Used farm equipment financing is cost-effective for those who want to upgrade their machinery without breaking the bank. However, financing pre-owned machinery requires careful planning to ensure the investment is sound and sustainable.
Torgerson’s Equipment is your local farm machinery dealership in Montana, and we can help you make a well-informed decision. Here are three crucial factors to consider when financing your tools—so keep reading to learn more!
1. Assess the Equipment’s Condition
First, evaluate the used farm equipment, and then finalize your decision. You can start by inspecting the machinery for wear and tear, previous repairs, and overall functioning. Next, check the equipment’s maintenance history to determine its lifespan and use this information to negotiate flexible financing terms and avoid unforeseen costs. If you aren’t confident performing this assessment, you can seek the help of a trusted mechanic or agricultural equipment specialist.
2. Compare Financing Options
When financing used farm equipment, explore various lending options to find the most favorable terms. Traditional banks, credit unions, and specialized agricultural lenders offer different rates, repayment schedules, and loan conditions. You can compare interest rates, loan terms, down payment requirements, and additional fees with each option to make a well-informed decision. Some lenders may offer more flexible terms compared to others, so keep your options open. You should research and compare these options to enjoy significant savings and a better financing arrangement.
3. Determine the Depreciation Rate
Used machines have already experienced a significant portion of their depreciation, which can be advantageous for buyers. However, estimate how much more the equipment will depreciate over time and how this will impact its resale value. This will help you plan for upgrades or replacements and influence the financing decision.
Are you ready to go shopping for used farm equipment? Contact our finance experts at Torgerson’s Equipment and let them help you find the perfect financing plan. We serve all of Montana, so reach out today!
