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Agriculture is constantly evolving, which is why AgDirect® works to help you make the right decision for your operation when it comes to financing your next tractor, combine or ag equipment.

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Private Party Purchases

Finding and applying for financing

Published on 1/3/2020

In today’s tight economic environment producers are turning to alternative avenues to meet their operation’s equipment needs at the most affordable price. As a result, the number of private party transactions, including farmer-to-farmer equipment sales, are growing. In a 2019 AgDirect survey, 22% of producer respondents reported purchasing used equipment directly from another producer.

“Private party purchases may be a good option for producers when dealer’s used equipment inventories are low in their area,” says Chris Richardson, AgDirect auction and private party representative.

“Pricing may be lower as there is no dealer markup, and producers can easily search for the best bargain through online equipment sales or feel comfortable with their purchase if the equipment was owned and maintained by a local farmer.”

While private party purchases can give producers the flexibility to buy the equipment they want in a way that fits their budget, there are some potential downsides to consider.

For example, warranties may not come with the equipment, and the condition and quality may be questionable if buying from an unknown seller.

Unless paying with cash, funding options may also be limited as private sellers and many captive finance companies rarely offer private party financing. AgDirect, however, can fill that gap.

AgDirect offers highly competitive finance and lease options on farm equipment sold through private transactions. This allows producers to take advantage of the same attractive rates and ag-friendly terms they would find at the dealership while benefiting from the potential savings a private seller may have to offer. 

Applying for private party financing

In addition to benefiting from competitive finance and lease options, producers who opt for private party financing through AgDirect can count on a fast and streamlined application process.

Here’s how it works:

Step 1: The process begins by working with an AgDirect team member or participating Farm Credit lending office to complete an application.

Step 2: A credit decision is returned to the applicant, typically within 2 hours.

Step 3: Lien searches are completed on the seller to ensure the equipment is free and clear of debt or other obligations.

Step 4: Bill of sale is procured and if applicable, payoff amounts are collected.

Step 5: An AgDirect team member provides the required financing documents.

Step 6: Documents are reviewed, electronically signed and returned to AgDirect.

Step 7: Finally, funds are disbursed for the sale.

“At AgDirect we are dedicated to meeting our customers’ individual financing needs and adapting to the markets where they choose to make their equipment purchases,” says Richardson. “Rather than calling into an automated phone system and dealing with touch tones, our customers can expect to work with our experienced team from the early stages of the financing process.”

Whether purchasing new or used equipment, AgDirect private party financing features a variety of options including variable or fixed terms and subject to approval financing terms up to 7 years and delayed payments up to 15 months. A minimum purchase price of $25,000 is required.

Learn more about private party financing by locating your nearest AgDirect territory manager or contacting the AgDirect financing team at 888-525-9805.

Learning Center

Agriculture is constantly evolving, which is why AgDirect® works to help you make the right decision for your operation when it comes to financing your next tractor, combine or ag equipment.

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