Running a farm requires plenty of equipment to make things move smoothly and efficiently, but sometimes the cost of some things just isn’t in the budget. Luckily, there are alternative ways to get what you need done. Whether it is for livestock, planting, harvesting or preparation there are easy ways to buy or sell equipment without putting yourself or your business at risk. There are, however, some things you should keep in mind when using an auction to purchase your farm equipment.
1. Condition
Knowing the condition of farm equipment at an auction takes into account several factors. Some of these include whether the equipment is new or used (possibly auctioned with Grays or a similar service), the age or the amount of machine hours on it, for parts only or in working condition and more. Knowing the condition of the equipment can greatly inform your budget. It will also help you set your expectations for the equipment. When you buy something used you don’t expect everything to run problem free. Knowing how long the equipment has been in use will allow you to make a realistic maintenance schedule.
2. Maintenance Record
It is a good idea to check the maintenance records on used farm equipment if at all possible. Not only is this a testament to the previous owner’s care, it will allow you to know when to schedule certain routine checks and maintenance. You will also be able to have an accurate age on any parts or systems that were replaced. Of course, physical records are best, but even a verbal record can be helpful (provided that you have a reliable source).
3. Expected Lifespan
It is a fact that nothing lasts forever, and farm equipment is not an exception to the rule. This means that equipment only lasts a certain amount of time before it will become irreparable or require maintenance and repairs far too often. Quite often manufacturers inform consumers that a particular product should be good for x amount of hours of labor. It doesn’t mean that there won’t be problems before or after that benchmark, but it is an estimate that will change according to conditions, maintenance schedule and the intensity of the tasks performed. Armed with this knowledge, you can estimate how long a prospective purchase can last you and weigh that against the estimated cost.
4. Manufacturer
It may be helpful to consider the manufacturer of the equipment you want to buy. Some brands have an excellent reputation and others not so much. Some manufacturers also have warranties on specific parts or the equipment as a whole. Knowing whether or not you have warranty protection can help you make a decision on whether or not to purchase certain equipment.
5. Overall Appearance
You want to make sure that you have a good representation of the overall appearance of the equipment. If you’re buying something new, there should not be any blemishes or missing items. But if you are buying used, it helps to know if there are any substantial dents, scratches or cracks. Depending on their location or size you may need to factor in the cost of repair. Cracks can spread and weaken the integrity of the glass, and dents and scratched paint can lead to rust and the loss of protection of certain systems or parts. If there are any gauges or other instruments missing, you will want to know about it before deciding whether or not to buy.
6. Needed Features
It helps to know exactly what you want out of a particular piece of equipment. Here is an example. If you’re looking for a tractor, you should keep in mind what you will be using the tractor for and what you need it to do. Tractors come in a variety of drives, engines and hitches to choose from. The last thing you want is to purchase a tractor that doesn’t allow for the hitch you need or that doesn’t have enough torque to handle the job. A little planning ahead and knowing what you need can save you a lot of money and time.
7. Check the Specs
If at all possible, ask to have the engine started. You will be able to observe the engine in action and listen for strange noises, look for leaks and visible shuddering or any other problems. It is also a good idea to check the serial number to confirm the make, model and year. You also want to confirm the type of fuel it uses and the reading on the odometer. Check to see if the engine and exhaust system are compliant with existing mandated emissions standards, to avoid any fines and costly repairs or updates.
8. Budget
Last, but not least, is to set a budget. If you have intentions of only spending $2,000, do your best to stick to it. Going too far over your target budget can eat into the finances of your farming business. Afterall, farming is a business, there is supply and demand, consumers and product and compensation. Budgeting correctly for used farm equipment should consider the age and number of machine hours on it, the brand quality/reputation, maintenance requirements and your available funds. You want to have an overall budget as well as a budget that is contingent on certain factors.
Buying at an auction can be a cost effective way of getting the equipment you need. The key to making this method work for you lies in your ability to do a little research and invest a little time in inspecting potential purchases. Another tip that you don’t want to skip is checking your local regulations. If you buy something that is not legal for you to use on your land, not only have you wasted your money, but you may also be risking getting fines or other penalties. When you are an informed buyer, it is less likely that you will make a purchase that you regret.
