Buying Advice Where do used equipment dealers get there tractors

dex3361 · Aug 7, 2011

I like to watch this site AuctionTime I have seen some really good deals and some bad ones too. :thumbsup:

art · Aug 7, 2011

Auctions are a place to pick up a bargin or a piece that has troubles! It takes a lot of time and travel to find the right piece at the right price.

To figure the time and mileage you might find it good to watch your local dealers.

pitw · Aug 8, 2011

Farm auctions are a great place to pick up equipment. If you can get to the guys place when the auction is first announced to look over the equipment you want before he cleans it, that is a huge advantage. Also look at his other equipment for how it was treated and make sure to check his funnels, if they are contaminated so will everything he ever used them on be. Another good part of farm auctions is you can talk to the persons neighbors and get a feeling how the fellow loked after his stuff[neighbors love to talk

].
Consignment auctions need to be watched carefully as many take their junk there to dump it, not saying there isn't good buys at them but you have to know your stuff to not get stung.

I also buy from individuals who have equipment listed in ads of one form or another. When going to buy from these folk I will stop at their neighbors for the same reason as listed above, using an excuse like,"I'm looking for so and so's place to look at ............. and then lead the conversation around to what kind of operator he is. I've turned around from a couple different equipment search's using that method

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Farmwithjunk · Aug 8, 2011

pitw said:
Farm auctions are a great place to pick up equipment. If you can get to the guys place when the auction is first announced to look over the equipment you want before he cleans it, that is a huge advantage. Also look at his other equipment for how it was treated and make sure to check his funnels, if they are contaminated so will everything he ever used them on be. Another good part of farm auctions is you can talk to the persons neighbors and get a feeling how the fellow loked after his stuff[neighbors love to talk].
Consignment auctions need to be watched carefully as many take their junk there to dump it, not saying there isn't good buys at them but you have to know your stuff to not get stung.
I also buy from individuals who have equipment listed in ads of one form or another. When going to buy from these folk I will stop at their neighbors for the same reason as listed above, using an excuse like,"I'm looking for so and so's place to look at ............. and then lead the conversation around to what kind of operator he is. I've turned around from a couple different equipment search's using that method.

I agree 110%....All good points....And it pays to know your way around a tractor/implement. The MORE mechanical background, the easier it is to spot potential problems.

As for dealers....I've seen just as many, if not MORE "money pits" on a dealers lot as I've seen at auctions. And the likelyhood of finding a REAL deal at a dealer is less likely. They know what something is worth and aren't apt to sell it for less. With an auction, you have a chance to "sneak up" on a good buy. A lot depends on how you define "good deal". With me, that starts with buying for less than 100% of its value. Every auction I've ever been to has a "preview day" where you can look over what you are planning on bidding on. Go....and kick the tires.....

SOME dealers are more reputable than others. With that, the items on their lot may or may not be so accurately portrayed. BTDT, got some of the WORST deals I've ever ran on to on a dealers lot. I've got a few "decent deals" from dealers, but nothing that lands in the "BEST DEALS" list (other than a few "wholesale" buys where the dealer was starving for cash....and those were dealers where I'd bought trailer loads of "stuff" just to get a few cheap buys) .

I PREFER buying from private sales, but with the internet, people are aware of values, and in MOST cases, want full value or MORE. Everyone thinks THEIR tractor is the best one on the market.

Bottom line is, if you're buying used, whether from a dealer, an auction, or a private sale, NONE of them are guaranteed to be any better or worse than the other as a hard and fast rule. It pays to do your homework. And NEVER count on finding bargains with any regularity. They can be few and far between.

sweep · Aug 8, 2011

A local guy who has a used farm equipment business prefers to buy broken tractors at auctions as he get's them extra dirt cheap and he has a full time mechanic on duty who generaly repairs them less than for what the tractor would have cost at the auction if it worked properly. Of course through experience he knows what can be fixed for a reasonable cost up front but he get's burnt on occasion.

bucktaker · Aug 8, 2011

Thank you all for your thoughts and comments

I am fully aware of the pitfalls of buying used equipment and consider myself above average in mechanical ability/experience. as I posted before I have always had old used "antique" equipment that I have kept running over the years. I just want something newer that will last me 20 plus years. My current tractor is the same age as me 47. So when I am 60 plus I dont want a 60 yr old tractor.

My thinking was if a "jims equipment" can buy a tractor and do nothing more than transport it to his lot and make money on selling it.Why cant I eliminate "JIM"?? as I posted I am looking for a low hour >300hr 50 hp utility tractor the kind jim would buy and resell. I have been using the suggestions to look over the upcoming auctions but have not found anything the met my criteria, yet.

FMJ you are correct in that private owners want their purchase price back and then some. my tractor buddy has said the same thing and never buys anything close to modern mostly old fords/MF's but he is having a hard time selling them with profit as mowing machines as ZTR's have hurt the bottom line.

Farmwithjunk · Aug 8, 2011

bucktaker said:
Thank you all for your thoughts and comments

I am fully aware of the pitfalls of buying used equipment and consider myself above average in mechanical ability/experience. as I posted before I have always had old used "antique" equipment that I have kept running over the years. I just want something newer that will last me 20 plus years. My current tractor is the same age as me 47. So when I am 60 plus I dont want a 60 yr old tractor.

My thinking was if a "jims equipment" can buy a tractor and do nothing more than transport it to his lot and make money on selling it.Why cant I eliminate "JIM"?? as I posted I am looking for a low hour >300hr 50 hp utility tractor the kind jim would buy and resell. I have been using the suggestions to look over the upcoming auctions but have not found anything the met my criteria, yet.

FMJ you are correct in that private owners want their purchase price back and then some. my tractor buddy has said the same thing and never buys anything close to modern mostly old fords/MF's but he is having a hard time selling them with profit as mowing machines as ZTR's have hurt the bottom line.

Since the economy went belly up a few years ago, I haven't found ANY specific tractor type that's profitable. Just the occasional one's where someone is in financial trouble and needs to unload one. Older tractors, by there nature as lower priced, even with a healthy profit margin, still don't make "big bucks" at the best. And prices on older tractors seem to be on their way down compared to 5 years ago. The guys selling newer stuff seem to want their money back AND a big profit. Most newer tractors hold a decent resale value, but let's face it...typically they DON'T "APPRECIATE" by leaps and bounds, regardless of how many hours they've been used... as more current models go up in price. As an example, I looked at a used Deere 6430 last week. I own 3 already, so I'm kind of aware of their value. With 2400hours on the clock, the seller wanted $7500 MORE than what full retail was when he bought his. He wanted enough to sell his 2007 model and go buy a something new 2012 tractor. Needless to say, I walked away on that one.

Hang in there and keep your eyes and ears open. With the economy like it is, and with what I expect it to be in the near future, there'll be a few tractors on the market where people will take ANY reasonable offer. And I've always done better during late fall/early winter months....