John Deere and Kubota are leading brands in agricultural machines, construction, engineering, landscaping, loaders, etc.
Both these brands offer financing facilities to their customers through their authorized dealers.
Let us discuss what are the financing options at John Deere and Kubota and which one offers better terms for its customers.
John Deere – Introduction
John Deere is one the leading brands in agricultural machinery and heavy equipment in the US. It was founded in 1837 and has established itself as a leading brand globally.
It offers a wide range of machines, equipment, and tools in the following categories:
- Compact Tractors, mini tractors, Heavy-Duty Tractors
- Seed drills
- Lawn mowers
- Combine harvesters, Forage harvesters, Sugarcane harvesters
- Field sprayers
- Excavators, Loaders, Graders
- Feller bunchers, Skidders
- Diesel engines
John Deere primarily produces its machinery using high-quality polymer plastic bodies. Most of its tractors and other machines come with two transmission types.
It offers durable and compact machinery that comes with the brand warranty of John Deere. The company also offers different types of financing options for its customers.
Kubota – Introduction
Kubota Corporation is a Japanese firm and it was founded in 1890. It has now a global presence through its regional headquarters around the world including the US.
It also comes with a rich history of producing quality machinery in agriculture, forestry, landscaping, and engineering divisions.
Kubota produces different types of machines, equipment, and tools in the following categories:
- Tractors – Compact, mini, heavy-duty
- Harvesters, Seeders, and drills
- Landscaping and lawn machines
- Engines and spare parts
- Construction Equipment
- Water treatment systems
- Vending machines
Kubota also offers financing facilities to its customers through various options like loans and leases. It primarily uses metal bodies and three types of transmissions for its tractors and other machinery.
Let us now see what type of financing options both these brands offer and which one is more suitable for you.
John Deere Financing Options
John Deere offers financing through its authorized dealers in the US. It has more than 9,000 dealers that can help you get the best available financing deal.
Customers can create an online account and apply for financing before visiting a dealer. You can go through the prequalification steps online and once approved, you can visit the nearest dealer to close the deal.
John Deere Financing with Loans
You can apply for John Deere financing through fixed and variable interest rate loans. The easiest way to do that is to look at the current offers and promotions and see if your required machines are on the list.
John Deere offers both variable and fixed-interest rate loans. The interest rate will depend on the down payment, loan term, and credit score of the applicant.
For example, John Deere currently has an offer of zero interest on the purchase of 2000 series lawn tractors if paid within 9 months.
The standard APR for a variable rate loan is currently 19.75%. However, if you choose the 60-months loan term, it will be 4.95% only.
John Deere Financing with Leases
John Deere also offers leasing facilities through its authorized dealers. A lease option is more suitable for customers looking for the newest machinery and equipment.
The lease amount will depend largely on the value of the machine, the applicant’s credit score, and the lease term.
Usually, if you sign a long-term lease agreement, your monthly lease payment will be lower. Also, if you sign a lease contract with a third-party lender, your lease amount will be usually higher.
You can expect to make a John Deere lease payment from $500 to $3,000 depending on the value of the leased item and other lease terms and conditions. However, your additional insurance cost, excess lease hours, and maintenance costs may increase your monthly payments.
John Deere Financing – 0% Loans
John Deere financing has several loan options with 0% financing. However, you must make the full loan payment within the allocated period offered.
For example, John Deere is currently offering a 0% APR on its 5E Series 3-Cylinder Utility Tractors for 60 months. If you repay the loan amount within 60 months, you do not pay interest on it.
However, if your loan repayment exceeds the offered term, standard APR will apply which is currently 19.75% on the remaining loan balance.
John Deere Financing – Special Offers and Promotions
Apart from 0% interest rate offers, John Deer comes with several other types of cash rebates and discount offers as well.
For example, John Deere financing is currently offering a cash discount of $750 on cash purchases of its 2032R and 2038R Compact Tractors.
Similarly, another offer combines a cash discount of $500 and 0% APR on the financing of the same tractor models if you apply for a fixed-rate loan term of 72 months.
