Price Check Looking to trade my 3720 w/ 585 hrs

GeorgeC · Jul 28, 2011

I'm looking to replace my current 3720 with a new 3720. No real reason other than to have shiney paint, a new 72" deck and a section 179.
I primarily mow with a 72" 7 iron, and it has a 300cx.

I'm looking to replace it with the same equipment and possibly a backhoe attachment.
I get the monopoly feeling with Deere's dealer network. Every dealer within a 100 mile radius is owned by the same people, so I don't know if I'll get a fair shake unless I travel further, which I would do if the price was right.
The unit has 585 hours, the deck is in decent shape, but most of those hours were mowing and it's getting worn.

I'm wondering what you guys feel the trade number will look like?
Thanks.

jenkinsph · Jul 28, 2011

It will cost a lot.

Why not touch up what you have and hire a detailer to shine it up for you?

GeorgeC · Jul 28, 2011

I'm looking for the warranty, and tax deduction, not to mention I like my toys. I'm also wanting a new deck, so I like to trade every 5 years.

DanD78 · Jul 28, 2011

Here in central Illinois there are a group of Deere dealers owned by the same family but I feel each store is different. I can not get along with the folks at the main store but at another store owned by the same family I feel I get better deals and service.

Dan

newt92 · Jul 28, 2011

DanD78 said:
Here in central Illinois there are a group of Deere dealers owned by the same family but I feel each store is different. I can not get along with the folks at the main store but at another store owned by the same family I feel I get better deals and service.

Dan

Would that be Martin Bros??

RoyJackson · Jul 29, 2011

GeorgeC said:
I'm looking to replace my current 3720 with a new 3720. No real reason other than to have shiney paint, a new 72" deck and a section 179.

The unit has 585 hours, the deck is in decent shape, but most of those hours were mowing and it's getting worn.

I'm wondering what you guys feel the trade number will look like?
Thanks.

Frankly, I think you're being rather foolish...but it's your money.

585 hours is nothing for a tractor or mower, and although I'm not sure what you mean by "worn", I cannot believe that tractor or mower is worn...other then paint fading a bit.

Dollarwise, I'd expect you're looking at 30%-35 % loss in a trade.

Again...not a good idea to trade, but it is your money.

mxg342 · Jul 29, 2011

We have the same problem in this area with JD dealers. All of them are owned by the same parent company.

Check out Elder's John Deere. It's a little bit of a drive for you (near Meadville, PA) but they have treated me great the few times I have used them for parts (including this morning)

GeorgeC · Jul 31, 2011

Thanks Roy, but those aren't the questions I asked.

MXG342.
Meadville isn't far, and I might take it down there for a quote.
In this area, it's all Z&M.
I have no use for Z&M. I brought my tractor in to get the front moving deck hanger adjusted properly. They needed to torch the adjuster to loosen it, which was OK, but they never tightened up the front wheel after remounting it. Even that's OK because crap happens, but they then totally denied taking the wheel off, and that's not OK. All 6 lugs were falling off within a few hours of use, and I lost three lugs total. The owner never called me back.
Too comfortable with their market position I guess..

RoyJackson · Jul 31, 2011

GeorgeC said:
Thanks Roy, but those aren't the questions I asked.

Ahhh, but I did answer your question...you're looking at a 30%-35% loss when you trade in...

fabsroman · Aug 3, 2011

GeorgeC said:
I'm looking to replace my current 3720 with a new 3720. No real reason other than to have shiney paint, a new 72" deck and a section 179.
I primarily mow with a 72" 7 iron, and it has a 300cx.

I'm looking to replace it with the same equipment and possibly a backhoe attachment.
I get the monopoly feeling with Deere's dealer network. Every dealer within a 100 mile radius is owned by the same people, so I don't know if I'll get a fair shake unless I travel further, which I would do if the price was right.
The unit has 585 hours, the deck is in decent shape, but most of those hours were mowing and it's getting worn.

I'm wondering what you guys feel the trade number will look like?
Thanks.

I don't know many people that will understand what a section 179 is. Maybe if you put deduction by it, a few more people might get it.

