Financing Financing a used Tractor-What's best?

[dirtymartini]

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?

 

[Tractor Seabee]

When I was looking at used tractors to buy; I checked many many finance options. Unless you are a bona fide farmer filing Schedule F for income tax and have an established business line of credit for the farm, all that was available was a personal loan at 19% through a credit union, if I moved my banking there. That prompted me to buy a new one at the manufacturer's financing plan.

Ron

 

[fishheadbob]

I'm not aware of any online tractor financing options; your point about local bank or C.U. is probably the best option. Comparison shop a little; my C.U. will do an equipment loan at 7.99 for good credit types. A manufacturer's plan can be a possibility also.
(A personal loan at 19% makes me suspect that the above poster may have less than perfect credit ?)

 

[rtimgray]

We picked up a used Mahindra a couple of years ago and I went through a local bank and got a 4.75% rate. I am a small-time farmer, and the tractor is used on our farm. We checked some other local options, and they ranged from the aforementioned 4.75% up to about 11.00%, so it pays to shop around.

We have used unsecured personal loans in the past to purchase equipment, and the rates were usually about 5% or so.

One of the more interesting ways that we financed was through our local bank. 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.

Good luck and take care.

 

[dirtymartini]

Thanks for the advice so far. I did find Object moved that offered a 5.13 rate for a 2011 tractor. I'll see what happens. I could always go new although I would have to buy a smaller tractor.

 

[Timm250]

If you have Farm Credit in your area they usually have good rates.

 

[lostcreekranch]

If you have Farm Credit in your area they usually have good rates.

https://www.agdirect.com/

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[dirtymartini]

https://www.agdirect.com/

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I just looked at agcredit and it seems the minimum loan is 25k. I only need 15k

 

[lostcreekranch]

I just looked at agcredit and it seems the minimum loan is 25k. I only need 15k

I think the $25k minimum is for private party sales only. If you are working with a dealer I believe minimum is $5k.

https://www.agdirect.com/docs/default-source/rates/currentrates.pdf?sfvrsn=2



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[dirtymartini]

I think the $25k minimum is for private party sales only. If you are working with a dealer I believe minimum is $5k.

https://www.agdirect.com/docs/default-source/rates/currentrates.pdf?sfvrsn=2



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This is a private party sale......

 

[Timm250]

www.e-farmcredit.com

This is what I use for farm equipment financing.

As far as I know there is no minimum loan amount.

Depending on where you are they may not have an office in your area.

 

[dirtymartini]

www.e-farmcredit.com

This is what I use for farm equipment financing.

As far as I know there is no minimum loan amount.

Depending on where you are they may not have an office in your area.

Thanks for the link. The closest branch is in Ohio about 250 miles from me....

 

[kcflhrc]

For what it's worth, financing my new JD 3032E at 0% for 60 months with $1k down was a no brainer. And a full 2 year warranty.

 

[smstonypoint]

www.e-farmcredit.com

This is what I use for farm equipment financing.

Thanks for the link. The closest branch is in Ohio about 250 miles from me....

Check Farm Credit to find the Farm Credit organization in your area.

Steve

 

[STx]

I financed my used New Holland with Case Credit for just under 6% when I got it a year ago. I paid about $15k, put $5k down and financed the balance. I bought through a dealer but I know that both Case and Kubota credit will finance new equipment. Kubota's interest rate was almost 10% though, which was a deal breaker for me. I expected higher interest on used equipment but 6% was the most I was willing to pay.

 

[Citydude]

Did you check with your local banks? I was amazed that my bank offered very competitive rates on a 6 year old tractor I bought.

 

[dirtymartini]

Did you check with your local banks? I was amazed that my bank offered very competitive rates on a 6 year old tractor I bought.

Yes, I checked with both my Bank and Credit Union...they both would only finance as a personal loan...CU 9.9% Bank 7.75 % Too high for me!

 

[dirtymartini]

Ok, I found 6.3% at FarmBureauBank.com

 

[Timm250]

I have used State Farm Bank a couple of times & got a good rate. I have also checked their rates other times & they were crazy high. Not really sure how they set their rates.

 

[Megawisdumb]

I got a quote recently on a used tractor and was surprised the rate was 3.69% for up to 48mths. This was from 403 Forbidden. I ended up going a different route (0%-60) but thought that was a fair rate on a used tractor. I have used LightStream on several autos and have not seen lower rates (1.99%) but I'm not certain if they do tractors.