We can say that John Deere financials offer a wide range of financing options to satisfy the needs of its customers through its variable, fixed, and other loan offers.
Kubota Financing Options
Kubota offers its financing facilities through a wide network of over 1,100 authorized dealers in the US. Its customers can choose from various loans and special discount offers.
Like its competitor John Deere, Kubota also offers loans, leases, and cash discounts on cash purchases to its customers.
The standard interest rates provided by Kubota are currently:
- 12 Months – 6.39%
- 24 Months – 8.10%
- 36 months – 8.43%
- 48 months – 8.76%
- 60 months – 8.72%.
These interest rates are for fixed loan terms for the given periods only. Customized loans will come with different interest rates.
Kubota Financing with Loans
Kubota offers a wide range of loans for financing agriculture machines, tractors, loaders, and engineering equipment.
These loan options come with different offers like discounted interest rates, cash discounts, and other incentives.
For example, Kubota is offering a special offer with a low-interest rate on the financing of its RTV500 & Z tractors with 0% financing for up to 24 months and 3.99% APR for 60 months with a down payment of only 10%.
Outside of these special promotions, Kubota will charge you standard interest rates as mentioned above.
Like any other lender, Kubota financing costs will also depend on the borrower’s credit score, loan amount, loan term, and down payment. Kubota financing is available for new and used items.
Kubota Financing with Leases
You can access Kubota machines and equipment through operational and finance lease programs. These lease programs are offered by Kubota authorized dealers as well as third-party lenders.
If you are looking for short-term usage, you can opt for an operational lease that offers low initial costs and lower monthly rates without investing much.
For longer-term usages, you can opt for financial lease programs with low monthly installments. However, as with any other lease option, you wouldn’t own the leased item at the end of the program.
Kubota Financing – 0% Loans
Like its competitor John Deere, Kubota also offers 0% financing on various items. It combines this special 0 % APR offers with cash rebates as well.
For example, Kubota financials is offering 0% APR on its L60LE SERIES TRACTORS for up to 48 months of financing terms. This offers combines a 0% down payment offer.
Similarly, there are various other 0% APR offers on a wide range of tractors, mowers, construction machinery, and other types of tools.
Kubota Financing – Special Offers and Promotions
Kubota has some additional offers like Equine and Veteran Farmers membership discounts.
For example, members of the National Cutting Horse Association can enjoy 20% off on the maximum sale price of selected tractor models.
Similarly, members of the Farmer Veteran Coalition can get a cash discount of up to $500 on selected tractor models.
John Deere Vs Kubota Financing – Which One is Better?
The key factor in deciding between the financing options offered by John Deere and Kubota depends on the type of purchase made, the applicant’s credit score, and the loan amount.
Let us summarize a few key points.
Interest Rates – Variable and Fixed
John Deer and Kubota both offer variable and fixed interest rate loans. Borrowers can directly apply for prequalification from their respective online portals.
Standard interest rates for Kubota financing are currently in the range of 6.39% to 8.72%. Although not mentioned officially, we can expect John Deere to offer the same range on its fixed-interest rate loans.
John Deere mentions the variable interest rates on different loan options which are currently 19.75%. We can expect a similar variable interest rate from Kubota as well.
With the available information, Kubota offers better interest rates than John Deere.
Both Kubota and John Deere offer lucrative down payment offers. The usual financing offers from Kubota and John Deere require a minimum down payment of 10% only.
Both offer special offers of 0% down payments on selective items. So, very little differentiates the both here.
Kubota and John Deere have extended loan terms. Usually, both these lenders offer a loan term of up to 84 months with special interest rates and even 0% APRs.
Extended loan terms can be customized depending on the dealer authorization and creditworthiness of the applicant.
Kubota and John Deere offer fixed and variable interest rate loans, lease programs, and special discounts and promotions.
However, Kubota offers some additional promotions and discounts like membership discounts for Veteran farmers and equine members.
Overall, both John Deere and Kubota offer competitive financing terms including 0% down payment, 0% APRs, cash rebates, and special offers. There is little to differentiate between both with interest rates though.
However, Kubota offers a few lucrative offers that John Deere lacks as mentioned above.