Tractors are essential for farming as they improve efficiency and reduce manual labor. These vehicles not only help perform routine activities like spreading fertilizers, landscaping, and lawn care but can also pull heavy equipment for cultivating and harvesting, planting, and plowing.
You may choose from different types of models that can perform various activities. For instance, compact, subcompact, and utility tractors are designed for landscaping jobs, tilling gardens, and other complex farming tasks.
Now that you know the importance of tractors in farming operations, it is time to choose between a new and a used model. The decision mainly depends on your budget; however, with tractor loan owning one is no longer difficult.
Here are three factors to consider while making your decision.
- Requirements and purpose
Determine the tasks you want to perform with the tractor over the next decade. Do not buy a compact used tractor simply to save costs as overworking may damage the vehicle and eventually prove to be more expensive.
- Ownership costs
In addition to the price you pay while buying the tractor, you must consider other ownership costs. These include depreciation, insurance, repairs and maintenance, fuel, and lubrication. You may also need to buy other implements to perform various farming activities using your tractor. This will help you know the estimated cost and the amount of tractor loan you may need to meet your needs.
- New vs. used
Although a used tractor is reasonably priced, it may require huge repair costs. While buying an old tractor, you must choose a well-known brand that can be easily maintained and spare parts for which are also readily available. On the other hand, new tractors are technologically advanced and come with a warranty that covers most repair costs. These are more expensive, but by applying for a tractor loan online, you may be able to own one without any financial constraints.
Benefits of a tractor loan
- Flexible repayment tenure from three months up to five years.
- Quick, simple, and hassle-free application and approval process.
- Affordable tractor loan interest rates.
- No need to mortgage your agricultural land.
- Easy eligibility criteria.
- Customized down payment and loan amount as per your financial situation.
- Available for different types of models manufactured by various companies.
Choosing between new and used tractors should be based on your requirements. You can easily fund your purchase by availing of finance. Leading financial institutions like Mahindra Finance offer competitive interest rates and require minimal tractor loan documents. To know more information and apply for quick finance, visit their official website.