Loan .- finance .- cash

jd06

Hi all
My brother is buying a second hand tractor 30k ish
He like myself is not well up on the best options. He has 5k cash at his disposal
What are the pros and cons

pedigree 6

Use the 5k to start up a charity.
Call it jd's help for orphaned guinea pigs.
You'll have 500k in no time.;)

Willfarman

Brilliant pedigree.. Had me right old chuckle!

pedigree 6

jd06 wrote: »

Hi all
My brother is buying a second hand tractor 30k ish
He like myself is not well up on the best options. He has 5k cash at his disposal
What are the pros and cons

You're going to have to give a bit more info.
Are the pair of ye farming?
What does he intend doing with the tractor?
Does he own any assets?
Has he ever taken out loans before?

jd06

pedigree 6 wrote: »

You're going to have to give a bit more info.
Are the pair of ye farming?
What does he intend doing with the tractor?
Does he own any assets?
Has he ever taken out loans before?

Hi he has no loans
No major profit from the farm
He.'ll keep it till it falls apart all light handy work. Sheep and cattle

orm0nd

jd06 wrote: »

Hi he has no loans
No major profit from the farm
He.'ll keep it till it falls apart all light handy work. Sheep and cattle

1 more Q. does he really need a 30k tractor ?

if yes best bet is bank or credit union loan possibly over 3 to 5 years

jd06

orm0nd wrote: »

1 more Q. does he really need a 30k tractor ?

if yes best bet is bank or credit union loan possibly over 3 to 5 years

Yes needs a loader for silage bales he works so needs something reliable
It's 15 yo tractor
Unfortunately that's what stock mans tractors are making

farmerjj

jd06 wrote: »

Yes needs a loader for silage bales he works so needs something reliable
It's 15 yo tractor
Unfortunately that's what stock mans tractors are making

Honestly I think 30k for a 90ish? Hp tractor is v steep plenty of 8/9year old tractors with loaders going for that.

_Tombstone_

linked Finance or Mintos be an option for a farm??

jd06

farmerjj wrote: »

Honestly I think 30k for a 90ish? Hp tractor is v steep plenty of 8/9year old tractors with loaders going for that.

His money
His business
I just want to know bout the finance options

Water John

Banks are very fussy now on loans. He will be giving the bank a lot of info on how he intends repaying.
A seasonal stock loan is the easiest to get but that won't suit.
The decision is not made in the local branch any more, usually.

Sam Kade

farmerjj wrote: »

Honestly I think 30k for a 90ish? Hp tractor is v steep plenty of 8/9year old tractors with loaders going for that.

My tractor is over 30 years old, I bought it 15 years ago for €7k and it's still going strong even though it does every thing on a 70 acre dairy farm including silage no contractor here except in emergencies. It makes me laugh when I hear of people needing a €30k tractor to feed a few bales and do a bit of topping.

whelan2

orm0nd wrote: »

1 more Q. does he really need a 30k tractor ?

if yes best bet is bank or credit union loan possibly over 3 to 5 years

Credit union here charge nearly 10% interest, you also need to have 20% of what you are borrowing in shares.

Sam Kade

whelan2 wrote: »

Credit union here charge nearly 10% interest, you also need to have 20% of what you are borrowing in shares.

That's the greatest joke with the credit union, here you need half of what you want to borrow in savings. borrowing what you have in savings and paying big interest in it doesn't make sense.

whelan2

Sam Kade wrote: »

That's the greatest joke with the credit union, here you need half of what you want to borrow in savings. borrowing what you have in savings and paying big interest in it doesn't make sense.

Here we are paying for the clowns who didn't repay their loans. So no interest on shares for the last few years. That said it's very handy to go up on a Friday evening and have money home on a Saturday morning in the form of a loan if you are stuck. Always pay it back asap

farmerjj

jd06 wrote: »

His money
His business
I just want to know bout the finance options

If it was his money he wouldn't be looking for a loan.

jimmy G M

farmerjj wrote: »

If it was his money he wouldn't be looking for a loan.

Tractor is too old for leasing or Hp so it's going to have to be an old fashioned Bank or credit Union loan. Max term for unsecured borrowing is usually 5 years, if he has good income and a good repayment record he might get an unsecured loan. Expect to pay at least 7% Apr. If new customer/ riskier proposition Bank will look for security(ie deeds ) & might do 1 or 2% better off the rate. Longer term say 7/8years would be available also. Repayments generally flexible enough, monthly or half yearly or annually to correspond with Bps or stock sales.

6270red

jd06 wrote: »

Hi all
My brother is buying a second hand tractor 30k ish
He like myself is not well up on the best options. He has 5k cash at his disposal
What are the pros and cons

Did ye try the place where ye are buying the tractor about finance? Usually the best place to start then compare that with what the banks are offering. No harm to have a good tractor in the yard. Makes life easy and comfortable. Make sure it's worth the money you don't want to be stuck under it every six months.

