Financing Used Tractor Financing

[asjohn20]

I'm looking to pick up a compact tractor to move firewood, snow removal, small projects around the yard and maybe mowing if I can choose something small enough:laughing:. I've been searching craiglist to save a money off the price of a new tractor. I called my local bank and they would give me a 1.74% loan for a vehicle but the best they could do for a used tractor was a commercial line of credit at 10%. Just wondering if any of you folks know how and where to finance a used tractor that isn't purchased through a dealer. Thanks in advance for any advice. Aaron

 

[Ed of all trades]

You might be as well off with a 0% new as a 10% used tractor.:2cents:

 

[dkhntr04]

Check with a bank or credit union about a secured personal loan. You could use a vehicle as collateral to get better rates- essentially get the equity out of a vehicle that is paid off and use that for the tractor.

 

[asjohn20]

You might be as well off with a 0% new as a 10% used tractor.:2cents:

I do have a used tractor in my sights already but maybe going new is the answer. I think I'd save $4K buying the used tractor compared to new so if my interest rate isn't 5% or lower it doesn't make sense to buy used.

 

[Ed of all trades]

When I bought my massey I could not afford a used tractor, Honestly I got a massey because they had 0% for 72 months and every one else had 48. I love my GC 2400 and am happy I bought it. I hope you find the right tractor for you, financing and all.

 

[madmax12]

I'm not certain, but there has been a lot of back and forth about 0%.

Check the accuracy of what I'm about to say, but this is what I think is out there:

John deere offers no difference in tractor price whether cash or 0%.... The potential downside is it may be the highest priced machine.

All other brands handle 0% like car dealers. You pay 1000's more for the tractor, to "qualify" for the zero percent. Figure out your own way to show up with the cash, and you get the cash/rebate price.

Some have pointed out that 0% is paying all the interest, no matter what (because the price is 1000's MORE, upfront). Whereas, a loan with a higher % rate than zero (at the lower CASH PRICE) has a "savings" factor if u pay it off early.

If I said anything wrong, please correct the misinformation. Hope this is helpful.

 

[El Wood]

Go new at 0 percent for 5 years... I looked at lots of used vs new. The best rate I could get through a credit union was 5.4 percent for 4 years. I did the math and I would pay more in the end for used. Plus, you can't beat a new tractor!

 

[XSKIER]

Yep. Another new tractor buyer here because of used tractor financing rates. I love my new tractor (that's not new anymore), but I hate the payments.

 

[Don87]

I paid cash for mine, but with the prices I was finding for decent used machines...............I had no choice but to buy new.

 

[mjzman]

Many dealers can also arrange cash pricing at lower interest rate, rather than the 0%. I just bought a new Massey at cash price with 2.9% financing arranged through the dealer. I was also considering a Mahindra at cash price with 4.25%. The best my bank could offer was about 6.75%. For a smaller tractor the 2.9% worked out a little less in payments than 0% would have. I could not justify a used tractor either.

 

[Depmandog]

We live in a small town at the edge of a large metro area. Our bank offered personal loans, but only for 2 or 3 years and the interest rate was double digit. I checked and looked and looked and checked to no avail. Finally I smartened up, and called a small bank in a farming community about 40 miles east of me. No problem at all writing a loan on a used tractor. And the rates were decent too.

Turns out they had a a branch office in the town just south of us, and they let me close the loan there. The bank officer mentioned this was the first ag loan he had ever been involved with. Yet 40 miles away at their main office - ag loans were very common.

I bought used, got a 6 year tractor with only 300+ hours, with a Land Pride brush hog and FEL. I saved close to half from new prices.

I will say I looked for months before i found this desk.

 

[mikehaugen]

I was fortunate and bought my tractor with cash. I was buying from a guy that I know that was going through a divorce. He was kicked out of his house so his wife could live there, so he had no use for the tractor. He went and took it while she wasn't there (she really didn't even know it was there) and sold it to me for cheap because it was easy and he needed money for his attorney. I bought my 1070 2wd with woods 90" finish mower with about 2500 hours for $4000. I suspect it will last me for another 20 years with the amount I use it, but if I need to replace it someday I will probably buy new. If buying used I think you need to buy at least 10 years old to see much depreciation, at least around here- anything that's a few years old the seller want nearly new price for it.