Used Tractor Purchasing

Anonymous-0 · Apr 2, 2011

Looking for a 130-150 HP tractor, late IH - early Case IH (red version of the white cases). Have my models in mind, and a couple found. Purchasing one out of pocket will deplete my funds for this years crop (seed is already paid, but lime and all fertilizer/chemicals and fuel yet to go.) My large tractor now is 105 horse, and it will pull my 21 foot disk and 11-shank chisel, but just got a steal on a brillion 5 shank ripper and it'll only scratch with it. I'd like to be able to disk a gear faster and pull the ripper properly. What are some good places that offer reasonable annual-payment financing on used equipment, as I work and farm as well, and it's not fair to the family to support my farming habit by making a tractor payment out of the family checking account. Anyone with any personal good experience with such loans?

RayP(MI) · Apr 2, 2011

I'd talk to my local credit union.... Not a fan of banks, savings and loans, or loan sharks.

Last time I went in for a loan on a portion of a car (had check in hand for the one wife had crashed.), outlined the deal I had made, and asked for a loan on the rest, loan officer said, "Ray, you can have anything you want!"

Anonymous-0 · Apr 2, 2011

I pull a 5 shank inline ripper with a 170hp 4 wheel drive and it is barely adequate. Better to go for more hp, suggest at least 200 hp, to really have the "dog wagging the tail" rather than the "tail wagging the dog". Many have suggested that 250 should be the minimum. Personally I mix farming and family funds as I choose, because I make the money. Wouldn't expect the wife wages to participate, but what I have over after paying my share of the bills I expect to invest as desired.

DBAF · Apr 2, 2011

I use farm credit for yearly payments.

JDseller · Apr 2, 2011

Where do you live? If you are in IA,IL or MO. You can go with Ag Direct. It is a branch of Farm Credit. It was setup just to make equipment loans, single page application. Most Farm Credit loans for equipment are a continuation of operating/land loans, much more paperwork involved. If you are not in one of these states then just look at a full line dealership. John Deere,CaseIH, and New Holland all have financing branches. You would just need 20-30 percent down for a 4-5 year loan. At times they even have low rate programs for used equipment.

DiggerDick · Apr 2, 2011

Hard to find a bank and definatly not a credit union that will deal with farmers or loggers on equipment. Now if I wanted a new boat or take a cruise they would say "no problem"

DBAF · Apr 2, 2011

Farm credit in Oklahoma and in Ohio, I just call and they tell me to come get a check in a couple hours, these loans are seperate from my operating loan. Of course they know me, but even the first time I got a loan from farm credit I had a check before I left the office.

kyhayman · Apr 2, 2011

I'd try the bank you do business with first, just to see what they say. Sometimes you get surprised. Banks loans are tight to come by right now, way more complicated than they were a few years ago but its still possible. Probably the best option is Farm Credit. Certainly another option to consider is Farm Bureau Bank if you are an FB member. Lastly, but certainly worth considering is private paper. Lots of individuals loaning money now. With CD rates below 1 percent you might be surprised at the rates you can get. An organization I belong to just borrowed 300K privately at 4 pct on a first mortgage and I know of several people who have personal and vehicle loans out in the 10-12 pct range.

Anonymous-0 · Apr 3, 2011

Thanks everyone. I never even thought about FB Bank, been a FB member for a lot of years with alot of insurance through them as well. James, I hear where you're coming from, but I am the income.. I have a good income and my wife stays home with our 6-month old son, and was home the three years before that with our daughter. With childcare costs these days and 25 mile drives to work, it made no sense for her to work with me making what I do, and I really enjoy having her home when I'm farming... if not during planting or harvest I come in for lunch every day and enjoy time with her and my son, and during the busy times they can come out to where I am. I work 12 hour shifts 4 days one week and 3 the next on a rotating schedule, and with the farm we don't always see a lot of each other, so her being home works out for all of us.

Anonymous-0 · Apr 3, 2011

Good reply. After posting I had some regrets because it might be perceived as being somewhat harsh. That wasn't the intention and I'm happy you didn't interpret it as being offensive.

Used Tractor Purchasing

Anonymous-0

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RayP(MI)

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Anonymous-0

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DBAF

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JDseller

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DiggerDick

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DBAF

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kyhayman

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Anonymous-0

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Anonymous-0

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