Another confused first timer

[Hoodoo]

Old houses can certainly be worth more than new ones...neighborhood improves, some old houses are better built, antique value, Etc...but they aren't tractors. I am just simply not going to pay nearly as much for a used tractor when I can get a brand spankin' new one for just a hair more...

Just my opinion, I'm new to tractors.....

 

[Hoodoo]

I think the missing piece here is that those more willing to buy used are confident in their own mechanical ability to fix problems.

I think that's it. Being a life-long Contractor/builder, I usually buy a beat up house with good bones and make it beautiful. I know I can because I've done it so many times. With a tractor I have zero confidence in my abilities.

 

[Torvy]

Old houses can certainly be worth more than new ones...neighborhood improves, some old houses are better built, antique value, Etc...but they aren't tractors. I am just simply not going to pay nearly as much for a used tractor when I can get a brand spankin' new one for just a hair more...

Just my opinion, I'm new to tractors.....

I'm with you...new the idea of owning a tractor, but IH was our family business for much of my childhood.

Houses appreciate because land is finite. A new house next door to a used house? People tend to buy new. Exceptions exist but those are mostly about personal taste.

 

[rScotty]

Education?

How incredibly condescending of you.

It's strictly economics.

A "thing" is only worth as much money as you can get someone else to pay you for it. If you get no takers at your "educated price", then the "thing" is clearly not worth what you think it is.

I'm sure sooner or later, you will run into someone that will pay you what you "think" your "thing" is worth. It may take a while, but that's how it works. Some of the used tractors sat on ad here for months. I guess a bunch of people here needed your "education" to straighten them out?

You take 2 identical "things". One is brand new. The other is used. How many people do you honestly think will pay the same price for the used "thing", as they would for the new "thing"?

Just because you give that "thing" a name (tractor) does not change that ratio.

And the same situation does not seem to factor into Ag tractors. It only seems to be SCUTS, CUTS and small utility tractors that have this "magic aura" that makes the used ones somehow anointed with this magic pixie dust that keeps them at or above the price of a brand new one.

Ridiculous.

Well, I think you need to take a deep breath and relax.
I'm not here to sell tractors, and have no expectations of selling anything. I don't even know anyone selling.

In the message you may not have gotten to yet, - #219 - I'm simply using my years of tractor experience to explore answers to a common question, one I'm sure you've heard, i.e.:
"Why does the market continue to support such high prices for good used tractors? Often more than new ones?"

Even if it offends you, support for those high prices is a long standing fact. The least I can do for the horrified newcomer is to offer an explanation of why that makes sense mechanically.
The financial & social reasons are up to the individual.

But there's no sense I can see in getting worked up about something that exists; just go figure out why.
rScotty

 

[Slowpoke Slim]

Well, I think you need to take a deep breath and relax.
I'm not here to sell tractors, and have no expectations of selling anything. I don't even know anyone selling.

In the message you may not have gotten to yet, - #219 - I'm simply using my years of tractor experience to explore answers to a common question, one I'm sure you've heard, i.e.:
"Why does the market continue to support such high prices for good used tractors? Often more than new ones?"

Even if it offends you, support for those high prices is a long standing fact. The least I can do for the horrified newcomer is to offer an explanation of why that makes sense mechanically.
The financial & social reasons are up to the individual.

But there's no sense I can see in getting worked up about something that exists; just go figure out why.
rScotty

If anyone's getting worked up, it's you. The emotions are yours, not mine.

If anything, today's consumer is more educated by far than any buyer 20 years ago. AlGore was still putting the finishing touches on the internet 20 years ago. Today, we can see ratings, reviews, prices and related costs across a wide range of industries and economies. More information *by far* than you could hope to have 20 years ago.

Folks today can easily look up pricing on all manner of equipment, attachments, and yes, even tractors. More options today, the market is more competitive today because it has to be. More buyers are fully willing to vote with their wallets and say "NOPE" to someone with a stupid price stuck in their head.

The market only supports high used prices if people are willing to pay them. My point. Is that more buyers are saying "oh, h*ll no". And walking away with their wallets.

 

[kenmac]

I can break it down as far as I was concerned.

I had no intention of paying as much, or MORE for a used tractor vs. a brand new one. A lot of people do this. I don't understand why. Used is used. In ANY other equipment or vehicle purchase, traditionally used pieces are significantly cheaper. The older and "more used" the bigger the cost savings vs. new. Lawn mowers, weed whackers, pressure washers, generators, chain saws, just about any other type of equipment you can think of, there is a discount in price (and it's usually significant savings) when you purchased a good, clean used one. Not tractors.

