Used Kubotas selling for original prices?

[Industrial Toys]

I sometimes hear of dealers offering virtually nothing on valuable trade-ins and the customer goes for it. I mean, sure on one hand, no one is forcing the customer, but jee, it seems like robbery. Some people are just so unwilling to try and sell something on their own that they get taken advantage of.

 

[4570Man]

I sometimes hear of dealers offering virtually nothing on valuable trade-ins and the customer goes for it. I mean, sure on one hand, no one is forcing the customer, but jee, it seems like robbery. Some people are just so unwilling to try and sell something on their own that they get taken advantage of.

Problem 1 is the dealership doesn’t own the new tractor and has to pay for it when they sell it. That means they have to pay for the trade in out of pocket. I’ve seen several small dealers that can’t afford to trade at all. The bigger ones at least around here already have 5 acres of used stuff and another tractor to try to sell isn’t an appealing option.

 

[RickB]

Problem 1 is the dealership doesn’t own the new tractor and has to pay for it when they sell it. That means they have to pay for the trade in out of pocket. I’ve seen several small dealers that can’t afford to trade at all. The bigger ones at least around here already have 5 acres of used stuff and another tractor to try to sell isn’t an appealing option.

Dealers of certain brands have the option of floor planning trades. There is a cost, but the option is there.

 

[Industrial Toys]

At a dealer I know, that "for nothing" trade is always spoken for by a mechanic or other employee often as a side racket supplementing their income. In the case of repairs, some customers just opt to leave their stuff rather than spend the money on repairs. It has been the source of all my diesel generators.

 

[Steppenwolfe]

Worth more to who? An end user, or somebody that has to turn it for profit? How big a check would you write for it if you had to sell it for gain?

That is irrelevant, I bought a used Kubota 6 years ago for 5k, traded it two years later for 10k, and the dealer had it sold before I left the lot for 11.5k. Things are worth what they are on the day they are purchased.

 

[aczlan]

I sometimes hear of dealers offering virtually nothing on valuable trade-ins and the customer goes for it. I mean, sure on one hand, no one is forcing the customer, but jee, it seems like robbery. Some people are just so unwilling to try and sell something on their own that they get taken advantage of.

And other people are unaware of what their trade-in is worth on the open market.

Aaron Z

 

[RickB]

That is irrelevant, I bought a used Kubota 6 years ago for 5k, traded it two years later for 10k, and the dealer had it sold before I left the lot for 11.5k. Things are worth what they are on the day they are purchased.

It is quite relevant when a seller thinks he deserves retail value on what is simply a wholesale transaction.

 

[Steppenwolfe]

It is quite relevant when a seller thinks he deserves retail value on what is simply a wholesale transaction.

Then it's simple....don't buy.

 

[goeduck]

That is irrelevant, I bought a used Kubota 6 years ago for 5k, traded it two years later for 10k, and the dealer had it sold before I left the lot for 11.5k. Things are worth what they are on the day they are purchased.

Nice work.

 

[crashz]

There is a lot of convenience to trading at a lower value than an outright private sale. I traded my Bobcat 743, and got $6.5K for it. Equivalent CL ads and my personal starting point would have been about $10K in a private sale. But my "convenience" was this:
- Immediate deposit on my new L2501
- No buyers coming to my house, checking out my property
- No nit-picking regarding the worn tires, shabby paint, noisy pump and general condition
- Nobody coming back to me, complaining that XYZ broke when they tried to do the impossible.
- No being held responsible or feeling partially to blame if somebody got hurt. That thing was tippy and an accident waiting to happen in inexperienced hands. It was a good machine, but glad I'm rid of it.
- Not advertising forever and then doing the death drop on the price as I get antsy.

Some people would have seen that as a $3.5K loss. I saw it as time and hassle saved.