How important is resale value when buying for long term private use?

[Industrial Toys]

I always consider resale value. It's part of the ultimate cost of ownership. And a BIG part as far as I am concerned. In my opinion, if you buy the right, good used equipment, it costs you nothing if you sell it. Just fuel and maintenance while you own it. Well maybe some lost interest on the money.

 

[aarolar]

None at all to me, I bought my tractor with the intention of it lasting me my whole life and then some which is why I skipped the used market and bought new. I have a unmolested tractor that'll be paid off in 5 years and should provide me trouble free use for a long time hopefully.

 

[olPete]

None at all to me, I bought my tractor with the intention of it lasting me my whole life and then some which is why I skipped the used market and bought new. I have a unmolested tractor that'll be paid off in 5 years and should provide me trouble free use for a long time hopefully.

Yep that explains my point of view better than I did. The other extreme is the fulltime contractor, who only plans on keeping it for a few thousand hours and then upgrading. Then the changeover price must take the resale value into consideration a lot more. That's a fair part of the reason I didn't want to become an owner/driver years ago, I knew my machine would be the first one to be parked up and the last one to be needed.

 

[olPete]

Consider that perhaps some tractors have strong resale value because... they are quality?[/QUOTE]

That's a good point. We see the same thing with the Toyota brand in NZ. For years they were the best especially in the farmers pickup market.. and still have incredible resale from those days. An old rustbucket that is barely road legal is still worth $10k to a farmer.. and the new ones are not designed with farming in mind at all. I'd pay that for a new one. Lol
The main thing that sells tractors in NZ is finance, I know heaps of farmers that have a JD and dislike them but love the 0% finance enough to suck it up buttercup.

 

[bspeedy]

My thought exactly.

And you would both be correct!! I don't go to such places. Shopping malls, antique stores, etc. All designed to use emotion and boredom to separate you from your money.

 

[bspeedy]

Ever watch a Barrett Jackson auction?

I watched Mecum last night. 1978 or '79 Indy 500 pace car corvette with 16 original miles sold for 32k. Some poor bastage paid 12 large for that thing in the late 70's, stored it, kept it from damage, moved it every time he moved, never got to enjoy it... and made hardly anything in interest over nearly 40 years. What a poor investment. I know some people invest and win in antique / classic cars. That's not for me. Too much luck involved. And storing a bunch of cars you can't drive is much worse than storing equipment that can get work done for you.

That's a rich man's sport.

 

[Turbys_1700]

I don't really consider it as a driving factor in my tractor purchases. I bought a 4610 SU couple summers ago at a great price. I've spent on some needed upgrades like front weights with bracket, factory ROPS, sunshade, rear remotes, etc...Even with those added costs I am not out a lot of money and can get my money back. My new Workmaster 50 that I bought last May I will never recoup the cost but plan on keeping it and giving it to my son unless I trade it in on a cab tractor.

Around here it doesn't really matter that much between the different brands...the resale on good clean used units is stupid money. My dealer carries Mahindra but I don't really have a feel for how they will resale because not as many used units are out there yet. I would expect high resale on them too when available. Our local Kioti dealer is really good and those units go for stupid money used also. Easy financing on new units make it easier to buy new with warranty versus a good late model use unit. There is just not that much depreciation.

 

[MAN IN BLACK]

I bought a 1989 Case 1845C skidsteer in 2003 with a few attachments. I bought a few more attachments to use with it. It had <2,500 hours on it when I bought it. I sold it last July with >3,000 hours on it for $3,500 more than I had in it and I made a lot of money with it. I didn't intend to sell it when I bought it but life changes. I sold it and bought a 1993 Ford 4630 tractor with a loader on it. It has 1,040 hours on it now. I won't put many hours on it for years unless we move. I think the market for older tractors will continue to get stronger with all the emissions stuff taking place. I would rather have a pre 2000 year model tractor than a new one any day. Unless you make your living with it you will lose money on a new one. My dad bought a new John Deere 1020 in 1970, it has over 6,000 hours on it now and he could sell it for more than he paid for it. He has always taken good care of it and it's been in the shed when not in use.

My Dad bought is first tractor in 1973...a JD2130 with Sims cab, at the time he paid 7500$.
Today, that same tractor sells for 9-9500 $.
I don't think about resale value when I buy...maybe I should, but I don't.

 

[MtnViewRanch]

And you would both be correct!! I don't go to such places. Shopping malls, antique stores, etc. All designed to use emotion and boredom to separate you from your money.

I beg to differ, my brother has gone from typical antiques furnishing his house to ones that are well over 100 years old and very costly at no expense of his own.

While you may be correct about this, Shopping malls, antique stores, etc. If you want to make $$$ or just pay what things are really worth, you don't shop at those places anyway, but purchase directly from the original owner or estate.


I guess maybe it just helps to some what know what you are doing and to actually know about what things are worth.

 

[bspeedy]

I beg to differ, my brother has gone from typical antiques furnishing his house to ones that are well over 100 years old and very costly at no expense of his own.

While you may be correct about this, Shopping malls, antique stores, etc. If you want to make $$$ or just pay what things are really worth, you don't shop at those places anyway, but purchase directly from the original owner or estate.


I guess maybe it just helps to some what know what you are doing and to actually know about what things are worth.

Fine points for sure. I think the takeaway should be that someone who educates themselves can get a good value. And, I equate the tractor (or new car) dealership with shopping at the antique store. Get a good deal from a private owner.