Why buy new

[Geotech]

I was answering the reason prices on new and used [less than 5 years old] are very close.

1. I bought cash!

2. I don't have DPF.

3. I don't have regen

4.I like my cruise control.

5.I happen to like carrying a cold beverage while working.

6. Many of use work on our tractors.

Here's my list for my new purchase financed tractor:

1. I left my cash in the bank!

2. I don't have DPF.

3. I don't have regen

4.I like my cruise control.

5.I don't drink cold beverages, driving tractor or otherwise - but my cup holder works great for coffee.

6. Many of us work on our tractors.

 

[heavy hammer]

I think there is benefits for buying either way. I purchased new because used prices were close to the new ones at the time. I have never purchased something new like this for myself ever, always used vehicles which I don't regret. I believe it comes down to how someone feels comfortable with spending their money. If I found a used tractor and I knew it was a good price and in good shape I would not think twice about getting it. I do my own wrenching, my brother is a mechanic and I'm willing to work on something to fix it new or used. New stuff has issues just like used stuff.

 

[Jstpssng]

When I started looking I found a few 275's like the one I had. Clean or not though, there is no way that I'm paying 8-10 thousand for a 45 YO tractor. There were very few used machines the size that I wanted; 30-40 hp. Those that I found had 1-2 thousand hours on the clock and they wanted 14-17 grand for them. Again, there's no way that I will pay that much for an older tractor when I could have a brand new one delivered for 20K. For most of what I found used I would have been better off buying a new loader and 3pth arms for my old 'Bota, change the clutch and fix all of the other things that it needed.

 

[cathy liebchen]

there is just not enough savings in a used one if you are going to own it a while. One breakdown on an old one can be so costly and time consuming it is not worth it

 

[4570Man]

A large size tractor can handle difficult ground in the woods

Valtra forestry tractor logging in wet conditions - YouTube

I’d rather take my L3800 in the woods as my full size backhoe any day. The backhoe is 8 feet wide 11 feet tall 26 feet long and over 8 tons. Tight spaces and soft ground isn’t it’s friend. And tractors of any size aren’t really forestry machines anyway. They’re way to delicate underneath.

 

[4570Man]

there is just not enough savings in a used one if you are going to own it a while. One breakdown on an old one can be so costly and time consuming it is not worth it

I paid 16k for my L3240 and loader which at that time was 2 years old and 250 hours. I’d rather not say what I paid for my backhoe but it’s about 1/3 of new. Owing a new backhoe wasn’t in the cards. I can’t afford to own a worn out junk one either. I’ve never had a new vehicle either. They take a huge hit pretty quick.

 

[shooterdon]

No comparison to buying a vehicle....tractors hold their value. Thus not a huge savings buying used. At least in the under 40 HP range.

 

[fried1765]

Here's my list for my new purchase financed tractor:

1. I left my cash in the bank!

2. I don't have DPF.

3. I don't have regen

4.I like my cruise control.

5.I don't drink cold beverages, driving tractor or otherwise - but my cup holder works great for coffee.

6. Many of us work on our tractors.

A case study in economics?

"I left my cash in the bank"....but.... Today's bank interest paid is essentially ZERO.
SEVEN YEARS at zero % interest for a tractor, is not even close to ZERO out of pocket $ cost ($1000+???)
Could be as much as 7% of the selling price built into the seven year "interest free" price.

"Many of us work on our tractors".
Yep...we can all change the oil, replace filters, grease the zerks, and check fluids.
But........can you "flash" your tractor computer system?

 

[Geotech]

A case study in economics?

"I left my cash in the bank"....but.... Today's bank interest paid is essentially ZERO.
SEVEN YEARS at zero % interest for a tractor, is not even close to ZERO out of pocket $ cost ($1000+???)
Could be as much as 7% of the selling price built into the seven year "interest free" price.

"Many of us work on our tractors".
Yep...we can all change the oil, replace filters, grease the zerks, and check fluids.
But........can you "flash" your tractor computer system?

Well, the last conversation I had about economics on this forum didn't go well. But this is more a case study in basic math and then one in economics - see below:

The extra $900 I paid to get "zero" percent financing is equivalent to a 0.88 percent rate of return over 5 years on a $20,000 principal deposit. Not even close to 7 percent. You can get CD's at 2.5 percent today, let alone socking that money into an indexed stock fund for long term investing. So, I have no bones talking about "zero" percent financing and sweeping the noise aside. Inflation adjusted, its less than zero.

$900 over 5 years...$180 bucks a year...$15 bucks a month. That's a better monthly fee to insure $20,000 of cash than you can find anywhere else.

Of course the whole argument hinges on if you keep the cash rather than blow it on other stuff. Otherwise, if you don't have the cash, you're stuck financing anyways. Despite those brave enough to post how financially well of they are as to drop cash on a tractor, the simple fact is that most people don't have $20K laying around that hasn't been put to a higher use already - that higher use often times being investments in a retirement account.

 

[ovrszd]

Yeah, if you have $20K just laying around you aren't managing your assets very well.