Kubota Credit and Finance Guide

Kubota Credit and Finance refers to the process of arranging finance for buying or leasing a new or used Kubota tractor or other piece of Kubota agricultural equipment.

This can either be done through Kubota itself which is known as Dealership Financing, or through the traditional route of direct lending by arranging finance through a bank or credit union.

Either way, there will be a need to apply for credit, and it can be helpful to understand the credit application process in advance.

This will involve filling out an application form, usually online, and having a credit assessment made which will determine any lending decision, and on what terms and conditions.

Whether you are buying a Kubota BX 1870 for $10,000 or a Kubota M135GX for $90,000, deciding how to finance it is almost as important a decision as which tractor to buy in the first place. Kubota has its own dedicated credit agency, which offers a lot of advantages, although there are certain things to watch out for.

You can either apply directly through a Kubota dealer, or get pre-existing clearance through the Kubota credit website. The Kubota credit website has a number of sections that can clarify which is the best option for you.

Kubota Credit Financing

What is important to note is that that are different rates and terms and conditions that will apply to each type of Kubota tractor, and for varying amounts of time. There are likely to be differing amounts of deposit required as well, or down payment, depending on the individual’s creditworthiness.

Kubota Customer Rebates

In addition to offering differing levels of interest rates, Kubota also offers what they refer to as customer rebates. These in effect simply discounts on the list price that you would otherwise pay for a new Kubota. These can seem quite substantial for some models, but remember that, as with buying a new car, any list price should be negotiable in the first place.

Kubota Credit Leasing

Kubota also offers the potential option of leasing a tractor, which can have significant attractions for many people. Leasing a Kubota tractor is effectively like a long-term rental. The main advantage is often being able to afford a brand-new tractor, which you would not otherwise be able to buy. There are always a number of variables as to what type of lease applies, the main ones being listed below.

True Lease

Fixed Price Purchase Option

Lease Purchase

Full Payout Lease

Lease Line of Credit

Step Lease

Seasonal Lease

Municipal Lease

All these type of leases will vary considerably as to how much of a down payment there is, the length of the lease, the rate of interest that apply to the lease, what happens at the end of the lease in terms of purchase or cleaning costs. It is really important to clarify at the outset of the lease all these terms and conditions.

Kubota Credit – Credit Score

It is worth making the point that all of these options are discretionary by Kubota, depending upon their decision concerning an individual’s creditworthiness or not, similar to financing or leasing an auto vehicle.

Kubota will rely heavily on an individual’s credit score or credit rating to make a determination as to whether to offer Kubota credit or not, and on what terms and conditions. There are things an individual can do to improve their credit score, or to check that their credit score or credit rating is accurate. For more detailed information on how credit scores work click here.

Kubota Credit and Kubota Insurance

Anyone taking out Kubota Credit on a tractor or any other Kubota product or vehicle will be required to take out significant insurance. This is normally available through a dedicated Kubota Insurance Agency designed to provide the level of cover that will be required by Kubota credit or any other credit agency.

Some homeowners insurance policies will cover a Kubota tractor, but the coverage is normally fairly limited and would be insufficient to satisfy Kubota credits requirements.

Kubota Credit will require what is effectively an all risks type insurance policy to be taken out, as well as insurance that would normally be referred to as Gap Insurance, a typical type of insurance with any credit or lease agreement.

It is important to check that the level of insurance cover is adequate for an individual situation, as the level of risk and subsequent cover can vary significantly from individual to individual.

Farm and Ranch Insurance

Someone buying a Kubota tractor may well already have or need some type of farm or ranch insurance. Anyone owning a farm already has an incredibly complex business and home environment which requires different levels of risk analysis and insurance. For a more detailed breakdown of the issues concerning Farm Insurance please click here.