3 Tips For Perfectly Timing Farm Equipment Trade-In
Get the most money for your used farm equipment!
A successful farming operation requires that a farmer can increase their ROI season after season, and managing their farm operations goes beyond their land and into the farm equipment they keep — it’s called strategic farm equipment ownership.
Farm equipment is one of the largest costs in farm operations, and at Wagner Ag, we provide new and used equipment to assist in your day-to-day operations. Learn more about how to time your farm equipment trade-ins to maximize your profits.
Trading In Your Farm Equipment
Investing in new or used farm equipment, is just that, an investment, and the more money you can save, the more you can spend allocating it into your other farm operations. There are many factors to consider when you’re ready to trade in for new or used equipment, so follow along below.
New Farm Equipment May Be Worth It!
There is often a hold up when it comes to whether or not you should invest in new farm equipment or stick with used. Yes, new farm equipment comes with a premium price tag, but many of them host innovative technology that could easily pay itself off.
Every year, new models of tractors and other farm equipment are released with new and leading technology, but before you make the leap and trade in your used for the brand spanking new, it’s wise to consider a few things first.
While new models will always be more attractive and come with features that make their operations more comfortable and convenient, the question to always ask is, how will they increase your profits?
And it’s true, sometimes a more comfortable seat allows you to stay out in the field longer, thus improving your ROI, but sometimes they just look pretty! To truly maximize your trade-in, you need equipment that has the ability to increase your profits.
What features will undoubtedly allow you to perform more work in less time? If there are features that do this, buying new can be a great option.
Don’t Wait Too Long
Farm equipment is amazing in that it’s built to last, so waiting to trade it in does make sense, but there are things to consider.
A tractor only receives so much manufacturing support and if you wait too long, that support is gone. This means you lose this invaluable resource and you may end up having to repair and replace parts out of your own pocket down the road.
This not only leads to downtime in farming operations, but it also reduces the trade-in value you’ll receive. So, trading a tractor earlier rather than waiting a decade holds a greater value and allows you to get the most for your trade-in, better securing a piece of equipment you may really need.
Another downside to delaying your trade-in is the malfunctions in the equipment. When problems begin to arise and parts breakdown it’s no wonder a trade seems so inviting, but once things start to stray, the value depreciates very quickly.
Trading Towards The Future
If you’ve been seeing an ROI every season, things on your farm are going quite well, but don’t get too comfortable, it’s always important to look towards the future and assess how you can make your operations better.
Consistent growth could mean you’d gain a benefit from trading in your machinery early to get farm equipment with new features that will increase your profits even more! Not only does the used equipment come with a high trade-in value, but you can trade it in for farm equipment that expands and promotes your farm’s production capacity.
There are many ways to go about managing your farm equipment, but it’s important to always look ahead and do what’s right for you, it’s simply not a one size fits all scenario for every farm. So, buying new may not always make sense or you may need to trade in your equipment after the warranty expires because that’s what you can afford.
The variables are immeasurable — from your preferred farm equipment company, to the weather, and to your region’s terrain — where new farm equipment may make sense for one farm and sticking with used still makes sense for another.
If you’re looking to trade-in your farm equipment, always consider these things to help navigate your decisions.
For more information about the new and used farm equipment we have, connect with us today.