Info on financing a used tractor

[Torvy]

And don't give me that "side bar distraction stuff". I'm trying to get to the point of the op or else how many other "father "posts would there be along with unrelated "why are you doing that?" junk.

No, you were chastising others for not doing it your way. Some of the best information on this site comes from tangential comments. You are literally doing what you accuse others of doing. Relax. If every thread was answered in a direct manner, they would all be pretty short and it would not really be a forum. If this medium doesn't suit you....

I guess you only consider "your espousing' as not a distraction or else you would have pm'd me.

No, I am not the one telling others to do as I say, not as i do. I have no problem with people expressing their opinions or going off topic. I was just pointing out that you are being hypocritical.

Some of the best learning opportunities are from those with whom I disagree.

 

[Torvy]

You watch the wrong tv stations.

Please expound on this. I don't watch the 'news' I just keep up on Economics as both a teacher and an investor. His post is very much in line with economic trends.

 

[Cahaba Valley Farm]

Some of the best learning opportunities are from those with whom I disagree.

This statement is very true. Sometimes you have to swallow your pride or personal feelings for a person if you really care about obtaining knowledge.

 

[rScotty]

Finn1 wrote: "You watch the wrong tv stations."

Please expound on this. I don't watch the 'news' I just keep up on Economics as both a teacher and an investor. His post is very much in line with economic trends.

I was kind of curious about that TV reference myself. I don't watch much TV & it went right past me. But I'm still curious. Can someone fill me in?

BTW - and this is probably more in keeping with the OP's original question - I believe Torvy has mentioned seveal times now that he is involved in economic trends.

So let me ask this as my contribution to Eddie's original question:
Torvy, "Based on similar economic trends involving lending and borrowing in the past, what would you expect to see happen in the next few years?"
Would you be borrowing for a tractor now? & why?

 

[Torvy]

I will be borrowing sooner rather than later. As long as a rate is not variable, the payment remains constant over time while prices rise in an inflationary period. In other words, your loan payment as a percentage of your income goes down over time as prices rise. Caveat would be if you are on a truly fixed income.

In the near future and likely for the next few years, interest rates will have to rise to counter the inflationary pressures. So a loan a year from now will be at a higher rate and will be higher relative to future values than a loan in the near term.

That being said, your rate would need to be low enough that you would make more money in the market. To me, if you get a loan under about 6%, you would make more money investing cash than buying with cash. If your rate exceeds 6% and you have the cash, I would buy with cash.

As with any real financial advice, each situation is unique and getting specific advice from a professional is preferable to generic advice on the internet.

 

[ConawayFarms]

I bought a used SUV last year and financed part of it. I went with a secured loan, which gave me a better rate than an unsecured one—around 4.2%. I like longer repayment terms too so the payments stay low, but I usually pay extra when I can, like you mentioned. For car loans specifically, I’ve seen options in Finland that are pretty flexible, letting you stretch payments but also pay off early without penalties. If you end up considering something similar, take a look at the options available for car loans in Finland to get an idea of how those work.

 

[chim]

Welcome aboard CF. Kinda figured there was a new member at the end of a 4YO post