“How can I get the highest trade-in value on my equipment?” – it’s a question that crosses the mind of most farmers when considering a trade-in. The most logical answer to this question is going to factor in the equipment’s overall condition, age of the equipment, and hours of use. Yes, those do indeed play a role in trade value. However, there are other ways to maximize your equipment investment and get top dollar for your trade-in.
We asked Jacob Bryce, Midwest Machinery Remarketing Manager, the same question about maximizing trade-in value. Here are some things he recommends you can do to get the highest value for your trade-in equipment.
Whether you do this through a dealership or on your own, keeping maintenance records will provide peace of mind for the next buyer. We recommend doing an annual service inspection on your equipment to ensure it is running at peak performance. Many dealerships (like Midwest Machinery) offer service maintenance programs to help maintain your equipment and document all service work done. If you choose to do your own maintenance, document maintenance history dates along with parts invoices helps validate that proper maintenance was completed. When you can present all records for the lifetime of your equipment, it demonstrates that you were diligent in performing the proper maintenance. The next buyer can feel confident they are getting equipment that has been well maintained
2. Buy equipment that fits your needs and consider the next potential buyer
If you are someone that trades often or prefers to buy/order new equipment built to spec, be thinking about the next potential buyer. Having the right options and features available helps expand the potential market for that equipment. For example, let us say you are in the market to buy a 370HP 4WD tractor, an option to consider is a PTO. By adding this option, the tractor now becomes useable for planters, grain carts, and other PTO driven implements. Another example, we recommend 300+HP row crop tractors include a large hydraulic pump option. The newer planters will require more hydraulic capacity. When it is time to trade, you have a more desirable tractor and do not limit the number of potential buyers.
3. Consider PowerGard Extended Warranty Plans
PowerGard plans are meant to protect against unexpected breakdowns, but can also increase the value of your trade in. If you decide to trade out of your equipment PowerGard is transferable to the next buyer. Having a warranty left on used equipment adds value to the next potential buyer and will increase your trade-in value by approximately 2% for each year remaining on the coverage.
Short-line equipment often serves a good need for a customer. However, some of these products a very niche market. It is important to consider how long you plan to own the equipment and the long-term need in the market.
Because the technology in agricultural equipment is changing very quickly it is important to think about what your return on investment on the equipment/technology. Some of the add on components will be similar to a computer. They do become tired over time. However, installing components on a mid 90’s row crop tractor to make it autotrac ready will significantly increase future resale value.
These are just a few of the things you can do to maximizing your equipment trade in value. They do require a large commitment but, in the end, can pay dividends when it's time to trade in your equipment.
Midwest Machinery's Field Team Service Plans
Midwest Machinery's Field Team program ensures your equipment is inspected regularly. Maximize uptime and increase trade-in value with this Midwest Machinery exclusive program.
Learn more about Midwest Machinery’s Field Team service plans by clicking the link below to see the benefits and packages available.