Every second Valtra tractor is purchased in Poland with factory financing. Why are farmers so willing to use this type of financing? Is it worth borrowing or leasing a machine? Finally, what are the advantages of this way of purchasing a tractor? About all this in the article below.
The Valtra brand, belonging to the AGCO group, is one of the leading players on the Polish agricultural market in the category of tractors from 75 HP to 420 HP. Valtra is a brand where farmers see technological development over the past 20 years in Poland. Valtra agricultural tractors combine versatility and innovative technology for exceptional working comfort.
AGCO Finance is part of the group responsible for the offer for farmers who want to take advantage of the advantages of factory financing. What is factory financing and why do Polish farmers use it so willingly?
Convenience and attractive financial conditions
Factory financing is nothing more than direct financing of equipment of a given brand in cooperation with the factory, a financial institution and a dealer. This makes it possible to offer attractive conditions and quick customer service thanks to simplified procedures.
Factory financing differs from other traditional methods in that the financing institution secures itself on a given fixed asset (a purchased tractor or agricultural machine), and not on other items, such as the farmer’s real estate.
Thanks to close cooperation between the manufacturer, dealer and financing institution, the waiting time for a credit decision is shortened. Most decisions are automated, which allows you to complete the formalities even in one day – from the decision to signing the contract.
Factory financing is also supported by the availability of tractors at the dealer. So you don’t have to wait for transport from the supplier, but you can pick up the tractor on site.
Who is factory financing for?
So what does the procedure for purchasing a tractor with factory financing look like? It is very easy.
The main condition for using factory financing is to have a field and a farmer’s status or to run an agricultural-related business (e.g. agricultural services). Thanks to the close cooperation between the Valtra brand and AGCO Finance, the formalities are reduced to basic information that is sufficient to prepare an offer and a financial agreement.
What does the factory financing process look like?
Factory financing is available from any Valtra dealer. An AGCO Finance representative is available on-site or remotely, providing professional advice not only on the machine financing process itself, but also able to help choose the appropriate form, financing period and other conditions, tailoring the offer to the specific nature of the farmer’s business. For example, different conditions will be appropriate for a person engaged in animal production, different for plant producers, and still different for a mixed activity.
The process itself is very simple and shortened to a minimum. After analyzing the needs, a financial offer is prepared. It is usually available in several variants.
If accepted, the application with documents is transferred electronically to ACGO Finance. The credit decision is issued extremely quickly thanks to the automated process. Now all you have to do is sign the contract and you can pick up the tractor from the dealer and enjoy the latest Valtra technology.
Below we present three simulations of factory financing for the purchase of a Valtra T255 Versu tractor with an advanced equipment package.
Calculation based on: fixed interest rate, own share 40% (PLN 284,000), financing value PLN 518,300, VAT refund in the 3rd month, monthly installments, handling fee PLN 2,000, annual insurance cost from PLN 4,765.
Half of the farmers can’t be wrong
To sum up, why is every second tractor purchased using factory financing? Convenience, speed and attractive financial conditions are decisive. In addition, the offer is prepared by specialists who know the specifics of agriculture in Poland and flexibly adjust the financing conditions to the specific nature of the farmer’s activity.
Instead of financing the purchase with your own funds, it is worth considering factory financing in the form of a loan or leasing, and allocating your own funds for current operations, other investments or unforeseen future expenses.
You can check the current financing offer with AGCO Finance representatives available at Valtra dealers or by contacting directly z AGCO Finance.
Find out more from the After-Sales Service section of the Valtra website.
