Tarw Coch
Member
- Location
- Bottom of Wats Dyke
How many farms are buying several hundreds of thousands pounds of land every few years? For most such purchases are a rarity with the money borrowed over a longer timescale than that.How else will they buy more land for a few £100k every 3 or 4 years and new £100k tractors if they pay you a fair wage ?
Similarly most new tractors are bought on finance over several years. I was talking to a guy the other day who’s currently negotiating a deal to change his tractor by the time it’s 3 years old when the finance ends, I couldn’t understand why he was so keen to change when the next year he would have a tractor free of finance. Turns out it ain’t that simple, to keep the monthly payments down there’s a balloon payment at the end of the finance period which he either pays to keep the tractor or hands the tractor back. He can’t afford to buy the tractor outright hence the need to finance another.
All that glitters isn’t gold.