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53590 | Short story is looking into a used tractor fairly new 2011. Dealer mentioned agdirect to finance. If non fixed rate at2.5% seems like cheap money also said if interest starts going up I could go to fix rate at what the interest is at that day. Wondering if any one has used this service? Any recommendation? |
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west central illinois | It's farm credit. |
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Whiskey, Tango, Foxtrot | The only machine loan I've maintained is with Ag Direct. Very pleased with them. Paid a lot of stuff off early the last two years, and they were very easy to deal with doing that compared to another lender. Like was mentioned, it is Farm Credit marketed through equipment dealers.
Not sure on the variable rate though. Personally, with rates where they are I'd lock it in now. |
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53590 | Hmmm did not know that..... Good to know!
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53590 | Ben D, N CA - 6/22/2015 23:44
The only machine loan I've maintained is with Ag Direct. Very pleased with them. Paid a lot of stuff off early the last two years, and they were very easy to deal with doing that compared to another lender. Like was mentioned, it is Farm Credit marketed through equipment dealers.
Not sure on the variable rate though. Personally, with rates where they are I'd lock it in now.
The whole variable rate being really low then being able to lock in seems too good but I didn't investigate it at all. |
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Whiskey, Tango, Foxtrot | I sort of view it like buying insurance. Pay a little more now, to not have to take a big hit later.
That said, for 10 years now I've been saying interest rates would probably go up next year. It has cost me a lot of money over the last 10 years. But, I always knew what my payments would be. First ground I bought will be paid off next year, locked it in at 7% 12 years ago, and thought that was cheap. ARM would have saved me a lot of money in interest, but I've heard enough horror stories from the 80's I wanted the fixed rate. Never lost any sleep over the extra interest $$$ paid, but had interest rates jumped I could see a guy getting nervous. |
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Beresford, SD | Ag Direct is a point of purchase financing program. It a brand created and owned by Farm Credit Services of America based in Omaha. The program was launched...I'd say 16 years ago. I believe FCS of America has partnered with other associations and is now offering this service in many states outside Wyoming, SD, Nebraska and Iowa. Yes, If I need financing for any machinery I use Ag Direct as the rate is cheaper than going through my financial officer for a term note or my LOC at FCSA. I believe the loan is eligible for patronage as well.
Edited by carlsoncl 6/23/2015 00:24
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Highland Center, in Southeast Iowa | We've used Ag Direct exclusively when we've bought/traded hopper trailers. Very simple, straight-forward process; very quick and minimal paperwork, has always been a good choice for us. |
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Amherst WI | I've used it in the past and it worked out well.
A freind of mine used them for a few things and he forgot to make his payments a few times with them. They would call and be pretty good about it.
I'd use them again if I needed them. |
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SW Iowa | It has never qualified for patronage yet, but maybe someday.
I use it all the time. Local bank cannot touch them.
Also put all my grain cash in their cash plus account. Gets better interest than the banks will pay. That may be a farm credit thing, though. |
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Beresford SD | carlsoncl - 6/22/2015 23:23
Ag Direct is a point of purchase financing program. It a brand created and owned by Farm Credit Services of America based in Omaha. The program was launched...I'd say 16 years ago. I believe FCS of America has partnered with other associations and is now offering this service in many states outside Wyoming, SD, Nebraska and Iowa. Yes, If I need financing for any machinery I use Ag Direct as the rate is cheaper than going through my financial officer for a term note or my LOC at FCSA. I believe the loan is eligible for patronage as well.
You will not receive dividend in Ag Direct loan so effective interest cost is same as going through Farm Credit.
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| Curt Keiser - 6/23/2015 18:00
carlsoncl - 6/22/2015 23:23
Ag Direct is a point of purchase financing program. It a brand created and owned by Farm Credit Services of America based in Omaha. The program was launched...I'd say 16 years ago. I believe FCS of America has partnered with other associations and is now offering this service in many states outside Wyoming, SD, Nebraska and Iowa. Yes, If I need financing for any machinery I use Ag Direct as the rate is cheaper than going through my financial officer for a term note or my LOC at FCSA. I believe the loan is eligible for patronage as well.
You will not receive dividend in Ag Direct loan so effective interest cost is same as going through Farm Credit.
The financing thru the local office can be a pain though. The Agdirect is more focused on credit score and can use farm credit records also if you have anything. I have financed many people without FC accounts and some with it's just a lot easier with point of purchase sales. We have used Farm Credit Express but it will ONLY finance in the same state or FC district etc. If you really want a lower rate ask for Farm Credit Express. It may be more work for the retailer but the rates are even lower. It may not be available everywhere and is selective to who they will finance base on residency. |
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| Ben why didn't you refinance as rates were dropping? As far as variable vs fixed, the most interest is paid on the front end of a loan so taking the cheaper rate (variable) on new loans is preferred because you'll pay less interest, can lock in a fixed rate if interest starts to rise, and banks are limited to how fast rates can rise. |
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Ag direct. Any one use/used it?
