Kubota offers equipment financing through its own captive finance subsidiary, Kubota Credit Corporation, which handles loans for tractors, mowers, and other machinery
Kubota Credit Corporation is the lending arm of Kubota Tractor Corporation. When you buy a Kubota tractor, excavator, mower, or other piece of equipment from a dealer, you can finance it through Kubota Credit rather than a bank or third-party lender. The dealer typically arranges the financing at the point of sale, and Kubota Credit reviews and approves the loan.
Unlike a personal auto loan, Kubota financing is secured by the equipment itself — the tractor or mower serves as collateral. This means Kubota Credit can repossess the equipment if you stop making payments. The interest rate, loan term, and monthly payment depend on the equipment's price, your credit history, and current market rates.
Kubota Credit does not publish a single interest rate. Rates vary based on credit score, down payment size, loan term (typically 12 to 84 months), and the specific equipment being financed. Dealers can tell you the rate you may have access to for before you sign, and you have the right to shop other lenders if the rate seems high.
Key Takeaways
- Kubota Credit Corporation finances Kubota equipment purchases through dealers, and the equipment itself secures the loan.
- Interest rates and terms vary by credit score, down payment, and loan length, and dealers must disclose the rate before you sign.
- You can pay off a Kubota loan early without penalty, though you should confirm this in your loan agreement.
- If you miss payments, Kubota Credit can repossess the equipment, so contact them when ready if you face hardship.
- You can refinance a Kubota loan with another lender if rates drop or your credit improves, though the equipment lien must be cleared first.
How to Set Up Kubota Financing at the Dealer
When you find the equipment you want to buy, the dealer's sales team will ask whether you want to pay cash or finance. If you choose financing, they will direct you to a finance manager or hand you a form to begin the Kubota Credit process.
The process asks for your name, address, Social Security number, employment history, income, and existing debts. Kubota Credit pulls your credit report to assess risk. This inquiry appears on your credit report as a hard inquiry and may lower your score slightly for a few months.
Kubota Credit typically responds within one to three business days. If approved, you will receive a loan offer showing the interest rate, monthly payment, loan term, and total amount financed. You can accept or reject the offer. If you reject it, you can try another lender or negotiate the price with the dealer to reduce the amount you need to borrow.
Once you accept, you sign loan documents at the dealer. These documents include the promissory note (your promise to repay), the security agreement (giving Kubota Credit a lien on the equipment), and disclosures required by federal law. The dealer files the lien with your state's UCC (Uniform Commercial Code) office, which creates a public record that you owe money on that equipment.
Monthly Payments and Loan Terms
Kubota Credit offers loan terms ranging from 12 months to 84 months (seven years), though most equipment loans run 36 to 60 months. Longer terms lower your monthly payment but increase the total interest you pay over the life of the loan.
Your monthly payment is calculated based on the loan amount, interest rate, and term. For example, a $30,000 tractor financed at 6% over 60 months would have a monthly payment around $580, but this varies with the actual rate you receive. The dealer or Kubota Credit will show you the exact payment before you sign.
Payments are typically due on the same day each month. You can set up automatic payments from your bank account, which reduces the risk of missing a payment. Some dealers or Kubota Credit offices also accept payments by phone, mail, or online through their website.
If you pay off the loan early, Kubota Credit will refund a portion of the interest you would have paid — this is called a prepayment discount. The exact amount depends on how early you pay and your loan agreement, so ask Kubota Credit or the dealer for the prepayment terms before you sign.
What Happens If You Miss a Payment
If your payment is more than 10 to 15 days late, Kubota Credit will typically send you a written notice. If you miss a full month's payment, they may charge a late fee (usually $25 to $50, depending on your agreement) and report the missed payment to credit bureaus, which damages your credit score.
If you miss two or more consecutive payments, Kubota Credit may declare the entire loan in default and begin repossession proceedings. They can send a repossession agent to your property to take back the equipment without a court order in most states. Once repossessed, the equipment is sold at auction, and you are responsible for any shortfall between the sale price and what you still owe.
If you face financial hardship, contact Kubota Credit as soon as possible. Some borrowers have been able to negotiate a temporary payment reduction, a deferment (postponing a payment to the end of the loan), or a loan modification. Kubota Credit is more likely to work with you if you reach out before you miss a payment.
