Buying and Selling Used Farm Equipment
It’s impossible to farm without the right equipment, and that equipment doesn’t come cheap. But there are alternatives to buying new, off the lot, at full retail price. There are bargains to be had. Like used cars, there is a healthy market for used farm machinery in USA. If you are looking to buy or sell, here are some basics you should know.
It’s impossible to farm without the right equipment, and that equipment doesn’t come cheap. But there are alternatives to buying new, off the lot, at full retail price. There are bargains to be had.
Like used cars, there is a healthy market for used farm machinery in USA. If you are looking to buy or sell, here are some basics you should know.
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Big Equipment sells new shortline machinery from Versatile, Westfield, Rhino, Pillar, SeedMaster, Ezee-
On and J&M equipment, and Harmon says he pushes customers to make trades when purchasing new
equipment to help build up his inventory of older, high hour used equipment.
“The best margins I make at Big Equipment are on taking in good, clean used equipment, upgrading it,
fixing it up and reselling it,” he says. “I would have to sell a lot of new equipment to generate the same
margins as I can generate on used equipment.”
Upgrading Used Equipment
When Big Equipment takes on a piece of used equipment, it is inspected, serviced and repaired until it is
once again in top shape. The dealership takes in old equipment, averaging between 20-30 years old,
with good quality engines and transmissions and updates the hydraulics, electronics and adds in GPS
and new wiring to increase the value of the machine. In some cases, Harmon says that with a $10,000
investment in upgrades, he can get more than double the book value of certain equipment.
Big Equipment also offers full rebuilds of 20-30 year old equipment by request, involving a complete
makeover of the engine, transmission, axels and cab. Harmon says after this work, he can sell certain
models of tractors for more as a rebuilt tractor 30 years later than what it sold for new.
“These things aren’t cheap, and we don’t advertise for this business. It’s strictly word of mouth. But I
prove that these tractors are just as reliable and robust 30 years later through quality rebuilds,” he says.
Not every 30 year old tractor has the same resellability, though. Harmon says it’s important to know
what equipment will resell well, as this determines the amount of time and money he invests in
upgrading and repairing it. There are certain brands and models of old tractors that he looks for, such as
the Steiger Tiger tractors or the Big Bud tractors Harmon used to manufacture. For knowing what brands
and models to target, Harmon says it’s necessary to do some research and find which tractors were
originally built with high quality parts, as well as which brands and models weren’t.
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