Almost out of Warranty. Should I trade up?

[JeepHead]

Dealer sent me this:

View attachment 879941



Further down, they take off $11K for my trade in, which is a little more than half what I paid. Total due comes to around $25K


Which ain't a'gonna happen.

2024 LS MT225HE For Sale in Coweta, Oklahoma

2024 LS MT225HE For Sale in Coweta, Oklahoma at TractorHouse.com. New 2023 LS MT225HE tractor, loader, backhoe **ONLY 1 UNIT AVAILABLE AT THIS PRICE** Cash Price $26,450 OR finance as low as $325/month WAC 1609# lift capacity on front end loader 6.5' dig depth on backhoe 1808# lift capacity on...

www.tractorhouse.com

That's a pretty good price. Cheaper than what I paid for my 2502 without a backhoe.

 

[oosik]

If you need/want a new, bigger tractor - go ahead and buy it. You certainly don't need to justify by saying you need a new one because of warantee. I'm sure your wife is not that gullible.

 

[oosik]

Although - there is a religious sect - Hutterites - that have MASSIVE wheat farms about 50 miles NW of me.

They run large ( 500hp ) JD tractors. Trade them in every three years for new ones. Just so their tractors are always covered by warrantee.

Hard to imagine but - some of their fields are so large - straight line planting/harvesting for ten miles. Not a single turn or wobble.

 

[Diggin It]

That's a pretty good price. Cheaper than what I paid for my 2502 without a backhoe.

Yeah, they're pretty good. I paid less for the 125 than most others dealers showed. And far less than the green store with the glass and chrome.

New quote is higher than I was expecting though, so not gonna be able to do it.

 

[Diggin It]

I just noticed something though. This quote includes 84 months at 0% ($298/mo) while the previous purchase was 84 months at variable interest which ranged between 2 and 5% over the term. I was paying $275/mo just to have a steady number. That let me pay it off in something under 60 months.

So, $23 month more .......

And I doubt I'll be around another 7 years, so it might get paid off another way by some estate manager.

 

[Torvy]

Prices are coming down some (and/or better sales). The problem is it will affect your trade, too.

Another reason big operations will trade often is that the cost is an offset to revenue. Despite the claims of many, newer equipment breaks down less than older equipment (on average). Up time is more important for a big operation. They deprecate the equipment over a shorter time and keep it churning.

If your equipment isn't a business expense, getting new isn't as useful.

 

[CaptPat]

Dealer sent me this:

View attachment 879941



Further down, they take off $11K for my trade in, which is a little more than half what I paid. Total due comes to around $25K


Which ain't a'gonna happen.

Shop around, I found a pretty big variance in trade-in values. Oddly the worst offer came from a dealer of the same brand.

 

[Omega Woods]

Although - there is a religious sect - Hutterites - that have MASSIVE wheat farms about 50 miles NW of me.

They run large ( 500hp ) JD tractors. Trade them in every three years for new ones. Just so their tractors are always covered by warrantee.

Hard to imagine but - some of their fields are so large - straight line planting/harvesting for ten miles. Not a single turn or wobble.

There are tax and business reasons for doing that. Things that make sense for large-scale operations don't necessarily make sense for us smaller folks. I'm sure their agreement with Deere includes getting them back up and running immediately if something goes down. Same reason big dirt companies use Cat equipment. It costs more but when they go down, getting back on the job is more important than higher cost up front.

I'm surprised they don't just lease their tractors.