What are Pros and Cons of New vs Used Tractors?

Tractors can get the work done faster than manual labour. Tractors are easier to use than most manual equipment.

Using tractors to plough the soil because it improves the quality of the soil by loosening it. It reduces the production costs of the crop as the work gets completed faster.

Pros of New Tractors

• Better technology- Tractor technology is constantly improving and resulting in better, faster, and more efficient tractors.
• Enhanced safety- New tractors comply with better safety regulations to promote a safer work environment. Therefore, they come with many inbuilt safety mechanisms to keep the driver safe.

Cons of New Tractors

• High initial cost- The most obvious disadvantage of buying new heavy equipment is the high initial cost. When compared to used farming equipment, farmers have to pay significantly higher prices for new tractors.
• Requires training- The advanced technology used in new tractors may provide operational benefits to farmers but it can also increase the need for training amongst crew members. Farmers have to consider dedicating time and resources to training when they purchase new tractors.
• Rate of depreciation- The value of new tractors depreciates faster than old tractors in the first few years of their lifespan. Farmers will receive less money when they consider selling their new machinery due to rapid depreciation.

Pros of Used Tractors

• Low Cost- Used equipment is generally much cheaper than purchasing new equipment. Saving costs on a piece of used equipment can be a great advantage for farmers who incurred losses in the previous year or are operating on a limited budget.
• Can perform basic activities- While the temptation to buy a new tractor with better technology might be strong, many people prefer buying used tractors because more often than not they provide all of the essentials that new tractors provide just without the latest technology. New technology can also be difficult to learn as it is complicated, along with being hard on maintenance.
• Depreciation- As tractors are used, their value starts depreciating. However, the resale value of new tractors depreciates more rapidly than the value of used tractors as the depreciation rate slows down after the first 12 months of purchase.
• Reduced insurance rates- Because new tractor equipment costs more, it is also more expensive to insure them than used equipment.
• More tractor selection- The market for second-hand tractors is expansive. Because for many farmers it is more financially lucrative to buy used tractors than new tractors. This results in a wider selection of tractors in the market.

Cons of Used Tractors

• Warranty- Usually, tractor manufacturers provide a warranty for the number of hours the tractor has been driven or a certain number of years. By the time most people sell their tractors, the warranty has expired. Therefore, while purchasing a used tractor, you are accepting an incredible amount of risk associated with costly repairs if you experience a breakdown.
• Intensive purchase process- While buying used tractors with expired warranties, the farmer has to go through an intensive purchase process that requires searching the cost of similar tractors on the market, checking out their service history, and inspection reports, along making sure that the machinery doesn’t have any major technical or safety issues.

High costs of repairs- The used tractor’s age plays a huge role in the remainder of its lifetime because it will become more prone to wear and tear as it ages. A used tractor will result in a shorter operational lifetime.