Money no object, we’d all love to go out and buy brand new agricultural machinery and equipment. But for most, that just isn’t a reality. Replacing old or broken machinery is a necessary long-term investment to ensure everything continues to run as smoothly as possible. So, whatever you’re looking for, here are some key things to consider when deciding whether to buy new or used.
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.
Better resale value
All new equipment, including tractors, lose value over time. This depreciation is relatively steep in the first few years of ownership compared to the later years. This means that a used tractor has already undergone most of its depreciation. 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.
Great for new farmers
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.
