A Guide to Financing a Tractor
If you need a tractor for your job, but don’t think you can afford it, you’re in luck. Financing a tractor is a great option for getting the equipment you need without having to pay the full cost of the machine up-front. At Burrows Tractor, we have excellent financing options! Keep reading for some buying tips, and call us when you’re ready to see some models for sale.
Build a Budget
As with any major purchase, it’s important to create a budget before you start. You’ll want to figure out how much you can realistically spend before looking at financing options. Don’t forget to include the cost of maintenance, fuel and repairs when establishing your budget.
Next, figure out how high a monthly payment you are willing and able to spend. Take into consideration your existing income, spending habits, fixed expenses, and emergency funds. You definitely don’t want to agree to a monthly payment that is going to stretch your finances too thin. Don’t forget that you’ll probably need to put a down payment down when buying the equipment.
Picking a Loan
One of the main decisions you have to make when financing a tractor is what kind of loan you want to take out. Keep in mind that tenure and interest rates will vary, depending on the type of loan, the lender, the loan amount, and your own income and credit score.
You have a few main financing options available. The first is a secured loan. This type of financing features long repayment terms with lower overall rates. However, the tractor will be used as collateral. This means defaulting on your loan will give the lender ownership rights over your machine.
On the other hand, an unsecured loan has higher rates, but your equipment will not be used as collateral. The payment terms are shorter, too.
Lending Options
When looking for financing options for your machine, you can go to a few different lenders. These include banks, credit unions, or dealerships. Rates will vary, depending on your credit score and how much money you are asking for. Keep in mind that choosing a lender you already have an account with will usually result in lower interest rates. Credit unions tend to give lower rates with a higher total loan amount.
Are you ready to find the perfect tractor for your job? Call Burrows Tractor today and we’ll go over our great financing options with you. We have locations in Yakima, Wenatchee, and Sunnyside, Washington, and North Plains, Oregon too. Our friendly staff can’t wait to help you find the machines that will make your work easier and faster.