What are the Pros and Cons of Purchasing Used Farm Equipment?

Submitted by Anonymous (not verified) on Thu, 04/20/2023 - 7:30am

Purchasing equipment for your operation is an investment, regardless of whether it is new or used. To make the right choice for your operation and budget, it’s important to weigh the pros and cons.

Continue reading to learn all the considerations when purchasing used farm equipment and how Koenig Equipment provides solutions to reduce the risk. 

 

 

What are the pros of purchasing used farm equipment?

The main pros of purchasing used equipment include lower cost, avoiding initial depreciation, better return on investment, and timing of availability.

 

Cost

Used equipment is generally much cheaper than purchasing new equipment. Even just one or two years old with low hours can add up to some significant savings compared to the new price tag. The price difference between new and used equipment can be a great advantage for farmers with a tough year or a limited budget.

 

Depreciation

Farm equipment is no different than vehicles because once you purchase and drive it off the lot, they depreciate in value. New farm equipment depreciates drastically in the first 12 months after purchase. By purchasing used equipment, you suppress initial depreciation and slow down the depreciation rate.

 

Return on Investment

When used equipment is properly maintained and cared for, it holds its value in a stable market. After avoiding the initial depreciation that a new piece of equipment goes through and keeping your equipment well-maintained, you will notice the value of your used equipment purchase doesn't change as drastically. That gives you a better return on investment when it comes time to trade in or sell.

 

Timing

Generally speaking, used farm equipment is more readily available than new equipment. New equipment must be ordered at least months in advance, if not a year. Most equipment dealers have used inventory available for purchase and ready to drive off the lot.

 

What are the cons of purchasing used farm equipment?

Some things to consider when purchasing used equipment include expired warranties, remaining lifetime, verifiable hours, and machine history.

 

Warranty

When purchasing used equipment, depending on how old it is, the factory warranty has likely expired or will expire during your ownership. Without an active warranty, there is a more considerable risk with the potential of costly repairs if you experience a breakdown.

 

Lifetime

The equipment's age will play a significant role in the remaining lifetime. Equipment becomes more prone to wear and tear with age. Purchasing older used equipment will result in a shorter lifetime that you can operate and rely on the equipment.

 

Machine History

Machine history plays a role in the equipment’s lifetime as well. For used equipment purchases, without knowing how the equipment was previously operated or maintained, you could experience some unforeseen problems after your purchase. Sometimes, you may know the previous owner or receive the machine history when purchasing, but that is not common.

 

Does Koenig Equipment offer any additional benefits when purchasing used equipment?

Koenig Equipment understands the potential risks when purchasing used equipment and offers additional benefits to make it a safe investment.

While the factory warranty only lasts so long, Koenig Equipment offers some warranty options to help provide peace of mind after it expires. If the used equipment is 5 years old or less, there is an option for a John Deere PowerGard warranty. Once the equipment is over 5 years old, it may be eligible for Koenig Equipment’s 50/50 warranty.

In most cases, certified technicians at Koenig Equipment inspect used equipment prior to selling. Technicians then fix anything that is broken or might break soon. With proper inspection and reconditioning, used equipment can be as good as new for the next owner. Koenig Equipment also provides customers with the service and machine history of used equipment when purchasing.

 

 

Where can I find used equipment near me?

When purchasing used farm equipment, your local Koenig Equipment dealership is the place to go. The trusted experts at Koenig Equipment work hard to ensure units are inspected and tuned up by a certified John Deere technician.

With a variety of used tractors, planters, combines, sprayers, and more, Koenig Equipment has the used equipment available and ready to go to work for you and your operation. Contact your local Koenig Equipment to check out the used inventory available. You can also sign up for our e-Newsletter to get real-time updates on our used equipment inventory.

 

Additional Resources

What is the Best Way to Buy and Trade In Used Farm Equipment?

What’s the Difference in Buying Equipment from an Auction vs. a Dealership?

How Can I Prepare My Farm for a Successful Planting Season?

Should I Add a Performance Upgrade Kit to My John Deere Planter?