Buying Reconditioned or Used Farm Equipment

If you are thinking about buying reconditioned or used farm equipment for the first time, the following are some ideas to help you avoid basic mistakes.

Should you invest in new machinery?  Would you be better served by looking at reconditioned used equipment? Should you consider having your old units rebuilt?

Many variables are at play in this type of decision:

•  your ability to manage debt, interest and depreciation on a new purchase
•  the amount of anticipated use
•  the availability of the sorts of used equipment you need
•  the reputation and reliability of the seller
•  cost of operation and future repair and rebuilding
•  plus other considerations that are specific to your business needs.

These business realities often answer the new versus used question for you.

Reconditioned used equipment makes the most sense in light to moderate usage situations, given the availability of suitable used units for purchase. Most implement dealerships in your area will have a selection of used equipment they've taken in trade, not exclusive to the make that they sell. Another nearby source of used equipment is a farm or dealership auction, where the ability to make a good quick inspection is even more important. 

Used Farm Machinery - A Checklist

As you review used inventory, here are a few points to consider: 

General Appearance: the kind of maintenance that a tractor has received is often reflected in the general condition of the paint and parts

Engine, Powertrain, Hydraulics: as you test the unit, check for quick response, smoothness, and performance, as well as any obvious leaks, or defects. For instance, vibration, rattles and knocks are clues to a worn out engine, as are the presence of unburned fuel or crankcase oil in the engine exhaust. As you drive the unit, apply the brakes to verify that the differential locks are working.

It's important to verify that the power takeoff functions properly by turning the unit on and off. With hydraulics, test the load-lifting ability if possible, as simply raising and lowering the arms won't reveal the condition of the pump.

Safety: Are all of the safety guards in place and/or operating properly?  Older tractors may simply lack some of the safety features of newer tractors.  Can they be retrofitted to meet OSHA or state safety standards if they apply?                  

Dealers History: If you're working with a dealer, what has the dealer rebuilt or replaced? What is covered under any warranty? What is their reputation for service after the sale?

Cost of parts: Knowing the cost of parts is important as well. Getting a great deal on a late-model big tractor may not be great when it's time to rebuild the engine or buy tires; many famous small tractors like the Ford 9N or 800 are still in great demand because of the low cost and ease of rebuilding, as compared to similarly-powered new or recent small imports.

Consider new equipment: Some equipment experts say that the recent softness of the market for new machinery makes some newer models a better buy than they’d normally be, because of the price breaks that many dealers are willing to discuss right now. Don’t ignore some of the new models on hand if you’re seeing your dealer about the used and rebuilt inventory.

Check the Internet: A growing resource for used tractors and equipment is the Internet. A number of websites feature on-line auctions and bidding, or classified advertising for used units. 

Some on-line auction sites, like IronPlanet.com  employ a detailed pre-inspection process that protects prospective used equipment buyers. Their reports rate the overall condition, the engine and drivetrain, the hydraulics; and for older units with higher hours on them, even lab testing of the engine fluids to detect internal problems. 

When you go to the auction internet websites be sure to check out their Frequently Asked Question section, or FAQ, and e-mail or call in person with any additional questions you have. After all, they’re in business to serve you.

However you buy, the main rules of comparison shopping still apply: shop around as much as you can to find the best possible deal for you and your situation.

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