New tractor, which model to choose

[Cowabunga]

You need a better finance broker.

I'm not in the market. However that is about the going finance rate for used tractor finance.

 

[michael N123]

I’d suggest either a Valtra or a John Deere

 

[fieldfarmer]

I'm not in the market. However that is about the going finance rate for used tractor finance.

I'll consider myself very lucky for the deal I just signed last month then.

 

[Fergieman]

You would pay at least 6% flat rate on an used tractor I reckon. £60k without subsidy at 6% flat over five years works out at £18000 interest. That would be £1300/month for 60 months. The £300/month being interest.

As time went on the interest would get less as your borrowing comes down.

 

[Cowabunga]

As time went on the interest would get less as your borrowing comes down.

There is so much ignorance on finance. A flat rate is just that and calculated exactly as I did it.

 

[fieldfarmer]

There is so much ignorance on finance. A flat rate is just that and calculated exactly as I did it.

Well I'm glad my broker is ignorant then, your way off.

 

[Cowabunga]

I'll consider myself very lucky for the deal I just signed last month then.

Three years at 3.5% flat perhaps? £60k £1842/month. That's £175/month interest.

Or pro-rata.

 

[Cowabunga]

Well I'm glad my broker is ignorant then, your way off.

Well go on then, what rate are you charged for what term on what age of tractor?

 

[Lakesdigger]

Three years at 3.5% flat perhaps? £60k £1842/month. That's £175/month interest.

Or pro-rata.

I don't know what you're basing your interest charges on but from my experience of machinery finance (albeit on new machinery) your figures seem more like a mortgage. If you could take 60k @ 6% over 60 months that would be £63600 to repay so £1060 a month plus a signing on fee and closing fee (add up to about another £200).
As i say my experience is on new machinery (recently 20k over 24 months @5.7apr).

 

[Cowabunga]

I don't know what you're basing your interest charges on but from my experience of machinery finance (albeit on new machinery) your figures seem more like a mortgage. If you could take 60k @ 6% over 60 months that would be £63600 to repay so £1060 a month plus a signing on fee and closing fee (add up to about another £200).
As i say my experience is on new machinery (recently 20k over 24 months @5.7apr).

A mortgage is quite different and is where the interest payment reduces as the capital is paid off in increasing amounts over time, yet the total monthly payment remains the same.
You paid 5.7 APR and possibly 5% flat, depending on how the repayment was structured and how much you paid up front in either cash or part exchange.

 

[Lakesdigger]

A mortgage is quite different and is where the interest payment reduces as the capital is paid off in increasing amounts over time, yet the total monthly payment remains the same.
You paid 5.7 APR and possibly 5% flat, depending on how the repayment was structured and how much you paid up front in either cash or part exchange.

There was cash up front and a trade in. But my point is i don't know where you are getting the 18k interest from i think it would be more like £3600?

 

[Cowabunga]

There was cash up front and a trade in. But my point is i don't know where you are getting the 18k interest from i think it would be more like £3600?

Maybe you should have studied mathematics a bit more intensely?

 

[Lakesdigger]

Maybe you should have studied mathematics a bit more intensely?

Well you'll have to show your workings. 6% of 60000 is 3600. Your 18000 of 60000 is 30% interest!

 

[manhill]

Tell me something, when one of the bells doesn't want to talk to one of the whistles on these modern tractors, how much can it cost in owner time loss to put right??

 

[daveydiesel1]

Well you'll have to show your workings. 6% of 60000 is 3600. Your 18000 of 60000 is 30% interest!

But is that not 6% per annum?

 

[ollie989898]

I’d suggest either a Valtra or a John Deere

I'd sooner have a Valtra than a fudging Massey.

 

[Lakesdigger]

But is that not 6% per annum?

That would be paying 6% interest on the 60000 every year for 5 years (5 × 3600 = 18000) but i thought the 3600 (6% of 60000) would be spread over the 5 years so only 720 per year interest. I know this may seem peanuts but trust me when people say money is cheap this is what they are meaning.

 

[daveydiesel1]

That would be paying 6% interest on the 60000 every year for 5 years (5 × 3600 = 18000) but i thought the 3600 (6% of 60000) would be spread over the 5 years so only 720 per year interest. I know this may seem peanuts but trust me when people say money is cheap this is what they are meaning.

But if its 6% interest that is 6% per annum. Like if u burrowed 100000 @ 6% interset the first month ud pay £500 in interest. So if ur payments were £1500 per month the second month ud pay £495 in interest

 

[Lakesdigger]

But if its 6% interest that is 6% per annum. Like if u burrowed 100000 @ 6% interset the first month ud pay £500 in interest. So if ur payments were £1500 per month the second month ud pay £495 in interest

So how come i have 20k borrowed over 2 years at 5.7% and when you add up the 24 monthly payments of £877 its only £1048 interest.

 

[Cowabunga]

Well you'll have to show your workings. 6% of 60000 is 3600. Your 18000 of 60000 is 30% interest!

60k at 5% flat over five years… simples...

60k*5% = 3000*5years =£15,000 of interest.
60k+15k=75k/60months=£1250/month. That is for a typical five year at 5% flat finance figure for an used tractor. Of course a bank loan is potentially much cheaper. The bounce-back loan for instance is a fraction of the interest.