Credit for tractor – should be chosen with care.
Hardly anything can be achieved in a farm without a tractor. The power packs are all-rounders and help the farmer to do a lot of work. Regardless of whether it is field work, transport or loading and unloading: none of this is possible without a tractor.
So sooner or later every farmer has to think about buying a tractor. Even if such an all-rounder is already available in the fleet, it will have to be replaced with a newer model at some point. But what sounds so simple is very difficult in reality. There are enough tractors available for purchase. If it weren’t for the tiresome topic of financing, which can be tricky, especially with a tractor. Because such a vehicle is not available for a few hundred or a thousand USD. Here you have to dig deep into your pocket so that a loan for a tractor should be chosen with care.
Which tractor should it be?
Before you can look for a loan for the tractor and make initial discussions or make a preliminary selection, it is important to think about which tractor you want and what type of funding you want. After all, not just a simple loan can be taken out. Leasing would also be possible.
It is therefore good to work with a small checklist that contains the most important questions about the purchase and the related financing. Among other things, it should be clarified which brand, model and equipment the new tractor should have. It must also be planned whether a new vehicle or a used vehicle should be purchased. There are also questions about the costs, financing, duration of use and the type of loan. While one wants a variable rate fixation, the other prefers a fixed rate fixation over a certain period of time, which can then result in a debt rescheduling into a new and perhaps cheaper loan for the tractor.
And also on the subject of collateral, you should think a few things before buying and taking out a loan for the tractor. Most of the time, the tractor itself is viewed as safety. However, other material things such as real estate, securities and the like can also be accepted as security by the bank. A guarantor is very happy to be seen in this context, who rounds off the borrowing by signing the contract.
Compare different offers
Now a loan for a tractor is not an everyday story that banks process several times a day. Therefore, you should look in advance for suitable offers before you specifically contact a bank. With an installment loan, a comparison can easily be made with the help of a loan calculator here on the Internet. The loans determined in this way can also be conveniently applied for on the Internet. The advantage of the installment loan lies in the fact that you can use the money from the loan to act as a cash payer at the seller.If the tractor is bought through a dealer, he can deduct a substantial discount from the purchase price for the cash payment.
However, if you prefer to use a classic car loan, you will probably find good offers from the dealer. Even if leasing is to be used as an option for financing. The only thing left to consider here is whether balloon financing, three-way financing or just leasing should be used. The dealer will advise and make appropriate offers.