Where to go for equipment loan?

Discussion in 'Heavy Equipment & Pavement' started by mrusk, May 17, 2007.

  1. mrusk

    mrusk LawnSite Gold Member
    Posts: 3,260

    I may be buying a used excavator. Where is my best bet to go for a loan for this? My credit is A+.

    Matt
     
  2. AWJ Services

    AWJ Services LawnSite Platinum Member
    from Ga
    Posts: 4,276

  3. turboawd

    turboawd LawnSite Member
    from midwest
    Posts: 236

    boy, i'd like to be your banker.:waving:
     
  4. AWJ Services

    AWJ Services LawnSite Platinum Member
    from Ga
    Posts: 4,276

    You obviously have not shopped Commercial loans.

    The interest rate never reflects the monthly payment in any logical manner.

    In case it was not clear the first time, take the term and only look at the monthly payment rather than just interest rates for what you will pay.
     
  5. Fieldman12

    Fieldman12 LawnSite Bronze Member
    Posts: 1,504

    Farm Credit Services is really good to deal with. They are a little higher on there interest rates than some but they have many different ways to setup loans and there quick. I have had house loans, equipment loans, and farm loans through them and they have always approved me in no longer than an hour. They are really a great bunch to deal with. They also don't have the some of the fees that allot of banks charge that saves money. On big payment items such as land you can get the payment re-amortized to drop the monthly payments if you put down more money such as $20,000.00..
     
  6. Mike33

    Mike33 LawnSite Bronze Member
    Posts: 1,649

    My mother :laugh:
    Mike
     
  7. muddstopper

    muddstopper LawnSite Silver Member
    Posts: 2,342

    One word of caution. Depending on the equipment priced, you can often buy new cheaper than used. Of course this isnt compareing a 1949 Kiser to a 2007 Cat, but if the equipment you are considering purchaseing is just afew years old and in good shape, the difference in finance charges over the time of the loan, coupled with the added cost of insurance, can often make a new peice of equipment a much better choice. Not to mention the warranty issue.
    I had a friend that wanted to buy a used Kubota tractor that only had 13 hrs on it. By the time he compared the cost of financing and insurance, he could actually buy a brand new machine for $10 a month less, plus he got an extra year of warranty, it was a no brainer.
     
  8. Fieldman12

    Fieldman12 LawnSite Bronze Member
    Posts: 1,504

    Mudstopper is correct about new is often a better deal. I mean look at it this way. Often you will pay at least 7% interest for a used machine with little to no warranty left. A new machine has to be warrantied and some of the interest rates are as low as 0%. Often why a used machine that is traded in is because something is wrong with it or had allot of problems even though it is not very old.
     
  9. mrusk

    mrusk LawnSite Gold Member
    Posts: 3,260

    I am looking at a 3 year old machine with 400 hours for 40k. Looks like i will pay around 8% interest.

    A new machine is 63k and interest is 3.25%. That extra interest will only cost me 3k over the course of the loan if i ride it out for the full 5 years.
     
  10. AWJ Services

    AWJ Services LawnSite Platinum Member
    from Ga
    Posts: 4,276

    What will your monthly notes be?


    What machine is it.
     

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