Kubota'2 not so zero financing

[Rkh]

I think I have my mf65 gas sold, got the down-payment, waiting for the rest. So I'm looking at Kubota 2023 new L2501DT, and Kubota has zero financing, but if you pay cash or get the money from another institution, it's $700 less. So it's not zero financing, but the $700 charge for 5yr loan is a lot cheaper than the 9% interest rate my credit union is charging.

 

[flying belgian]

You got it figured out. Its just math.

 

[Fawteen]

A dealer using smoke and mirrors to con folks that aren't paying attention? Say it ain't so...

There are a few absolute rules in the universe. Gravity is one. TANSTAAFL (There Ain't No Such Thing As A Free Lunch) is another.

 

[fusion1]

Your accountant should be able to give you some thoughts on it
also what is best year end right offs for tax

 

[Geo-TH,In]

Your accountant should be able to give you some thoughts on it
also what is best year end right offs for tax

Smart Money. If you had $14000 in a CD or 5.1% money market you will make $714 a year.
So paying cash for a tractor costing $14000 will mean you will lose $714 annually for the rest of your life.
Smart money says using someone's free money will make you money in the long run.

z2 Talk to your accountant.
They should be able to write off a lot of money in just a few years.
So from a tax angle use 0% down and 0% interest. Some may allow you to include the sales taxes free interest.
Or pay cash or pay more interest using a HELOC

 

[Butch(OH)]

It hasn't always been that way. I bought a new tractor/loader/backhoe back in 2021 and the cash price was the same as the zero finance price. Where they make out on the zero finance deal is getting people to buy KTAC insurance. KTAC is a bad deal but they know how to sugar coat it.

 

[Geo-TH,In]

It hasn't always been that way. I bought a new tractor/loader/backhoe back in 2021 and the cash price was the same as the zero finance price. Where they make out on the zero finance deal is getting people to buy KTAC insurance. KTAC is a bad deal but they know how to sugar coat it.

Butch
Insurance from Kubota is about 5x what I paid using my homeowners insurance .
Kubota wants to make sure the tractor is insured,

 

[Rkh]

I'm using my homeowners insurance to.

 

[Butch(OH)]

Butch
Insurance from Kubota is about 5x what I paid using my homeowners insurance .
Kubota wants to make sure the tractor is insured,

Exactly George, They make like it covers parts that fail and it absolutely does not. Added tractor to home owners/farm policy and cost me $100 a year

 

[Butch(OH)]

I'm using my homeowners insurance to.

If you add it to your home owners do NOT get suckered into KTAC by the dealer. Look up what KTAC covers and does not cover.

 

[Geo-TH,In]

Exactly George, They make like it covers parts that fail and it absolutely does not. Added tractor to home owners/farm policy and cost me $100 a year

Butch,
I think using homeowners saved my about $400+ a year. No brainer.
Kubota also financed my sales tax. $33900 tax included. $565 for 60 months and an annuity paid for the monthly payment.
I think using someone's free money is the way to go.
My latest annuity is paying 9.34% for the rest of my like.

 

[Dean]

Butch
Insurance from Kubota is about 5x what I paid using my homeowners insurance .
Kubota wants to make sure the tractor is insured,

Your homeowner's insurance does not pay when you drive your tractor into the pond destroying the engine in the process.

 

[ASE guy]

When I bought my zero turn through Kubota at 0% financing, they charged me a monthly fee for full coverage insurance which apparently is mandatory.

 

[Rkh]

You can go through your home owners policy to meet there requirements.

 

[Butch(OH)]

Your homeowner's insurance does not pay when you drive your tractor into the pond destroying the engine in the process.

If you plan to drive your tractor into a pond go buy your KTAC and be happy.