You’ll need a credit score of 680 or above to apply for John Deere financing programs generally. You may apply for equipment and machinery financing with a lower credit score as well.
John Deere offers a wide range of agriculture, farming, landscaping, and engineering machinery. You can finance through a loan or lease option that best suits your needs.
Let us discuss what is John Deere financing and what credit score is required to apply for it.
What is John Deere Financing?
John Deere (JD) offers equipment, machinery, and tractor financing through its dealers in the US and other countries.
This program lets buyers purchase or lease agricultural, lawn/gardening, construction, landscaping, and engineering equipment and machinery. It includes different types of financing offers and discounts.
Individual and business customers can obtain financing facilities from John Deere directly or through an authorized dealer. Borrowers can also use a third-party lending option to buy or lease from JD.
A few broader categories of machinery and equipment available through JD financing include the following:
- Various types of tractors including Agri tractors, lawn tractors, dump tractors, etc.
- Residential and commercial lawn machinery such as lawnmowers, commercial mowers, zero-turn mowers, etc.
- Sprayers, trimmers, and other tools
- Excavators, combines, and harvesters,
- Utility vehicles and gators
Existing clients can also get financing for spare parts and accessories for heavy machinery and tractors.
John Deere Loans
The first option to get financing at John Deere is through loans for buying (owning) a vehicle or machinery.
A few of the loan types available at John Deere include:
- Lawn and Garden Financing
- Landscaping and lawn financing
- Agriculture financing
- Compact equipment
- Construction and forestry loans
Borrowers can apply for loans for new and used equipment. They can also apply for a multi-use account that offers a revolving credit facility for an approved period.
These loan plans include different offers and special discounts as well. For example, John Deere offers a special 0% financing offer on the purchase of New John Deere 2032R and 2038R Compact Tractors currently.
Some other offers include cashback on financing options with specific conditions. These offers can change from time to time though.
So, what are the advantages of take a loan from John Deere?
- Borrowers own the equipment/machinery they are paying for at the end of the loan term. They build equity with each monthly payment.
- Borrowers can pledge loaned equipment for further financing as they build equity after every 1-3 years.
- Borrowers can apply for customized loans according to their income and seasonality needs.
- Borrowers can use tax depreciation as permitted by law.
- There is no limit on equipment/machinery hours/usage and wear.
Additionally, borrowers can apply for any amount of loan depending on their creditworthiness. They can also adjust monthly payments and loan terms by adjusting down payments.
John Deere Leasing
With equipment and machinery leasing, customers can enjoy flexible payment terms. It is more suitable for users with needs for the latest equipment and who want to upgrade their existing setups without investing much upfront.
John Deere offers leasing facilities for the same categories as mentioned above for financing through loans. So, you can apply for a lease plan to access tractors, lawn, landscaping, construction, and forestry machinery and tools.
You can also lease special tools and small vehicles for short-term uses. A leasing term can be renewed or extended as and when needed.
Here are a few benefits of a leasing program at John Deere:
- John Deere’s leasing program comes with additional warranties like PowerGradTM.
- Customers can calculate the total cost of leasing and decide on the lease terms easily.
- Customers usually need lower down payments for a lease as compared to a loan option.
- Monthly lease payments are generally lower than monthly loan installments.
- Lessees enjoy tax benefits with lease programs as well.
The biggest disadvantage of a lease option is that you do not build equity. Although customers have the option of purchasing the leased equipment/machinery at any time but they’ll need to rearrange the financing option for that.
So, how do you decide between a John Deere Loan or Lease Option?
Consider evaluating a few options when you choose between a lease or a loan option.
- Choose a lease program if you regularly want to upgrade the machinery and want to use the latest.
- A loan option is better if you want to build equity and need the equipment for the long term.
- Consider your cash flows and down payment arrangements.
- Compare different promotions, discounts, and interest rates.
- Evaluate your credit score and credit history to assess your chances of loan/lease approval.
- Consider repair maintenance costs as well as warranty periods.
Each customer comes with unique needs when it comes to heavy machinery and agriculture tool uses. Therefore, the decision to get a loan or lease will eventually depend on several factors combined as discussed above.
What Credit Score is Required for John Deere Financing?
John Deere does not provide official information on the exact credit score required for heavy machinery and equipment financing.
Most lenders for farm loans and other types of agriculture/farming loans accept a credit score of 680 or above. Some of them accept farm and agriculture loan applications with a low credit score of 550 as well.
We can expect the same from John Deere as they’ll require a good credit score of 680 0r above for its different financing options for a loan or lease program.
However, as with any other lender, the higher the credit score the better it is for the applicant as it affects your financing application in several ways.
Lenders offer better APRs to applicants with higher credit scores. It means your total cost of borrowing can reduce significantly with a healthy credit score.
Then, lenders would often require collateral for applicants with bad credit. As the financing option gets riskier, the lenders look for further protection and increase the costs of lending.
It is important to mention here that alternative financing is usually flexible as compared to commercial banks and credit unions. However, most agriculture loans and equipment financing come through specialized dealers like John Deere.
How to Apply for John Deere Financing?
You can apply for John Deere financing through its dedicated online portal for some types of loan accounts. Most of the financing applications are processed through local dealers.
You can apply online for initial screening and approval from John Deere financials. Once approved, you can either get the preferred account or merchant account status.
The preferred account status allows borrowers to get financing from anywhere in the US from one of the authorized dealers of John Deere. A merchant account status means you can process the financing application from a specific dealer who approved the application initially.
You can also apply for John Deere financing through its mobile application. After a successful review, you can then go to an authorized dealer.
You can manage monthly payments, statements, and other aspects of JD financing through the mobile app or online account easily.
Does John Deere Offer 0% Financing?
John Deere offers 0% financing on selected machinery and equipment items. The 0% APR is part of its discount and promotional campaign.
For example, John Deere is offering a 0% APR loan on 2025R Compact Tractors purchases plus a saving of $ 150.
This is a deferred interest payment plan that lets borrowers save interest costs if they repay the full loan amount within 72 months.
However, John Deere does not offer 0% financing as a permanent loan program on all types of equipment and machinery purchases.
