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Buying Farm Equipment? Follow These 8 Tips And Tricks!

Monday, August 6th, 2018
common items sold at auction

If you own a farm of any size, you will most likely run into situations where you need specific tools or equipment. You have a lot of options to choose from when it comes to purchasing farm equipment, like buying new or used. Here are some tips for buying the right products for you and your land.

Is it better to buy new or used?

Buying brand new farm equipment and tools can be exciting, but it may not fit your budget or situation. Buying new may require you to finance because the latest options are most likely going to cost more. On the other hand, buying used may be the better option for your finances. Used farm equipment usually comes with lower costs, which gives you the chance to buy quicker, or to get machines you normally couldn’t afford. Experts may suggest buying used machines and tools for new and smaller farms.

Where can I buy farm equipment?

Before buying farm equipment, you need to decide where you are going. Most towns and cities have dealers that sell or lease new products. You may also find private sellers online or in newspapers. New and used machines and tools can also commonly be found at auctions.

Buying farm equipment at auction is a great way to get the tools and machines you need. You will not have to pay new prices and you will often find more options than what private sellers are offering.

When is a good time to buy farm equipment?

When buying new or used farm equipment, keep harvest cycles in mind. Depending on the cycle, you may find options at higher or lower prices than normal. The first and fourth quarters usually mean higher prices on machines. Equipment tends to be lower in between these two quarters.

Consider tax rules

You should be familiar with the tax rules for your land and farm equipment. Take advantage of any tax deductions you may qualify for with your farm whenever you buy new or used machines and tools.

Know the life-span of new and used equipment

Farm equipment is built to last a certain number of hours. When buying used products, you should be aware of how long they were used and if they were maintenanced properly by the owner. If the used equipment was well-maintained, its efficiency and lifespan will be increased. If you are attending an auction, you should be able to view any machines before bidding starts to verify it is in good shape.

Ask questions

When you are buying new or used farm equipment, ask as many questions as you can. If the equipment is used, ask how long the owner used it. Did the current owner buy new or did they also buy it used? Find out how the machine was treated and inspect it for any damage. When buying new, ask the dealer how long the equipment is expected to last. Ask about insurance policies and the resale value as well.

Whether your farm equipment is used or new, you will want to know whether it is fueled by diesel or gasoline. Diesel machines are usually more affordable to run.

Consider former manufacturers

Another way to purchase farm equipment is to buy it from manufacturers that are no longer in business. You could get surprisingly good deals this way, but there is also risk involved. Repairs may be difficult because replacement parts could be harder to find. The resale value of this type of equipment can also be lower.

Check all specifications and condition

There are several things you should inspect when buying new or used farm equipment. For example, sometimes buying a newer model does not mean you are getting a better deal because the specs are nearly the same. The condition of the equipment is also important, because you do not want to buy anything that will cost too much to repair.

Overall appearance

Check both new and used equipment for regular maintenance. Dents, paint peeling, or worn tires could be signs that it was stored outside for long periods of time. Measure the tire tread and compare it to manufacturer standards. You should also find out when the tires were last replaced, because replacing tires can be costly.

Check the engine

If the farm equipment has an engine, check the engine compartment. Start the machine and check for signs of a leak. Look out for cracked or worn down fuel lines as well. Be sure to check that the engine will meet any emission standard regulations in your area.

Maintenance documents

Before you bid on a piece of farm equipment, make sure to ask the seller for maintenance logs and any other repair documentation. These records can provide you with insight into the quality and frequency of repairs. The more you know about the used farm equipment you are buying, the more successful you will be with your purchase.

Farm equipment for sale at auction in the Texas Panhandle

If you are interested in learning more about buying farm equipment at auction, contact the experts at High Plains Auctioneers today. Give us a call at (806) 244-6776 or Contact Us by email for more information about Bidding and Selling at auctions. You can also check out our Upcoming Auctions to see what we have available!