Demo Pricing

[yooperdave]

If a dealer lends out a tractor to a farmer for a period of time can they still sell it "as new or like new" to someone else? I would think after 20 - 30 hours of use, the price should be somewhat reduced to reflect that the tractor is not "new" and has been in service.

How much of a price reduction is in order in lieu of a new tractor purchase? The dealer has not impressed me as being overly ambitious, but dealers in upper Michigan are few & far between.

Yooper Dave

 

[Chipperman]

yooperdave
I have seen $10 per hour. And yes they are sold as new.
Chipperman

 

[Joe1]

If they sell it as "new", you get the full factory new tractor warranty. They can sell them as new because they haven't been previously sold to anyone. A reposession has been previously sold so must be sold as a used vehicle.

 

[hillslider]

I guess if it where me the price would have to reflect the hours on it for me to purchase. If the dealer would not then I would tell him to keep it and order me a new one. When I was in the buying mode I found a few demos and one was just what I wanted but the tractor had 30 hours on it.......sold as new but the price was only 200 dollars less. I went with new with 1.5 hrs on it and spent the 200.

 

[art]

Dave, that's a tough call today. Years back things were sold at retail where today most is all discounted and doesn't leave much room for discounting as actually a Demo and lost sale just cost a dealer money, they didn't make anything but yet have the cost of trucking,clean-up and re marketing. I figure a flat cost of 300 for a demo and on some that is way low. The manufacturers of these tractors give nothing to the dealer as a demo is figured as a cost of doing business. You might think different if he might include the 50 hour service and a bunch of other things such as touch up paint and maybe extra oil,and filters. I don't know your situation but often the dealer might throw in some extra's which don't show on the as add ons to the price.

 

[beowulf]

First - this is from the member formerly known as Moneybreath - I had problems with the site - with posting and more, a real mess, and after hours of trying - I simply re-registered but I was unable to use the same name.

Anyway, I purchased a 3410HST rental return with 16.5 hours and R4 tires for $13620. It looked new to me, I had already checked dealers everywhere for the right deal, and so I bought it - included were all the things (fluids, filters, etc) which I would need for the 50 hour service though not the service itself. I am very happy with the deal - though I became unhappy with the dealer later when I did not get delivery of other items I ordered. I was told by this dealer that these tractors were leased out for use in orchards pulling trailers and so forth. Other dealers which had rental returns told me the same thing. That seemed reasonable because it had no 3ph or FEL or anything else but the tow bar. The 3ph - a new one was added with extendable lengths - no additional cost of course. The tractor looked brand new, though on close inspection I found some scratches. Full warranty running from my purchase date.

 

[del]

This business of the tractors having an early life of pulling
carts of fruit is quite common. Orchards, farms and vinyards
lease them. Twenty years ago a local NH dealer was flooded
with them some with less than 100 hours. I got a great deal
on a 0 hour tractor because they were buried in the lease machines
and were trying (I think) to reduce their "normal" inventory.
I paid just a titch more then the "used" ones.

With no loader, and no 3 point, tractors don't have much opportunity
to be stressed I would think.

/forums/images/graemlins/smile.gif <font color="blue">D</font> <font color="orange">E</font> <font color="green">L</font> /forums/images/graemlins/smile.gif

 

[Slamfire]

Well the new name is certainly one to conjure with. /forums/images/graemlins/wink.gif

 

[lamarbur]

There is a Beowulf that is on a particular helicopter net, would you be one in the same?

 

[art]

Where did the three point hitch go on these tractors? Is it something they sell back to you later? They all come with them.

 

[JDgreen227]

I think what Del means is the demo tractors do not get any 3 point lift work.

This subject makes me wonder about something, when you buy a new pickup or SUV the owners manual cautions you not to use it for trailer towing until the vehicle has attained a certain number of miles. In the case of my Yukon XL, that was 500 miles.

The manual for my JD has no cautions about using a new tractor for heavy pulling when it is brand new, do the tractor makers know something the automakers don't? /forums/images/graemlins/confused.gif

 

[Henro]

<font color="blue"> If a dealer lends out a tractor to a farmer for a period of time can they still sell it "as new or like new" to someone else? </font>

My take on the original question is that the tractor was used by the farmer as a test unit, perhaps with the dealer thinking the farmer would buy it, and the farmer perhaps also thinking he would buy it buy it, but for whatever reason the farmer did not buy it...but used it for thirty hours.

In my mind the first 50 hours are the most important AND the most costly.

If one bought a new tractor and used it for only 30 hours and tried to sell/trade it, how many bucks would he lose on the deal? 30 x 10 = $300? unlikely. I might actually cost one $100 dollars per hour to use a new tractor for 30 hours and then sell/trade it off.

Did you person who the tractor was loaned to treat it properly during break in? Was it ran hard from hour one?

Frankly, I would fear buying a tractor that was loaned and used by someone for 30 hours, much more than I would worry about buying one from an owner who had one for a year and had 100 or 150 hours on it.

I might be an idealist, but the first 50 hours of break in are very important to me, especially if I am intending to keep the tractor for a lifetime. If I were only going to keep it for a few years and then trade it on something else, that would be a different story...

Personally, if I could not get at least a $40 per hour price reduction (actuallly I would need more than that I think) on a loaner tractor with 30 hours on the meter, I would buy new, with 1 hour on the meter.

And remember, if it is a tach-driven hour meter, the tractor could have many more actual hours of use on it, if it was not worked at full pto rpm for the number of hours shown.

 

[yooperdave]

This is exactly my point. Who knows if the tractor was only used in parades, or making new roads in the woods? Yooper farmers are known for their resourcefulnes - I am thinking that the tractor was not babied for a minute. The tractor was advertised in the paper - I have not yet made the 1.25 hour drive each way to go see it.

Yooper Dave

 

[dmartin88]

Re: Demo Pricing (off topic)

Which helicopter net are you talking about? Radio control like RC universe or RunRyder? Just started learning to fly an RC helicopter, quite the challenge?