Used tractor loans

[Baranx4]

Has anyone financed a tractor that's over 20 years old. I don't like the idea of a home equity loan. Most of the sites I've seen are for loans on equipment less than 6 years old and I'm not interested in an apr that's high. I just really want an old 4020.

 

[bp fick]

When I was younger, I borrowed money for older, used vehicles and such. The interest rate is much higher than new, for good reasons, I guess. If I default on a new car loan or new tractor loan, the repossession should net the creditor pretty good security to re-coup much or most of their investment.

If I default on an older vehicle, the risk is much higher in the creditor securing his interest in a repossession and re-sale, due to the higher risk of an older vehicle being sketchy in value and risky in possible integrity of engine/transmission, etc. The way it is. Many financial institutions have an age cut off on vehicle financing.

Paying $1000 in interest on a $8000 tractor raises the end price quite a bit.

 

[Kubota 2350]

With all the big tractor company's offering 0%, and figuring the warranty, you'd be farther ahead buying new.

 

[RoyJackson]

Most banks won't want to use the equipment as collateral...and tractors don't have to be too old for that to apply.
So, you're stuck with a personal loan, especially if you're buying from a private owner.
If it's a dealer tractor, you might get Deere financing...can't hurt to ask.

 

[Duffster]

With all the big tractor company's offering 0%, and figuring the warranty, you'd be farther ahead buying new.

Are new 4020's easy to come by? :laughing:

 

[LostInTheWoods]

I don't like the idea of a home equity loan.

Why not? Unless you need to use the equity for something else, or are holding on to the equity as an "emergency fund", many people use home equity for buying cars, boats, etc. The interest is generally low, and the interest payments are tax deductible.

Not saying yeah/nay on whether its a good idea to finance, just that if you do finance, home equity is not necessarily a bad way to go.

 

[Builder]

Has anyone financed a tractor that's over 20 years old. I don't like the idea of a home equity loan. Most of the sites I've seen are for loans on equipment less than 6 years old and I'm not interested in an apr that's high. I just really want an old 4020.

Do the home equity loan/credit line if you can.