First year depreciation of JD2210 or BX2230

gary_minnesota · Jun 23, 2004

My need for a CUT w/loader is probably only 200 hours spread over the summer and fall. Rather than rent a machine for hundreds per week, I'm thinking I'd be better off buying one of these machines, keeping it for about a year and selling it. I understand I'll need to account for 6.5% sales tax, depreciation, maintenance and possibly some interest, but by comparison, skid steer loaders go for 2 grand per month around here.

Any ideas on which machine would drop more in value over that year? Also, what percentage do you think I would realistically loose? 10% - 15% - 20%
Price wise, I can get the BX about $1000 less than the JD.

I don't necessarily need these large of machines, I could get by with the smaller BX series or even a JD x500 series, but I think there is a larger demand for the bigger CUTs which would help my resale value.

/forums/images/graemlins/confused.gif

Any input would be appreciated.

755inNY · Jun 23, 2004

This is a difficult guess. So much depends on the your local market. How much off MSRP can you buy the tractor for? I would expect that you would need to price it at least 10% under the lowest discounted price for a new unit and probably closer to 20% depending on the financing deals going on at the time.

I would suggest that you get the tractor with the options typically purchased in your area even if you would not use them. You may even consider getting the extended warranty if it is priced right and transferrable. May give the new owner more piece of mind.

You did not mention it but I would stay away from the 4XXX tractors as they are coming out with new models in the next year. This may make a used one harder to sell. Haven't heard if the 2210 will be changed.

Given that tractor buyers typically research the heck out of things for several months, it might me a good idea to start offering it for sale a few months earlier than you actually plan to sell it. You will be able to develop a list if interested buyers.

Jeff

Will_C · Jun 23, 2004

I'll have to agree with Jeff. You will take the biggest hit in that first year of depreciation. I personally would want to get $2500 or so off the cost of a new tractor to consider buying a year old model with 200 hours. Have you considered buying the year old machine? Assuming you can find one that meets your needs, I think that you would suffer much less depreciation that way.
Will

Henro · Jun 23, 2004

If I were going to buy new and use one year and then sell, I would figure on losing 30% and if I ended up losing less would be happy.

I doubt I would buy new if I were only planning on keeping the tractor a year. Buy used and sell it later and you may find yourself in an almost winning situation.

Would you buy a new car to use a year and sell it? Not the same thing as a tractor, but in some ways it is... /forums/images/graemlins/crazy.gif

RonR · Jun 23, 2004

Henro,

Based on your latest pic, I'm not sure retirement is working out too well for you. /forums/images/graemlins/frown.gif

I hope my looks don't deteriorate that much when I R in 3 YRs! /forums/images/graemlins/grin.gif

Best wishes,
ron

gary_minnesota · Jun 23, 2004

I've been looking for used with no luck so far. The quote I have is JD 2210, FEL and box scraper for $13,200 plus tax. For some reason, I can't get the JD "build your own" site to work from home, so I haven't been able to determine what discount level this quote is at. Guess I'll check it tomorrow. Of course the dealer guesses I'll only lose 1500 bucks plus my taxes of $850, so $2350 bucks would be my loss. This is still cheaper than a long term rental. I guess I'll check the JD site tomorrow to see if I can do better.

BotaGuy · Jun 23, 2004

I think you can find plenty of used models to offer plenty of value. I would maybe bypass the subcompacts, and look for a 755, or 855 Deere. The 4100's used with loaders I have seen for under 10 grand. But probably the best bet would be a Kubota B7500 with loader. I have seen several on ebay, and www.equipmenttraderonline.com with loader for 9000-12,000. A. you wont pay sales tax....go buy another implement, B. You realistically could use it for a year and re-sell it for what you paid. If you plan to resell that quick, be sure to buy Kubota, Deere or New Holland for the highest re-sale, and quickest turn.

Junkman · Jun 24, 2004

If you want to maximize your return, then consider the BX23 as the tractor of choice. There are a lot of BX1500/1800/2200 machines on the used market, but I only know of one BX22 that was offered for sale used. I declined to purchase it, because it wasn't optioned the way I wanted it, but it sold to the next person to look at it for the asking price. This was $1500 less than a new machine at a Kubota dealer with the options that I wanted. The only difference was that it took 3 weeks to get the new machine in at the dealership. The seller told me that he had more calls on the machine than he could schedule appointments to view it. I was the first person to look at the machine and it was sold by 10 AM the morning after being advertised, if that gives you some idea of popularity of the BX22/23.

Dave___in___CT · Jun 24, 2004

HI...

Check into leasing the tractor...

For me... as suggested... I'd buy used...

Dave...

MessickFarmEqu · Jun 24, 2004

</font><font color="blue" class="small">( If you want to maximize your return, then consider the BX23 as the tractor of choice. There are a lot of BX1500/1800/2200 machines on the used market, but I only know of one BX22 that was offered for sale used. I declined to purchase it, because it wasn't optioned the way I wanted it, but it sold to the next person to look at it for the asking price. This was $1500 less than a new machine at a Kubota dealer with the options that I wanted. The only difference was that it took 3 weeks to get the new machine in at the dealership. The seller told me that he had more calls on the machine than he could schedule appointments to view it. I was the first person to look at the machine and it was sold by 10 AM the morning after being advertised, if that gives you some idea of popularity of the BX22/23. )</font>

I second that, since the BX23 is so unique you would loose the least there. 2230's on the used market are not exactly common either. I would check with a local dealer and see if they will sell it on consignment for you. Given a few weeks I am sure we could get 1000-1500 below retail on our lot.