Used Tractor Vs New Tractor: Which one should you buy?
Table of Contents
- Comparison Between New Tractors vs. Used Tractors
- Factors to Consider While Buying a Tractor
- Conclusion
Comparison Between New Tractors vs. Used Tractors
The market of used tractors in India is around $10 billion which is mostly unorganized. This market is estimated to be larger than the new tractor market. It is also expected to grow around the $12.70 billion mark by 2030. Although the numbers are quite big, yet, it is noticed that farmers have always been confused in deciding whether they should opt for a new tractor or go with a used tractor. Let’s one by one look at certain criteria on which the tractors are compared before purchasing.
Price and Finance
Currently, any new mid-range tractor costs between 5 to 10 lakhs in India which is a bit expensive for a farmer to afford. On the other hand, you can easily buy a mid-range good condition used tractor in under 5 lakhs. You can also negotiate the price of a used tractor unlike a new tractor. Additionally, you can purchase the second-hand high-end variants of bigger brands at the price of a new tractor. You even do not have to bear higher insurance cost like new tractors while purchasing a used tractor. You also get better deals on implements with the used tractors.
However, when it comes to financing, the options to finance a used tractor are quite less and a bit costly as compared to a new tractor. A new tractor can get easily financed by many financial institutions, however, very less no. of financial institutions finance a used tractor.
The benefit of buying a used tractor is its being cost effective and affordable. However, the price of a new tractor might be on the higher side but you get various options to finance your new tractor at less interest rates and can also get the benefit of government subsidies unlike a used tractor.
Performance and Reliability Analysis
New tractors offer significant advantages of performance and reliability when compared to used tractors. New tractors are more tech and reliable. They have improved engineering, better features, and modern designs to work according to the changing farmer needs. In contrast, the used tractors lag behind the new tractors when it comes to features, and looks. Used tractors are also not so reliable, they are more prone to functioning or mechanical defects than new tractors. However, depending on the condition and model of the used tractor, these factors can vary and there are chances that they might not be a problem to your farming experience.
Technological Advancement
Over the recent years, many new features, technology, norms have been introduced in the tractor industry. For example, 4WD technology, TREM IV norms, safety features, CRDI engine, and other features like double clutch, Multispeed PTO, auxiliary valves, more gear speed options, etc. are not many years old. The chances of finding a used tractor with all of these features narrow down. If you are looking for a tractor that is above 50 HP, it becomes mandatory for you to get a TREM IV compliant tractor according to the government norms. However, there might not be many used tractors available with TREM IV in your desired HP range. Meanwhile, in case of new tractors you have access to all the latest features and can choose them according to your needs.
Options and Variants
In case of new tractors, you have access to more brands, options, and variants for choosing a tractor according to your requirement. However, when it comes to used tractors, you get access to very limited options and would have to compromise a little while choosing a tractor. Although, there are limited options but if your desired tractor is available as a used tractor then it might not be a bone of contention for you.
Price Depreciation
In terms of price depreciation, used tractors are better than new tractors. The used tractors lose their value more slowly than new tractors. Therefore, they have low price depreciation than new tractors. So, in terms of this, buying a used tractor is a better decision as you would get better resale value.
Buying Platform
The market of a used tractor is quite unorganized and scattered unlike new tractors. You can visit the showroom for buying a new tractor but there are not as such any authorized showrooms for buying a used tractor. Due to this, trusting the seller about the tractor becomes a bit risky. However, if you have a good technical knowledge or if you take any technical person with you to inspect the tractor then it will not be a problem.
Customization and Access to discontinued models
While buying a new tractor, you have an option to choose from different variants of a particular model according to your requirements. You can select or deselect the variant based on its features. However, this liberty is not available in case of used tractors. There is a very less possibility of getting access to all of the variants of a particular model for your choice. On the other hand, if you wish to buy any particular discontinued model then buying a used tractor is the best option. You can easily get access to your favorite discontinued model as a used tractor. Many discontinued models like Mahindra 575 and New Holland 3630 TX Plus are still worth buying which is not possible in case of new tractors.
Maintenance and Warranty
The regular maintenance of a tractor plays very important in its durability. The used tractors may come with an unknown history of maintenance. In case of new tractors, there is no history of maintenance. Also, used tractors are more prone to oil leakage issues from engine or axle and they require a bit more maintenance than new tractors. However, this can vary depending on the condition and usage of the tractor.
When it comes to warranty, new tractors come with a warranty period from the brand which gives you piece of mind and assurance. Whereas, used tractors may not come under warranty. However, many tractor brands now offer transferable warranty. Therefore, if you buy a used tractor under warranty period then you can get access to transferable warranty in some particular brands.
Factors to Consider While Buying a Tractor
Based on the above comparison between a used and a new tractor. Let’s look at some of the important factors to consider before buying any one of them:
- Price: If you wish to buy an affordable and cost-effective tractor then buying a used tractor will be a perfect option for you. If price is not an issue, then you can definitely go with a new tractor.
- Usage: For heavy-duty farming operations buying a new tractor would be a more reliable option but if you are using the tractor for primary farming operations then used tractors can also be an appropriate choice.
- Technical Knowledge: Proper technical knowledge about the tractor you are considering to buy is very significant for ensuring it does not hamper future work experience. You will be to easily maintain the used tractor with the help of proper technical knowledge. If you don’t have much technical knowledge about tractors then buying a new tractor can be a suitable option as it possesses less risk.
Conclusion
If you require a tractor for primary farming operations and are a first-time buyer, then you can opt for a used tractor. They offer decent and necessary features for your farming purpose in affordable price and are value for money. However, if you require a tractor for commercial purpose along with farming purpose which is technologically advanced. Then, new tractor would be a suitable option for you. They might be costly but you can recover that cost with their higher productivity and reliability. Conclusively, you can decide on the basis of the above comparison, factors and your requirements for choosing between a new or used tractor. In case you need any assistance for the same, feel free to contact us. You can buy any new or used tractor model through our platform at an affordable price. You can also take advantage of our new tractor loan facility or used tractor loan facility for buying your chosen tractor at attractive interest rates.
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