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  1. #11
    Elite Member
    Join Date
    Sep 2002
    Posts
    3,142
    Location
    Red Bluff, CA
    Tractor
    Changes often!

    Default Re: liens

    Quote Originally Posted by RollingsFarms View Post
    I've wondered why tractor dealers won't trade for equipment with liens on it and just pay off the loan like car dealers do. I guess tractors don't sell as fast as cars?
    We take trade-ins with liens. We just pay off the lien. For example if the tractor trade value is $7500 and it has a $6000 lien, we cut a check to the lienholder for $6000 and the $1500 in equity is used as a down payment.

    Dealers that avoid trades often have cash flow issues. When a customer drives off the lot with a new $30k tractor, the dealer has to pay off the floor plan, lets say that is $28k. He retains the profit to pay for overhead, wages, etc. But if a guy trades in a $15k tractor the dealer still needs to pay of the $28k cost...so his cash flow just shrank by the value of the trade less the profit made. Do that a dozen times in a month and it affects the old bank account. Most dealers are properly capitalized and it really isn't an issue. And there are some dealers that simply do not like selling used equipment, which amazes me. Profit margins on a used piece can be quite good, whereas profit margins on new equipment are quite slim.
    Dave
    Dave's Tractor, Inc.
    Red Bluff, California

  2. #12
    Veteran Member RollingsFarms's Avatar
    Join Date
    Mar 2007
    Posts
    1,815
    Location
    South Carolina
    Tractor
    John Deere 5325 & John Deere 910A 22hp Kawasaki/54" deck

    Default

    Quote Originally Posted by DavesTractor View Post
    We take trade-ins with liens. We just pay off the lien. For example if the tractor trade value is $7500 and it has a $6000 lien, we cut a check to the lienholder for $6000 and the $1500 in equity is used as a down payment. Dealers that avoid trades often have cash flow issues. When a customer drives off the lot with a new $30k tractor, the dealer has to pay off the floor plan, lets say that is $28k. He retains the profit to pay for overhead, wages, etc. But if a guy trades in a $15k tractor the dealer still needs to pay of the $28k cost...so his cash flow just shrank by the value of the trade less the profit made. Do that a dozen times in a month and it affects the old bank account. Most dealers are properly capitalized and it really isn't an issue. And there are some dealers that simply do not like selling used equipment, which amazes me. Profit margins on a used piece can be quite good, whereas profit margins on new equipment are quite slim.
    Thanks for the explanation Mr. Dave! I can't think if a single dealer around my area that takes in trades with liens on them. Even the really big dealerships won't touch them. We have what I call "third party tractor dealers" that read the papers and scour craigslist for tractors and such and buy then from people for less then they're worth and then slap on an outrageous price on them to sell. I had two contact me about my tractor I have for sale and they offered me $22k which is a slap in the face to be honest.


    John Deere 5325 MFWD

    John Deere 910A 54" 7-Iron PRO deck

  3. #13
    Elite Member Piston's Avatar
    Join Date
    Sep 2008
    Posts
    2,658
    Location
    Central MA, Lakes Region NH
    Tractor
    Kubota L4610 and John Deere 410

    Default Re: liens

    22k is definitely cheap for that tractor. I keep trying to figure out ways to buy it for your asking price, but it's just not happening. For 22, I'd make it happen Your smart not to sell it to them.
    Kubota L4610 and John Deere 410 - WR Long 64" Grapple (best attachment ever!) QA front forks, rear forks, Brown 472 HD Rotary Mower, Land Pride RBT4096 hydro blade, Woods 7200 Power Rake, homemade 3 pt log splitter, Land Pride rake/blade combo, Land Pride HRL 3578 box blade (Hydro scarifiers), Shaver SC50 3 pt. Stumpgrinder, FitRiteHydraulics TnT, 6" Vermeer PTO Chipper (Hydro feed), Disc Plow, Ratchet Rake, LP HD25 Hydraulic PHD, Woodmizer LT15 portable sawmill
    Rear Remotes Install

  4. #14
    New Member
    Join Date
    Jul 2014
    Posts
    4
    Location
    Arkansas
    Tractor
    Ford 5030

    Default Re: liens

    ok longstory i cant type so ill make it short. talked to a lawyer he said i had no legal right to the tractor. he called the sherriff asked them to bring the seller in to try to squeeze the money out of him because its a felony to sell mortgaged property. well surprise he was no where to be found. it had been 18 months since i bought tractor. anyway they found his mother (bless her heart) she borrowed money and paid off his loan to keep him out of trouble. and me i was happy happy happy

  5. #15
    Veteran Member RollingsFarms's Avatar
    Join Date
    Mar 2007
    Posts
    1,815
    Location
    South Carolina
    Tractor
    John Deere 5325 & John Deere 910A 22hp Kawasaki/54" deck

    Default

    Quote Originally Posted by Piston View Post
    22k is definitely cheap for that tractor. I keep trying to figure out ways to buy it for your asking price, but it's just not happening. For 22, I'd make it happen Your smart not to sell it to them.
    Well I know how they operate around here and I see the prices the put on what I'd consider worn out junk.

    You'd be surprised how few calls I'm getting on my tractor. I've had about 4 or 5 people call on it and no one has come to look at it yet. What's even more surprising is not one call has come from tractorhouse.


    John Deere 5325 MFWD

    John Deere 910A 54" 7-Iron PRO deck

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