Should you sell, trade in or keep it?
Think about what the machine costs you in repairs, storage and insurance, and what you would pay to replace it. If you use it only a few days a year, renting or hiring the work may be cheaper. Talk with your accountant before you sell, since sale of equipment can have tax effects. Check the machine against the manual for features you can mention in the listing.
This guide does not give tax or financial advice. A licensed tax professional or your local FSA office can help you think it through.
Talk with family or partners about the decision, since equipment often has shared use.
- Cost to keep versus replace
- Rent or hire as an option
- Tax effects of a sale
- Talk to a professional
How do you prepare equipment for sale?
Wash it, fix small problems and make sure it starts and runs. Grease fittings, change fluids if due and replace worn parts that affect function. A clean machine signals care, while a dirty one makes buyers wonder what else is neglected. Small repairs usually return more than they cost, while large repairs may not, so compare before you spend.
Gather the manuals, records, extra keys and attachments. Take clear photos from every side, including the data plate, hour meter and tires.
Do not hide damage with paint. Buyers will find it and trust will end.
- Wash and fix small problems
- Fresh fluids and greased fittings
- Manuals, keys and records ready
- Clear photos from all sides
How do you set a fair asking price?
Research what similar machines are offered for and what they sold for, in dealer listings, farm papers and auctions. Condition, hours, age, region and demand all matter. Ask a dealer for an opinion if you can. Write down the hours and condition honestly so the price you pick matches the machine in front of the buyer.
Be ready to negotiate and decide in advance the lowest price you will accept. Be honest with yourself about condition and repairs.
Check for liens before you list, and clear any with your lender.
- Check listings and sales
- Account for condition and hours
- Set a lowest price
- Be ready to negotiate
Where can you sell it?
Options include private sale by word of mouth, local classified ads, dealers, consignment, and auctions. Each has costs and trade-offs in speed, price and effort. Auction companies and dealers may charge fees or commissions, so ask before you sign. Ask others who have sold similar machines locally which method worked best and what fees they paid.
Meet buyers in a safe, public or well-lit place. Be careful with out-of-area buyers who offer unusual payment, such as overpayment and refund, since these are common scams.
Put your own safety first when strangers visit your farm. Keep dogs and children away and have someone with you.
- Private sale: more effort, often more money
- Dealer or consignment: easier, with fees
- Auction: fast, as-is, with fees
- Beware of overpayment scams
How do you describe it honestly?
List what works and what does not. Mention known leaks, repairs, hours and accident history. A buyer who finds a hidden problem may return angry, and in some cases a seller may face legal trouble for misrepresentation. Offer to let a buyer bring a mechanic, which shows you have nothing to hide.
Ask a lawyer or your state agency if you are unsure about duties as a seller, since rules differ by state.
Write down what you told the buyer so there is no confusion later.
- Working features
- Known problems
- Repairs done
- Hours and history
What paperwork and safety steps are needed?
Write a bill of sale with the date, machine details, serial number, price and both parties' names, and keep a copy. Ask your state title or motor vehicle agency whether a title transfer is needed. Remove your name from registration, and tell your insurance agent the machine is gone. Take payment before the machine leaves, and let your bank confirm that funds have cleared.
Do not let a buyer test drive alone, and remove personal items and data from any GPS or electronic units. Take payment in a form you trust before releasing the machine.
Keep copies of all sale papers for as long as your tax professional advises.
- Bill of sale
- Title transfer if needed
- Notify insurer
- Safe payment
Key takeaways
- Decide whether selling, trading or hiring out makes most sense for you.
- Clean, fix and document the machine before listing it.
- Research comparable listings to set a fair price.
- Use a written bill of sale and be honest about condition.
Sources and further reading
Last reviewed: November 12, 2026. Written by the Rural Farm Life Editorial Team. See our editorial policy.