Financing Your Farm Equipment
Agriculture is one of the most vital industries on the planet, keeping people fed and stocked with raw materials so they can do their own jobs. Unfortunately, that doesn’t always equate to a big payday, so it can be important to explore ways to stretch your budget. We here at New South Tractor want to help you stretch your dollar when you need a new tool, so we’ve put together some tips for financing your farm equipment below. To learn more, or to see the farm equipment we have for sale, contact our store in Newton, North Carolina, today!
Firm Budget
Like with any financial decision, your first step is a firm budget. Check out your personal finances to learn what you can afford, then look at the market for the equipment you need and try to find a number that matches both. You’ll also want to explore a few local loan rates and terms.
Remember that you aren’t just paying the sticker price! There’s still fuel, regular maintenance, and emergency repairs like with any equipment. And because this is a loan, you’ll have to factor in your down payment and monthly installments, including interest.
The Right Loan
You can expect your loan term to last a handful of years and you’ll be paying monthly installments to pay it off. The exact length and rates will vary by the lender, the loan amount, the loan type, and your income and credit score. However, the two main categories of loan are secured and unsecured.
A secured loan will have more favorable terms and a longer tenure, meaning you’ll be able to pay in smaller installments over a longer period of time. It’s also the easiest type of loan to obtain, even if your credit score isn’t perfect. However, your equipment will be collateral for the loan, meaning if you default then it can be repossessed.
Unsecured loans are harder to obtain and have shorter rates and higher payments, but they don’t use the equipment as collateral.
The Right Lender
There are many places you can go for a loan. Banks, credit unions, lending institutions, and even dealerships like us at New South Tractor can provide you with financing options. You don’t need to be a member of a financial institution to get a loan from them, though it can mean a better interest rate if you are. Credit unions tend to provide some fairly kind terms, with lower interest rates and a higher total loan amount.
We hope these tips help you get the financing help you need! For more information, if you want financial advice, or want to explore our financing options, contact us at New South Tractor. We proudly serve the people of Newton and Asheville, North Carolina—let us serve you today!