To find local companies that lease farm equipment, start by talking to local farm equipment dealers, suggests University of Missouri Extension. Although financial institutions actually hold these leases, most of the paperwork is handled by the local dealerships.
Check with other farmers in the area as well, suggests Penn State Extension. They can provide valuable advice about what kind of equipment they like, how it runs and how much they use it. Some local farmers also lease out older or unused equipment, especially if you need a short-term lease.
When you decide to lease the equipment, the dealer actually sells the tools to a third-party financial institution, notes University of Missouri Extension. However, in most cases, you never directly interact with the financial institution. The sale, credit approval and lease signing happen at the dealership.
Most dealerships have standing partnerships with financial institutions. They sometimes have set deals but may have some flexibility to offer better terms, notes University of Missouri Extension. Talk to the dealer about other options and ways to save money.
A rollover purchase is different from a lease, as it is an ongoing contract between you and the dealer, notes University of Missouri Extension. You actually own the equipment, but you can trade it in every year or so for a newer model.