Tractor & Agricultural Finance Rates 2026 — Updated October 2026
- Hire purchase and leasing
- c.5.5%–8.5% APRHire purchase and leasing
- Payment schedules available
- Seasonal or annualPayment schedules available
- Maximum term
- Up to 7 yearsMaximum term
- Last updated
- October 2026Last updated
Tractors and farm machinery are among the easiest assets to finance because they hold value well. In October 2026 hire purchase and leases typically price at 5.5%–8.5% APR, and many funders match payments to harvest income with seasonal or annual schedules.
Tractor & Agricultural Finance Rates — October 2026
Swipe the table sideways to see every column.
| Product | Indicative rate | Term |
|---|---|---|
| Hire purchase — new | c.5.5%–7.5% APR | 2–7 years |
| Hire purchase — used | c.6.5%–8.5% APR | 2–5 years |
| Finance lease | c.5.5%–8.0% | 2–5 years |
What tractor finance costs: worked example
- Monthly payment
- £2,113 a month
- Total repaid
- £126,789
£120,000 tractor, 10% deposit, £108,000 over 5 years at 6.5% APR
Quotes from 130+ lenders, same working day
The figures above are indicative and describe the best case. Send your own scenario and we will come back the same working day with terms from the lenders that actually fit it.
- Enquiry type
- Asset Finance
- About
- Tractor Finance Rates
No upfront fees on loans over £1m.
Enough detail to price it is the amount, the security, the purpose and how you plan to repay. The rest we can fill in on a call.
Whole of market · 130+ lenders · FCA 814533 · Same working day response
Rate context and outlook
Bank Rate is 3.75% after the 17 September hold. Variable business facilities (revolving credit, invoice finance) move only with Bank Rate.
Fixed-rate hire purchase and leases are funded against swap rates, so some funders may nudge fixed pricing up after the September swap move. Quotes are typically held for 30 days.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
Frequently asked questions
Can payments match harvest income?
Yes, many funders offer seasonal, quarterly or annual payment schedules.
Can I finance used machinery?
Yes, usually up to 10 years old at the end of the term.
Do I need farm accounts?
Typically 2 years; newer businesses may need a larger deposit.
Can a new business get finance?
Yes, though many funders want 1–2 years of trading or a larger deposit; directors' personal credit matters more for young businesses.
Is VAT charged on hire purchase?
On HP, VAT is paid upfront with the deposit and can usually be reclaimed; on leases it is added to each rental.
What is a balloon payment?
A larger final payment that lowers the monthly cost; you pay it, refinance it or return the asset, depending on the product.
Do I need to put down a deposit?
Usually 0%–20%, depending on the asset, its age and your trading history.
Where this applies
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Independent whole-of-market advice · FCA No. 814533