Opting for used heavy equipment is usually the right choice for many operations because it's usually more affordable than buying new machinery. But there's more to farm equipment than the price tag alone. Here are our top five reasons to buy used farm equipment.
1. Increased Financial Flexibility
Most people know that used machinery usually comes at a lower ticket price than new machinery. After all, choosing used can save your business money in initial purchase costs. But did you know that used farm equipment can also help you improve your profits?
Because you won't be paying as much upfront, you can get the same or similar results from your used machine at a lower cost, which can open up farming opportunities for the future.
2. Backup Equipment
Veteran farmers know that equipment breakdowns are less of an "if" situation and more of a "when." Most farm equipment will last for several years, depending on how well it is maintained, but it can still help to have backups of your most important machines. That way, if an emergency happens, you can continue your work while you figure out a more permanent solution.
3. Better Resale Value*
New equipment depreciates much faster than used equipment, so you can often resell a used machine for the same price you paid for it. Of course, it depends on how well you maintain this used machine — equipment in poor condition will likely depreciate significantly.
This factor can be beneficial if you're thinking of upgrading to a brand-new machine in the future. You can buy a used machine in the meantime and easily resell it once you've saved up enough to cover the rest of the cost.
*The resale value of your equipment is not guaranteed to increase.
4. Good Beginner Purchase
If you're expanding your operations in a new direction — or if you're entirely new to farming — opting for used equipment is often a better choice than buying a brand-new machine.
Because used equipment is less expensive than new models, you can get things up and running with a relatively low initial investment. Plus, if you need to buy multiple machines, you can do so at a much more manageable cost than you would by purchasing new machines.
PRO TIP: Make sure you thoroughly inspect the machine you're interested in before buying. Take it for a test drive, if you can. If you notice anything abnormal — cracks in the tires, strange noises, leaks — move on to another machine. Bringing someone more familiar with this type of equipment can help you make sure you're getting the best bang for your buck. Or, if you're shopping online, get various photos and videos from the dealer.