[jinman]

You really want to know how much the payoff is and how your neighbor financed the tractor. It could be that he is upside down at just one year unless he paid a substantial down payment. Leasing would probably have been a better option, but he may have chosen financing because he got a better deal up front. I would probably offer him $18k-$19k and see if he takes it. You know the history of the tractor, so that gives you an advantage, but the original selling price was probably about $21k.