Kubota finance is the overall term given to any type of credit for finance arrangement made with regard for the sale or lease of a Kubota tractor or agricultural piece of machinery.
In many ways Kubota finance is fairly similar that of auto finance, in terms of the nature of credit and lease agreements and the various financial options that tend to exist therein.
Anyone looking to buy or lease a Kubota tractor should really approach it in the same way.
A Kubota leader will have a list price for a wide range of tractors and accessories, most of which will be open to some degree of negotiation.
Whether the customer is thinking of buying anything new or a used Kubota tractor, the basics of financing remains the same.
A credit application will need to be submitted, and a credit rating agency will make a decision about their view of the creditworthiness of the individual, and allocate that individual a credit score.
Based upon that credit score, Kubota credit or some other lender will make a judgement as to whether or not to lend the individual the money for a loan or to fund a lease agreement.
The credit score will not only determine the lenders willingness to lend money or not, but will also affect the terms and conditions of the loan or lease agreement itself.
In practical terms, this will determine the size of any down payment they may be, the interest rate that will be charged for the period of the loan.
Whether the interest rate is fixed or variable, the length of the loan period or lease period, and any charges that may be incurred at the end of the loan or lease agreement.
There are also likely to be penalty charges if the loan or lease agreement is ended early and these should be spelt out at the beginning of the negotiation process.
It is worth remembering from a customer point of view, that not only are the various places of the Kubota tractor and accessories open to negotiation, so in theory are the elements of the loan or lease agreement.