Tractor Financing for bad credit?????

[PILOON]

I'm 77, retired doing what I want and comfortable. Had a business.
Only credit I used was margin of credit based on receivables.
Many associates accused me of being cheap as I kept vehicles for long time while they all drove BMW's Benz etc.
Even lived in same house 'til mortgage paid off while others kept moving, upgrading etc.

Well I can name a dozen of those associates that at my age can't even retire as they are still in debt.

My folks were the kind that said I could buy whatever I wanted WHEN I saved my money.
Guess I was not 'entitled', LOL but I thank them for that lesson today.

 

[TSO]

I'm 77, retired doing what I want and comfortable. Had a business.
Only credit I used was margin of credit based on receivables.
Many associates accused me of being cheap as I kept vehicles for long time while they all drove BMW's Benz etc.
Even lived in same house 'til mortgage paid off while others kept moving, upgrading etc.

Well I can name a dozen of those associates that at my age can't even retire as they are still in debt.

My folks were the kind that said I could buy whatever I wanted WHEN I saved my money.
Guess I was not 'entitled', LOL but I thank them for that lesson today.

I can relate with some of that... My newest car currently is a 2008 with 165000 miles. We keep talking about buying a new one, but can't justify it when ours are paid off and run fine.

I think that there is a very acceptable middle margin between the "save until you can pay cash" and the "max out the credit" crowds. While there is certainly nothing wrong with the ultra conservative SAVE philosophy, it will severely limit your potential gains if you are looking to grow. Leveraging your assets, and leveraging OTHER PEOPLE'S assets, will allow you to grow much faster, with much more earning potential, than playing the ultra safe SAVE method.

I put every extra dollar that my company makes right back into the company, either by paying off liabilities (debt) or reinvesting in new assets. Having "working credit" allows me to make bolder moves in reinvestment, which lead to further growth. But you are correct when you point out those people that keep buying the fancy car, bigger house, etc etc etc ... And/or spending money frivolously, especially when the funds are debt generated.

Again, alot of it has more to do with the individual's business savvy than their method of spending. A good business man knows how to make credit and debt work to his advantage. Others may not be adept in that, and in that case, saving up and paying cash may be better for them.

 

[CurlyDave]

Well, I am only 70 but I have been retired from working for someone else for 8 years.

While I was working for a company I build up a rental real estate business. I used credit (mortgages) for this and would not have the business if I hadn't used credit. To me, the key was to use credit in moderation. Every house DW and I bought, we analyzed what would happen if the bottom dropped out of the market and we couldn't rent it, and we never bought anything we could not afford if one, or even two bad things happened. Loss of a job, serious injury, etc.

In general, especially while starting out, which is where the OP is, do not use credit to buy an asset which will depreciate over time. Cars, tractors, whatever. Especially a non-essential asset like a tractor which is not part of a business. We knew that over long periods real estate would appreciate, even if there were short term losses, holding on for the long haul would bring rewards.

This may not be what the OP wants to hear, but he certainly needs to hear it.

At this point, we are in a position like PILOON. We have kept our cars almost until the wheels fell off, and endured many, many years of living below our means. But, the people who looked down their noses at our vehicles and houses are now pretty insecure, while we are not. We still have mortgages, both on our primary residence and rentals, but they are all fixed rate. Our assured income is more than sufficient to pay them.

 

[TSO]

Well, I am only 70 but I have been retired from working for someone else for 8 years.

While I was working for a company I build up a rental real estate business. I used credit (mortgages) for this and would not have the business if I hadn't used credit. To me, the key was to use credit in moderation. Every house DW and I bought, we analyzed what would happen if the bottom dropped out of the market and we couldn't rent it, and we never bought anything we could not afford if one, or even two bad things happened. Loss of a job, serious injury, etc.

In general, especially while starting out, which is where the OP is, do not use credit to buy an asset which will depreciate over time. Cars, tractors, whatever. Especially a non-essential asset like a tractor which is not part of a business. We knew that over long periods real estate would appreciate, even if there were short term losses, holding on for the long haul would bring rewards.

This may not be what the OP wants to hear, but he certainly needs to hear it.

