Farmers and ranchers should consider whether they want year-end tax breaks or new-year low interest rates before purchasing equipment.
“Year-end, of course, we see an influx of purchases simply because of tax implications. Then we’ll see a flurry about February or March,” said Carl Laux, sales manager at the Pape John Deere Dealer in Tangent, Ore.
According to Jeff Rossow, president of Mid-Valley Tractor in Eugene, Ore., March and April are the most popular time to buy mowers and compact 50 horsepower tractors.
Rossow noted that those months are when most people begin prepping for spring, but it’s also when good financing and rebate deals are available.
“Zero percent for 60 months is a good incentive. There are often discounts on implements if you buy a tractor at the same time,” Rossow said, noting that implements such as mowers, post-hole diggers, rakes and grading scrapers are popular add-ons. “Pretty much anything you want — you just have to match it up to the right size tractor.”
According to Laux, just as important as securing the right financial commitment is making sure the equipment is the right fit for the customer’s needs.
“The number one thing — when purchasing a new piece of agricultural equipment — is to make sure it fits your needs and your operation. Quite often customers purchase too small of a piece or too large of a piece,” Laux said.
He stressed that customers shouldn’t try to immediately return ill-fitting equipment because the return value is always less than what was paid for it.
“It’s like driving a new car off the lot — the value goes down instantly,” Laux said. “You could lose a lot of your equity if you try to trade it in too quickly. Buy the right one the first time.”
Laux said all Pape’s ag division locations in Oregon, Washington and Idaho have special year-end offers on equipment, such as combines, windrowers, utility tractors and row-crop tractors. He said some offers are sponsored in-house, others are from the dealership. Laux suggested farmers and ranchers call their local Pape dealer to find out what they qualify for.
“It’s equipment-specific. It’s based on the age we’ve had it in inventory. A lot of it is used equipment we’re trying to get moved. We’re offering some very attractive low interest rates on that equipment,” Laux said.
Rossow said equipment owners thinking about trading-in should consider waiting until February or March to get the most value.
“Springtime is when equipment is valued higher for trade-in,” he said. “If you trade something in, we have to sit on it through winter, usually.”
According to Rossow, the benefit of trading old equipment in is not having to deal with selling it yourself.
To get the most out of a trade-in, ensure the equipment is clean and has low hours, he added.