Finance costs.

[pgk]

What sort of apr are finance houses doing on c£15k against a second hand loader tractor?

 

[Cowabunga]

What sort of apr are finance houses doing on c£15k against a second hand loader tractor?

I wonder whether you will find any that are willing to finance a 15k used tractor these days? If it is fairly new and the proportion financed was less than 50% of its value [paying cash or a part exchange for the balance] and it was eight years old or less you would be in with a chance at around 5% flat rate or 10% APR.

Give a few agents a ring to find out for yourself. Every deal is for different circumstances. For instance, they will do a credit check and will want a copy of accounts not for not more than two years in the past. Your current set of accounts basically.

Be aware that they may want to put the whole value on the finance and charge interest on the total, even if you pay a large lump of cash up front. They are not to be trusted.

 

[neilo]

I wonder whether you will find any that are willing to finance a 15k used tractor these days? If it is fairly new and the proportion financed was less than 50% of its value [paying cash or a part exchange for the balance] and it was eight years old or less you would be in with a chance at around 5% flat rate or 10% APR.

Give a few agents a ring to find out for yourself. Every deal is for different circumstances. For instance, they will do a credit check and will want a copy of accounts not for not more than two years in the past. Your current set of accounts basically.

Be aware that they may want to put the whole value on the finance and charge interest on the total, even if you pay a large lump of cash up front. They are not to be trusted.

I bought a 1999 SP sprayer via a dealer a few years ago and put it on finance through a broker. Nobody has ever wanted to see my accounts, although obviously they do a credit check, and the interest was only charged on the amount financed.
Everything was just the same as putting a new machine on HP, although I seem to remember they said secondhand machinery had to have a minimum of 10% deposit?

My apologies to the OP, that’s no answer to his question as to rates available currently.

 

[Cowabunga]

I bought a 1999 SP sprayer via a dealer a few years ago and put it on finance through a broker. Nobody has ever wanted to see my accounts, although obviously they do a credit check, and the interest was only charged on the amount financed.
Everything was just the same as putting a new machine on HP, although I seem to remember they said secondhand machinery had to have a minimum of 10% deposit?

My apologies to the OP, that’s no answer to his question as to rates available currently.

Yes, their attitude and terms vary greatly between companies and according to prevailing economic conditions generally. The borrower needs to be careful though because some of the agents are sharks.

 

[Bullring]

I’ve always financed secondhand major purchases through an independent broker, my last one was a 15 year old handler, and a 10% Deposit plus all the vat upfront was all they needed, never been asked for accounts unless it’s done through the bank but you will probably get better rates elsewhere. I was only asking last week about future finance and he said if you work on 2.5-3% flat you wouldn’t be far out. If your saying your putting 15k down and financing the rest then I would say that’s enough of a deposit.

 

[B R C]

Ask your bank first, then you have a marker.

 

[pgk]

Anyone used Lombard online? I put details in and they came up with a 48mth loan at 4.7% apr which seemed reasonable? I have fortunately never had to take an unsecured loan unlike my friend for whom I am researching the options available, I suspect he will have a much better credit rating than me.

 

[4course]

Anyone used Lombard online? I put details in and they came up with a 48mth loan at 4.7% apr which seemed reasonable? I have fortunately never had to take an unsecured loan unlike my friend for whom I am researching the options available, I suspect he will have a much better credit rating than me.

then let him do his own research

 

[pgk]

then let him do his own research

I am using his details but am surprised to come up with a number of options around 5% when he says he is usually pays much more, his most recent agreement having ended 4 months ago and was at nearer 10% apr. Were rates much higher 3.5 yrs ago?

 

[4course]

I am using his details but am surprised to come up with a number of options around 5% when he says he is usually pays much more, his most recent agreement having ended 4 months ago and was at nearer 10% apr. Were rates much higher 3.5 yrs ago?

still wont make any difference to the bombardment for "cheap" finance you will be subjected to !! presuming you are using your own tech

 

[pgk]

still wont make any difference to the bombardment for "cheap" finance you will be subjected to !! presuming you are using your own tech

Yes when I have sorted him out I will no doubt be adjusting the spam filter. He has the pleasure of having no computer which may explain why he is at the mercy of the only two finance houses he has used historically.

 

[Johnnyboxer]

I wonder whether you will find any that are willing to finance a 15k used tractor these days? If it is fairly new and the proportion financed was less than 50% of its value [paying cash or a part exchange for the balance] and it was eight years old or less you would be in with a chance at around 5% flat rate or 10% APR.

Give a few agents a ring to find out for yourself. Every deal is for different circumstances. For instance, they will do a credit check and will want a copy of accounts not for not more than two years in the past. Your current set of accounts basically.

Be aware that they may want to put the whole value on the finance and charge interest on the total, even if you pay a large lump of cash up front. They are not to be trusted.

Of course they will do a HP deal for £15k

I doubt they will want accounts if the deposit of at least 10%

Expect to Pay about 8-9% Apr

 

[Cowabunga]

Of course they will do a HP deal for £15k

I doubt they will want accounts if the deposit of at least 10%

Expect to Pay about 8-9% Apr

Depending on the age, I would be surprised if they were willing to take less than 10% deposit. Your interest rate is close to my estimate of course.

Yes, a personal loan from a supermarket or similar works out cheaper as long as you are creative in describing what its for and that there is an exemplary credit rating.

 

[Johnnyboxer]

Depending on the age, I would be surprised if they were willing to take less than 10% deposit. Your interest rate is close to my estimate of course..

A large owner farmer with a good credit rating could get zero deposit on a used tractor
However a riskier proposition may require 20% deposit
As it says ‘subject to status’
Lenders are in the business of lending money not asking for unnecessary deposits

 

[Cowabunga]

A large owner farmer with a good credit rating could get zero deposit on a used tractor
However a riskier proposition may require 20% deposit
As it says ‘subject to status’
Lenders are in the business of lending money not asking for unnecessary deposits

I suspect they would need a long association and history with the finance company to get anything like a zero deposit, and I bet the interest rate would reflect the added risk to them even so. Finance companies are not charities and not your buddies either.

 

[pgk]

Of course they will do a HP deal for £15k

I doubt they will want accounts if the deposit of at least 10%

Expect to Pay about 8-9% Apr

That's why I asked about Lombard, I put in all details for 8 yo tractor and it has come up with the 4.7% with c 45% deposit.

 

[Johnnyboxer]

I suspect they would need a long association and history with the finance company to get anything like a zero deposit, and I bet the interest rate would reflect the added risk to them even so. Finance companies are not charities and not your buddies either.

You would be surprised what some Ag Lenders offer, deposit wise & the interest rates are competitive- driven by the by the market

 

[Cowabunga]

You would be surprised what some Ag Lenders offer, deposit wise & the interest rates are competitive- driven by the by the market

I've dealt extensively with a variety of finance companies over several decades, for one decade on an almost daily basis.

 

[Johnnyboxer]

I've dealt extensively with a variety of finance companies over several decades, for one decade on an almost daily basis.

Did it make you happy ?

 

[Cowabunga]

Did it make you happy ?

Nope. I saw some agents and many deals ongoing on potential part exchanges that were almost disgusting rip-offs. I learnt to keep my mouth shut because the customers never appreciated honesty in the realisation that they had been ripped off mightily over several years. Not my business.