Buy a model sitting on the lot for over a year??

[beppington]

I'm very new to tractors ...

A local dealer (no brand mentioned, yet anyway) has several models on his lot that have been on his lot for over a year, & are priced lower. One way lower, & I think he said it's been on the lot over two years.

I asked what year this one was, and the sales guy told me "Tractors don't have model years, they just have sort of 'build dates' or 'how long they've been on the lot' periods."

Is that true? Just curious. I've never been a fan of buying used stuff; I always feel like you're buying somebody else's problems. Even if it is at a discount. (I did notice that the little paper sticker labels have serial #'s or codes or whatever starting with "09...") ... Hmmm.

The one that's been on the lot over 2 years made this "interesting" groan as I moved forward on it; Hopefully only rusty brakes getting rolling again, but I dunno, sounded more painful/ serious than just that.

 

[rjkobbeman]

I'm very new to tractors ...

A local dealer (no brand mentioned, yet anyway) has several models on his lot that have been on his lot for over a year, & are priced lower. One way lower, & I think he said it's been on the lot over two years.

I asked what year this one was, and the sales guy told me "Tractors don't have model years, they just have sort of 'build dates' or 'how long they've been on the lot' periods."

Is that true? Just curious. I've never been a fan of buying used stuff; I always feel like you're buying somebody else's problems. Even if it is at a discount. (I did notice that the little paper sticker labels have serial #'s or codes or whatever starting with "09...") ... Hmmm.

The one that's been on the lot over 2 years made this "interesting" groan as I moved forward on it; Hopefully only rusty brakes getting rolling again, but I dunno, sounded more painful/ serious than just that.

I have experienced the same thing over the years, but it does drive me nuts. I think it comes from model changes taking place far less often.

One dealer even told me the "year" is the year when it is sold. Which is total BS in my eyes. You could buy a "new" tractor that has been sitting on the lot for four years... and they will act like it is a 2010!

I haven't paid enough attention yet (mine is on order and I never paid ANY attention to ones I have borrowed over the years), but is there a manufactured date stamped on them anywhere?

Me personally, I wanted new. The dealer was offering to sell me a "new but been sittin' on the lot for a year and is used by the dealer to move stock" for a good discount... but I wanted new, as in brand spankin', not been sitting in the weather for any amount of time (other than transport, dealer prep, etc.) new. But that is just me. Nothing wrong with getting a good deal on new old stock. I just bought a camper that way...

 

[beenthere]

Yes, it is true. Not like the autos and their years (which change about mid-year when new models come out). Quite a different industry than the tractors industry.

 

[rjkobbeman]

The other thing I can't understand is why tractors are not titled.

 

[BGT]

My JD dealer had a 2320 on the lot for about 9 months; said it was a 2009 model. Certain colored parts had started to fade due to being in the sun for so long. I'm sure the tractor was alright, but for about $200 more, I could order a "brand new" 2010 model, which is what I did.

I don't know about anywhere else, but here in NC, if it's titled, we have to pay tax on it every year. For that reason, I'm glad tractors aren't.

 

[beppington]

I just don't think I can buy a sun-baked, rain-soaked, slightly fading, slightly-starting-to-rust, makin'-a-weird-noise-already unit. It's not like I'll be leaving mine out in the sun & rain as soon as I take delivery. I treat my stuff very well.

Money is definitely an object for me, but if I'm gonna be plunkin' down say $20K, I'm just gonna have to plunk down a few grand more to start off on the right foot. Call me picky. That older one is gonna have to be somebody else's "good deal" :thumbsup:

 

[rjkobbeman]

I just don't think I can buy a sun-baked, rain-soaked, slightly fading, slightly-starting-to-rust, makin'-a-weird-noise-already unit. It's not like I'll be leaving mine out in the sun & rain as soon as I take delivery. I treat my stuff very well.

Money is definitely an object for me, but if I'm gonna be plunkin' down say $20K, I'm just gonna have to plunk down a few grand more to start off on the right foot. Call me picky. That older one is gonna have to be somebody else's "good deal" :thumbsup:

Glad to see I'm not the only one who thinks this way!

 

[smstonypoint]

My JD dealer had a 2320 on the lot for about 9 months; said it was a 2009 model. Certain colored parts had started to fade due to being in the sun for so long. I'm sure the tractor was alright, but for about $200 more, I could order a "brand new" 2010 model, which is what I did.

I don't know about anywhere else, but here in NC, if it's titled, we have to pay tax on it every year. For that reason, I'm glad tractors aren't.

You do have to pay county property tax in NC on tractors if they are used as part of a business.

Steve

 

[rjkobbeman]

The comment in the first paragraph might be in regards to the start of your warranty. The manufacture date is usually determined by the serial number and can be decoded by the dealer and several Internet sources. Mfgr date and hours are what's important to most people. NOS can be worthwhile if the price is right and you have a new warranty. Also think of the depreciation of that new one you ordered the moment it's off the lot if that's a factor.

Completely understand. Especially about the depreciation. The problem I found was the dealer didn't want to come down near enough for what I saw as a used tractor. In my case, the tractor was "new" as in never been sold... but did have over 100 hours on it. The dealer used it for unloading equipment off the trucks. The discount was not near what I thought was reasonable.

Three weeks later, it was sold. I sure showed them! HA!

Mind you, my dealer is great. This is not a bash against them. I just didn't get the logic myself.

Can't wait to get my new one though. Still waiting for delivery...

 

[jinman]

A local dealer (no brand mentioned, yet anyway) has several models on his lot that have been on his lot for over a year, & are priced lower. One way lower, & I think he said it's been on the lot over two years.

