Expected Depreciation in Used Tractors?

[Yander]

It is my experience with a used tractor you can buy it and use it for 5 years around a 5 acre property and if maintained and stored indoors and you don't put crazy hours on it you can sell it for the same or perhaps more money 5 years later. I have done this a couple times.

 

[GB540]

Why (Unless needed for the tax deduction) would anyone buy anything new? Serious question. I've bought new before but the best buys are always used.

Warranty and no risk of getting somebody else's problem. I can afford to buy, but I can't afford to discover why the last person got rid of it...

Any pre-emissions tractor is going to hold its value, provided it's not abused to death or just plain worn out.

What'd hurt is an emissions tractor that just went off warranty. Either plan on keeping it, or not getting what you hoped.

 

[Gopher Baroque]

Asking, or actually selling? I see a lot of crazy asking prices on cars, some people confuse those for selling prices, in casual conversation.

I look on CraigsList off-and-on at old tractors and attachments. The ads that make me wonder about the backstory are the ones I see asking way too much for junk, then I take a break and come back six months later to CL and see the very same ad with zero changes. And the guy pays for the ad each month to not sell it.

 

[Ed755]

I don't follow the market, but curious, a 1987 JD 755 with rear blade and front end loader (midmount mower is history), with 1500 hours, good running condition, what would a price range be for that?

 

[jyoutz]

I haven't seen prices go down yet. Seem to be holding steady.

What I have seen is purses and wallets snapped shut and people spending less. Mostly I'd say it's due to the "build back better" dumpster fire. Housing prices are still high here but they're not selling 2 seconds after hitting the market. Those coming soon listings have stopped.

People are still expecting to get top dollar + for everything, reality just hasn't hit them yet.

You must live in an economically depressed area. Things are still booming where I live.

 

[Yander]

I don't follow the market, but curious, a 1987 JD 755 with rear blade and front end loader (midmount mower is history), with 1500 hours, good running condition, what would a price range be for that?

Depending on condition, $8 - $10K in my neck. That isn't low hours but isn't bad either. If that tractor was in really good condition and maintained well might even get $11 or $12k.

 

[jyoutz]

Why buy used when you can buy new?

https://www.marketbook.ca/listings/construction-equipment/for-sale/list/category/1046/loader-backhoes/manufacturer/kubota/model/m59

Used older ones are selling for more money now than I paid for brand new. Good condition used ones are like finding sasquatch.

Plus, there is zero percent financing on some brands.

 

[varmint]

I no longer follow the market, but I'd guess that good machinery keeps its value, especially when prices and complexity go up. The two Kubotas I bought used and resold after some years of service both held their value nicely, and I certainly expect my present L3400 (also bought used, from the kind of seller you just hope to run into) to do the same!

 

[OzarkChris]

Why (Unless needed for the tax deduction) would anyone buy anything new? Serious question. I've bought new before but the best buys are always used.

I somewhat agree; however, at least around here, some used tractors are selling higher than new (if you can find new). Maybe not in literal price, but when you add used financing costs vs new financing costs in some brands its actually less expensive to buy new.

Some of us, myself included, don't have $50-100K+ just lying around to buy without financing. In the first year of Covid, I got a really sweet deal on a 2 year old 55hp Mahindra Cab shifter w/~100hrs. Traded in a Kubota ls-2501 hydro that was just too small for what I needed it for. I got more in trade-in for the Kubota (&fel) than I paid for it and HD bushhog, HD Tiller & 3pt dragger.

The dealer that sold it to me, called last summer offering me a TYM 100hp cab w/350 hrs plus a batwing straight trade with 2% financing. I didn't take the offer because of the price of fuel.

So, as I said to begin with, sometimes it is better to buy new, sometimes better to buy used

 

[k2man]

Why (Unless needed for the tax deduction) would anyone buy anything new? Serious question. I've bought new before but the best buys are always used.

If I had the money, I would buy a new tractor. But the value of anything is not the dollars, it is what do you have to give up. I’d rather have an an old tractor and all the tools, a shed and all the machinery to fix it rather than just a new tractor.