Should You Buy a Tractor or Hire in Western Australia?

Western Australia offers some of the most challenging farmland, making it crucial for farmers to invest in a high-quality tractor.

But should you buy or hire a tractor? Given the expense of this equipment, it’s worth considering your options. Here at AgKing tractors we have a premium quality range available for consideration. In this feature, we’ll explore the most suitable option for your situation and offer an honest verdict on what choice suits you best.

Buy or Hire a Tractor? Here are the Key Facts

Alongside considering your budget, you also need to think about what you want from a new tractor. Ask yourself these questions:

• How often will you use the tractor?
• What tasks do you need it to perform?
• Will it be in year-round use or seasonally?
• What is your budget for new equipment?
• Do you have the correct storage facilities?

Once you understand the above, along with the financial resources you have for purchasing new machinery, you can proceed to the next step—hiring or buying your new equipment.

Hire a Tractor: The Benefits

If you choose to hire, then there are various ways this may benefit your farm. Including:

1. Lower upfront costs as there’s no big bill to pay immediately. This is ideal if you don’t have the cash immediately to buy new equipment.
2. Access to the latest model tractors at much lower upfront costs (most rental companies provide cutting-edge equipment).
3. Maintenance and repair costs are covered in your contract.
4. Flexible contracts to suit your needs.
5. Tax benefits through fully deductible expenses.

However, you need to keep in mind the disadvantages of hiring. These may include higher long-term costs, making it more expensive to rent over time than buy outright.

Additionally, there may be availability issues. You’ll also have less control over your equipment, and there’s likely to be a limit on your customisation options.

If you need to hire, this option is best suited for those with seasonal work to complete and/or short-term projects. Additionally, if you have limited financial options to work with, this is the ideal choice for you.

Buy a Tractor: The Benefits

If you’re looking to buy, then the advantages can prove considerable. Including:

1. Full ownership of the vehicle, meaning you always have access to it whenever you need the equipment.
2. Long-term cost efficiency, as hiring is more expensive over time. The big upfront cost will provide better ROI in time.
3. Asset building through equity, meaning you can resell your tractor at a later date.
4. Customisation to modify and equip your tractor as you see fit.
5. Tax depreciation benefits, meaning it may be eligible for schemes such as the instant asset write-off.

An obvious drawback to buying is the upfront cost. You’ll also be responsible for servicing the equipment and covering the costs of maintenance and repairs. If you can’t afford these, then buying won’t be a suitable choice.

However, if you have a large farm with a lot of work needing to be completed all year round, there’s no denying that buying is the ideal solution for your farm.

Choose AgKing as the Best Place to Buy a Tractor

We’re Australian-owned and operated and we know the farming industry inside out, so choosing to buy a tractor with us is the right choice.

Our team consists of no-nonsense experts ready and able to support your farming needs. Regardless of your goals, we’ll help you select the ideal heavy-duty equipment to accomplish the job.

If you need a hand finding your ideal tractor, give our no-nonsense team a call today. We’ll help you find your ideal equipment in next to no time.