How do I check a farm equipment dealer’s used inventory before buying the dealership?

Machines taken in on trade sit on the books at a figure someone chose, and the buyer inherits both the machines and the figure. Checking them takes a list, a walk-around and a few pointed questions. The steps below follow the order most buyers find easiest to manage.

Start with the age list

Ask for a list of every used unit with its model, serial number, date received, what the dealer has in it and any reconditioning cost. Sort it by how long each unit has been there. Units that have sat a long time may need a hard look, because they tie up money and tend to be the ones nobody wants. Ask what the dealer has done to move them.

Inspect the machines themselves

A list cannot tell you whether a combine has been repaired well. Walk the lot with a qualified technician and check hours, wear, leaks and whether the machine runs. Compare what you see with the condition noted on the list. Our short answer on assessing equipment condition goes through a method you can adapt.

Who owns or finances each unit

Not every machine on the lot belongs to the dealer. Some units are consigned by farmers, some are held for others, and some are financed by a lender or the manufacturer that has a claim on them. Ask for the consignment agreements and the financing statements. Ask your lawyer how to confirm what claims are registered against the units.

Settling the count in the deal

Inventory moves every day, so the number you see now will not be the number at closing. Ask how the deal will handle a final count, who takes part in it and what happens to units that fail inspection or are sold in between. Have your lawyer write the method into the agreement.