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

[sixdogs]

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

...

Not sure. How many dogs do you have?

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

Here's a chart. Plug in the price and date and it will give you value of a dollar at that point.
CPI Inflation Calculator

 

[ovrszd]

Thanks for the chart Six!!!!

My ole Ford supposedly sold for $16K new in 1984. It would cost $37K today.

For what it is, I guess that's not too far off.

I've got $12K in it having bought it two years ago.

I think it was a better investment than my new Kubota.

 

[Steppenwolfe]

I would be a little concerned because sometimes we buy something with the intention keeping it forever, but then two years down the road we want it gone. Buying something with a known higher resale value will in all likely hood keep the original price higher also.

Excellent point. I did that with my first Kubota rtv. Bought a two seater, then realized two years later I really needed that four seater. Dealer gave me 93% of what I paid for it, they were in that much of a demand.

 

[sixdogs]

My ole Ford supposedly sold for $16K new in 1984. It would cost $37K today.

For what it is, I guess that's not too far off.

I've got $12K in it having bought it two years ago.

I think it was a better investment than my new Kubota.

Now, it's even more telling to figure out after tax dollars from one date to the next. In other words, how much did you have to earn in each example to wind up with the mentioned after-tax amount. I haven't figured that but taxes are way up so you toiled ore than you think.

Better than a new Kubota? Hey, that Ford is cute but let's not freak out.

 

[MossRoad]

From another thread discussing buying a tractor for private, non-commercial use:




I'm just wondering how many TBN'ers are concerned with resale value? I compared my tractor costs to what it would take to rent comparable equipment, disregarding resale value. I don't plan on selling them, I plan on maintenance and continued use. I've tasks I need to do.

I bought our current machine with the intention of patching, repairing and upgrading for the rest of my life. No thought about ever selling it.

But the machine before that was bought used, with the specific intention of getting rid of it when the tasks it was purchased for were finished.

It is something to consider.

 

[Steppenwolfe]

I bought our current machine with the intention of patching, repairing and upgrading for the rest of my life. No thought about ever selling it.

But the machine before that was bought used, with the specific intention of getting rid of it when the tasks it was purchased for were finished.

It is something to consider.

Yep, doing that with my mini ex. Couple of years, and she'll be gone.

 

[GManBart]

When owning a piece of equipment long term resale value is of no concern. Predicting the value of a piece of equipment 10 to 20 years down the road is nothing more than a guess.

If using the equipment for a specific purpose or short term then resale is critical in determining buy vs rent. Renting a backhoe for six months would be costly. May be worth buying used and resale to save cost.

Resale is at best an educated guess.

Personally I don't consider resale value when buying equipment.

^^^This^^^

I bought a backhoe because I knew I would need it off and on for a year or two. Renting one wasn't going to work, so I bought a fairly new model of the most popular brand around here, hoping that would help the resale value and draw more potential buyers.

If I buy another farm tractor it will be a long-term purchase and all I'm going to care about is whether it fits my needs and budget.

 

[bspeedy]

Not sure. How many dogs do you have?

Ha!

Call me nodogs.

 

[sixdogs]

Cute. I like that.

 

[paulfun9]

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 think your example is a very good one but the in demand by an unknowing public has proven true all too often.

I buy and sell things as a hobby and many times have to laugh at what people think or perceive as value or quality. My wife is a perfect example who falls for EYE CANDY rather than the reality of actual use -VS- dollar amount

I see other examples being put forth here like old furniture and such but one thing I rarely see considered with the smaller ticked things is time invested in researching, educating yourself and time invested in the search for an item that will have no more use than the newly manufactured unit Think I have how many years left here and my antique desk will last me no longer than my newly purchased desk and which one cost more, which one is built to my specifications and which one isn't. I will give a hint it took me 1 hour to draw up the new desk and 30 min to discuss price with the local builder who offered to build it, I searched for the old antique desk for months and months with multiple road trips till I found one worth buying.

WHat I am also trying to say here is there is a lot more to consider than most think and sometimes concentrating on just one factor too much can be as much if not more of a loss than you realize when you will most likely end up compromising on something in the end anyway.