Brandson Resale Value in Marketplace ??

[Cougsfan]

This is a tough question as you just don't see any used Bransons for sale. Not that many people or businesses follow the automobile path of trading in their their two year old tractor for a new one, because tractors aren't nearly as faddish and status symbol-ly as cars. a two year old tractor is usually just as functional as a new tractor, and any minor improvements (Like more head room on a new 4720 versus mine) isn't worth the hassle and cost of trading up.

It is a valid point that if you pay 1/3 less for a Branson than a Kabota, don't expect to get as much on the re-sale market. What you should compare is the value of your money for the initial investment minus the difference between purchase price versus the resale price. Example: you pay $40K for tractor "x" and sell it for $30K in 5 years versus you pay $30K for tractor "y" and sell it for $20K in 5 years, which was the best investment? If the tractors were of the same functional value, no doubt tractor "y" was a better investment. I have no doubt that Branson would come out quite favorable on such a comparison with the higher cost brands.

 

[bigcut]

This is a tough question as you just don't see any used Bransons for sale. Not that many people or businesses follow the automobile path of trading in their their two year old tractor for a new one, because tractors aren't nearly as faddish and status symbol-ly as cars. a two year old tractor is usually just as functional as a new tractor, and any minor improvements (Like more head room on a new 4720 versus mine) isn't worth the hassle and cost of trading up.

It is a valid point that if you pay 1/3 less for a Branson than a Kabota, don't expect to get as much on the re-sale market. What you should compare is the value of your money for the initial investment minus the difference between purchase price versus the resale price. Example: you pay $40K for tractor "x" and sell it for $30K in 5 years versus you pay $30K for tractor "y" and sell it for $20K in 5 years, which was the best investment? If the tractors were of the same functional value, no doubt tractor "y" was a better investment. I have no doubt that Branson would come out quite favorable on such a comparison with the higher cost brands.

Cougs,
I agree completely ! See my post.
John

 

[CobyRupert]

OK - this will probably be considered outside the norm. In 1982 I purchased a brand new Ford 1700. In 2009 I traded this Ford in for a brand new Kubota M6040. I received - within $100 - the same trade in value, for my Ford, in 2009 as I paid for it in 1982.

Yes - that is 27 years with next to no loss in value. The dealership sold my Ford - within two weeks for more than they gave me for trade in value.

And the wheel goes round...............

Sort of, but not really.
27 years with next to no loss in "value" to the truck, as measured by the dollar, but your ignoring the loss in value of the dollar.

The dollar is only a measure.
It's like when people say: Wow my investments have really grown...or is it that the dollar has shrunk?

How many ounce of gold, or how many cheeseburgers, or semesters of college, etc... could you of bought 27 years ago for the price of the truck versus today?

 

[ning]

and it took less than a week and it was gone

One could argue that selling in less than a week indicates that the price was too low... but then again, it could be that the item was put up for sale at the right time for having a buyer.

I bought new last year, because I'd been looking for a used tractor for a few years and not finding anything that wasn't beat up for a reasonable price - and by reasonable price, I mean a decent amount less than the new price. Why would I close to the new price - like within 10% - for a 2-3 year old tractor? There's less warrantee, who knows if it's really been treated well; the savings of tax? I can claim an ag exemption and only pay a couple percent even in CA - so I decided it was going to have to be a new tractor. Given that I wasn't expecting to buy, use a couple years, and sell, supposed resale was less my concern, and my money today is worth a lot more to me than a guessed-at amount later (if I ever sell - I think it's more likely that a future tractor purchase, larger or smaller (or both?), will supplement this tractor).

 

[oosik]

Yea - guys I see your point. However, considering that I got back what I paid for the tractor - I felt pretty good. I bought a new Chevy pickup in '83 and sold it ten years later for $15K less than I paid for it in '83. I was not so happy about that transaction.

Do you see MY point???

You can throw all the financial mumbo-jumbo you want around. Does not change the hard cold facts one bit.

However - if it makes you feel better - by all means - have at it.

 

[bigcut]

Yea - guys I see your point. However, considering that I got back what I paid for the tractor - I felt pretty good. I bought a new Chevy pickup in '83 and sold it ten years later for $15K less than I paid for it in '83. I was not so happy about that transaction.

Do you see MY point???

You can throw all the financial mumbo-jumbo you want around. Does not change the hard cold facts one bit.

However - if it makes you feel better - by all means - have at it.

Oosik,
If I was you, I would be absolutely ecstatic to be able to recoup your purchase cost !! No 2 ways about it.
I get the point that a dollar 27 years ago was worth more than a dollar today. However, that beats the heck out of only getting back 20% on your initial investment. And if you want to think of this in terms of cost of ownership, it cost you "0" to use and own that tractor. (Not including maintenance cost ) You in essence got to use it for free !!

I'll take that any day !! That about as good as it gets !! You should feel really good about things. Now, if you could just get that to work on cars and trucks.
John

 

[CobyRupert]

Do you see MY point???

You can throw all the financial mumbo-jumbo you want around. Does not change the hard cold facts one bit.

However - if it makes you feel better - by all means - have at it.

Sorry, didn't mean to rain on your parade. I'd be thrilled to recoup the purchase cost of vehicles I'd bought too. With the winter salt around here, they depreciate WAY faster than inflation.

Here's an interesting calculator: $17, in 218 → 28 | Inflation Calculator
If I could sell my 10 year old car today for what I paid for it ($17,000), that would be like recouping $14,516 of those 2008 dollars.
I'm lucky if I could get $3000 today (or about $2600 in 2008 dollars)

 

[PapeCAT]

Agree on all points guys, I just thought the statement that "The tractor lost NO value" needed some clearing up.

 

[Industrial Toys]

We sold (well traded in) a Universal 445 Tractor bought new in the early 70s for way more than we paid for it, notwithstanding inflation. Condition and level of care matter hugely into this, maybe more than make, providing, support and parts are still available.

The kicker is, we had considered buying a Massey 135 instead and had we gone with that, we would have scored even better! But we got whoed by free power steering and a box of (cheaply made soviet) tools! The hydraulics on the cheap bottle jack were about as good as that of the tractor. lol

Now, mind you, tractors historically, have not been the technological time bombs they are today, probably quickly becoming more like cars, with a much shorter life cycle on account of the cost to repair all that technology.

Who will have and who will be able to afford to put a LCD Dash panel in a twenty year old tractor?

 

[Texasmark]

Tractor House has a couple for a reference. Go to Tractor Data for a cost new and year of mfgr.....but resale is very subjective, to all sorts of influences, like the Ford 3910 I just bought. Kicking the tires I had been looking for one and this one seemed to fit the bill, ready to haggle and figured, being an estate sale, I could and come out ahead (which I did). I had my trailer with me, not a well if I like it I'll drive another 80 miles round trip to get it and all.

The kick in the bu-tox that sealed the deal was when the estate sale manager met me at the site, handed me the key and I rolled the starter....for about 2 seconds and it (a diesel that hadn't been run in at least 24 hrs) lit right off. Haggling brougt the price down $1500 from the initial posting and on the trailer it went!