Do Dealers EVER Sell Used Machines?

[slowzuki]

A rental TLB gets pretty beat up, the condition widely varies with hours and if the guy was on his way to bankrupt when he sold/traded. I've seen L48's with 4000 hours in better shape than ones with 200 hours.

Re dealers, there are local dealers who have set prices on used equipment, very little room. There is one that has had some used units over 6 years and still won't dicker. I also have met dealers that are happy to move equipment asap. The shorter they need to finance the better. I bought my MF from a JD dealer that was happy to move it along, I offered 3000$ less than their asking price as-is and it sold. I probably could have got another 2000$ off but didn't push.

 

[ejkessler]

As a general rule of thumb I would not pay anymore than 75-80% of the price of new for a machine that is pristine with 200 hrs or less. I would go down from there depending on hours. Used machines are hard to come by but not impossible by any means. Unless you have cash in hand the finance deals being offered negate paying anymore than that anyway. I would be willing to bet many of the used tractors are priced to negotiate for trade ins on other used tractors. Any offer over 2/3 to 3/4 the price of the unit new no matter what the condition is reasonable in my eyes.

 

[MessickFarmEqu]

If you've been looking at the last 6 months it may look like inventory is not turning, because its not. Used stuff starts to move fast in April-May-June. This is a seasonal business.

 

[crazyal]

The difference your seeing is more who the previous equipment owner was more than the hours. If owned by a company with employees who run the equipment hard and have no reason to keep it in good shape it will show wear much sooner than the guy who buys it for personal use and pays attention to all the details. Secondly stored indoors vs outdoors makes a difference as well.

 

[avc8130]

I have cash so the finance deals on a new one don't entice me enough to spend $15k more.

It seems to me that dealers overpay for trade-ins to facilitate new sales. They seem to be using the Harley Davidson model to me.

Push is coming to shove. The only price I know of that isn't negotiable is my buddy's because it is based on the dealer trade. Time to start sending out some offers.

Hopefully cash talks.

Is sales tax paid on tractors purchased out of state?
ac

 

[TripleR]

I have cash so the finance deals on a new one don't entice me enough to spend $15k more.

It seems to me that dealers overpay for trade-ins to facilitate new sales. They seem to be using the Harley Davidson model to me.

Push is coming to shove. The only price I know of that isn't negotiable is my buddy's because it is based on the dealer trade. Time to start sending out some offers.

Hopefully cash talks.

Is sales tax paid on tractors purchased out of state?
ac

Probably will depend on your state. If you buy from a private party, you should not have to pay any taxes anywhere.

 

[montelatici]

It seems to me that dealers overpay for trade-ins to facilitate new sales.

LOL, if only that were true.

 

[avc8130]

LOL, if only that were true.

I think you'd be surprised. What makes a 1000+ hour tractor worth 75% of new? Why do you NEVER see a tractor under $10k? It is because the dealers will usually buy them for more than they would sell for privately.

They are using the Harley-Davidson business model from a few years ago.
ac

 

[Grateful11]

I have been shopping for a used Kubota for close to 6 months at this point. I have consistently seen the EXACT SAME machines for sale at the SAME dealers for 6 months. Every time I inquire about the machines the dealers say "we are open for offers, but truly the machine is worth the asking price". If that is the case...wouldn't the machine SELL?

What's the deal?

Do the dealers hold onto used units because they artificially inflate resale value?
"Buy this new one, it is only a few thou more than that used one...and in 5 years it will only lose a few thou in value."

The machines I have been looking at all appear to be stagnant in the same price range and are in reasonable driving distance of me. It would appear that if one dealer would drop price a few k, they could sell easily.

Thoughts?
ac

We see a lot of that around here too, the same equipment sitting on the lots
for years. I know one Kubota dealer that won't take trades, he'll sell it for
you and you set the price.

 

[montelatici]

I think you'd be surprised. What makes a 1000+ hour tractor worth 75% of new? Why do you NEVER see a tractor under $10k? It is because the dealers will usually buy them for more than they would sell for privately.

Not at all true. You will always get 10-20% more selling privately than trading.

How many new tractors have you bought and how many used tractors have you sold? Probably zero, right.