Why Buy Used Thermal Sprayed Agricultural Equipment?

The agricultural Industry and the money one can make from the industry itself, is as volatile and undependable as the weather. In fact, the weather can have everything to do with it. Frequently, those who make their living in this industry search for ways to save money where they can. One good way to do exactly that is through the purchase of used equipment, whenever possible.

When purchasing used equipment, however, one must pay close attention to the condition of the equipment. A good way to make sure that equipment lasts as long as it possibly can is through the use of thermal spray protective coatings. These types of coatings protect against a multitude of corrosive, erosive, and wearing conditions. The better protected equipment is, the better the chances it will make a good used part, component, or piece of machinery.

Let’s take a look at the ups and downs of buying a used agricultural equipment.

What’s Trending?

Compared to 2014, prices currently being given at auction sale or asked by dealers for large and late-model machinery are 40% down to 35% lower. Over the last four years, there has been a growing gap between new stock versus the relative value of equipment (tillage implements, grain carts, high horse power tractors, combines, etc.). That gap seems to have, at least temporarily, bottomed out. What this means is that the downward spiral of the value of such machinery is (hopefully) at an end. And that presents a good news/bad news situation.

The Good News

On the positive side, being sold at some of the lowest prices in history, the marketplace is offering a more than sufficiently sized fleet. Since the mid-1980s, prices like this simply haven’t been in existence. And what’s even more likely is that, at least for decades, those kinds of prices won’t be seen again (relative to inflation).

But wait, there’s more. That late-model machineries that people are purchasing at those great prices is not only going to hold its value in the foreseeable future, it may even appreciate in value. Back in the mid 1990s, virtually the same thing happened with combines.

The Bad News

There’s always another side of the coin, of course, and in this case, it is that your borrowing leverage at the bank is going to be slashed. Compared to the past, the value of equipment will be less.

Leasing to Save Money

If you do buy new, the current good news is that dealers are offering extended warranties and low interest financing. But, if you don’t need a piece of equipment long-term, leasing is another option. Considerable savings can be realized by those agriculturalists that can lease, rather than buy, large, late-model iron.

Thermal Spray Protected Agricultural Equipment

Agriculturalists who see to it that their equipment is protected through thermal sprayed protective coatings extend the life of their machinery exponentially. But in addition to getting more usage out of their equipment, for longer periods of time, they also increase the resale value of that equipment. When it comes time to purchase something bigger and better, or if they simply decide to move on to another endeavor, farmers (and others in the industry) who have protectively coated their machinery can make more money selling that machinery used than will those who have not protected their equipment through thermal spray.

If you are involved in the agricultural industry and would like to find out more about what thermal spray protective coatings can do for you and your machinery, contact us at A and A Coatings today.