_Brian

jd06 wrote: »

His money
His business
I just want to know bout the finance options

That's being a bit too sharp after coming looking for opinions, remember this is a chat community not a financial institution help line !!

Personally I think a €30k tractor into a business that's making little money already makes no sense at all.

Regards a tractor, if he spent €10k he'd have a perfectly good useable tractor that if minded would last a long time on that sort of farm.

patsy_mccabe

_Brian, I've been looking on and off now for awhile . Almost impossible to get a decent newish tractor for 10,000 Euro .

6270red

_Brian wrote: »

That's being a bit too sharp after coming looking for opinions, remember this is a chat community not a financial institution help line !!

Personally I think a €30k tractor into a business that's making little money already makes no sense at all.

Regards a tractor, if he spent €10k he'd have a perfectly good useable tractor that if minded would last a long time on that sort of farm.

In fairness he only got a bunch of lads telling him he is an idiot for buying a tractor rather then actual advice.
Wouldn't blame him for being sharp.

farmerjj

There are nice tractors out there for around €10k might not be new but still good value
https://www.donedeal.ie/tractors-for-sale/massey-ferguson-3060-c-w-loader/11740917

Water John

10/12K will pick up a tasty tractor.
Fine if the op wants to buy a newish one if he has the salary to back that. Every one makes their own choice. In that case a bank will lend the money. All they care about is that OP has the guaranteed repayment capacity.
Would not be handing over the deeds of land though, which would be many times the multiple of the loan. If OP has a secure job, that should be enough. Far better than projected farm profits. Any annual Govn't payment would also be a big help.
However, if it is in any way a stretch, it makes no sense.

If OP wants newish, would he be better off looking at a Tumason new?

jd06

6270red wrote: »

In fairness he only got a bunch of lads telling him he is an idiot for buying a tractor rather then actual advice.
Wouldn't blame him for being sharp.

Cheers 6270red
Exactly my point. I just wanna know about finance as the title states. If I'd wanted to know about the price of tractors I would have started a thread about it
I shouldhave just said i wanted a machinery loan for 30k that would stop the boys worrying about us spending money foolish!!
!thanks for all the replies on finance

orm0nd

whelan2 wrote: »

Credit union here charge nearly 10% interest, you also need to have 20% of what you are borrowing in shares.

I know the rates are high, but the reason I suggested was say the borrower had 75% of the loan paid off & for some reason had to miss a payment or 2, at least there won't be a low loader pulling up at the gate collecting the machine

some dealers are arranging 0 to 3 % loans for buyers,
1 repayment missed & tractor is collected,

(always read the small print)

Sam Kade

Water John wrote: »

10/12K will pick up a tasty tractor.
Fine if the op wants to buy a newish one if he has the salary to back that. Every one makes their own choice. In that case a bank will lend the money. All they care about is that OP has the guaranteed repayment capacity.
Would not be handing over the deeds of land though, which would be many times the multiple of the loan. If OP has a secure job, that should be enough. Far better than projected farm profits. Any annual Govn't payment would also be a big help.
However, if it is in any way a stretch, it makes no sense.

If OP wants newish, would he be better off looking at a Tumason new?

With regards the deeds, they're a thing of the past it's more or less the folio number now. If the bank required security they will want you to pay solicitors fees both ways set you back around 3k.

farmerjj

jd06 wrote: »

Cheers 6270red
Exactly my point. I just wanna know about finance as the title states. If I'd wanted to know about the price of tractors I would have started a thread about it
I shouldhave just said i wanted a machinery loan for 30k that would stop the boys worrying about us spending money foolish!!
!thanks for all the replies on finance

Its a discussion forum.

orm0nd

farmerjj wrote: »

Its a discussion forum.

It's boards.ie

every fecking thread gets pulled off topic

Sam Kade

jd06 wrote: »

Cheers 6270red
Exactly my point. I just wanna know about finance as the title states. If I'd wanted to know about the price of tractors I would have started a thread about it
I shouldhave just said i wanted a machinery loan for 30k that would stop the boys worrying about us spending money foolish!!
!thanks for all the replies on finance

No harm in people giving their opinion surely, I'm sure you won't lose sleep over it either way.

jd06

farmerjj wrote: »

Its a discussion forum.

Well discuss finance options. Thanks

Water John

In that case JD, if he is so fond of getting a newish tractor, let him sell a field. Easiest way to get the cash. No fear of repayment or repossession.

Timmaay

jd06 wrote: »

Cheers 6270red
Exactly my point. I just wanna know about finance as the title states. If I'd wanted to know about the price of tractors I would have started a thread about it
I shouldhave just said i wanted a machinery loan for 30k that would stop the boys worrying about us spending money foolish!!
!thanks for all the replies on finance

The average cash strapped farmer who wants a reasonable tractor for 10k needs lads like your friend to keep spending 30k on a tractor, otherwise we'll all end up with no choice other than a new tractor or utter balls of scrap for too much money lol.

farmerjj

orm0nd wrote: »

It's boards.ie

every fecking thread gets pulled off topic

It's not like its miles off topic, it's good to go through all the pro,s and cons maybe not for the op but for anyone else in a similar situation who's reading this thread. Also I know if I wasn't making money at farming, I couldn't justify spending 30k on a tractor.

