Between the steep increase in the cost of borrowing and the explosion in equipment prices in recent years, buying new or new-to-you equipment requires some careful consideration of the true cost of ownership and not just the purchase price.
There’s more to the decision, of course, and one of the often over-looked factors in deciding on a new piece of equipment is access to training to make the most of the features and technology on a new unit, says Troy Aberle of Ag Powerhouse, in this interview filmed at Ag Smart at Olds, Alberta.
He adds that the top 5 things to consider when buying equipment should be top of mind for dealers and not just farmers, as knowledgeable service staff, parts availability, and total cost are things that rank highly on the list. The 5 things to consider are:
- Availability of parts, in a reasonable amount of time
- Access to capable service techs
- The ongoing need for training — training for the features and products for farmers and for techs and sales people
- Price being fair and clear, with a breakdown of purchase and lease options
- Total cost of ownership, including interest, rate of replacement and comparing the cost down to a bushel or cow or acre basis, benchmarked to what’s a reasonable cost
Aberle says that there’s plenty of stressful conversations had at the farm kitchen table, and finances is probably one not talked about enough. He adds that how a farm makes large financial decisions, such as buying new equipment, plays a role in preparing future generations for what’s to come in the farm business.
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