Tractor Financing Tips

Looking to finance your upcoming tractor purchase? While taking out a loan can seem intimidating at first, with the right information and prep, you’ll have no trouble getting the financing you need for your new equipment. For tips on how to get the best loan available for your new tractor, check out the article below.

Raise Your Credit Score

Your credit score is an incredibly important factor in receiving a good loan for your new tractor. To ensure you get the best financing available, be sure to take some time to raise your score before you begin filling out applications. Thankfully, raising a credit score doesn’t take very long, and can easily be done by paying bills on time and regularly using an open line of credit—such as a credit card—to show others you’re a reliable lender. While raising your score, make sure not to have any hard checks on your credit, or cancel any credit cards, as both actions could reduce your score. 

Save Up 

While a loan should cover the majority of your tractor’s sticker price, many dealerships will still require you to pay a down payment out of pocket. This typically consists of 10 to 15 percent of your model’s total cost, so you may need to save up. When browsing for a new tractor, be sure to ask your seller if a down payment is required and what percentage of the total price is expected. 

Secured vs. Unsecured 

Tractor loans will typically be offered as either secured or unsecured loans. Secured loans are the most common as they tend to have lower interest rates and are much easier to qualify for. However, secured loans do require you to put your tractor down as collateral, and your model can be repossessed after a number of missed payments. On the other hand, unsecured loans do not require any sort of collateral to be put up. However, they’re often more difficult to qualify for and tend to have higher interest rates than secured loans. Ultimately, it’s up to you to decide which loan type is best for your unique needs. 

Stop by Burks Tractor Co Inc. to find the perfect tractor for your needs! We not only offer an amazing selection of top-of-the-line models for sale, but we also have helpful staff on-site to ensure you find the perfect tractor for your needs. If you’re located nearby in Boise, ID, feel free to visit either of our locations in Caldwell or Twin Falls, ID to take advantage of our amazing financing services, rental options, and trade-in opportunities.