No one does. A 1971 deere 4020 is now averaging $20k. Originally 10-12k. That original money has inflated now to $70k, but ask anyone and the depreciation is nill, and it has really held its value, like it's some kind of investment.Now, you have me wondering how many people take inflation into account when referring to past events and was this a good deal?
A good lengthy recession might sort things out a bit. Unfortunately Governments like massive inflation because it magically makes their debts and foolish spending smaller.
No one does. A 1971 deere 4020 is now averaging $20k. Originally 10-12k. That original money has inflated now to $70k, but ask anyone and the depreciation is nill, and it has really held its value, like it's some kind of investment.
I've bought 2 new tractors in the last 10 years+- because I am not mechanically inclined......at ALL, so I need the warranty. Also, because of that, I have to worry WHY person is selling a used machine. Could be it has problems I won't notice.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.
Yes, this is where the money is. But that's usually omitted when talking buying and selling. It's more fun to say I bought one year, sold it later, and "made money" on the transaction, when that may not be (probably isn't ) the case. That 4020 cost 50k just to keep it around based just on resale value. Whether or not it made money other ways is a for the accountant to figure out.the tractor did 50 years worth of valuable work which has to be included
Obviously age and condition will dictate how much a tractor depreciates. In my case, it's hard to judge actual depreciation. I've owned 7 Kubota tractors over the last 45 years. Each was purchased new with a trade. In every case, I got what I paid for the tractor in trade in value. All were garage kept and in excellent condition with less than 1200 hours.Seeing the post this morning about the decline of the new tractor market made me think.
What is the expected deprecation of used tractors?
How much per year or per hour can you expect your equipment to lose in sale value on the used market?
I'm sure it matters if you are picking up a JD or Kubota vs other brands like Kioti, TYM etc. What difference does that make on a used sale?
Would it be fair to say that you lose 30% the first year just because of the dealer costs?
If you are picking up a used tractor from a dealer vs a private party how much more would you pay?
Did people who bought in late 2020 to mid 2022 potentially lose out if they were expecting to sell now because of the loosening of the market?
Hopefully this makes sense. I appreciate your thoughts!
I believe the prices posted on tractordata.com are without a loader. (Something to keep in mind)All of my tractors are old enough, they could sell today for more than I paid for them.
With the .gov induced inflation, seems like it doesn’t even have to be very old anymore.
$17k was new price.
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These are current on going auctions.
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However much the dealer has to mark it up to cover operating costs, overhead, etc. vs the guy that just wants to sell a tractor, not trying to make a living.