Tractor & Farm Vehicle Financing Tips

Every farm in the 21st century is powered by the use of farm vehicles such as tractors. These vital machines ensure that you can get your work done quickly and efficiently without a lot of hard labor. However, everyone knows that farm equipment doesn’t exactly come cheap, and whether you’re a veteran farmer who needs to replace an older model or a new farmer who needs to get your agricultural operation off the ground, you may want to consider financing options to purchase the tractor you need.

High Plains Equipment, with locations in Harvey and Devils Lake, is your North Dakota tractor dealer, serving Minot and Grand Forks as well. We’re here to help you with the entire tractor-buying process so that you can put your mind at ease and walk away with the farm vehicle you need to boost your productivity.

What’s Your Budget?

Before you go out and get that money, you need to determine what your current budget is. You’re going to need to put up 10% to 20% of the tractor’s total cost as a down payment at the time of purchase, so make sure that you have that money available. You’ll also want to determine how much money you can afford to pay each month towards your loan. Finally, don’t forget to include the costs of tractor maintenance, storage, attachments and insurance in your budget so that nothing catches you off-guard.

Where Can You Get a Loan?

Loans for farm vehicles come in a few different types, and you can investigate several venues for obtaining a loan. Banks and credit unions, particularly those you already have a checking or savings account with, are a good way to go for a loan because the interest rates will likely be lower for existing customers. Dealerships like High Plains Equipment also offer financing options to help you find the loan you need.

Which Loan Type is Best For You?

Loans involve receiving a given amount of money up-front to purchase your farm equipment, to be paid off in regular monthly installments over a few to several years. A tractor loan may be secured or unsecured. Secured loans use the tractor or farm equipment as collateral to be repossessed in the event the borrower defaults on their loan. However, these loans often have higher borrowing amounts and lower interest rates. Unsecured loans do not require any collateral, so your tractor remains in your possession, but interest rates are higher and how much money you get can be lower.

Visit one of our North Dakota locations in Harvey or Devils Lake, ND, to check out our fine selection of new and used tractors for sale. Our finance department is ready and waiting to assist you however they can. High Plains Equipment proudly serves the cities of Grand Forks and Minot, ND.