How to Sell tractor that still has balance on loan?

[peterc38]

Thinking of selling my current L3200 and moving up to a larger cabbed tractor and I have a question regarding selling a tractor that I still owe money on to Kubota Credit.

I have had the L3200 a little over two years. I financed for 5 years @ 0% and put 35% down, plus I have always added extra to my payments, so I have equity in the tractor. I want to sell in private sale because I will do better than trading in to dealer.

My L3200 has 100 hours and is pretty minty (stored under cover) with all maintenance records , etc. Depending on how much I can get for it, I should walk away with a nice chunk of change to put towards new tractor.

I called Kubota credit and didn't really feel like I got a complete answer. They did say to contact them when I sell and the payoff amount would be good for 15 days. Obviously, I would inform the buyer that I don't own the tractor free and clear. I am sure that others have done this before. What is the best way to handle this with the buyer to protect both of us and to ensure that the buyer is not nervous about this type of arrangement.

The last tractor I sold was a B7610 that I owned outright, so I did not have to worry about this, thanks.

 

[deanwerden]

If I was buying that tractor I would call and confirm how much is owing, cut a cheque to them and one to you for the remainder

 

[wolftree]

I would talk with a dealer about trading first so that you know instead of assuming that you can do better yourself.

 

[vtsnowedin]

If I was buying that tractor I would call and confirm how much is owing, cut a cheque to them and one to you for the remainder

That sounds about right but make sure Kubota financing sends the title or any other proof of ownership to the new buyer.

 

[KubotaToy]

I purchased a tractor in a similar deal as you have. The gentleman I was dealing with was up front about still owing money and since I was the only one that stayed around to deal with him after he told folks that info, he offered to lower the price by a good bit. I worked a deal to write two checks, one to ag credit and one to him. I when with him to the bank and processed the payoff. Then I gave him the other check and loaded the tractor up. It was nice of him to forward me a copy of the payoff memo but I did not feel it was needed as I filled in the check with account numbers and info for the payoff. This was a local deal, not sure I would do this cross country.

 

[k0ua]

That sounds about right but make sure Kubota financing sends the title or any other proof of ownership to the new buyer.

No title in my state. When I paid off the Kioti I got an email from AgriCredit saying my account was paid. That was it.

 

[Industrial Toys]

That may not be your biggest problem. I found it very, very difficult to sell a showroom condition, very low hours JD CUT once, and get my money out of it.

 

[vtsnowedin]

That may not be your biggest problem. I found it very, very difficult to sell a showroom condition, very low hours JD CUT once, and get my money out of it.

That is that old deprecates ten percent as it leaves the driveway thing. As wrong as it seems it is very real. If you didn't want to put quite a few hours on it why did you buy it in the first place?

 

[peterc38]

I would talk with a dealer about trading first so that you know instead of assuming that you can do better yourself.

Yes I am doing that. I'm not making assumptions. When I sold by B7610, I got my asking price of $11,000 instead of the $8,000 the dealer offered me for trade. I think for most situations, no matter how nice the tractor, the dealer is not going to offer you what you can get in a private sale.

 

[peterc38]

That is that old deprecates ten percent as it leaves the driveway thing. As wrong as it seems it is very real. If you didn't want to put quite a few hours on it why did you buy it in the first place?

I needed a larger tractor than my "b" series and for other reasons that I can't spend time typing on a phone.

Do you have any advice that pertains to my original post?