Do Dealers EVER Sell Used Machines?

[avc8130]

Let me add some more details:
I am looking for a Kubota L39. I have settled on that being the perfect match for ME.

What I have found "locally":
$29.9k obo. 178 hours. On Ebay since September with 16 rejected offers.
$24,975 obo. 740 hours. On Ebay with 1 rejected offer.
$27.5k. 878 hours. Machinerytrader.com
$25.9k. 744 hours. Machinerytrader.com
$24.9k "cash sale". 700 hours. 12 and 24" buckets. Pallet forks. Removable cab w/ wiper.
$20k. 1332 hours. "well used"

Leading:
$25.2k. ~500 hours. Soft cab w/ plexiglass windshield. Cab heater. This is a family friend, price is firm. Dealer told him $23.7k trade in plus his sales tax savings on new purchase. Don't know how "real" that trade in offer is. Dealer might just be making it up on the new purchase.

Thoughts?
ac

 

[jdonovan]

I have been shopping for a used Kubota for close to 6 months at this point. I have consistently seen the EXACT SAME machines for sale at the SAME dealers for 6 months. Every time I inquire about the machines the dealers say "we are open for offers, but truly the machine is worth the asking price". If that is the case...wouldn't the machine SELL?

What's the deal?

Often companies have a hard time with getting past we have X dollars in that machine and therefore we need X+10%.

If they made a less good deal on a trade they could wind up with an over priced machine sitting, and not selling.

I know of a few dealers locally that set their price and it stays fixed for 4 months, after that they will being to deal. They understand that they have cash tied up in the machine, as well as it takes up a parking place on the lot.

They also know the 'hot' times of the year. Tractors in the spring, a few skid steers as the first snow flakes fly etc...

I would doubt there would be substantial deals on tractors right now, until May/June comes and they haven't moved a machine that they thought would be sold in the spring.

I just bought a machine for a very good price, but it had been on the lot for 18-24 months. I got to be a fly on the wall for a bit of a semi-heated disagreement between who I assume in the owner, and another partner.

The guy who didn't make the deal was upset with the price that was offered. he was complaining that the sales guy was selling the machine for less than cost. The sales guy told him the dealership had been paying interest on the machine for nearly 2 years, and he was NEVER going to make a profit on that machine, or even get his costs back. Furthermore he said we can take the sale and buy 2-3 bx's for the same money that we can sell in a month or less during the spring.

Give the sales price, I figure it was costing him $100-$200 a month in finance charges to sit on the machine. In todays markets with slim margins it doesn't take too long for that kind of cost to completely eat the profit.

 

[TripleR]

Guess it depends on your dealer, I bought a used tractor from my dealer for a very good price and their used stuff doesn't stay around long. We traded in a POS 80 HP and they sold it that week.

 

[JOHNTHOMAS]

This dealer prices his to sell or is accepting reasonable offers. He delivers all over the country. You can watch his used for sale list or watch his lot and see the turn over. I"ve bought 12 from him but not used, I've traded my used ones to him for new ones.
Barlow Equipment - Home of the Kubota Tractor Package Builder

 

[avc8130]

This dealer prices his to sell or is accepting reasonable offers. He delivers all over the country. You can watch his used for sale list or watch his lot and see the turn over. I"ve bought 12 from him but not used, I've traded my used ones to him for new ones.
Barlow Equipment - Home of the Kubota Tractor Package Builder

I have checked out Barlow...because of this site. I am having a tough time wiring someone $25k+ for a used machine without being able to see it. His prices are right in line with what I find locally.

ac

 

[keyman1808]

Its always tough wiring someone money on a product site unseen. Search this forum for Barlow's and you will see he stands by his products and customer satisfaction is a big thing with them. Just ask the many many buyers on here. My next purchase will be from there.

 

[avc8130]

This brings up another point: HOURS.

What is the deal with tractor hours? I know I am looking at commercial machines, so they will have hours. From the machines I have found there are 3-4 major categories:
<200 hours: usually priced high, but look to be in great condition from pics.
500-750 hours: all priced between $24k-27k. Condition seems to very.
>1k hours: CHEAP, but look destroyed in pics.

How long do these things last? My diesel truck has ~50k miles and ~1200 hours. I don't anticipate an engine/trans/axle failure in that any time soon. I also don't want to buy in on the slippery slope of depreciation. New the machine is close to $40k. Saving $15k for 500-700 hours seems good, but if the machine is going to be worthless at 2k hours...

ac

 

[TripleR]

This brings up another point: HOURS.

What is the deal with tractor hours? I know I am looking at commercial machines, so they will have hours. From the machines I have found there are 3-4 major categories:
<200 hours: usually priced high, but look to be in great condition from pics.
500-750 hours: all priced between $24k-27k. Condition seems to very.
>1k hours: CHEAP, but look destroyed in pics.

How long do these things last? My diesel truck has ~50k miles and ~1200 hours. I don't anticipate an engine/trans/axle failure in that any time soon. I also don't want to buy in on the slippery slope of depreciation. New the machine is close to $40k. Saving $15k for 500-700 hours seems good, but if the machine is going to be worthless at 2k hours...

ac

There are some old threads on here addressing how many hours to expect.

We have a mid 60's Case and mid 80's that we don't even know the hours as the meters went toes up long ago and both run fine.

 

[bigbull338]

how long do they last is a very loaded q.an it has meny answers.i think any tractor should last 10,000hrs but thats me.but properly maintained compacts should last for 5000hrs or more.you also have to consider how meny hrs a year you put on a tractor,an thatll tell you alot as well.i should put between 150 an 300hrs a yr on my personal tractor.an that depends on how much shrredding an hay moving is done along with other things.an i expect it to last 30yrs or longer.

 

[jdonovan]

This brings up another point: HOURS.

What is the deal with tractor hours? I know I am looking at commercial machines, so they will have hours. From the machines I have found there are 3-4 major categories:
<200 hours: usually priced high, but look to be in great condition from pics.
500-750 hours: all priced between $24k-27k. Condition seems to very.
>1k hours: CHEAP, but look destroyed in pics.

How long do these things last?

Depends a lot on maintenance and use/abuse.

I generally don't run into really beaten up equipment until the 2500+ range.... and I've seen some very nice well maintained equipment in the same hour range too.

Now the TLB's are a bit 'special' vs the skid steer or farm tractor. I find a lot of TLB's owned by small contractors who need a bit of backhoe work from time to time. Like a plumber who doesn't want to sub out the underground work. These sorts of machines seem to work for a few hours a week and mostly sit idle at the contractors yard.

The other users seem to be landscapers who also run skid equipment... and those machines get run quite a bit more, and they also seem to get beat up quite a bit more.

The ideal find would be the guy who bought to to build the house, and you find a 2 year old machine with 250 hours.

Really its condition that dictates price. A beat up 500 hour machine thats never seen a drop of grease sells for less than a 1200 hour unit in cherry condition.