August 6, 2024 When it comes to used tractor finance, UK agriculturalists have a couple of different options. For a start, they may decide to buy a brand-new model instead, or simply buy their next tractor outright. Whatever you decide to do, it’s important that you remember that any tractor is a business asset, and as such, your decision making should be different to that of buying a new car. Often, tractor buyers are tempted into buying shiny new models that serve more as a status symbol than a reliable work tool. Keeping your focus on what any new addition can do for your business will help you to make the right choice when buying. New vs used tractor Splurging on a new tractor can be a tempting proposition for many of us. Dealers can provide some competitive rates, and VAT can be deducted from your tax returns. Once your new tractor has put a few working hours in and its lustre has been dulled somewhat though, you’re left with huge monthly payments for a work tool that does the same job as something for half the price. Ask yourself how much the GPS navigation, digital display, and air conditioning are really worth to you, and check that against the difference between a new and used tractor. Many find that older models are both easier and cheaper to repair, with new tractors utilising the latest technology and having a more plastic-based construction. Because of this, some find that opting for an older model can be a far more economic option. You may even find that you’re able to buy two used tractors for the price you’d pay for one new model. Whether you use this to provide extra productivity, or simply as an inexpensive back-up instead, depends on your operation. Buy outright or use finance? Whether it’s a new or used tractor you eventually choose, you’ll still need to decide on how you plan to pay for it. While the old advice of saving up until you can afford something has its merits, it’s not necessarily the best business mantra. By waiting so long before you purchase items that can boost your productivity, you can actually lose money in the long term. Worse still, you can lose ground on your rivals, who may be able to secure contracts that you can’t. Of course, it can seem counterintuitive to pay interest on a purchase if you have the funds to buy a tractor outright. After all, the interest you gain on keeping the funds at hand is unlikely to outstrip the interest you’d pay in tractor finance. As such, an outright purchase can sometimes be the best option, but only if you have very large cash reserves. By utilising agricultural finance options, you leave your cash reserves free to allow you to pursue other growth opportunities. This could be for the deposit on more land, or the purchase of more livestock. Leaving a large cash reserve where you can get hold of it quickly also provides you with far more financial security in the future. Farming can be a volatile business that is vulnerable to multiple ecological and political conditions, and it pays to have a cushion at hand in case you ever need it. Benefits of used tractor finance, UK farmers can utilise. Buying with used tractor finance, UK based loans, or agricultural finance in general, provides business owners with several benefits. Tax deductible Agricultural finance provides you with the potential for tax relief for the length of your agreement. Spread large purchases into manageable payments Keep vital cash reserves close to hand, by utilising finance options that spread the cost to a point that you barely notice it. Secure funds quickly Agricultural finance allows you to take action now, rather than waiting until you’ve saved enough for a large purchase. If your current tractor is broken for example, used tractor finance can get your business back on track quickly and easily. Secure your new tractor As our agricultural finance options include used tractor finance, UK clients can get hold of the vehicle they need, quickly. We’re able to source the best price for your particular situation from a network of agricultural financiers. Give us a call today for free, no-obligation advice on 0800 975 0380.