Expected Depreciation in Used Tractors?

[Dennis59]

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!

In 2000 I bought a New Holland tc29d in 2001 I bought a new car both cost about the same. The car lasted until 2011, I still have the tractor and it will be with me for another 20 or more years. If you buy the right tractor for your needs you will not be concerned with deprecation because you will not be selling it.

 

[hornett22]

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

Not at all.

You've always lived in the land of delusion so I'm not surprised.

 

[rScotty]

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.

OK. Serious answer: I had always bought used. Not for price so much, but because I like to see and listen to a machine with a few hours on it to access how it is holding up. And because I think I get more value by looking at the condition, options, accessories, and history than for slight differences in price.

But your question was about buying new.... I surprised myself by buying new a few years ago. We had looked through the summer and couldn't find anything on the new or used market that fit our needs - basically to landscape a few acres in the mountains with half a mile of creek & build a house & corrals.

When we found the right machine, it happened to be a new demo on a dealers lot - There was also a low hour used one right next to it for 20% less money. I sat on both & decided that new or used was less important than it having all the right options. So we bought the new one.

It turned out that I did use the warranty - although not until after it had expired...but that's another story.
rScotty

 

[Gale Hawkins]

I consider all my old iron to be appreciating.

 

[DanBick]

Because I didn't want to buy something that someone like my former neighbor used to own.

He basically had a battering ram with a seat. He also like to go twenty feet and shut it off piddle for 30 seconds and hop back on and start it again. He'd take his lawn mower in the woods to mow down sapplings and then bring it over asking why when he engaged the blades it stalled. When I'd say your blades are bent and jammed into to deck, he'd say, oh, they must be defective. It's under warranty, I'll have the dealer come and get it.

Agreed! Too many people think if they have a small tractor with a loader on it they have a bulldozer.

 

[BleedingOrange]

What I have found is, it depends on who is doing the buying, or selling. Have you ever tried to buy a demo car, truck or tractor. I have seen 10K miles on cars and trucks, and the dealer discount is peanuts, because it is a demo. I have seen the same with low houred CUTS as well. Now try trading in a like new vehicle with only a 1000 miles on it, and see how far down the vehicle has been discounted. I tend to buy gently used private deals. I can easily save 30 %, or more, by buying from private sellers.

 

[jiggseob]

In 2000, I paid $7k CAD for a 15 yr old Kubota B6200 hydro with loader and tiller and belly mower. When a Kubota or similar compact tractor shows up across Kijiji (what Canadians use instead of Craigslist) it is at least $10k, no matter how old it is. I know that $7k 22 yrs later has inflated to alot more than $10k.

All of that doesn't matter. I maintain the Kubota, repair whats broke or worn, and with the 50 hrs / year I put on it, it will last me the rest of my life. It does the yardwork just as well today as it did 22 years ago. No reason to expect it will not continue to do so. After I throw a rod and punch out the side of my engine block, the Kubota will still be running as good as the day I got it.

My next of kin will absorb/not-care about whatever "depreciation" or "inflation" hit. Since they derive their genetics from me, they will likely be feuding over who the hell knows what, and sell the Kubota for $500 and think they did well.

When it comes to equipment of any sort, do not "under-buy", that will cost you. The Kubota B6200 is probably a bit "over kill" for my 1.5 acre postage stamp lot. I could have got by with some sort of Wal-mart brand ride-on tractor mower. Which I would have replaced at least three times in the past 22 years, at a cost of much more than $7k.

 

[HAR]

I just took a look on tractorhouse.com and searched for my tractor model. There were 5 listed, 4 with price, one as for parts only with call for price. Of the 4 with prices, the average price was $8360, including varying one piece of equipment, but 1 included two pieces. This is for a 22+ year old tractor that had what once was about $10k MSRP for the tractor alone. $10,000 in 1999 is about what $17,000 would buy today. So, something that is 22 years old is worth about 50% of the original purchase price today. I only wish my cars would/could last as long and still be running so dependably and have that kind of resale value! Not that I would even think of selling or trading my tractor right now! Oh! I have to get up early and blow snow. Good night.

 

[Bentley Meredith]

This is an interesting thread for me. I may end up selling my (bough new) 2014 LS R3039 in the next 18 months. It has 1400 hours on it and has been serviced on a regular basis. It has a bucket and the back hydraulic hook ups, don't even know the name for them as I have never used them. Outside a small tear in upper right hand of seat I believe it is in very good running shape. What could I expect to get for it if I was to sell it right now?

 

[WinterDeere]

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?

MFWD or 2wd? Which loader?

I sold an 855 MFWD with 52 loader in very clean condition for $8500 in 2019. I can't remember the hours on it, but somewhere around 1700 - 1800, I think. It was the older and less-desirable (for anyone who actually knows) 1986 variant, before the redesigned the series in 1987. So, a part replacement would sometimes mean having to upgrade other parts around it to the newer design. If yours is the newer variant (check by s/n), then it should have more value, as maintaining it is easier and cheaper than the version they only made for one model year.