Is a used or new farm machine better value for money?
2024. June 15.In order to carry out agricultural work, you need agricultural machinery.
These are the most important elements without which no farm can function properly.
The only question is whether second-hand or new machinery is worth the price.
In terms of price, there are also huge variations between equipment.
Below we tell you who and which one to choose.
We’ll find out whether a used or new tractor is the better choice.
The question of price
Unfortunately, buying new agricultural machinery is a headache for many farmers.
Although it is a fact that today it is possible to buy tools that make work much easier.
They make ploughing, harvesting and agricultural activities faster and more efficient.
However, they are often too expensive, and in many cases can only be afforded by larger contractors, although for beginners they are often a better option than an old tractor.
The inability to buy new agricultural machinery has led many farmers in recent years to turn to second-hand machines, versions from the secondary market.
The range of these is very wide, so basically anyone can find a machine to suit their needs.
It is a question of how much cheaper it is to buy a machine that may not serve you.
In the long term, it may not be profitable to buy a second-hand version, which, although cheaper, will be needed again in a relatively short time.
What do they buy more often?
The annual surveys show a relatively balanced ratio of new machinery purchases to second-hand equipment purchases.
This is true not only for our country, but for Europe as a whole, with an increasing number of farmers recognising second-hand machinery.
The reasons for this behaviour are quite clear, as newer machines are somewhat more expensive, and a lot has to be paid for quality equipment.
This solution therefore allows smaller businesses to make savings, using the savings on tools and equipment that they still need.
However, it is important to remember that a new tractor, plough, ploughing plough or other accessory is always better value for money for those who can afford to invest in one.
It is another question to what extent they can be bought with tender money, since, admittedly, many people choose this option.
When and how should you buy a new one?
The main reasons why it is a good choice to choose a new piece of agricultural equipment are durability, quality and warranty.
Their growing popularity is influenced by their increasing availability, as finding the machinery you need today should not be a problem, either at home or abroad.
Most dealers are in contact with domestic banks and leasing companies, thus ensuring the most favourable financing solutions for buyers.
Whether you are a VAT-exempt or VAT-paying customer, our colleagues will answer all your questions about credit and leasing for your machinery purchase.
They will help you to prepare your financing application, choose the right scheme and conclude the financing contract.
This is good because we don’t have to prepare the documentation and follow the whole process.
They also prepare the ready-to-book material, so we as entrepreneurs and business owners don’t have to deal with that either.
In most cases, closed-end and open-end finance leases are chosen, and of course, if necessary, loans for machinery subsidies are also available.
Fixed and variable rate options are available, typically in HUF.
Euro-based financing is also available on request and subject to conditions.
The 5-year scheme is the most common, but a 7-year term is also available.
It is important to note that this financing is available with a minimum of 10 percent equity.
In the case of leasing, machines can be purchased on leases of up to 5 per cent per annum for terms of 3, 5 or 7 years.
And the twice-yearly seasonal repayments are just the icing on the cake.
The life of the agricultural equipment financed must not exceed 15 years at the end of the lease.