New or Used ?

Escalating new machinery prices, way beyond inflation rates in Australia, make used machinery an affordable alternative.

Which brand ?

Farming is a business and selection of machinery requires value for money. Most machinery manufacturers now produce quality product so the challenge is to select a machine that provides a balance between price, reliability, service backup and resale value.

Before you buy , spend time considering some of the following factors :

Matching the machine with the job you want it to do;

The period you plan to keep it;

Your budget for the purchase, including insurance, operation, maintenance and repair costs.

Check neighbours and owners of similar machines to determine the reliability of various models. Dealership service managers can be particularly helpful in pointing out potential repair problems and trouble spots.

How much is it going to cost?

To help you investigate and compare prices, the AMX locator pages at this site provide current advertised prices for most machines. We will be providing new machinery prices on this page shortly.

Note that new machinery prices usually increase around December / January each year in Australia and are a very successful marketing ploy to encourage, (even frighten) farmers to "buy at the old price" .

Used machinery sources

Machinery dealers acquire most of their used machinery through trade-in-deals. They sometimes come with a limited warranty under which the dealer is obligated to fix specific problems.

Machinery brokers (like ours at AMX) generally sell machinery owned by a farmer wishing to take advantage of a no trade deal on a new machine. Quite often they are in paddock condition and their reliability is more obvious and less inclined to be covered by a steam cleaner and a coat of paint.

Private owners sometimes sell their used machinery through newspaper classified ads. Although checking out newspaper ads may be time consuming, you may find a well-maintained machine selling cheaply.

ENSURE that encumbrances are paid direct to the appropriate party BEFORE settlement to the owner .

Clear title for used machinery

Regardless of the source, ask for an a unencumbered guarantee before agreeing to buy. This won't help if the financier is not repaid but may at least prove the seller guilty of fraud.

Have an independent technician check used machinery.

People do it with motor vehicles, a fraction of a machine price. The cost for this service varies, but if it's $500 the money you invest up front may save you many more dollars later. Ask for a written estimate of the costs to repair any problems the technician finds, and use that estimate as a bargaining chip if you make an offer.

Bargaining. New machinery prices are inflated to allow dealers to bargain, especially with expensive trades. Used machinery, much less so, however bargaining can still be part of the process. Whether you bargain or not, control the situation by simply keeping "trade ins" totally separate from any initial discussion .

Bargaining can be an exhausting process, so do not let yourself be pressured into a deal with which you are not comfortable just because you are tired of haggling or do not understand exactly what is being offered.

Selling or trading in your current machine.

We encourage machinery buyers to sell their trades seprerately and obtain a no trade discount. While used prices don't vary much over six months, CLEARANCE does. Used machinery will clear faster if you FORWARD SELL at least three months before you wish to quit.

If you decide to trade-in to a dealership, discuss its value only after you have settled on a price for the "new" machine. Otherwise, the good deal you get for your new machine could be spoiled by the low price you get for your old one 

Warranties

Where warranties are given, they often differ, depending on the seller. Whatever the warranty, make sure it is understandable and in writing before buying. The warranty should spell out precisely what is guaranteed. Most used machines have no warranties at all. These are sold "as is" or with faults.

Extended Warranties

Soon it will be possible to purchase warranty from independent warranty companies who determine the probability of breakdown costs, then add an administration fee and a profit margin for the warranty charge. Naturally enough, the newer the machine the lower the charge.

The Factory Bonus

Rebates, incentives and bonuses from manufacturers hugely influence both new and used prices. They come in various forms and include a "volume" bonus, a "trade in" bonus and a "programme" bonus, and are in addition to the standard dealer margins. Their size and nature are rarely, if ever, disclosed.

What is a Fair deal ?

Use this formula for new machinery :

Dealer invoice price less Dealer Rebates / Incentives +10% Fair Profit + Delivery = Fair deal

Unless you know the invoice price and rebates it is impossible to identify a good deal.

Financing a Purchase.

In general, paying cash is the simplest but rarely the best finance alternative. (See our calculator page). Commercial hire purchase with a deposit is most used while lease arrangement is generally easier on cash flow but often with inherent problems later.

When shopping leases, look for a balance between the highest residual and lowest interest rate.