Opportunities aplenty in used machinery market

Specialist lender GoGetta Equipment Funding has released a snapshot of the used agricultural equipment market, which shows farmers are buying and selling second-hand machinery worth $500 million every year.

The finance company put together the report, Ploughing through the used equipment market, based on industry data retrieved in partnership with farmmachinerysales.com.au. It has been designed to help Australian farmers make informed decisions about their equipment purchases.

GoGetta National Sales and Marketing Manager, Kevin Savvas, says there is a large market for used agricultural equipment across all sectors of the industry.

"That means there is a lot of opportunity for farmers to secure pre-owned equipment that could be ideal for their operation," he says.

"Selecting the right equipment is critical to profitability in agribusiness. Our guide explores some of the factors potential buyers and sellers should consider and how they can impact price and value."

The guide includes insights from industry experts on how the market currently stands, key factors impacting the price on used agri equipment and the best time to buy or sell machinery.

"Timing is a key factor that can greatly impact resale value," he says.

"If it's been a good season, farmers are more likely to upgrade equipment, while a tougher season can often mean slower machinery sales – and better prices for buyers."

Other factors farmers need to consider when selling their machinery, according to the guide, include equipment hours, care and maintenance as well as branding.

Savvas adds it's important to find a flexible funding partner as not all lenders will fund used equipment purchases.

"We [GoGetta] work closely with machinery owners as their asset management partner, to help them take advantage of business growth opportunities such as upgrading equipment," he says.

GoGetta provides a rent-to-own finance model that offers business owners the option to purchase the machine with a rebate, or return the equipment it if it is no longer needed or if their situation changes at the end of a 12-month agreement.

Ploughing through the used equipment market is available for download here.