Financing a used tractor

[gersus]

I知 all over the place on buying a tractor. Buying new is convenient and competitive but I can稚 help but think theres good deals out there on barely used excellent condition tractors out there.
The problem is financing. Is there a good/easy way? My bank would do it but I really despise all the paperwork they require for even a small loan.

 

[mljenkins]

My first tractor I went to the dealer and financed a used tractor through a local bank they had connections with. I used the same local bank on my second tractor (new).

When I talked to dealers in my area now no one seemed to indicate they did financing with local banks and just used the dealer financing. I would call around to different dealers and ask them if they can help finance a used machine.

 

[gersus]

What about buying from an individual?

 

[RyeThomas]

You can finance anything in minutes these days, it’s almost too easy. Heck I noticed my 4510 on Craigslist at 9am, called the guy and had a deal in place by 9:05. Had a loan (via my bank thru the Internet) and money in my account by 9:10. Took me longer to hook up the trailer than get a loan.

Getting a loan is simple.

 

[CMV]

I did same and was pretty much shopping used exclusively. Was less than 5 min and loan with my bank was set up. Ended up deciding just writing a check would be better since bank set it up as a personal loan & I wasn't going to pay 8.5% on it. So it also depends on if your bank even finances that sort of thing or just does a signature loan. I would assume an actual tractor/equipment loan from a bank that competes for that sort of business is < 8.5% for a used machine.

Another thing to consider - at least for me - buying a used machine from an individual vs a dealer meant difference of paying sales tax or not - 6.75%

 

[Turbys_1700]

Credit unions typically have better rates than banks if you belong to one.

 

[bp fick]

Financing a used tractor means saying goodbye to anything appearing to be a "good deal".

 

[fatboycowen]

I used lending tree to find a personal loan. It was really easy. Quickly got a bunch of offers, researched them, then picked one. Only disadvantage is the higher interest rate. But it was lower and easier than my bank. I didn't have the cash, so I needed the loan, but I paid higher payments, and paid it off fairly quickly. It was worth the interest, to get the tractor sooner. Also paid about half of the new tractor prices. It took a lot of lot of looking. But, 3 years in, I'm very happy with what I have.

 

[RyeThomas]

You can get a good rate with good credit. It’s not rocket surgery to figure out the total cost of finance charges then you can compare that to the savings vs buying new dollar for dollar. Lots of good used machines at good deals out there.

Let someone else buy it new and take the hit, then buy it second hand and save thousands.

 

[gersus]

Awesome, great info!