B2650 trade in value?

[KyleH]

I bought a B2650 in November with the loader and backhoe, thumb, ssqa, 3rd function valve, 60" bucket, rear remotes, alternator upgrade, industrial tires loaded, stabilizer pads, and wheel spacers. It now has 98 hours on it and was thinking of trading up to a L45.

The dealer quoted me about 25% less than I paid for it, is that reasonable? I thought Kubotas held their value better than that. Should I try to sell it privately?

Thanks,

Kyle

 

[CreekyB]

Not sure about up there but down here that seems about right. Selling to a private party might do you some good, but when you are getting close to new pricing it becomes harder to sell right now. If they are wanting it financed through their bank it will cost them more than a new one at 0% financing through Kubota.

They do hold their value well, but almost anything on wheels loses 10%-20% once it leaves the dealer lot.

 

[KyleH]

Thanks for the reply, I figured 10 percent loss would be reasonable, 25-30 seems steep. One of the sales pitches were how well they hold their value compared to other brands.

 

[TMGT]

They do hold their value, but your selling to someone that's going to resell so they need to make money.

It's hard to sell a used unit next to a new one if it's only a 5% difference once the dealer marks it up. Plus you can't get the 0% on used.

Best bet is private party sale if you want to get more.

 

[check]

Thanks for the reply, I figured 10 percent loss would be reasonable, 25-30 seems steep. One of the sales pitches were how well they hold their value compared to other brands.

Don't forget that you get to subtract your trade-in value from the taxable portion of the new tractor, and as you know in Ontario that is a whopping 13%! So, you are ahead by 13% already.

 

[TMGT]

13%! Ouch

 

[JOHNTHOMAS]

Another consideration. Like with any vehicle. Dealer can buy another new one for less than MSRP so they won't give you more or as much as they can buy another new one. The 0% interest is also another major killer for used vs new. As to holding value, they do, after that initial shock if one pays MSRP or near that. It will bring about the same price in a year or two or three or four thus holding value but not on the quick turn around for all the reasons previously given.
I do lots of trading but I buy from Barlows for lower price and buy the replacement at a lower price and by subtracting the difference in sales tax usually do better trading with him instead of selling and then buying another new one and paying the full 6% state sales tax. Yes, I do pay for the year or two of usage but feel it's worth it to me.

 

[CreekyB]

I had totally forgot the dealer needing a profit margin on trade in. I rarely trade a vehicle in, I tend to sell the used then use that money as a down payment, I tend to get a better trade in value doing that. The only time I do trade in to a dealer is if there is some issue with the vehicle that I would feel bad passing on to a private party

 

[Turbys_1700]

I traded my 1720 in on a new Workmaster a couple months ago. I figured a fair trade in price and the dealer gave it to me. I knew going in that my trade in was going to be $1000 to $2000 under retail but I didn't want a bunch of tire kickers looking around my place. You never know who's gonna show up and a lot of times they don't have any money anyway. Long story short they wholesaled my trade in and I saw it on Craigslist at high retail. More than I would have given for it. They had cleaned it up, painted the wheels and tires. She really looked sharp. I figure the dealer made $1000 on the trade in and the new owner made another $1000. I'm OK with that. You could have bought a new tractor for within a couple thousand of what they were asking for my old unit. It sold in 7 days. Lot of demand for 30 HP tractors with a FEL and in good shape.

 

[s219]

For a dealer trade, 25% loss is actually pretty fair. If you want to do better, private party sale is your best option. It comes down to whether you want to make the profit or the dealer makes the profit.