The dealer is not selling these tractors as new, he's giving "lower" and "way lower" discounts. Yet, he is offering them with a new warranty and you should not take delivery until you are satisfied with their operation. It just seems to me that concessions to age are being offered. If you aren't interested in these tractors, then by all means buy factory new, recent built. However, expect to pay considerably more. It's the price of being "picky." It's your tractor and your money. You gotta do what feels good to you. Somebody will come along and be very happy with the older tractors.

 

[mrennie]

If I had the money to buy brand new I also wouldn't want to buy a "new" tractor that sat on the lot for years and had paint starting to fade. When you have the coin for new you want to get your money's worth.

Having said that, I bought my first tractor last year and had set a budget and "new" wasn't in the cards for the $$$ I had.

I was looking for a used low hour B21 and found a demo B26 with 27 hours that was just over a year old. The price was within reach and I bought it. For all practical purposes I have a brand new machine that I never could have afforded otherwise. BH bucket had been scratched up from use but the dealer repainted it. At the time I thought the paint job didn't look that great, but last weekend I used the BH for 6 hours and the paint is all worn off, so it really didn't matter.

In my case I am happy there are demo's/NOS units out there. If you can get the price down to make the deal worthwhile then go for it. If not, pay the bit extra for a "fresh from the crate" unit.

 

[rjkobbeman]

Something that complicates the issue is the 0% financing. If you can get NOS you also get the good financing.

If you have to buy used, you don't get the free financing... which can sometimes mean you are paying more than new. It all depends on the situation.

 

[Patches]

Something that complicates the issue is the 0% financing. If you can get NOS you also get the good financing.

If you have to buy used, you don't get the free financing... which can sometimes mean you are paying more than new. It all depends on the situation.

There is no such thing as "free". Tell your salesman you have the cash-in-hand, get his best price and compare it to your free financing

 

[rjkobbeman]

There is no such thing as "free". Tell your salesman you have the cash-in-hand, get his best price and compare it to your free financing

Cash or Kubota financing does not change the price of the tractor.

This has been discussed and debated ad-nauseum. The dealer does not care HOW you pay.

 

[beppington]

If I had the money to buy brand new I also wouldn't want to buy a "new" tractor that sat on the lot for years and had paint starting to fade. When you have the coin for new you want to get your money's worth.

Having said that, I bought my first tractor last year and had set a budget and "new" wasn't in the cards for the $$$ I had.

Looking at new tractors ... What is this "budget" you speak of. :confused2:

 

[beppington]

Cash or Kubota financing does not change the price of the tractor.

This has been discussed and debated ad-nauseum. The dealer does not care HOW you pay.

Well that is certainly different than New Holland & Mahindra. I have a quote in-hand right now for "finance" pricing, both having 0% offers right now. No hard numbers, but the sales guy said pricing for cash is lower.

You're saying Kubota dealers or Kubota manufacturing doesn't care whether you give them 20 grand now or 20 grand over 4 years??????

Bologna!!! Can not be. I'd guess they're just not seeing enough people walking in with 20 grand cash to bother talking about it/ advertising it.

 

[bp fick]

Some color dealers do care about cash vs credit. The difference in price is usually and hopefully stated right up front.

Kubota, in my buying from them twice, with the zero feature, the price was absolutely the same either way. The dealer couldn't care less. I reckon Kubota credit pops the funds into his account right quick. So, speculate if you wish to about it, that's fine. I don't need to guess.

 

[whodat526]

when we sold nh and fords the cash price was always less than if it was needing to be financed no matter what the % cause all the paper work involved with financing and also if payed in cash the dealer gets his profit right then and didn't have to wait for the finace company to pay

 

[Patches]

Well, I guess I mis-spoke, at least in Kubota's case, about money talking. The only thing I can determine from this info, is "everyone" overpays for a Kubota, because no company, no matter how well positioned, is going to "loan" you $15,000/$20,000 for 60 mths. gratis; someone's going to pay for this defered payment plan, and I would have to say, after this revelation, it's everybody who purchases

 

[bp fick]

Well, I guess I mis-spoke, at least in Kubota's case, about money talking. The only thing I can determine from this info, is "everyone" overpays for a Kubota, because no company, no matter how well positioned, is going to "loan" you $15,000/$20,000 for 60 mths. gratis; someone's going to pay for this defered payment plan, and I would have to say, after this revelation, it's everybody who purchases

Don't get me wrong, it might be possible, for whatever reason, to get a few dollars off with cash. You'd also save the "account setup" fee, but that's only like $50.

During a world wide major recession, that borders on a depression, the current interest rates of money is sooooo low, I mean so low, that what else should a company like Kubota do with it? Seriously, the return on cash is less than 1% on any short term instrument. We aren't talking about Kubota taking a huge loss, or having to underwrite a huge subsidy on money as we would if interest returns on cash investments were even 4%.

It has proved to be a good business model, imo. Instead of having cash rotting somewhere at 1%, Kubota is instead keeping their factories and pipelines humming during these tough times. They keep profits flowing from tractor sales. They keep or expand market share. They increase their base for parts sales and service. To me, when, from a holdings point of view, it is virtually worthless to hold cash, better to do what Kubota is doing. To me, it is a smart marketing gimmick that keeps their company running and buyers buying. Frankly, it's about the only corporate sales card to play in these times. Lowering prices? That's anathema.

Can anyone honestly imagine someone paying 7% interest on a tractor right now? What would that do to sales and thus profits? That level of interest rate would absolutely kill sales and floor traffic.