Tractors for Sale and Finance

Purchasing Tractors and Farm Machinery

Drought, climate change, flooding rains, wind storms, fluctuating produce prices, dealing with the banks – just a few of the factors that every ‘man (and woman) on the land’ needs to contend with on a daily basis in Australia. The seasonal impacts and unexpected weather events make cash flow forecasts extremely difficult in the agricultural sector. So when you need to buy a new tractor, a lot of prep and planning is required.

Tractor or Finance? Which comes first?

Good question. Some operators will go straight to deciding which tractor they want while smarter operators will sort their finances first so they know which tractors they can afford. Long-term farm operators will instinctively know which brand of tractor they are after. Many are loyal to a manufacturer as they’ve had many years good service from a previous machine and possibly have a great ongoing relationship with the dealer.

In the tractor market, John Deere, Case, Deutz Fahr, New Holland and Caterpillar dominate both new and used sales. Which is best for your property might come down to personal preference but servicing is a major factor to consider. Having a local service centre may be critical if you need parts or repairs quickly. Any delays can be costly.

Online marketplaces and platforms and social media make it easy to stay across the tractor sales market no matter where you’re located. As long as you have good internet connection! The regular Field Days offer farmers a great opportunity to preview and review new models and chat to other owners for direct and honest feedback.

If you’ve pre-arranged your tractor finance you may be in an ideal position to take advantage of any ‘field day special deals’ on offer.

Tractor Finance Options

Depending on how your business is structured and your financial objectives, you will likely be offered a choice of commercial finance facilities to purchase your tractor. These include:-

  • Chattel Mortgage for Tractors
  • Tractor Commercial Hire Purchase
  • Tractor Leasing
  • Tractor Rent to Own

All include a fixed interest rate, fixed monthly repayments and fixed loan term but vary in the treatment of GST, tax deductions and balance sheet strategy. Talk to your accountant as to which best suits your business model.

Sourcing a Workable Finance Deal

You work the land for profit so your tractor finance must work towards the same objective – an improvement in your bottom line. The rocky relationship between banks and the farming sector is well-documented and while it may not apply to everyone at all times, it has been a tenuous and extremely stress-full situation for many.

If you’ve traditionally approached the bank every time you need finance for new farm equipment, perhaps now is the time for a change of direction. Using the services of finance broker is an alternative that you could consider.

Finance brokers are available to all sized businesses in all sectors but selecting the one that is right for you requires looking at their credentials:-

  • Ensure the broker is experienced in agricultural sector finance. Those with that specific experience will have access to and direct contact with lenders that understand the sector and therefore offer better finance deals.
  • Ensure the broker is not aligned with a bank or a finance company BUT is accredited with a lot. The key difference between ‘aligned’ and ‘accredited’ is critical to ensure their independence and objective approach to sourcing your finance.

Brokers can make sourcing tractor finance a much more streamlined and far less stressful and time consuming.

We know people who operate in this area and have experience in sourcing finance for the agricultural sector. If you would like their contact details, please contact us.