Anyway, this sounds like a story another CPA told me during a CPE seminar. The first year the Hummer was available for the section 179 deduction, to the full purchase price up to $100,000, assuming there was still net income on the bottom line, his client bought one so he would hardly have to pay anything in taxes. Well, the following year the same guy goes to this CPA, the CPA looks over his books, and says it looks like you are going to have a pretty decent tax liability. The client looks at him and says, "Nope, I bought another Hummer so I wouldn't owe anything."

If you really want it (I was going to write need, but since you already have a 3720 you probably don't need this one) and have the money for it, go for it. Just talk to your tax preparer to make sure the section 179 deduction is available to you.

FYI - the 3720 is the tractor that I want right now and that I cannot afford right now because we need a new furnace and AC. That is alright though because I bought a shiny new wood burning furnace with natural gas backup and two shiny Stihl saws. One is a little less shiny right now since it has already cut 2 cords of wood.

I like shiny things too, but I tend to keep them until they look like crap and break. The shiny things I buy are usually things that I do not already have. For me, I like to see how many "miles" I can get out of my equipment before I actually have to replace it.

GeorgeC · Aug 4, 2011

Tax write offs like your example above are not sound business, especially for a Hummer that depreciates into the depths of ****.. Eventhough you may be able to write off the whole thing in one year, you still have to pay for it without any more tax deductions for the following years. That can put on a cash crunch if you do not understand the whole picture first.
I usually won't buy something that doesn't make me money just to save on my tax liability. I would rather pay the tax and pocket the money. But, using Roy's appraisal of a 30% loss, I stand to save over 30% of the overall trade cost difference anyway from the sec. 179. 30% of a 10K trade is 3K in 179 savings. I'll trade up to brand new equipment every 5 years for 7+K..
I do the same with my trucks, always buying new every three to four years.

I called my local monopoly, I mean JD dealer, and they told me that there may be a model change come November, so I may wait to see if the 3720 evolves into a new model before I buy anything.

beppington · Aug 4, 2011

RoyJackson said:
Ahhh, but I did answer your question...you're looking at a 30%-35% loss when you trade in...

You added unsolicited opinion ... and he's prob already got a wife for that.

RoyJackson · Aug 4, 2011

beppington said:
You added unsolicited opinion ... and he's prob already got a wife for that.

Yeah...but that's my job (unsolicited opinions...not his wife!) since I retired from the Safety Police...

beppington · Aug 4, 2011

I don't believe you're gonna make money buying new stuff every 5 years, as compared to hanging onto it for 20 or more. But I do understand - I love my toys! (I mean tools) And I love 'em even more when they're new!

jenkinsph · Aug 4, 2011

If it were me I would consider buying a different toy such as a mini excavator. You can easily drop $60k on that and it is fun to play with.

GeorgeC · Aug 6, 2011

I've got a big lawn to take care of, like almost an 8 acre mow. This is my own "get away" time and I usually enjoy doing it. That's why my mower is sort of a toy to me, and it keeps the job interesting even when I don't feel like doing it sometimes.. No, it doesn't make me money to buy a new tractor, but neither does a new car or truck. So, we just try to balance depreciation costs with enjoying life...

Actually, it's my wife telling me to buy a new one. She's the one who demanded green paint to begin with..

RoyJackson · Aug 6, 2011

GeorgeC said:
I've got a big lawn to take care of, like almost an 8 acre mow. This is my own "get away" time and I usually enjoy doing it. That's why my mower is sort of a toy to me, and it keeps the job interesting even when I don't feel like doing it sometimes.. No, it doesn't make me money to buy a new tractor, but neither does a new car or truck. So, we just try to balance depreciation costs with enjoying life...

Actually, it's my wife telling me to buy a new one. She's the one who demanded green paint to begin with..

Like I wrote, George...it's your money and you surely don't need our approval!!

(give my regards to your wife...she has great taste in tractors!)

Kyle_in_Tex · Aug 6, 2011

George, it would be great if you put actuals (after the deal) of what the 179 actually does for you. I would like to see in black and white from someone here instead of having to pay an accountant...thanks...and good luck to your dealing.

GeorgeC · Aug 6, 2011

RoyJackson said:
Like I wrote, George...it's your money and you surely don't need our approval!!

(give my regards to your wife...she has great taste in tractors!)

Roy,
I bought her a 445 for Christmas, back when we had a smaller lawn! Big pink bow and all!

Kyle, check with your accountant because a 179 can affect your own taxes in a few different ways.