I am thinking about buying a new tractor
and would appreciate any advice on
locating good financing and terms.
I recently checked into this myself and found that the best option for me was a home equity line of credit. Not only could I get a line of credit at one percent over prime, which would mean the interest rate would be about 5.75%, but it is TAX DEDUCTABLE. That’s right, in most cases, you will be able to deduct the interest from your taxes if you itemize.
If that doesn’t work for you, check out kubota’s new <A target="_blank" HREF=http://www.kubota.com/finance.cfm>rates</A>. Although Kubota raised the rates by a point or so recently, they also put a new rebate program in place which, more or less, offsets the rate increase.
I looked into the finance thing and determine it is entirely dependant upon what you want to buy?
(A) Large tractor (500HP?)
(B) CUT (32H-P) etc…
If you know what manufacturer you want, i.e.: -JD or kubota for example, check to see what the deal of the month is. Remember three things---At all times:
(1) Harvest time is every day some where in the world
(2) Shop around!
(3) Do you really want to put your house on the line for a tractor? If so why not a boat? Seriously-never screw around with a second mortgage unless you must do so!
Take my advice for what it is worth-but I may help you (and I) think!
Read this discussion on New Hollands new financing programs. They are offering some very nice rates
<A target="_blank" HREF=http://www.tractorbynet.com/cgi-bin/compact/showflat.pl?Cat=&Board=buynh&Number=129245 &page=0&view=collapsed&sb=5&o=0&am p;fpart=>http://www.tractorbynet.com/cgi-bin/compact/showflat.pl?Cat=&Board=buynh&Number=129245 &page=0&view=collapsed&sb=5&o=0&am p;fpart=</A>
I recently got a home equity loan. I did this because, as I shopped for tractors, the
finance deals kept changing and I wanted to be in control of that. Funny thing
happened, dealers are now offering better deals because I'm a cash buyer. (to them,
It depends on what kind of tractor you want to buy.
In my case, I looked at four different options:
1. JD Credit -- current interest rate is 5.99% for five years....ends at end of May, I think;
2. Home Equity Loan -- my local banks were in the 6.15-6.25 range for 5 years;
3. Loan from my employer's retirement system -- five year loan was 7.00%;
4. Personal loan from a friend -- less than 5.00% but attached with numerous contingencies.
I decided best way for me was JD Credit at 5.99% over 5 years. It was clean and simple and I figure if anything is wrong with the tractor during the loan period, the dealer would have more of a vested interest in correcting things. Hope this helps.
<font color=blue>I decided best way for me was JD Credit at 5.99% over 5 years. It was clean and simple and I figure if anything is wrong with the tractor during the loan period, the dealer would have more of a vested interest in correcting things. Hope this helps.</font color=blue>
Well, Bob, I hope you're right about that, but I recall complaining to GM Credit about my lemon of a diesel Caprice and being told in no uncertain terms that they <font color=red>were not</font color=red> GM, but an entirely separate entity.
<font color=blue>Well, Bob, I hope you're right about that</font color=blue>
So do I Chuck. I mentioned this because I recall it's what someone told me at one time....never really had to follow through by trying to stick it to the dealer to correct things that should have been done right the first time around. In theory it sounds good. In practicality, you may be right.
But, setting that aside, I still felt that for me JD financing was easiest to do...comparable with the home equity loan as I'll be putting down 65% on the tractor deal and financing 35%...haven't run the numbers but I don't think I'll be generating much of savings by paying higher up-front interest with equity loan to realize a greater tax write-off at the back end. I think it's about break even for me.
No matter what kind of loan you use involves some risk. One way or another you have to make the payments. Why not take advantage of your home equity and borrow against it? Plus you get the tax advantages that have been "kindly" arranged by our fair government!! Sounds like a win-win situation to me!! [img]/w3tcompact/icons/wink.gif[/img][img]/w3tcompact/icons/smile.gif[/img]
New Holland Credit company is offering the following rates on Boomers thru the end of April