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Buying during off-season sales or before warranties expire can help stretch your budget.
drops to scrap price.
Make the Most of Warranties
Many new machines come with warranties. If you’ re buying new or lightly used, factor in that coverage when planning your replacement window. For example, set a policy of upgrading a machine right before its warranty ends to avoid expensive outof-pocket repairs.
Even if you don’ t follow that approach exactly, warranties give you a fixed window of lower risk. If you plan your replacements just ahead of those expiration dates, you’ re less likely to be stuck with surprise repair bills— and more likely to get top resale value for the machine while it’ s still covered.
A well-timed replacement can save you money on repairs, downtime and lost productivity.
Is It Time to Replace?
Ask yourself:
• Is it nearing or past its average lifespan?
• Are repair costs climbing year over year?
• Is it out of warranty?
• Is its resale value starting to drop?
• Did it break down during a critical window last season?
• Does it lack features that improve efficiency or safety?
If you answered“ yes” to three or more of these questions, it may be time to actively plan for a replacement.
Use Tax Timing to Your Advantage
This is where strategy turns into savings. Farm equipment purchases often qualify for powerful tax tools that let you deduct some or all of the purchase price the year you put the equipment into service.
There’ s a catch, though— you have to time it right. If you’ re due for a major tax bill, replacing or upgrading equipment before the end of that fiscal year can soften the blow. On the flip side, if you’ re having a lean year, it might make more sense to wait until your income rebounds. Discuss big purchases with your accountant or tax advisor ahead of time so you can time equipment replacements to match your tax strategy.
Shop the Sales Cycle
Dealerships, manufacturers and even auctions follow seasonal trends. Planning ahead lets you take advantage of traditional sales cycles like the following:
• Off-season deals such as buying a planter in the fall or a combine in the winter.
• End-of-year manufacturer incentives.
August 2025 | www. FarmersHotLine. com | 17