Can you trade-in tractors that are financed?

[mccash40]

I sold my last tractor on CL, and still owed on it. It's very simple.. Pay the tractor off with your financial institution whether it's Kubota, CNHI, or your local bank, and finance your new tractor with whoever you choose. It should be a clean and free deal. I don't see how it could get complicated if you pay one bank off, and finance through the same or different bank.

EDIT: Trading tractors in with a dealer is extremely common. I've never talked to a dealer that wouldn't give me a price on a trade-in. Just expect to take a bigger hit. You're better off selling it private party. You could save literally thousands.

Chris

I built two homes this way. Borrowing from Peter to pay Paul. I would borrow a short term note from a commercial bank, do some part of the house (cellar, or shell) Then I would go to a savings bank and get a portion of the house loan. I'd pay off the short term, maybe a hundred or so interest with it. Then I'd take out another loan and so on until the house was completed. It worked for me.

 

[MORRISONSTEEL]

This day and age pretty much all dealers will do lien searches on trades over x amount of $. Even if you come in with proof from original lender it is still normally done to also look for blanket liens (although that is normally for comm or ag).

 

[art]

We take trades in everyday that are financed and take care of the pay-offs on the loans of the trade-in. To not disclose a loan on a trade or to sell a piece that has a loan on it is illegal with out notifying the mortgage holder.

 

[whizdbiz2]

I built two homes this way. Borrowing from Peter to pay Paul. I would borrow a short term note from a commercial bank, do some part of the house (cellar, or shell) Then I would go to a savings bank and get a portion of the house loan. I'd pay off the short term, maybe a hundred or so interest with it. Then I'd take out another loan and so on until the house was completed. It worked for me.

Glad to hear that worked out for you. Wouldn't it have been easier to just get a construction loan? When we built our log house we scouted around and found a local bank for a construction loan, just had to show progress to get the periodic payments. Biggest issue was getting the first payment for the logs, no one wants to finance a pile of logs, even on a short term basis. We did have most of the money from the sale of our first house, although most of that went into the barn that was used for storage of materials and as a paint shop for the cabinets. It helped having the construction loan with the subcontractors to know we had bank financing and they would get paid when their work was done. I acted as general and did most of the interior work with help from my FIL and a carpenter I used to work for a few years earlier. Never had a problem with the bank or my subs, other than one that decided he didn't want to do my fireplace when the time came. Made it easy to roll that loan to a permanent mortgage with the same bank once completed too.