Financing Financing a used Tractor-What's best?

[Megawisdumb]

Didn't know they block url's. Rate was from fredricksoutdoor.

 

[AxleHub]

When I bought my dozer, we had cash to buy it, but didn't really want to end up "cash poor". Our local bank offered the option of using the money in our account as the collateral for the loan instead of the dozer (so they had zero liability). We did a loan at about 3% interest, and the bank only took 1% and the other 2% went into our account as we paid the loan off. (This sounds more confusing than it really is). What it was, more or less, was a structured way to make sure that I would "pay myself back" for using my own money, and the bank, more or less, got a percent to facilitate it.

Rtimgray. I'm a little confused. I understand the loan completely because banks love to do them for their own "cash reserve" purposes that allows them to borrow multiples of the cash reserve required by banking laws.

However what I don't understand is that the money in the bank was collateralized. So you did not have access to it anyway. You didn't want to become "cash poor" . . But the ENTIRE SUM was collateralized even though your loan was declining. Your goal was not to be cash poor but that loan made you more than cash poor . . It made you pledge it all for the balance of the loan timeframe. If you would have needed that money . . you would have been quite surprised at what thenet strps would have been.

 

[AxleHub]

What's the best options out there for financing a used Tractor? I would use my Home Equity LOC but need to keep that option for something else. Locaol bank or Credit Union or are there some online options that specialize in Tractors?

Assimingit is a private party situation . . then you need to check with at least 3 credit unions (not just 1). Credit Unions can do what banks can't . . but credit unions are widely varied in their borrowing interests and some love boat/atv/tractor/vehicle used product loans while others choose real estate or only new product.

 

[dirtymartini]

Assimingit is a private party situation . . then you need to check with at least 3 credit unions (not just 1). Credit Unions can do what banks can't . . but credit unions are widely varied in their borrowing interests and some love boat/atv/tractor/vehicle used product loans while others choose real estate or only new product.

I finally ended up with 6.3% from farm bureau bank. The closest local rate was 7.75% at the bank where I have my personal accounts.