10 tips on preparing your used tractor for sale

Maybe you don’t need it anymore, perhaps you need some extra cash in the kitty or you’re simply sick of looking at it. Whatever reason it is for selling your tractor, it is important to get all bases covered before taking it to the dealership or popping it up online for sale.

Thanks to consecutive years of great harvests, the tractor market now is red hot so no matter your tractor horsepower, there is no better time to sell.

We spoke to farmer turned machinery sales consultant, Brendan I’Anson, from CadMac Albury-Wodonga for his top tips on ensuring your tractor is primed for sale and how to ensure it does sell.

Whether you’ve clocked up 20,000 hours on the tractor or 50, you need to check that all components are in working order and that there are no leakage or cracks.

These days, when appraising a second-hand tractor on a farm, I’Anson photographs the machine from all angles and drives it to test the engine, transmission, clutch, hydraulics, front-end loader attachment (if any), air-conditioning and battery.

“Tyres are important on an older tractor as they are an expensive item at $10,000-$12,000 per tyre (on larger horsepower tractors),” I’Anson said.

A hydraulic pump can also be expensive to replace so I’Anson pays special attention to that as well.

Also important to check is the transmission. I’Anson said large square balers may take a toll on a tractor’s transmission after 2000 hours, unless it was fitted with the newer continuously variable versions.

Here is a list of items to check:

“Tractors are like a used car – once they get to 10,000 hours they are like a car which has done 200,000km, the market shrinks big time,” I’Anson said.

“When the tractor gets too old, down times can be longer due to the lack of availability of spare parts – parts for models from the 1970s and 1980s can be hard to source,” he added.

“Old tractors can be dogs on fuel efficiency compared to the new motors – the new transmissions are more efficient at getting power to the ground, saving a lot of money in fuel over 500 hours to the tune of several thousand dollars.”

So what happens if you spot something that isn’t quite right? Well, if they’re easy fixes that you can DIY, then great, but if you don’t know what to do, then best fork out some cash and leave it to the professionals.

“Spend a bit of money fixing the little problems like oil leaks and if we find anything major in the workshop, that will come off the trade price,” I’Anson said.

“A few major dents don’t worry me unless it will affect the tractor.

“A tip is to sandblast and paint them with black paint around the back and underneath – it does make them present better.”

Document the servicing and have a file with receipts, schedules and other paperwork on grease, oil filters and parts.

Provide the original owner’s manual, purchase agreement as proof of ownership, registration papers and disclosure of any finance owing on the tractor.

If your tractor has not been serviced frequently, you could be in a bit of a pickle.

“If the tractor is only serviced every 12 months and run into the ground, it doesn’t auger well at trade-in time,” I’Anson said.

Also seek your accountant’s advice on tax implications and capital gains before selling a tractor.

When it comes to warranty, a new tractor comes with a dealer warranty and these can be transferred when it is sold as second-hand.

If you have done some modifications to your unit when you first bought it then it’s perhaps too late at selling time, but a very important thing to know is that modifications will significantly affect ability to sell, especially at a trade in with a dealership.

“Don’t screw anything to the ROPS (rollover protective structure) as I cannot buy a tractor with a hole drilled into the ROPS,” I’Anson said.

“Often tractors are modified after purchase and become over width with larger tyres fitted with home-made rims – that doesn’t bode well unless you have an engineer’s certificate.

“Fitting duals to a tractor not originally manufactured with them puts a lot of weight on the transmission.”

As more millennials take over from the older generations in running the farms, they become the new generation of buyers that are up to speed with the latest technology and are proving to be demanding customers.

“They are not scared by the technology, know how to work it and get the best out of it,” I’Anson said.

“They won’t buy a second hand tractor without that technology – they will just move on.

“We are selling more of those higher specced tractors into the dairy market as they are doing more sowing and pasture renovation – with increasing land values they have to make every inch work.”

Therefore, consider retrofitting modern technology to your second-hand tractor, especially if it’s in the mid to higher horsepowered range.

“The old tractors can accommodate most of the technology but you won’t be able to integrate telematics,” I’Anson said.

When selling later model tractors, the data on precision guidance software technically belongs to the farmer.

When it comes to price, a second hand tractor needs to look like good value buying.

Do your market research beforehand by comparing pricing and industry trends for comparable equipment.

I’Anson said sellers need to have a price range and set realistic expectations.

“Look at the tractor objectively and think how much would you pay for it,” he said.

“A sales representative can give you an idea of what it is worth from previous sales. It must look like it’s an opportunity.

“Many rare and collectable tractors are sought after and increasing in price, especially the little Massey Ferguson’s with Perkins motors, they tick away forever.”

There are several ways you can sell your machine, at an auction, to a dealership or via private sale.

If selling through a dealership, tractor owners benefit from the dealers’ professional selling strategies, service locations throughout the region, and an extensive network of parts, service and technology.

Dealers can organise interstate travel and delivery, along with finance, if required.

“The beauty of selling through a dealer is many are family companies with the technicians and sales staff personally knowing their customers,” I’Anson said.

They will post the ad on their website or on classifieds sites such as farmmachinerysales.com.au, and accommodate on-site inspections.

If you decide to cut out the middle man and sell privately, then there are plenty of things that you have to prepare and work on, such as making sure your tractor is well serviced and well presented for sale, which will be covered in more detail below.

As a farmer, I’Anson sold his used tractors online, which he claimed is the most effective way to sell second-hand equipment.

“Machinery wears out and the bigger broadacre growers are always looking.

“There will be many buying opportunities next year as dealers will have a lot of second hand equipment sitting around on the back of a quiet market.”

A 'roughie' can mean less value so spend time cleaning the tractor, repairing rust spots, replacing cracked or missing covers for dials, replacing safety decals, fill in severe scrapes, and repair anything that can be a safety or operational issue.

“Tractors have got to look good to sell – if they don’t look good in the yard, they are not much good to you,” he said.

In addition to looking good in the flesh, the tractors will also have to look good in photos, especially for sites like farmmachinerysales.com.au where you can post multiple photos for your listing. Take photos of the exterior, interior, sides, front, back and details; in fact the more the merrier.

One of the worst things that could happen to buyers is for them to have parted with their hard earned cash only to learn that their purchase was a dud.

Regardless of what issues you may have with your tractor, fixable or not fixable, always be transparent and disclose the issues with your potential buyers.

“If you tell people what’s wrong with it, they will part with extra money because they know you have been honest,” I’Anson said.

“Having a back story will help with the sale, for instance, how did the dint in the bonnet happen?”

If posting an ad online as a private seller, include as much information as possible including price, year of manufacture, make and model, hours, tow bar, steering type, condition, colour, VIN, three-point linkage, hydraulic system, engine, PTO, tyres, cabin features, servicing and warranty.

I’Anson said there is no specific time of the year when used tractor prices peaked.

“You still get guys walking in and wanting to buy a tractor today," he said.

“There is no good or bad time to sell a used tractor – basically when you are sick of looking at it.

“A tip is to let people know and it might move on quickly to a neighbor before you push the button.”