How important is resale value when buying for long term private use?

[Gary Fowler]

I don't consider resale value because I plan to sell. I consider resale value as an indicator of quality.

If you plan to never sell, then quality should be your first consideration, not purchase price.

While resale value MIGHT be an indication of quality, I think it is more of what is in demand by sometimes unknowing public. Just look at high fashion, that many times are made in Bangladesh or some other cheap labor market and using inferior materials but sell for exorbitant prices. Some tractors fall into that category also.

 

[MtnViewRanch]

Fine points for sure. I think the takeaway should be that someone who educates themselves can get a good value. And, I equate the tractor (or new car) dealership with shopping at the antique store. Get a good deal from a private owner.

I agree with this 100%. But a good deal can be found at retail, if you are educated on what you are looking for and patient.

 

[Argonne]

I bought my 2210 new in 2005 as a mower and utility machine with the full expectation that I would have it until I die. I'm now 64, so far, so good. Every other machine I have purchased is used, and has depreciated as far as it's going to. In other words, as long as I maintain them, they will lose no value barring some tech breakthrough that renders them useless (highly unlikely).

Since most of my stuff is old, I do have 2 of most things so I am not out of business if something breaks. My thinking on that is that I can easily have 2 old tractors for 1/8th the cost of a new one, and still have backup in case one breaks. New stuff can break as easily as old stuff, and if your one-and-only tractor is in the shop, you are screwed from a productivity standpoint whether you are paying for the repair or not.

This fall, the injector pump on my Case started leaking, so the Ford took over all of the work. I spent weeks shopping for a good price on a pump rebuild, found it, and got it repaired, and am back to 2 good mid-sized tractors again. No emergency meant that I could shop and get the job done for $550 rather than the $1500 it would have cost taking it to a dealer for a fast repair.

Of course, the only reason I can use this approach is because I put very low hours on anything I have. If I was farming for real, I would be buying new and trading in when reliability was threatened.

 

[ovrszd]

While resale value MIGHT be an indication of quality, I think it is more of what is in demand by sometimes unknowing public. Just look at high fashion, that many times are made in Bangladesh or some other cheap labor market and using inferior materials but sell for exorbitant prices. Some tractors fall into that category also.

I don't know Gary,,,,, that might be a stretch.....

So which tractors fall in the "high fashion" category??

 

[mike69440]

"How important is resale value when buying for long term private use?"
Duuno the answer to that, but I sold my tired 33 year old little Kubota for the $4,000 I paid for it and, according to the buyer, I gave it away.
Kubota holds value very well.

 

[sixdogs]

Nearly everything every bought by me has used potential resale value as not only a confirmation of perceived quality but also a measure of value for what I was paying at that moment. I never plan to sell but always see to. As a result, I never pay too much since I have done my homework on what current and expected value are and will be. As a result, almost everything I own can now be sold at a profit so when I want to trade or swap it's no big deal. The only things I might be under water on are where I violated my values and I knew I was overpaying at the time I did it.

You have to consider potential value as well as never fall in love with anything. They keep making new ones every day and they are endless opportunities. Most of the stuff I own is because I bought right and used that to trade up.

 

[bspeedy]

Nearly everything every bought by me has used potential resale value as not only a confirmation of perceived quality but also a measure of value for what I was paying at that moment. I never plan to sell but always see to. As a result, I never pay too much since I have done my homework on what current and expected value are and will be. As a result, almost everything I own can now be sold at a profit so when I want to trade or swap it's no big deal. The only things I might be under water on are where I violated my values and I knew I was overpaying at the time I did it.

You have to consider potential value as well as never fall in love with anything. They keep making new ones every day and they are endless opportunities. Most of the stuff I own is because I bought right and used that to trade up.

I'm from Ohio, too. Are we related??? :thumbsup:

Same philosophy as mine but articulated much better!

 

[murph1]

I'm from Ohio, too. Are we related??? :thumbsup:

Same philosophy as mine but articulated much better!

He does have a way with words.:thumbsup: Six dogs!

 

[check]

"How important is resale value when buying for long term private use?" Duuno the answer to that, but I sold my tired 33 year old little Kubota for the $4,000 I paid for it and, according to the buyer, I gave it away. Kubota holds value very well.

Don't forget that money depreciates, too. $4000 had a lot more buying power 33 years ago than $4000 does today!

 

[ovrszd]

Don't forget that money depreciates, too. $4000 had a lot more buying power 33 years ago than $4000 does today!

Yeah, the "bought it 30 years ago for XXX and now it's worth ZZZ so it held it's value never seems to factor in inflation. Sounds good though.