Refinancing a Kubota Loan
If your credit score improves or interest rates drop after you take out a Kubota loan, you can refinance with another lender — a bank, credit union, or online lender. Refinancing means taking out a new loan with the new lender to pay off the Kubota Credit loan in full.
Before you refinance, check your current loan balance and ask Kubota Credit for a payoff quote. The payoff amount includes the remaining principal plus any accrued interest and fees. You will need this number to shop other lenders.
When you refinance, the new lender pays off Kubota Credit and takes a lien on the equipment in their place. Kubota Credit releases their lien once they receive the payoff. The process typically takes one to two weeks. You will have a new monthly payment with the new lender, and your loan term may be different.
Refinancing makes sense if the new interest rate is at least 1% to 2% lower than your current rate and you plan to keep the equipment long enough to recoup the refinancing costs (usually a few months of interest savings). Ask the new lender about any fees before you commit.
Understanding Kubota Credit's Lien and Your Ownership
When you finance equipment through Kubota Credit, you own the equipment, but Kubota Credit holds a security interest (or lien) on it. This means they have the legal right to take the equipment back if you do not pay.
The lien is recorded with your state's UCC office, usually by the county clerk or secretary of state. This creates a public record that anyone can search. If you try to sell the equipment before the loan is paid off, the buyer will discover the lien and will not complete the purchase unless you pay off the loan first.
You can sell the equipment while it is still financed, but you must use the sale proceeds to pay off Kubota Credit. For example, if you owe $15,000 and sell the equipment for $20,000, you pay Kubota Credit $15,000 and keep the $5,000 difference. If you sell for less than you owe, you are responsible for the shortfall.
Kubota Credit's Insurance Requirements
Most Kubota Credit loans require you to carry comprehensive and collision insurance on the equipment. This protects Kubota Credit if the equipment is damaged or destroyed. You must name Kubota Credit as a loss payee on the insurance policy, which means the insurance company will pay Kubota Credit first if there is a claim.
You are responsible for obtaining and paying for the insurance. Kubota Credit will not force you to buy insurance through them, but they will verify that you have coverage before releasing the equipment. If you let your insurance lapse, Kubota Credit may purchase insurance on your behalf and add the cost to your loan balance — this is called force-placed insurance and is usually more expensive than insurance you buy yourself.
Check your loan documents for the specific insurance requirements. Some loans require full coverage; others may allow liability-only coverage for certain equipment types. Ask the dealer or Kubota Credit before you sign if you are unsure.
Frequently Asked Questions
Can I get a Kubota loan with bad credit?
Kubota Credit works with borrowers across a range of credit scores, but a lower score usually means a higher interest rate or a requirement for a larger down payment. Some dealers also work with credit unions or banks that may offer alternative financing. Ask the dealer what options are available before you assume you cannot finance.
What if I want to return the equipment after I buy it?
Kubota and its dealers do not have a standard return policy for financed equipment. Once you sign the loan documents and take possession, the equipment is yours to keep or sell. If you want to return it, you would need to negotiate directly with the dealer, and you would still owe the full loan balance to Kubota Credit unless they agree to cancel the sale.
Do I have to use Kubota Credit, or can I bring my own financing?
You can finance through Kubota Credit or bring your own financing from a bank or credit union. Many dealers prefer Kubota Credit because they receive a commission, but they must allow you to use outside financing. Shop rates with your bank or credit union before you go to the dealer so you know what you may have access to for.
What is the difference between Kubota Credit and dealer financing?
Kubota Credit is the official financing arm of Kubota Tractor Corporation. Dealer financing means the dealer arranges the loan with a third-party lender (a bank or finance company). Both are legitimate, but rates and terms may differ. Always compare offers before you decide.
Can I make extra payments to pay off my loan faster?
Yes, most Kubota Credit loans allow extra payments without penalty. Making extra payments reduces the principal balance faster and saves you interest over time. Contact Kubota Credit to confirm there are no prepayment penalties in your specific loan agreement, and ask how the process works extra payments (some require you to specify that the payment should go to principal rather than interest).