Financing options for used tractor??

Curtis861 · Jul 2, 2006

I have been looking at new compact tractors (Kubota L2800, John Deere 790, Massey Ferguson) and they have pretty good financing terms but I am reluctant to purchase a $14,000 tractor. If I find a $7,000 used tractor from a third party, are there companies that will finance it? Any input is appreciated. Thanks in advance.

Curt

Redneck_Randy · Jul 2, 2006

Your local bank should offer loans on used tractors but I bet the interest rate will be somewhere from 8 to 10 percent.

biker128pedal · Jul 2, 2006

I know when I was looking at a used Kubota 2410 at the local John Deere Dealer he said John Deere would finance. I think it was about 9%. They would finance the tractor a loader.

mike223 · Jul 3, 2006

If the tractor is going to be used for ag work, you might try Farm Credit if they have one in your area. They'll give loans at good rates for most things agricultural.

RoyJackson · Jul 4, 2006

Curtis861 said:
I have been looking at new compact tractors (Kubota L2800, John Deere 790, Massey Ferguson) and they have pretty good financing terms but I am reluctant to purchase a $14,000 tractor. If I find a $7,000 used tractor from a third party, are there companies that will finance it? Any input is appreciated. Thanks in advance.

Curt

My bank had no interest at all in financing a used tractor. They considered used farm equipment of any sort a poor risk.
The best they would do is a personal loan.

If you buy from a dealer, see what their finance deals would be. If you buy from a private seller...well, you'd have to talk to a bank, but you may need collateral other then the tractor, such as a home equity loan.

If you buy used, I strongly suggest you stick with Deere, New Holland or Kubota.

flusher · Jul 4, 2006

Curtis861 said:
I have been looking at new compact tractors (Kubota L2800, John Deere 790, Massey Ferguson) and they have pretty good financing terms but I am reluctant to purchase a $14,000 tractor. If I find a $7,000 used tractor from a third party, are there companies that will finance it? Any input is appreciated. Thanks in advance.

Curt

Home equity loan, assuming you have some.

Soundguy · Jul 5, 2006

Good info so far.

You may notice that your dealers finance % will come in just a tad under your banks 'used' equipment %.

In my area farm credit will loan no problem.. but has bad %.. better to hit a bank if possible.

Best option so far is home equipty, if available.

Another option is to borrow against money you have on deposit. In many cases, if you have a savings account or CD.. you bank will let you use that as a security deposit on the loan, and you get a great % rate.. usually better than the home equity line. When I bought my 7610s, I had a trade in, and borrowed the rest against a cd at my bank. They gave me a rate that was only about a percent higher than the CD yeild.. so.. I was only paying about 1% ( plus loosing the interest fromt he cd.. etc.. it allw ashes anyway.. )

Soundguy

Curtis861 said:
I have been looking at new compact tractors (Kubota L2800, John Deere 790, Massey Ferguson) and they have pretty good financing terms but I am reluctant to purchase a $14,000 tractor. If I find a $7,000 used tractor from a third party, are there companies that will finance it? Any input is appreciated. Thanks in advance.

Curt