At this point, we are in a position like PILOON. We have kept our cars almost until the wheels fell off, and endured many, many years of living below our means. But, the people who looked down their noses at our vehicles and houses are now pretty insecure, while we are not. We still have mortgages, both on our primary residence and rentals, but they are all fixed rate. Our assured income is more than sufficient to pay them.

A car or tractor may not be essential tools for that type of business (real estate), but it certainly would be for other types. For example, a cement business often NEEDS a machine like a skid steer. That's both an asset and a liability. It's a tool that helps the company make money. It's an asset because once it is paid off, it still has value. It's a liability while being financed (as debt) and it's also a liability due to maintenance and repairs (whether you paid cash or financed it). The depreciation is a moot point because you are able to write it all off, including the costs associated with financing.

Now after its paid off, the longer you keep it, barring any exorbitant maintenance costs, it continues to be an asset. Whether you paid cash for it up front, or paid a little extra over the finance period, doesn't change the fact that you still paid the same basic amount for it.

As long as someone is smart enough to not get in over their head, then they will likely be money ahead when financing.

 

[CurlyDave]

A car or tractor may not be essential tools for that type of business (real estate), but it certainly would be for other types...

Of course a tractor would be needed for many businesses, but the OP said: "The tractor would be for personal use on my 30 acres..."

This makes financing a tractor with poor credit a bad idea. There is no business use for the tractor contemplated.

The first step in getting out of a hole is to stop digging. A tractor on credit will dig the hole deeper.

Unless the situation is very unusual, there is nothing which will go irreversibly downhill without a tractor for a year or two. A combination of saving for a tractor and proper attention to credit repair will work wonders over that time, and if the OP still needs/wants a tractor they will be available.

 

[TSO]

Of course a tractor would be needed for many businesses, but the OP said: "The tractor would be for personal use on my 30 acres..."

This makes financing a tractor with poor credit a bad idea. There is no business use for the tractor contemplated.

The first step in getting out of a hole is to stop digging. A tractor on credit will dig the hole deeper.

Unless the situation is very unusual, there is nothing which will go irreversibly downhill without a tractor for a year or two. A combination of saving for a tractor and proper attention to credit repair will work wonders over that time, and if the OP still needs/wants a tractor they will be available.

I'm sorry, I assumed that your post was addressing the topic along the discussion lines of "cash or credit for business use" and that's the premise under which I was responding. I agree the answer changes when it's for personal use.

 

[Quebecguy]

The first step in getting out of a hole is to stop digging.

Hi CurlyDave,
I really got a kick out of the credo you mentioned and will remember it. Thank you very much for sharing it with us. It certainly applies to the case of the OP.
One time in the early eighties I forgot to pay a Texaco bill on time and the fifty cent interest charge still bothers me.

 

[Deere Dude]

Can anyone give me names of banks or equipment dealers that work with people with bad credit? After my divorce my credit is terrible but I am slowly rebuilding it and am in need of a good used tractor, Im looking for something in the 15K price range.

As always Thank You all for your help.

Don't the Kubota L4200 with cab work anymore? Just curious if you still have a tractor and need another one or if the L4200 gone.

 

[kenmac]

If you can quit today and then get hurt and you can't pay property taxes you will lose it all just like anyone else.

Getting hurt is a risk. Not everyone wants to be 57 and finally relax. Some people want a good life while they live it. Some choose to have just the necessities. Credit isn't the problem. Not paying loans is the problem.

Have nothing now or have nothing later on IF you default IF things go bad IF the economy crashes.

Nothing is still nothing. This country was built on credit. Credit is king. Credit allows you to make and keep cash for when things get bad. What if you get injured the day after you paid out your 8 years of cash savings on something? You still have nothing but a used piece of equipment and no customer base, no savings, no accounts, no name brand to sell jobs, no nothing.

And IF you get hurt - there's INSURANCE..

Have a good life ? believe me, I can quit.close this bus.anytime and live a good life
Relax? I don't intend to relax too much. I can do some small jobs here an there if I choose to. there is always plenty of work for the type bus I'm in. Just getting tired of hearing it willthe rat race of operating a business

 

[mcd176]

Deere Dude,

Unfortunately the L4200 had to be sold due to the divorce