A used tractor will cost less than a new one and could be perfect for someone with a relatively small area of land to cover.
Buying farm equipment is usually a big investment. For this reason, you want to get the best return on your investment. When it comes to tractors, there are many reasons to consider buying a well-maintained used tractor instead of 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 things to consider is the reality of depreciation on 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 may not be a big deal if you plan to keep 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, go for a good quality used tractor. You’ll be closer to recouping your investment and possibly earning a bit more if you’ve made some upgrades to the unit.
Like other vehicles, tractors will depreciate in value.
A great benefit of buying a new tractor is the reduced tax that many countries allow on farm equipment. Keep in mind, however, that these tax advantages may only be available if farming is your primary occupation or at least accounts for a significant amount of your total annual income. Before you spend a lot of money on a new tractor, check the tax laws that apply in your area. If you don’t qualify for significant tax deductions on new equipment, you’d do well to purchase a good-quality used tractor.
Used tractors are often sold at farm 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, it will cause relatively little wear and tear on the equipment; a good used tractor will cost less and will perform just as well. On the other hand, if you’re a professional farmer with hundreds or thousands of acres to farm and harvest, you’ll want something built to last and in perfect working order. In this scenario, it may be worth buying 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 brands. Industry giants like John Deere® and Farmall® are often good sources for new and refurbished equipment. Check with local dealers for availability of reconditioned 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.