Tips for Financing a Tractor

Whether you’re a new or experienced tractor owner, it’s important to be prepared when purchasing your next tractor. There are multiple financial factors to consider before buying, such as loans and interest payments. Here are a few key tips for financing a tractor!  

Consider How Long You’ll Use the Tractor

Think about how many years you’ll be using the tractor. If you’re planning to operate it for a long time, you’ll want to look into long-term tractor financing options and how to make lower monthly payments. However, if it’s only a short-term need, an operating lease is the way to go! 

Understand Loan Types

When you finance a tractor, you’ll be borrowing money from a lender to complete the sale. It’s helpful to understand the different loans available to you! The two main types are secured and unsecured loans. 

The most significant difference between unsecured and secured loans is the interest rate. Secured loans require you to offer collateral, in case you were to miss your payments. Unsecured loans do not require any form of collateral, however, they often have higher interest rates. 

When you apply for tractor financing, your approval will be based on several factors including your current credit score, credit history, and the total loan amount. Your financial history will largely determine the type of loan you qualify for and the amount you’re able to borrow!

Set Aside Money for a Down Payment

Even though you’ll be financing your tractor purchase, most dealers will require a down payment at the time of the sale. The more you can offer as a down payment, the less you’ll have to borrow. This can result in a much lower interest rate for your tractor!

Financing a tractor doesn’t have to be complicated, especially if you know the right questions to ask! Purchase your tractor at Boehm Tractor Sales. We proudly serve Shiner, Seguin, and Austin, Texas, as well as surrounding areas.