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heavy equipment loan terms

Discussion in 'Heavy Equipment' started by xtreem3d, Oct 24, 2015.

  1. xtreem3d

    xtreem3d PlowSite.com Addict
    Messages: 1,548

    evening guys,
    to any of you who have bought trucks or equipment of something like 50K to $ 100,000 or more...do the terms get extended out more than say a vehicle loan ?
  2. Superior L & L

    Superior L & L PlowSite Veteran
    from MI
    Messages: 3,041

    I'm not a heavy equipment guy. But a friend of mine has been buying some cat stuff and all his terms have been 60 month at most. His payment on his last excavator was over $3000 a month
  3. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,394

    Nope. In fact I think the max is 60 months for any commercial type equipment, but I could be wrong. I just bought a new truck and it was a 60 month loan because it was used for commercial plowing.
  4. xtreem3d

    xtreem3d PlowSite.com Addict
    Messages: 1,548

    Thanks guys....looks like buying new is a little out of my price range :cry:
  5. Superior L & L

    Superior L & L PlowSite Veteran
    from MI
    Messages: 3,041

    Typically the manufacturer has great interest rates and even though it's a lot of money, it's cheaper than renting
  6. JimMarshall

    JimMarshall Senior Member
    from NW PA
    Messages: 786

    JCB has 0% for 70 months right now. Longest term I have seen.
  7. Do It All Do It Right

    Do It All Do It Right Senior Member
    Messages: 231

    Mfg financing terms are usually longer. You can alos lease a machine from the manufacturer after the lease term either buy it or lease another. At that time you could take a used equipment loan and make payments around what your loan payments were. The only thing is you will be paying alot of coin on the financing l, but roll.it into your businesses plan. Some people just lease over and over again.
  8. rob_cook2001

    rob_cook2001 2000 Club Member
    Messages: 2,192

    Most equipment loans are 4 or 5 years.. My bank II finance used equipment through will only go 4 years.
  9. derekslawncare

    derekslawncare PlowSite.com Addict
    Messages: 1,003

    When I financed my truck (2012) through my bank, they set it up on a 66 month loan at 4%. Since you are also in MO, you might give them a try. I bank with UMB. Have been with them since 1989 and love them.
  10. John_DeereGreen

    John_DeereGreen 2000 Club Member
    Messages: 2,908

    I've seen some commercial equipment loans go out to 72 months, but most stuff is 60. Get ready to swallow some big payments if you want the shiny paint.

    We just bought another 244J Deere wheel loader, .9% for 60 months. Most of this stuff it takes at least 10% down to think about, generally closer to 20.
  11. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,194

    I've never personally done it but have a friend that leased equipment for the first 4 or 5 years then bought out the lease and financed for another 4 or 5 years. It's a way to get you into the game on some high priced equipment.
  12. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    No real difference from leasing a car then buying it out. Lower payments at first then bumped up when you get a new loan on the remainder of it.
  13. xtreem3d

    xtreem3d PlowSite.com Addict
    Messages: 1,548

    Some of the dump trucks I saw were 160,000...gotta haul a lot of rock to make those kinds of payments with 60 month terms.
    I am wanting to buy something nicer then what I currently have and I don't make my living driving the truck so I don't need a new one but loan company says it has to be at least a 2005. That probably sounds old to some of you but it puts me into a new price range. ( hoping to get a S/A 7400 already setup for snow).