4
CapitalPress.com
October 2, 2015
October 2, 2015
CapitalPress.com
Timing important when purchasing equipment
Fix it or replace it — the factors to consider
By LACEY JARRELL
By LACEY JARRELL
For the Capital Press
Farmers and ranchers
should consider whether they
want year-end tax breaks or
new-year low interest rates
before purchasing equip-
ment.
“Year-end, of course, we
VHH DQ LQÀX[ RI SXUFKDVHV
simply because of tax impli-
FDWLRQV7KHQZH¶OOVHHDÀXU-
ry about February or March,”
said Carl Laux, sales man-
ager at the Pape John Deere
Dealer in Tangent, Ore.
According to Jeff Ros-
sow, president of Mid-Val-
ley Tractor in Eugene, Ore.,
March and April are the most
popular time to buy mowers
and compact 50 horsepower
tractors.
Rossow noted that those
Lacey Jarrell/For the Capital Press
Jeff Rossow, president of Mid-Valley Tractor in Eugene, Ore., says
the best time to get low interest on small farm equipment is late
winter and early spring, before the growing season gets underway.
months are when most peo-
ple begin prepping for spring,
EXW LW¶V DOVR ZKHQ JRRG ¿-
nancing and rebate deals are
available.
“Zero percent for 60
months is a good incentive.
There are often discounts on
implements if you buy a trac-
tor at the same time,” Rossow
said, noting that implements
such as mowers, post-hole
diggers, rakes and grading
scrapers are popular add-
ons. “Pretty much anything
you want — you just have to
match it up to the right size
tractor.”
According to Laux, just
as important as securing the
ULJKW¿QDQFLDOFRPPLWPHQWLV
making sure the equipment is
WKHULJKW¿WIRUWKHFXVWRPHU¶V
needs.
“The number one thing —
when purchasing a new piece
of agricultural equipment — is
WRPDNHVXUHLW¿WV\RXUQHHGV
and your operation. Quite of-
ten customers purchase too
small of a piece or too large of
a piece,” Laux said.
He stressed that customers
shouldn’t try to immediately
UHWXUQ LOO¿WWLQJ HTXLSPHQW
because the return value is al-
ways less than what was paid
for it.
“It’s like driving a new car
off the lot — the value goes
down instantly,” Laux said.
“You could lose a lot of your
equity if you try to trade it in
too quickly. Buy the right one
WKH¿UVWWLPH´
Laux said all Pape’s ag
division locations in Oregon,
Washington and Idaho have
special year-end offers on
equipment, such as combines,
windrowers, utility tractors
and row-crop tractors. He said
some offers are sponsored
in-house, others are from the
dealership. Laux suggested
farmers and ranchers call their
ORFDO 3DSH GHDOHU WR ¿QG RXW
what they qualify for.
³,W¶V HTXLSPHQWVSHFL¿F
It’s based on the age we’ve
had it in inventory. A lot of it
is used equipment we’re try-
ing to get moved. We’re offer-
ing some very attractive low
interest rates on that equip-
ment,” Laux said.
Rossow said equipment
owners thinking about trad-
ing-in should consider wait-
ing until February or March to
get the most value.
“Springtime is when
equipment is valued higher
for trade-in,” he said. “If you
trade something in, we have
to sit on it through winter,
usually.”
According to Rossow, the
EHQH¿W RI WUDGLQJ ROG HTXLS-
ment in is not having to deal
with selling it yourself.
To get the most out of a
trade-in, ensure the equipment
is clean and has low hours, he
added.
For the Capital Press
When purchasing new
equipment, investing in an ex-
tended warranty can minimize
risk and cost down the road.
After the manufacturer’s
warranty runs out, repair costs
come straight out of pocket,
said Rich Schmidt, sales asso-
ciate at the Brim New Holland
dealer in Salem, Ore. But with
an extended warranty, repairs
often only cost the amount of
the deductible.
“These warranties are al-
ways available until the man-
ufacturer’s warranty expires.
They don’t necessarily have to
buy it at purchase time. They
can buy it later,” Schmidt said.
Carl Laux, sales manager
at the Pape John Deere dealer
in Tangent, Ore., recommends
purchasing extended warranties
for large, medium and small
equipment. He also noted that
warranty deductibles are usu-
ally low — ranging between
$250 and $500 per incident —
and are only a fraction of some
tractor repair costs, which can
easily exceed $10,000.
“Repairs are expensive and
it doesn’t take long to pay for
that extended warranty,” Laux
said. “We haven’t had anyone
complain about buying an ex-
tended warranty. They always
thank us because we sold it to
them.”
According to Brim New
Holland Service Manager Billy
Martin, farmers who are consid-
ering forgoing repairs and buy-
ing another piece of equipment
should weigh the cost of repairs
against purchase price.
“If you can afford to replace
Lacey Jarrell/For the Capital Press
Brim New Holland Service Manager Billy Martin says having a clean
DLU¿OWHULVFUXFLDOWRNHHSLQJIDUPHTXLSPHQWUXQQLQJVPRRWKO\+H
VXJJHVWVFOHDQLQJDLU¿OWHUVGDLO\HVSHFLDOO\ZKHQ¿HOGVDUHGXVW\
it, you replace it. If you can’t,
\RX¿[LW´0DUWLQVDLG³,ILW¶V
just a small part that’s broken,
it’s probably cheaper to just re-
pair it.”
Martin said equipment own-
ers need to be diligent about
upkeep — he recommends
inspecting engines daily, and
checking engine and hydraulic
RLOV +H QRWHG WKDW DLU ¿OWHUV
especially those in equipment
ZRUNLQJGXVW\¿HOGVVKRXOGEH
cleaned daily as well.
“Everybody just gets in and
goes, but they need to take time
WR FKHFN WKH ÀXLG OHYHOV DQG
make sure everything is up and
topped off before they get to
work with it,” he said.
Jeff Rossow, president of
Mid-Valley Tractor in Eugene,
Ore., noted that front pivot seals
can easily wear out. He recom-
mends equipment owners regu-
larly check them for dirt, wear
and leaks.
He advises equipment own-
ers regularly grease loader and
axle pivot points so they don’t
get rusty and freeze up.
Laux said keeping electronic
software upgrades in new equip-
ment up-to-date is the best way
to ensure precision technology
5
in tractors and farm equipment
is accurate.
“Make sure the latest ver-
sion of the software is current
in those machines because the
manufacturers are constantly
upgrading and modifying the
software,” he said.
Laux said before deciding
ZKHWKHU WR ¿[ RU UHSDLU HTXLS-
ment, owners should also re-
view the equipment’s history
and compare its net value with
what’s been spent on mainte-
nance repair. He said equipment
owners should keep a detailed
log of repairs and maintenance.
“That’s part of your cost of
ownership, and of course, the
older it gets, the more repairs it
will need,” he said.
“Anything spent on repairs,
that’s a tax deduction,” he add-
ed. “So there are advantages to
repairing, as well.”
WSG15-4/#5