When you have a farm, you know the right tools make all the difference. And when a piece of your equipment is near the end of its life after helping you run your business, getting a quality new or new-to-you replacement at the right price is crucial to your bottom line.
Here are some tips to help you find the right farm equipment and make the most of it:
How much use will the equipment see? If your purchase will need to log thousands of hours over the next few years, you’d be wise to lean towards a new or gently-used piece of equipment.
Research the typical lifespan of the equipment you’re looking to buy and weigh its remaining hours against its cost Consider your current debt situation. Talk with your financial advisor and any other partners in your farm — they can help you put together a plan for securing financing for the equipment, future trade-in values and the equipment’s value to your operation versus the interest a loan would accumulate.
Research tax incentives. Buying new equipment can be beneficial for you when you file your taxes. Talk to your accountant and financial advisor about tax deductions, special government programs and other tax breaks.
Think about maintenance. Before you purchase any new equipment, consider the difficulty of repairing it. Many pieces of farm equipment are equipped with technology that only dealerships will be able to fix
Judge used equipment condition carefully. Inspecting a used piece of equipment, and even having a specialized mechanic look are great ideas. Any honest seller won’t mind you taking a closer look at what they’re trying to part with — and any seller that bristles against an inspection should be a red flag.