Specialist lender GoGetta Equipment Funding has released a snapshot of the used agricultural equipment market that shows that farmers are buying and selling secondhand machinery worth $500 million each year.
The company used data from 115,000 equipment listings in 138 defined equipment types for the period between August 2011 and July 2015 from farmmachinerysales.com.au as the basis for a white paper they say will help “Australian farmers make informed decisions about their equipment”.
“We’ve found that there is a very large market for used ag equipment across all sectors of the industry,” GoGetta’s national sales and marketing manager Kevin Savvas, said.
“That means there is a lot of opportunity for farmers to secure pre-owned equipment that could be ideal for their operation.
“Selecting the right equipment is critical to profitability in agribusiness,” he added.
“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 having an impact on used agri equipment prices and when may be the right time to buy or sell machinery.
“Timing is a key factor that can greatly impact resale value,” Mr Savvas said.
“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.”
Mr Savvas said it was important to find a flexible funding partner as not all lenders will fund used equipment purchases.
“We work closely with machinery owners as their asset management partner, to help them take advantage of business growth opportunities such as upgrading equipment.”
GoGetta offers a rent-to-own model allowing owners to build equity in their equipment with each payment and at the end of a 12 month agreement, choose to purchase with a rebate, or return the equipment.
