Why You Might Buy a Used Tractor

Tractors are a necessity for most farms, but also a big-ticket item in terms of investment. For that reason, most farmers will think twice before paying for a brand new model. They may prefer to lease, rent on a short-term 'as needed' basis or buy a second-hand model from a reliable supplier.

Leasing

Leasing allows the farmer to take immediate possession of the new tractor and pay a monthly fee for it. At the end of the lease period, the farmer can pay a final sum to purchase the asset outright or end the agreement and return the tractor to the provider. Leasing can be attractive to some farmers because of the tax implications and the ability to pay a low monthly fee rather than tie up large amounts of financial reserves or working capital on an outright purchase.

Rental and Flexible Arrangements

For farmers who simply need tractors for a short period of time, informal agreements may be in place with neighbouring farms to borrow equipment, or to pool key equipment. It's also possible to commercially rent tractors, although demand can be particularly high during the peak harvest season and availability of supply may not be guaranteed.

Second-Hand Models

Used tractors are often a great option because they offer the benefits of a good, solid asset which will provide valuable benefits to the farm at a better price than buying new. An older model may lack the most modern features, but the best brands are built with longevity in mind and will give years of service. The price will be more palatable for a second-hand tractor, with opportunities to negotiate. Location will be important for transfer of the asset.

The right solution will depend entirely on the farm's business needs and financial position, so it is always worth speaking to a specialist agricultural finance provider for advice and guidance.