
  • Like
Reactions: 1 user

85Hokie

Well-known member
Lifetime Member

Equipment
BX-25D ,PTB. Under Armor, '90&'92-B7100HST's, '06 BX1850 FEL
Jul 13, 2013
9,114
1,153
113
Bedford - VA
Unless you get a hellva discount - which I do NOT think you will, I would place the 50% in the bank draw a small percent interest and take the zero percent ......... IF THAT IS OFFERED.

The zero percent is the lifetime payment - so you will make the same payment for however long the time period is - the 50% will do nothing for you BUT lower the payment - BUT that money will be consumed .......whereas IF you need the cash later, you will always have it available to use.

Unless that interest rate is above a couple of percent - I would not place ANY money down and hold on to any liquid asset until I need it. Hell use THAT cash to make the payments, while placing a smaller amount in the cash account.

Then again - IF you have the money .......... spend it however you wish!!
 
  • Like
Reactions: 10 users

PaulR

Well-known member

Equipment
BX 23S -- 77.1 hours seat time so far
Aug 3, 2020
498
362
63
Hadley, MA
The Ford Dealership did this to me last year with a new F150, I guess that is standard practice?
I had to choose between the discounted price or the great financing rate, I could not choose both.
So I just took the discount, then when the loan papers went through I threw big chunks down to get my effective interest rate down to about nothing.
 

85Hokie

Well-known member
Lifetime Member

Equipment
BX-25D ,PTB. Under Armor, '90&'92-B7100HST's, '06 BX1850 FEL
Jul 13, 2013
9,114
1,153
113
Bedford - VA
The Ford Dealership did this to me last year with a new F150, I guess that is standard practice?
I had to choose between the discounted price or the great financing rate, I could not choose both.
So I just took the discount, then when the loan papers went through I threw big chunks down to get my effective interest rate down to about nothing.

Most large makers have it figured to the last cent as to how to make a buck or 1,000!

When I bought my first Kubota ...... the cash offer was ONLY knocking off about 500 bucks off a 22k machine - and zero percent for 5 years was the other choice

I did NOT have the 22k ........

so by paying 100 bucks year to get even with the 500 off - I still felt good about it.
 
  • Like
Reactions: 1 user

ACDII

Well-known member

Equipment
B2410, L352 Loader, Woods BH70-X backhoe
Oct 21, 2021
603
369
63
Illinois
Sometimes getting 0% is a far better deal than the cash off offers. Either way you STILL pay for the difference in price for that 0% financing because it is built into the price of the tractor. You pay cash upfront, you just paid for someone elses 0% financing.

So, you buy a car or truck and there is a $2000 cash off offer, or 0% for 5 years. Which one saves you more money? Lets take $30,000 financed as an example. Current interest rate for 60 month is 3.11%. Over the life of that loan it added an additional $2,432 to the vehicle.
'
Did you really save anything?

On tractors the finance rates are higher, closer to 5% or more. Thankfully Kubota has 0 down 0% for 84 months. That makes the tractor much more affordable than say a John Deere, and you get more tractor. Why not take advantage of it, as long as it fits your budget.

If you want smaller payments, then by al means drop some cash down, but putting it into a CD for the term of the loan will get you far better returns on that money, then you could ever get out of using it as a down payment on a 0% loan.
 
  • Like
Reactions: 1 user

85Hokie

Well-known member
Lifetime Member

Equipment
BX-25D ,PTB. Under Armor, '90&'92-B7100HST's, '06 BX1850 FEL
Jul 13, 2013
9,114
1,153
113
Bedford - VA
Sometimes getting 0% is a far better deal than the cash off offers. Either way you STILL pay for the difference in price for that 0% financing because it is built into the price of the tractor. You pay cash upfront, you just paid for someone elses 0% financing.

So, you buy a car or truck and there is a $2000 cash off offer, or 0% for 5 years. Which one saves you more money? Lets take $30,000 financed as an example. Current interest rate for 60 month is 3.11%. Over the life of that loan it added an additional $2,432 to the vehicle.
'
Did you really save anything?

On tractors the finance rates are higher, closer to 5% or more. Thankfully Kubota has 0 down 0% for 84 months. That makes the tractor much more affordable than say a John Deere, and you get more tractor. Why not take advantage of it, as long as it fits your budget.

If you want smaller payments, then by al means drop some cash down, but putting it into a CD for the term of the loan will get you far better returns on that money, then you could ever get out of using it as a down payment on a 0% loan.

I agree with everything you said ! THEY will get their money either way!

The person with the money - or the one without money has to make that determination.

And as the term has been said a million times - You just have to do the math!!!! Whatever works for the buyer.
 

quicktractor

New member

Equipment
Kubota L2501
Jul 27, 2017
22
2
3
Flagstaff
The only other consideration is when you finance with Kubota they require you to have the kubota insurance. For me this was not a big deal because I wanted insurance for my brand new tractor anyway and the cost was comparable (a little better) than what I could get elsewhere.
 
  • Like
Reactions: 1 user

ACDII

Well-known member

Equipment
B2410, L352 Loader, Woods BH70-X backhoe
Oct 21, 2021
603
369
63
Illinois
No, they don't require you to have KTAC, they recommend it, but don't require their insurance, but do require some type of insurance. It can be under your HO, but you must provide proof of insurance in order to get Kubota finance. No different than any other type of high value loan.
 
  • Like
Reactions: 1 user

ACDII

Well-known member

Equipment
B2410, L352 Loader, Woods BH70-X backhoe
Oct 21, 2021
603
369
63
Illinois
My L4060HSTC-LE is finally ready and I did the financing on it yesterday. After debating insurance I decided to go with KTAC. I don't trust that HO insurance would properly cover the tractor if something were to happen to it, and a $44,000 piece of equipment is not something you can break and have sit.
 
  • Like
Reactions: 1 user

BerthaPowers

New member
Jun 10, 2022
3
0
1
USA
They can put down the price, so you get to pay fewer taxes from this purchase. I am not sure how safe it is and what the risks are if you have any issues with the customs officers.
I did this trick, too, when I wanted to get my car shipped from Japan. They put the price down and around 80% of the selling price. It went well, and they did not ask any questions at the customs. I am not sure about the other types of machinery, though. Also, my other financial documents were in perfect order, thanks to the pay stub generator. Maybe this was why they let me pass faster.
 
Last edited: