Farm Tractor financing is provided through a host of manufacturing and private agricultural equipment financing sources.
Its not unusual for most major equipment manufacturers to have a farm tractor financing program for both new and used equipment that falls under their brand names. Some will even financed used equipment their dealers have taken in as a trade in.
While many of these program provide excellent rates and terms, it still a good idea to do some comparison shopping. The main reason being is to better understand the total effective net cost of your purchase.
In some cases dealers will increase the cost of the asset to offset the reduction in financing costs offered. If you’re overly focused on rate, you can end up spending a lot more on the asset than perhaps you could on the open market using an alternative financing source.
Most equipment financing and equipment leasing companies will be interested in financing farm tractors as they tend to be solid long life assets with a strong resale market. That being said, there can be wide differences between the different deals each equipment financing company is prepared to offer due to the type of the asset, the size of the financing request, the credit profile of the borrower, and so one.
So its a good idea to work with an equipment financing specialist who can quickly assess your needs and get you matched up with lenders or leasing companies that will be able to provide a competitive offer for what you’re looking for.
Equipment financing for new equipment can be at or near 100% of the cost of the tractor being acquired. For good used equipment, the rates can be slightly higher with more down payment required, and shorter repayment terms, but this will depend on the asset in question.
Because there can be such a large range in the cost of farm tractors, the will also be a varying appetite for any given deal by different equipment financing companies as many are restricted by deal size, either too big or too small.
If you have a farm tractor that you’ve got lined up to purchase, I recommend that you give us a call so we can quickly assess your requirements and help you put together a proper application package for the particular lenders or leasing companies your request for financing will be sent to.
Regardless if you’re just starting the buying process, got an accepted offer or bid in hand, or have already purchased a farm tractor for cash, I still recommend that you give us a call as we can help you locate and secure equipment financing for any of these situations.