The tractor you buy is an asset which will bring a return on what you invest in it—but only if you buy the right one. You`ve got maintenance costs, repair costs, shipping costs, fuel expenses, and other collateral expenses which naturally develop over time. What your farm tractor makes you in terms of production will come at a purchase/maintenance “tax”.
For example, if you spend $50k on a refurbished unit, and associated yield it facilitates is, say, $500k annually when all is said and done, you`ll need that tractor to work at least 36 days at around $1.4k of yield to pay for itself. It is only after this time that it begins to make a profit. Ideally, it should at least double what you paid for it.
You`re looking for a sweet spot which is a minimum of three times your initial investment. With this in mind, the following are five tips to help you buy tractors which will pay back what you spend on them in the fullness of time.
- Newer Isn`t Always Better
Going used requires savvy, but it`s worth it. A newer tractor may be several hundred thousand dollars. This means it will take longer for you to get your investment back. True, the tractor may additionally last longer, but there`s a point at which a new tractor has been overpaid for.
For example: if you pay $200k for a tractor you could have acquired used at $50k, then the smaller tractor doesn`t have to last as long before breaking down for you to turn a profit.
If you`ve got the right budget and can afford to waste a little money, then going the new route is a fine option. If you`re looking to optimize and spend the least amount over time, go used.
- Find The Tractor You Need, Not The One You Want
A teenager on a car lot will gravitate toward the expensive “toy”, while the youngster`s parent will gently prod them toward a used “beater” car that they`ll be more suited to. If you have little experience with a tractor, for goodness sake, don`t get a nice one.
Get one you can run into the dirt and still profit from, then spend on a better one when you know what you`re up against. Don`t get the bells and whistles unless you know when to ring them, and what to whistle for.
- Learn Why A Used Tractor Is Being Sold
It`s best to go through a local dealership when you`re on the market for a new unit. You can buy pre-owned or fresh off the line. You can buy online through individual sellers as well, but usually, such units are being sold for a reason. They`ve got some hidden error that you won`t notice for a month, or something similar. Going through an established group helps you avoid getting undermined by a “lemon”.
- Get A Brand You Trust, And Which Can Be Locally Maintained
If you live in a small town that`s remote from other municipalities, buying the best used tractor on the lot could end up being a liability in terms of maintenance. If you can`t work through a basic tractor maintenance checklist yourself, you`ll need the services of a professional.
If you get a cheap tractor online that can`t be fixed in a shop unless you put it on a semi and ship it halfway across the continent, you`ll actually end up spending more for the machine in the long run.
Meanwhile, if you get something from a local manufacturer or distributor, make sure they can support you. An example in one of the most sparsely populated countries is Midway Tractor Sales in Australia. With a solid service agent network, you`ll end up saving money when something fouls up the works.
Of course, if you can do the work yourself, never mind; get what you want!
- Look At More Than One Option
Finally, it`s integral that whatever you do, you consider multiple units from multiple sellers. The truth is, you`re going to have an instinct to go with the first unit you like; but this may not be the best one available to you.
It`s best to look over at least five and buy the best one you find. Also, carefully looking through diverse units will help educate you pertaining to the local selling atmosphere, ultimately helping you know if a deal crops up that must be leaped on.
The Best Bang For Your Buck
A tractor can be an expensive money pit if you`re not careful. There`s a sweet spot between pre-owned and new wherein you`ll save money in the long run. Look at multiple units, get a trusted brand that can be fixed locally, know the story of a unit being sold, shop conscientiously, and remember that newer isn`t always better.