Best financing options out there?

[Trippy1313]

Hello again everyone, so, if you saw my earlier thread about the Bobcat/Kioti/LS, I think I've decided on the Bobcat CT2025. For a couple reasons. I'll post in that thread.

https://www.tractorbynet.com/forums...ls-mt225he-vs-kioto-ck2610-2.html#post5936361

But now I have a question for those who have looking into financing these instead of paying "cash."

Bobcat having a deal that either you can finance for 0% or pay "cash" and get the loader/bucket free (about $4k savings).

In my situation, we have the cash, but it would wipe out our savings, and I can't justify that with having little girls. No way.

So I'm looking at different outside financing options, to get a low enough interest that it would be cheaper to still finance and get the loader free.

What have you all found that for financing with good rates?

Bobcat also said I could finance the backhoe separate for 2 years 0%.

I found this company called AgDirect that specializes in tractor loans, and I can get loans for under $25k/6-7years @4.95%, or 5 years @ 4.75%.

Or they can do, if I got the backhoe, over 25k/6-7years @3.95% or 5@3.75%. All of them I could do a downpayment or 0 down.

So far that's the lowest I've seen. My credit union was like 5.99%

What have you all seen, or your recommendations?

 

[Beaver Cove Deere]

What's the rate if you borrow it against your savings?

 

[LilTractrThatCould]

My Kioti was 4.1% for 80mo thru a place called DLL. Guess they do a bunch of ag stuff but I'm a noob at all this so not positive. They offered 3.9% on shorter term loans. I took the cash off incentive since I haven't ever paid on a loan for more than half the duration. If you pay it off early you'll still be ahead by taking the cash off up front. I could have paid cash as well but I like to keep at least one loan so my credit rating stays stellar.

 

[jaydee325]

Credit Unions have been mentioned many times here.

Toro uses Sheffield and Simplicity lists Synchrony Bank. I've seen both of these show up on various manufactures websites. You can arrange financing directly with them without involving the dealers. There are others if you google equipment or tractor financing.

Just make sure you read and understand the terms of the loan agreement. Here is an example why: https://www.tractorbynet.com/forums/ls-tractor-buying-pricing/422912-careful-ls-financing.html

 

[Trippy1313]

What do you mean by "Borrow against savings?" Like if I just take it out of my savings and pay it back monthly like a loan?

Well that would be 0% I suppose... BUT, in an emergency, wouldn't have a savings to fall back on. Or does borrow against mean something else???

 

[MoKelly]

What do you mean by "Borrow against savings?" Like if I just take it out of my savings and pay it back monthly like a loan?

Well that would be 0% I suppose... BUT, in an emergency, wouldn't have a savings to fall back on. Or does borrow against mean something else???

I think that means telling the bank your savings account acts as collateral against the loan.

Of course, you then need to maintain a savings account balance at lease equal to the loan principal.

The advantage may be less paperwork to get the loan and maybe a lower interest rate.

MoKelly

 

[LS Tractor Owner]

Those rates you posted are good going rates right now. You may find special offers from different lenders, but at most 0.5 to 1% better. Usually if you finance everything together as a package, you get the best deal. Now if you can put a good down payment, the deal might be more beneficial to you.

WHATEVER YOU DO, DON'T USE WELLS FARGO!! ------- They word their "contracts' in such a way that you will be screwed if you try to pay it off early! Ask me how I know.... I just paid my 84 month loan off after 22 months.... I had to pay the FULL amount of interest due for the entire loan, plus "prepayment fees". They are not like normal equipment or vehicle financing.

 

[Trippy1313]

Yeah, I would never use Wells Fargo for anything. My wife's student loans were all screwed. She never new it until I started looking into consolidating, but she had for years been making extra payments every month, and not a dime went towards principal, every extra payment she made was towards interest, and there wasn't even an option to pay extra towards principal. What a scam, and taking advantage of kids going to college, she didn't have parents willing to help with tuition. As soon as I saw that I refinanced her student loans immediately. She threw away probably $7,000-$10,000 in extra payments.

 

[true temper]

Sounds like you cant afford a tractor, save up and pay cash.

 

[Blue Mule]

Kioti dealer here told me that Kioti financing is 0% for 84 months. It doesn't get better than that.

I got 1.49% for 84 from Case New Holland Capital.

 

[lnmnh]

Kioti dealer here told me that Kioti financing is 0% for 84 months. It doesn't get better than that.

I got 1.49% for 84 from Case New Holland Capital.

0% APR is just interest baked into purchase price with no option to pay it off early and save on interest.

 

[Blue Mule]

0% APR is just interest baked into purchase price with no option to pay it off early and save on interest.

That makes the assumption that you're paying more than you should for the equipment. What if the equipment you're buying is priced lower than the competitors' tractors, has more standard features, AND comes with 0% financing?

I was extremely happy with the deal I got. I elected to do 1.49% for 72 instead of 0% for 60 in case times got hard but ended up paying the tractor off early anyhow.

 

[EddieWalker]

In my experience, the cheapest and easiest financing is through the dealer. Usually they have something every year that is worth waiting for. If they did it last year, they will do it again.

With my Massey, I bought when they had zero percent for 7 years.

 

[tradosaurus]

Yeah, I would never use Wells Fargo for anything. My wife's student loans were all screwed. She never new it until I started looking into consolidating, but she had for years been making extra payments every month, and not a dime went towards principal, every extra payment she made was towards interest, and there wasn't even an option to pay extra towards principal. What a scam, and taking advantage of kids going to college, she didn't have parents willing to help with tuition. As soon as I saw that I refinanced her student loans immediately. She threw away probably $7,000-$10,000 in extra payments.

Why should parents be obligated to pay for a kids college tuition. We paid nothing toward any of our kids college tuition. If they were smart they would score high on ACT to get scholarships. If not go to military and earn GI bill. I'm not sacrificing my retirement so my kids can get a degree.