Advantages and Disadvantages of buying a new tractor versus leasing one
When you have a major investment to make – such as acquiring new farm equipment – you undoubtedly want to weigh all your potential options before making that investment.
One consideration many farmers make is whether they should buy a brand-new tractor or other piece of heavy machinery or lease it. Each has its own pros and cons, and each has its supporters and detractors that will argue that it is the smartest method. The truth is, each business owner must weigh those pros and cons for themselves and make that decision. Here they are in black and white so you can do exactly that:
The Upside of Buying Brand-New
When you want to own what you pay for, the only option that delivers on that desire is buying brand-new equipment outright. Whether you pay in payments or put the cash down in one lump sum, there’s nothing quite like owning your own machinery. You can choose exactly what you want, do whatever you want to do with it, upgrade it however you see fit and gain major equity if the purchase is a large one. Plus, if the expense is a business-related one, it can make for a sizeable tax write-off, which is another big bonus of buying.
Leasing does not offer these same benefits. When you lease items, they are not yours. At the end of your lease, you must return the item or renew the lease. You have little say over what is down with the items in terms of upgrades or changes, and you own none of the equity that comes from changes. Much smaller tax incentives are available for lease-related costs.
The Downside of Buying Your Equipment
Just as there are big rewards to buying your own equipment, there are also big downsides to doing so, too. When you buy a big piece of farm equipment, you are basically committing to that machinery for the foreseeable future. If newer, better technology comes along, it is difficult to replace or upgrade your fleet without investing in all new machines, and repairs are entirely your responsibility. The large initial cost of buying the machine can become even larger in this way, meaning buying is not always financially wise for smaller business owners.
Leasing can be a good alternative for these farmers or growers. Branson tractors are expensive machines, so leasing them allows for top-quality machinery to be rented without committing to machinery that might be too expensive to purchase otherwise. Repairs are typically handled by the leasing agency, and upgrades are easy and hassle-free. Newer technology is often available as an upgrade and the best machines are cycled into rotation often, meaning you’ll always have access to the best in your field. For many smaller operation owners, this is the only way they can keep their farms outfitted with high-quality machinery. Regardless of whether you decide to buy brand-new or lease your next machine, look for a reputable retailer of Branson tractors and other farm equipment to get started. You’ll be glad you took the time to find someone worth working with when you see the great deals and experience the excellent customer service a top-quality merchant offers – and your company’s budget will be better off, too!