How much depreciation?

   / How much depreciation? #1  

jwcinpk

Veteran Member
Joined
Aug 4, 2003
Messages
1,137
Location
Welfare Capital of the World...KY
Tractor
2009 Mahindra 3316 HST-2008 Mahindra 7010 cab - 2004 Mahindra 6000 4X4
I bought a new Mahindra 6000 with FEL a few months back and was wondering if I had to sell or trade how much has it depreciated?
I know with new cars they depreciate greatly after you drive them off the lot, pretty much regardless of mileage. My tractor is basically in the same condition as when I bought it. A few nicks and scratches, but no dents or broken peices. It has 30 hours on it. I paid 22k for my setup. What do you believe it would bring if I sold? Traded down to smaller?
 
   / How much depreciation? #2  
I have found ( not that I have much experience ) That tractors do not not depreciate like a car or truck does.
I sold my 1988 JD 950 4wd TLB in april 2003 for more $ then I think the whole package sold for when it was new.
Now, what knowledge I have, is with the 3 major color. I have zero knowledge and or experience with a Mahindra or any of the other flavors out there
 
   / How much depreciation? #3  
If you go to trade it in you are going to take a bath. Figure 30% or more if trading. If you are going to trade for a smaller tractor forget it. Going smaller you always lose big time no matter what it is.

Your best bet would be selling outright. And then it depends on how good of a deal you got to begin with. If you paid full retail I doubt you could do better than 20 or 30% of retail. Reason being here is you can almost always get 10-15% right off buying new. If you got a good deal to begin with you may lose very little. I guess it all depends on your buyer as well. Are they well informed about prices, how hard is it to get a tractor like you have, and how good is the resale for your tractor. I don't know what it is for mahindra. I wouldn't think it would be great without a pretty good bit of money off of new.

Why are you thinking of selling so soon after just buying?
 
   / How much depreciation? #4  
Joel, if the Mahindra is financed, the amount you owe on it and the availability of new financing will certainly have an impact on your resale. For example, if I am a buyer, why would I want to save $1,500 and pay cash? If the Mahindra dealer is offering low interest, most likely I will buy new instead of buying a new tractor from you, where I have to deal with the hassle of warranty re-registration and/or arrange my own financing? In my opinion, you will have to make your tractor so attractive in price that a buyer will be willing to give up some of the nice things about buying directly from a dealership. If you have financing and the buyer could assume your note, that would make things more in your favor. If you paid cash, you might want to talk to your banker for some idea of loan value. Most likely he will want an appraisal, probably from your original Mahindra dealer. /forums/images/graemlins/crazy.gif
 
   / How much depreciation? #5  
Being a bit of an off brand & what the others have said, this would be the worst time to resell it. You'll lose a lot trading it, you would need to do a private sale. If you used it to 300 hours, then it looks more favorable on selling it again - you got some use out of it, and tractors in the 300-700 hour range really hold a good value.

But, at 30 hours, it's just like new without actually getting a new one. People will wonder why you are getting rid of it (lemon, bad brand, poor dealer, etc.?) and would rather go straight to the dealer to get a new one with clear paperwork, financing, etc.

--->Paul
 
 
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