A used tractor will cost less than a new one and might be perfect for someone with a relatively small area of land to cover.
Buying farm equipment is often a big investment. For this reason, you want to get the best bang for your buck. When it comes to tractors, there are many reasons to consider purchasing a well-maintained used tractor over buying a new one. At the same time, a new tractor may be of interest to you. Here are some considerations to help you decide which option is right for you.
Used farm tractors have their own blue book that gives approximate financial values based on condition and age.
One of the first points to consider is the reality of the depreciation of new tractors. As with cars and trucks, this new tractor will start to lose value the moment it is delivered to your farm. While this might not be a big deal if you plan on keeping the tractor for a short period of time, it can be a big concern if you expect to recoup your investment by selling the equipment in six months or more. If that’s your goal, choose a good quality used tractor. You’ll be closer to recouping your investment and possibly earning a little more if you’ve made some improvements to the unit.
Like other vehicles, tractors will depreciate in value.
A big benefit of buying a new tractor is the tax reduction that many countries allow on farm equipment. However, keep in mind that these tax advantages may only be available if farming is your main vocation or at least represents a significant amount of your total annual income. Before spending a lot of money on a new tractor, check the tax laws that apply to your area. If you don’t qualify for significant tax deductions on new equipment, you would do well to buy a good quality used tractor.
Used tractors are often sold at agricultural auctions.
Understanding how the tractor will be used is another important consideration. Do you have a small garden, perhaps no more than five hectares or more? If this is the case, you will cause relatively little wear and tear on the equipment; a good used tractor will cost less and perform just as well. On the other hand, if you’re a professional farmer with hundreds or thousands of acres to grow and harvest, you’ll want something built to last and in perfect working order. In this scenario, it may be worth purchasing a new tractor that comes with a solid warranty and maintenance contract.
Fortunately, you have another option to consider. It is possible to buy refurbished or refurbished tractors that are trusted name brands. Industry giants such as John Deere® and Farmall® are often good sources for new and refurbished equipment. Check with local dealers for availability of refurbished units; they are often available at prices similar to used tractors, but have the added benefit of a limited warranty and possibly even a limited service contract.