Now at this unusual instance in time, used vehicles seem to be collecting a premium price vs. even a few years ago, so for right now, the used vehicle market is a bit skewed. But traditionally, vehicles in general (unless you had something "special") saw a significant price drop in the first few years of ownership. Someone could buy used and get a significant savings over new price, and that would help offset the RISK of buying used, and offset not having a warranty that would cover big ticket stuff like a failed trans or engine.

But somehow, "magically" as soon as you say "tractor", we're all (potential buyers) supposed to be ok with paying as much, or more for a used tractor than a new one. When I was out tractor shopping 4 years ago, the ONLY used tractors I saw were either nearly destroyed garbage, OR they were asking for the same money or MORE money than a new one. Now for me, I wasn't interested in garbage. I know some people even like garbage tractors, even proudly post pictures of them here on TBN. That's fine. Really. Wasn't what I was particularly looking for, so not an option when I was a buyer. I also wanted "modern" features like a heated cab, FEL, 4x4, etc, that you don't see on used garbage.

4 years ago was "B.C." (before covid), so that can't be used as a market excuse for unnaturally high prices on used tractors. I saw ads for several tractors that appeared to be good, clean, used tractors. Guess what? They wanted as much or MORE for their used one, than the equivalent model sitting new at the dealer. That's always going to be a "nope" in my book. Always.

New means I don't have to worry about what some total idiot may have done while abusing their machine. And yes, there are some brain dead idiots out there in the world. Some of them own tractors. Go watch some "tractor fail" type videos on Youtube. You'll be thinking, "I don't want to buy anything from that idiot". I also don't have to worry about ANY breakdowns for a while ("bumper to bumper"), or worry about power train issues in the first 4-6 years due to power train warranty. And I've not said anything about the financing, as for me it didn't matter if I could finance a new one at 0%. Didn't really factor into my decision to buy new, but it's an option for many to be considered.

Paying as much for used as you would used ? WOW ! I would love to be able to sell my two used tractors for the price of new, or more !
I sure was able to purchase both of my tractors for waaaay less than new.

25K for my used non emissions kubota tractor 3 yrs ago, and 40K for my non emissions CX105 tractor two yrs ago. Both have been flawless, and waaaay less than new. And the best part, ZERO emissions to deal with !

So, the cost of used the same (or more) as used must be a regional thing

But what ever floats your boat. Many people buy new vehicles because they say they can buy new cheaper than used. But I don't see it here. Must be a regional thing. Or just to justify buying new. But as I said, do what ever makes you sleep better at night

I just didn't want the hassles of the emissions on new tractors to deal with. I hate to run something wide open from the time it's cranked, till the time it's turned off just to prevent a regen all the time.

All these people buying new, then get on the forums complaining about their tractor in limp mode, and wanting answers..
The bottom line answer is, you knew what you were buying before you bought. so......

Another thing is, Who knows what the longevity is on these new emissions tractors ?
I guess we'll know one day.
I already knew the longevity of the non emissions tractors. They have been building them for many, many years !

But I have no skin in the game. So, do what ever lets you sleep well at night, and be happy

 

[kenmac]

If anything, today's consumer is more educated by far than any buyer 20 years ago. AlGore was still putting the finishing touches on the internet 20 years ago. Today, we can see ratings, reviews, prices and related costs across a wide range of industries and economies. More information *by far* than you could hope to have 20 years ago.

Yeah, because we all believe what we see, and read on the internet. I mean, It's the internet after all, it must be true !
I'm sure no one would just make up a review (good, or bad) for the fun of it

I don't need internet . I've got years of experience with tractors/ equipment.
I guess for the novice, the internet possibly could be believable. But nothing beats having experience with a product.

 

[Cahaba Valley Farm]

proven performance is worth more to them than a warranty.

That's an interesting statement that I will think on for a while

 

[Cahaba Valley Farm]

Education?

How incredibly condescending of you.

Hey Scotty was only replying to a statement that I originally made in a previous post to confirm if he understood what I was saying so need to get offended with him. Education is in fact a driving factor for many consumers to purchase new. If you doubt this statement look at how many threads are started every day on this forum by people who need and are asking for education. Heck it's what led me to become a member here.

If anything, today's consumer is more educated by far than any buyer 20 years ago.

This is true if the consumer is willing to put the time into research and study but the sales staff in this industry is no longer knowledgeable so it's kind of a trade off.

 

[Cahaba Valley Farm]

But nothing beats having experience with a product.

I agree which is why I suggest every tractor buyer go and demo the equipment they are interested in before purchasing it.