how or where to finance used tractor

[bucktaker]

Hello
Trying to find a institution that loans money on used tractors.
My regular bank said no because I am not a commercial user. Credit score/debt ratio is not a problem I own my home but do not want to take a second or refinace.
Where do you guys go to buy all these tractors. If i cannot find a place I will have to buy new one I m in ohio

 

[twarr1]

This probably won't help in the short term, but I would recommend establishing a relationship with a small local bank. I use a small outfit that has about 6 branches in the local 4 county area. They make decisions based on your personal situation and don't rely so much on numbers. Big banks do everything according to a formula and a lot of times tractor-type purchases don't fit their formula. I suppose you could get a "personal loan" but you'd probably pay big interest.
If you don't really want to buy a new tractor, you might look at paying cash for an older used one. Tractors generally hold their value pretty well if you keep them up so you could trade your way into bigger/better later and pay NO interest.
If you still want to finance a used one, you might consider CNH Capitol. They work with New Holland. I've never used them but I'm sure there are members who have and can offer their thoughts.
Good luck with your purchase.

 

[buckshot721]

Credit Union?

 

[sweettractors]

25% down and a lien on the tractor works at local banks here. Ken Sweet

 

[8404]

I know you already said no to this idea but i use my Home equity line of credit and i only use it for equipment purcheses. so i keep it payed off before i buy another peace of equipment. this way i can just go wright a check for a use tractor and not worry with all the bull you go through at the bank.

 

[bucktaker]

I have plans for my equity line of credit this spring. New windows and such stuff. I just was amazed at the local banks that said they did not loan on semi new tractors.

 

[sweettractors]

Banks are not loaning on much of anything currently. They are setting on about 3 trillion waiting to see what happens Nov 2. Ken Sweet

 

[timswi]

Banks are not loaning on much of anything currently. They are setting on about 3 trillion waiting to see what happens Nov 2. Ken Sweet

I'd say you're right. Banks are getting hammered by every regulator known to modern man, and some who aren't known by modern man. One agency wants them to open the flood gates and another is watching credit quality with a microscope. I know banks aren't popular right now, but you wouldn't believe what is going on in terms of regulation.

They are sitting this out right now and only lending to those who are qualified. Problem is that the people who want to borrow (not all) are higher risk, and the low risk people are mostly sitting on their cash and paying down debt, so you can see where this leads.

This too shall pass, but you will most likely never see the credit availability that was out there over the last 7 years. Going forward, it will be more normalized.

 

[jlsmith]

Have you tried any of your Farm Credit Inst. around your area. They mainly load money for tractor and farm purchases.:thumbsup:

 

[blueriver]

I would find a small hometown local owned bank and start doing business with them to establish a relationship. I have the Presidents cell phone stored in mine ... if I need anything I just call and he tells me to stop in and sign when I get in town.

Farm Credit is also a good idea. What about just going to John Deere ... I think they have financing on used units.

 

[techwrtr2]

When we got the 855 used we financed it through JD. Wasn't a problem at the time though that was several years ago.

 

[Will_C]

Another vote for small local banks. My bank will lend money to me as long as I can repay it. I have not borrowed from them for years, but it is good knowing that I can talk to an officer, not just some loan clerk!!

Will

 

[bucktaker]

Finacing from John deere is no problem if purchasing new or used from the dealer.
I am negotiating with a private party for a <250 low hr jd wanting to keep my cash and equity line available I was going to finance 60% of the price.
I am expecting a call from my local bank branch on Monday to speak with the actual loan officer.

 

[Birdhunter1]

As everyone else has said find a different banker. The sad thing is this type of stuff right here is what kills a relationship with a bank you have been with for years yet a smaller local bank manages to survive because of relationships like this.

 

[sfloggie]

I find Farm Credit very kind and great to work with. There is one in each area of the U.S. I used them in Oklahoma to buy land and again in Virginia. They noted they would finance as we needed.

Colonial Farm Credit is in my area of Virginia. However, the Loan Officer in Virginia and Oklahoma could have been from the same family as they were very helpful and very professional.

 

[LehighValleyPA]

This might sound strange, but bear with me. I recently went to buy a used Deere CUT. A credit union loan officer said that a tractor loan would be an unsecured personal loan (tractors don't have titles in this state*) at a fairly high interest rate, so that wasn't a good option.

However, I had my car loan from this same credit union almost paid off. It turns out I could refinance the car loan, borrowing up to the book value of the car minus what I still owed on it. So, they hang onto the car title for three additional years; I keep making a car payment each month for about the same amount I have been; and we plan to keep that car indefinitely anyway so it should work out OK.

So one option is to use a car as collateral as opposed to the house.

* = In PA as far as I know, although I hear they might in NJ.