Helpful Tips for Buying New or Used Farm Equipment

So, you've got a great piece of land and maybe a piece of equipment or two, but it's not enough to complete your farm or carry out your operations. Maybe you already have a reliable tractor, but you need a new implement like a bush hog or a hay rake. You might also still be in need of an affordable farm insurance policy to protect your investment against numerous different disasters like vandalism and fire damage.

Fortunately, an independent insurance agent near you can help you find the right farm insurance for your needs. They'll get you matched to the right policy ASAP. But first, here's a simple guide to buying new or used farm equipment.

Choosing between New and Used Farm Equipment

Some individuals opt for new farm equipment because financing is often easier to secure, and they want the reliability of new pieces that don't have any wear and tear. A new piece of farm equipment is also covered against any defects by a warranty.

However, buying used farm equipment comes with many possible advantages, too. For starters, it's often less expensive. Also, if you take your time and research your options during the buying process, you can still find a lot of great gear that's been previously owned.

To decide between buying new or used farm equipment, consider the following factors:

• The equipment's seller: Buying used farm equipment from a dealer can come with the benefit of a warranty on what you purchase. You can also choose to buy used equipment from a seller you personally know and trust, which can help you avoid buying something that's bound to break down or be unreliable in other ways. 
• Your budget: Depending on your current budget and potential outstanding debt, used farm equipment might be the more affordable option for you, making better financial sense. You can always upgrade your equipment to new items once your farm generates more profit.
• Your intended uses for the equipment: If you don't plan on using the equipment that often, perhaps only once a month or a few times annually, used gear might work fine. However, buying brand new or as close-to-new as possible is likely a wise choice if it's equipment you'll be using daily or at least very often.
• The condition of the equipment: Before you buy new or used equipment, give it a careful inspection. If you're buying something used, request a test run from the seller. Many honest sellers will comply so you can see and trust that what you're buying is legit. Be wary of any sellers who try to rush a deal.
• Required maintenance of the equipment: When weighing whether to buy new or used farm equipment, consider how much possible repairs or maintenance on each item would cost. If you buy something brand new, you might be forced to go through the manufacturer or dealership to get it repaired, whereas buying something used could mean you might be able to make repairs yourself. This could also be another reason to buy locally from a seller you know and trust, as they may be able to assist you with future maintenance.
• Possible tax incentives: If you buy new farm equipment intended for business purposes, you might be able to write these pieces off on your taxes. However, the same could also apply to used equipment, depending on the circumstances. Be sure to speak with your CPA or financial advisor before making a large purchase for your farm.

Another great way to get further insight on whether to buy new or used farm equipment is to connect with your local community online or at in-person meetups.

Finding the Best Deal on Farm Equipment

There are a few additional tips that can help you score the best deal on farm equipment, whether you buy it new or used. Careful prep work can help you save the most money possible on what you need for your farm, and these savings can be set aside to fund future purchases. Consider the following tips when you're ready to start shopping for equipment.

• Research the manufacturer first: Make sure that any equipment you buy for your farm is from a manufacturer that's still in business and has generally good reviews online for customer service and parts alike. You could end up out of luck if you buy used equipment from a manufacturer that's no longer in business and it turns out to be faulty, or you need replacement parts for it.
• Check the equipment's specs: Before you buy any piece of equipment, take the time to do proper research on it. You'll want to look up the item's specs and how you'd get replacement parts or repairs if necessary. Also, you may want to compare different versions or models of the equipment. If a version released in an earlier or later year would be more beneficial for your farm's operations, you may want to seek out a precise model.
• Timing is everything: Certain times of year are ideal for buying farm equipment, while others offer drawbacks. The first and fourth quarters of the year tend to have higher equipment prices due to harvesting and planting cycles for farms. You'll want to watch farm equipment prices as they change by the month.

Be patient with your search for the right farm equipment. A little more preparation and research on your end could lead to a wiser investment that saves you money and leaves you with a purchase that lasts for many years to come.

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5 Additional Expert Tips for Buying Used Farm Equipment

1. Determine Your Needs and Go One Size Bigger

According to Wilson, if you need an 85-hp tractor, get a 90-hp model. If you need a 54" deck, get a 60". It's always wise to get a little more than you need. When it comes to equipment, more is better than less.

2. Inspect Items for Wear

Every dealership should allow you to make a close inspection of equipment. There are quite a few places to pay attention to, such as the water pump (bearing), chains, belts, gears, and drawbars, along with tires/couples.  

Purchasing a piece of equipment only to have it break down during the first pass through the field can be frustrating. It's a good idea to be familiar with these items and know how to fix them on the go, or know how to spot signs of dangerous wear, Wilson said.

If you're looking to purchase a tractor, pay attention to the hitch. A worn hitchhole can indicate what its workload has been. Tractors live hard lives, so knowing what your prospective equipment has done in the past is a great way to know what it can do in the future.

3. Pay Attention to the Seat/Drivers Platform

Is the seat worn or weathered? Is the paint missing from high-traffic areas? Typically, you should look for a worn but not weathered seat. Additionally, you can find worn paint where feet and hands have been, including on the pedals, gear shifters, grab handles, etc. This usually indicates that the machine has been used frequently and has been relied upon.

4. Stay Away from "Liquid Overhauls"

Wilson advised that you want to see a piece of used equipment in as close to "field" condition as possible. Fresh fluid changes can hide contamination problems in engines (e.g., problems with a head gasket or hydraulic systems), so be on the lookout.

5. Test It Out

Test every function of a piece of equipment you're considering buying. Push all the buttons. Make sure things work. If there's an issue, ask questions or make the purchase knowing that the non-working component won't function. 

You can also choose to bring broken components to the salesperson's attention, Wilson said. At that point, they have two options: fix it or make it part of the deal.

Why Work Together with an Independent Insurance Agent?

Once you've found your next piece of farm equipment, make sure to notify your independent insurance agent so it can be added to your farm insurance policy. Your agent can also help you file farm insurance claims or update your policy as necessary. And if you're in need of a new policy, a local independent insurance agent can shop and compare policies from multiple carriers for you so you get the best possible blend of coverage and cost.