A tractor loses ____% of it's original value when...

[canoetrpr]

Messicks numbers were pretty much right on to what I got quoted when I looked into trading my year old L3400HST with 57 hrs on the clock - 20% lower in value from what I paid.

I might have gone with the trade but considering that the GL 3540 would not be able to do much that I can already do with my L3400 AND the fact that given the current exchange rate there was so much o fa price differential between Canada and the USA (was quoted $27500 for a GL 3540 w. LA723 loader - vanilla - no cab, options were on top of that), it just didn't make sense to do it.

Thought I'd wait to see if a lightly used GL3430 or GL3830 series comes up somewhere in the USA and sell mine privately, or wait for a few years until the 40 series have had some time to mature before jumping into a new cross border machine with no warranty.

 

[Richard]

1. A tractor loses ____ % of it's monetary value the day it is purchased.

2. A well maintained tractor loses ____% of it's $ value when it has logged 200 hours and is 1 model year old.

3. A well maintained tractor has lost ____% of it's $ value when it has logged 400 hours and is 2 years old.

4. The same tractor has lost ____% of it's value when it has logged 600 hours and is 3 years old.

1. 20%
2. 30%
3. 40%
4. 60%

Ergo, your tractor is worth "negative 50%". I'll give ya $50 and do you a favor by taking your hunk of junk off your hands...

 

[dynasim]

The amount of depreciation also depends on how much you paid the dealer. If you pay near list price, you will have "depreciated" 10-15% just by writing the check. It is also likely that if you pay to much up-front, you will get less upon selling.

When I was looking, 5 year old tractors sold for 15-35% less than the current equivelant(not 5 year old purchase) price, with the range caused by location and hours.

Chris

 

[rvaitor]

The amount of depreciation also depends on how much you paid the dealer. If you pay near list price, you will have "depreciated" 10-15% just by writing the check. It is also likely that if you pay to much up-front, you will get less upon selling.

When I was looking, 5 year old tractors sold for 15-35% less than the current equivelant(not 5 year old purchase) price, with the range caused by location and hours.

Chris

More good info - current condition, original price paid, current new price if model is still offered, incentives(low rate financing, warranties for example), are all factors. I like to buy used and maybe the market is a lot softer on the 2nd and 3rd tier tractors but for me that's all the more reason to pick one up - lots of good equipment in the market - find a good dealer and don't try and skin him/her at every opportunity - work a good deal but remember he/she can add value to your equipment use.

 

[AndyM]

I've got my dad's 8N that sold new for $750. So far, the price paid new averages out to $12.50 per year of service. However, I could care less if it's losing value or gaining value, because I don't have any plans to sell it. It's valuable to me because it belonged to my dad... to others it may look like an ordinary tractor.

I have a 2003 New Holland that I've used for many projects around the property, along with using it as my primary mower. As we're looking at different properties that would require a different-sized tractor and mower, I would hope to get as much as possible if I were to sell the New Holland. Even if I get 50 percent of the original purchase price, I feel I received much more value out of any money I receive during the hours of use over the past four years.

Resale value only matters if you wish to sell, but you must also remember the value received to you during its use.


Ideally, but not realisticly, I wish I could be one of the people here who posted stories that they sold their three year old tractor for 2000 dollars more than they paid for it when they purchased it new.

 

[widmn]

How about, "It doesn't depreciate". I bought a lightly used 2004 - 4410 with 200 hours on it in 2005. I sold it with 400 hours in 2007 for $500 more than I paid.

 

[geedub]

Resale value only matters if you wish to sell, but you must also remember the value received to you during its use.

I disagree AndyM. The whole point of this thread is that I'm shopping for a used tractor and it's important that I understand a seller's perspective.

 

[sandman2234]

Actually AndyM is right if you figure in just how bad a person advertising a tractor for sale "WANTS" to sell it. Some people have no clue what their tractor is worth, or how much it depreciates and what to ask, so they just try to get as much out of it as possible. If and when it actually sells, and for how much is what the value is. As long as the buyer and seller both agree on a price, then they have a value. Just because they agree doesn't mean the next guy will agree.
I want to sell my 66 Chevy, but nobody has offered me what I want for it, so it really isn't for sale, unless one of those fools that were born yesterday comes along with a pocketful of money. Then we will have established a value for it.
David from jax

 

[flusher]

I disagree AndyM. The whole point of this thread is that I'm shopping for a used tractor and it's important that I understand a seller's perspective.

Since you're operating now in research mode, maybe the quickest way to get the data you seek is to plunk down $16 for the latest issue of The Official Tractor Bluebook from Amazon.com. There's enough data in those 360 pages to answer your depreciation questions.

 

[DonWorrell]

Since you're operating now in research mode, maybe the quickest way to get the data you seek is to plunk down $16 for the latest issue of The Official Tractor Bluebook from Amazon.com. There's enough data in those 360 pages to answer your depreciation questions.

Who wrote this book? Is it like the NADA book which is put together by the dealers whose main concern is to have a high value to comapre to. Or is it like the blackbook, which very few folks know about, that give recent average wholesale auction prices.

With a good idea of wholesale auction prices you can determine retail.

When I was in the car business, prior to becoming a Christian, I dealt with many folks who brought in books on how to buy a car and what to pay.

I made hundreds on some of these folks. Because the book didn't consider condition and when it did it didn't tell the person how to determione what condition it was in.

True auction is the best way to discover actual value. When you have a good number of capable and willing buyers you will determine the value.

Don