Over the last 40 years or so, I've bought and re-sold near 100 tractors. That made for a great suppliment to my income. Avoiding "lemons" is key to keeping the bottom line in the black. Quite a few were bought at auctions where I had about an hour or so to decide if it was worth hauling home or needed to be left for someone else to feel sorry about later. Here's my quick "once over" list.
Filters. Oil and fuel primarily. Do they look like they came over on the Mayflower? NEW filters on an auction tractor CAN be a red flag.
Look at the oil. Milky? Fresh and new on an otherwise poorly maintained tractor? More than a quart low? Smells of diesel fuel? All red flags in my book.
Look at the coolant. Low? Oil in coolant? (it usually floats to the top after a while) Ancient looking anti-freeze? (I've been known to carry litmus strips to test acidity---#1 cause of electralysis)
How does it start? Quick starting is a GOOD sign. Slow starting and gradual "wind up" of rpms can indicate poor compression, a VERY critical part of diesel performance. After it starts, how much/what color smoke? Heavy smoke of any color is a red flag. Heavy white smoke? Another red flag.
Once started; heavy Blowby? WATER VAPOR in the blow by? Walk on SOME blow by is common and with-in reason, acceptable. Does it run smooth? erratic idle that continues through higher rpms can indicate a number of problems, USUALLY related to fuel system.
Leaks; Diesels, especially older ones have been known to develope a leak or 2. Do they look serious? Does it look like it's been leaking forever? Oil leak or fuel? Seal? Gasket? Loose bolt or fitting?
Not a red flag, but something to look far is the "warranty seal" on the injector pump. Has the pump been tampered with?
Over-all condition of tractor. If the hood is bashed in, fenders bent, steering wheel broken, lights hanging off, seat destroyed, ect, good chance the ENGINE hasn't been babied either.
Like I told my son when his first girlfriend broke up with him, there's more fish in the sea. If a tractor doesn't seem "right", pass on it and keep looking. There's literally MILLIONS of them. Lots of really GOOD used ones, so why take a chance on a "maybe/maybe NOT".