Sam Kade

farmerjj wrote: »

It's not like its miles off topic, it's good to go through all the pro,s and cons maybe not for the op but for anyone else in a similar situation who's reading this thread. Also I know if I wasn't making money at farming, I couldn't justify spending 30k on a tractor.

Possibly closer to €40k by the time the loan is paid.

White Clover

Sam Kade wrote: »

Possibly closer to €40k by the time the loan is paid.

The interest should be tax deductible.

Willfarman

With the dairy gone down the swamy now will there be any new stockman tractors bought? A lot of us fishing in the limited pool of 2md hand loader tractors..

We exported all the fords and masseys which has made the ones that are left worth more than they cost new.

Will brexit bring a few infrom our friends and neighbours across the pond?

Sam Kade

Willfarman wrote: »

Will brexit bring a few infrom our friends and neighbours across the pond?

They're stone mad for their tractors over there's a tenant farmer on YouTube milking 80 cows carries a fleet of tractors one for every job yet he still hires a contractor.

Timmaay

Sam Kade wrote: »

They're stone mad for their tractors over there's a tenant farmer on YouTube milking 80 cows carries a fleet of tractors one for every job yet he still hires a contractor.

Had a quick look on Donedeal the other day for some sort of replacement for the loader tractor here given the drop in the sterling, and there certainly are what look like nice clean yokes for what I'd call reasonable money (likes of 36k euros all in), I'd probably need to flog myown privately, however the likes of that road would be a no brainer against a trade in down here against either new or second hand. Still very unlikely to bother thought unless milk rockets back up to 35c/l for the rest of the year!! (one can dream ha)

whelan2

Sam Kade wrote: »

They're stone mad for their tractors over there's a tenant farmer on YouTube milking 80 cows carries a fleet of tractors one for every job yet he still hires a contractor.

Wonder what his cost per litre are?

Reggie.

Willfarman wrote: »

With the dairy gone down the swamy now will there be any new stockman tractors bought? A lot of us fishing in the limited pool of 2md hand loader tractors..

We exported all the fords and masseys which has made the ones that are left worth more than they cost new.

Will brexit bring a few infrom our friends and neighbours across the pond?

Very few stockman tractors over there. Mainly large machines on large farms

Well in the Dorset region anyways

Reggie.

I know the DLL finance company are about 5.9% over 6 years for new machinery. No idea on older machines tho OP

Sam Kade

whelan2 wrote: »

Wonder what his cost per litre are?

I'd say a lot more than the price of milk, Holstein cows and not great grassland management plenty supplementary feeding.

Sam Kade

Reggie. wrote: »

I know the DLL finance company are about 5.9% over 6 years for new machinery. No idea on older machines tho OP

I was looking at a new Kubota in Atkins cork with a loader ideal stockman tractor. 0% finance and you can upgrade your older Kubota for the same repayments obviously over longer term. They made it look very enticing.

Reggie.

Sam Kade wrote: »

I was looking at a new Kubota in Atkins cork with a loader ideal stockman tractor. 0% finance and you can upgrade your older Kubota for the same repayments obviously over longer term. They made it look very enticing.

All machinery dealers have thier own but you can approach the finance companies separately. Most of that 0% deals are for new machinery only

Sam Kade

Reggie. wrote: »

All machinery dealers have thier own but you can approach the finance companies separately. Most of that 0% deals are for new machinery only

Yeah, I was referring to new machinery.

kevthegaff

Would u get finance for a machine privately from the north/england

Reggie.

kevthegaff wrote: »

Would u get finance for a machine privately from the north/england

It has to be from a southern company I think

Timmaay

Reggie. wrote: »

All machinery dealers have thier own but you can approach the finance companies separately. Most of that 0% deals are for new machinery only

0% means you pay the rrp instead of a cash price of afew k less usually. Aka interest built into the price.

Sam Kade

Timmaay wrote: »

0% means you pay the rrp instead of a cash price of afew k less usually. Aka interest built into the price.

I was thinking as much.

Bullocks

kevthegaff wrote: »

Would u get finance for a machine privately from the north/england

A mate of mine bought 3 tractors lately , 1 in the north from euro auctions and 2 privately in the UK , he was using an irish finance company . He had no bother that way

josephsoap

This is a some what similar situation I find myself in too,

I have a perfect good MF 390T 4WD, however I want to put a loader on it - I estimate that a new loader and implements will be in the region of 10 - 15K

Then on the other hand my son is nearly 3 and loves coming on the tractor, therefore for safety reasons (and comfort) I'm considering trading in my 390T for 4355 etc type tractor with modern loader, passenger seat, eye hook link arms and extendable hitch

What would you do trade in the auld realible 390T or keep it and put s new loader on it ?

Budget would be 15,000 max