Which is Best for Your Farm?
Buying new equipment can be quite different from purchasing used equipment; however, there are many similarities as well. We discuss them both below.
Why buy New Equipment?
There are many reasons that when you are in the market for equipment, you should look to buying newer. Some of the reasons include:
- If you plan to keep the equipment for a long time (such as a tractor or sprayer) buying new is usually more realistic, as it will last longer.
- If you plan to trade in yearly for the latest technology – for some, the latest technology is key. For those who value the high-tech stuff, buying newer is the way to go. You’ll still get a good deal on the trade in and get the technology you seek.
- Less likelihood of a break down – In most cases, newer equipment is more reliable than used equipment.
- Warranty covers maintenance – one of the good things about buying new equipment is that warranties will cover almost if not all of the maintenance costs that go along with the equipment. That alone is enough for some people to only buy new equipment.
- Special tax breaks and financing for Farmers – Section 179 is one the most known options for tax write-offs of farm equipment, but there are also many other financing and tax options that are offered to farmers buying new equipment.
- Downtime reduction – with a lower likelihood of breaking down and plus having maintenance covered in the warranties, downtime can be cut significantly.
Why buy used?
If buying new isn’t an option, buying used also carries its own benefits.
- Typically lower cost – You can obtain low hours models for less than new pricing – many farmers will run equipment for a year and trade that equipment in. That creates the opportunity for you to come in a get that almost new equipment for a better price.
- Better deals – Used equipment dealers are more likely to negotiate on the price than newer
- Good back up machines – equipment that may have high hours but a low price makes a good option for keeping on the farm as back up equipment. These types of equipment will eliminate downtime or speed up plant or harvest.
- Seasonally used equipment that may be needed twice a year – equipment that you use enough to eliminate the option of renting, but it’s not used enough to need to be new, used equipment is a good option where you can pay less money for needed equipment.
- High-end functionality at a lower price
- Trial runs – used equipment dealers will typically allow a test run of the equipment to get a feel for the equipment. That option is not as frequent with new equipment dealers.
- If you don’t need the latest technology and data monitoring, used equipment is the better option.
- Unpredictable weather and market – farmers are incredibly reliant on the weather to cooperate and the markets to perform. Having a lot of money tied up in equipment can be very daunting, so for some looking at adding to the fleet, going the used equipment route is the better option.
For more information on purchasing new or used equipment, check out our Tractor Buying Guide on Fastline.com.