Is resale value really all that important?

[ovrszd]

JD tractors are very popular up here in Maine as well , but where do people think they are made,they are just as foreign as any other brand,especially JD as they are made in several different countries.Kubota is very popular with the weekend farmer, contractors,etc. and has a very good resale value.I sold an old L235 a while back and got almost what was paid for it new,I wish I had lots of them as I got so many calls on it.I advertized another off brand tractor to sell and what a hard time I had to sell it.I think resale is important as you never know when your needs may change.I few of the farmers up here tried some off brand for a short while but went right back to what they felt were the most dependable for them.

See that was my point with the story about my JD neighbor Wayne. It's all about perception. If you tried to tell him that his JD tractor even had one part on it that wasn't made in the USA, you would have an argument on your hands. It's all about perception.

Same thing applies when you consider what Roxynoodle said. In her community Kubotas are accepted. In my entire county, I would safely guess there are no more than five Kubotas including mine. Does that mean they are any better or worse than anything else??? Not necessarily. What it does mean is that the best way for a product to get a reputation, good or bad, is by word of mouth. In my community all of the "over the fence" discussions about tractors amongst the farmers is either green or red. They will give little if any credit to the farmer down the road with the foreign tractor.

 

[dbear]

See that was my point with the story about my JD neighbor Wayne. It's all about perception. If you tried to tell him that his JD tractor even had one part on it that wasn't made in the USA, you would have an argument on your hands. It's all about perception.

Same thing applies when you consider what Roxynoodle said. In her community Kubotas are accepted. In my entire county, I would safely guess there are no more than five Kubotas including mine. Does that mean they are any better or worse than anything else??? Not necessarily. What it does mean is that the best way for a product to get a reputation, good or bad, is by word of mouth. In my community all of the "over the fence" discussions about tractors amongst the farmers is either green or red. They will give little if any credit to the farmer down the road with the foreign tractor.

I whole-heartedly agree. Perception plays a huge part in resale value. All these repsonses have been great, and many have contained similar ideas and questions that I've been making for some time too. Thanks Woodbeef for bring this up.

The one time the I personally would place resale toward the top of my list would be if I was purchasing a piece of equipment for a specific, one-time job such as digging a drainage pond, or basement. Any other time, equipment specs, dealer support & attitude (I include attitude because I've met more than couple thought their crap didn't stink), brand reputation, and price are probably the tops on my list.

 

[HillbillyFarmer]

Here in poor man's farm country, there are quite a few "off" brands being used on small farms. They seem to do ok. Some look like they're heavy duty and can take a beating and others look like they're meant for weekend farming on the level. You get what you pay for. Those of us who can afford them have one or more of three kinds of tractors: red, blue, or my choice, green.
I guess if resale value is going to be important to you on down the road then it should be considered in the choice of what tractor you buy. It's a variable like any other in making a decision.

 

[LBrown59]

Only when you go to sell trade or in a repo or refinance.

 

[gbick]

Perceived quality certainly effects resale value. John Deere has cultivated its reputation for many generations. It is sad that the corporate heads are cheapening it now with the throwaway little tractors being sold at HomeDepot. The revered name is losing its mystique.

 

[Keith_B]

Here in Eastern Kentucky I see a pretty wide-ranging collection of tractors used on farms of all sizes. Most people don't seem to care what color it is, what the potential resale value is, etc., as long at they get good service. If they don't get good service they get rid of it and get something that gives better service.

 

[CurlyDave]

... If a tractor is correctly chosen from the begining why is resale value as important as some on here say? ...

From an economic viewpoint, resale value is the free market's all-rolled-into-one evaluation of the quality and worth of a tractor, taking into account all variables possible including dealer network, parts availability and pricing, frequency of repair, etc, etc.

To me it represents a much better gauge of the true worth of any machine than reading all the spec sheets and opinons in magazines available. Based on years of personal experience, millions of tractor users are telling you their opinion of the machine by putting their money where their mouth is.

I don't see how you can possibly get a better real-world evaluation.

 

[Turbys_1700]

Resell value to me is not that important...
We keep our stuff until it's wore out...
And then repair it...
A friend of mind just overhauled his AC 160...
He purchased it in 1975...
Over 4200 hours on it with a total engine rebuild...
Total cost was around $3800...
He's well ahead instead of buying new...

 

[Dargo]

Over 4200 hours on it with a total engine rebuild...
Total cost was around $3800...
He's well ahead instead of buying new...

Whether he is "well ahead instead of buying new" is speculative at best. First, the obvious, what else is about shot on the tractor? How much more will he have to spend each year to keep it going? How much time, important time, could he miss due to a failure on an old tractor? If he uses it for business, it is fully depreciated now and he gets zero tax deduction for the tractor, work likely has to be done slower to help preserve an old tractor (therefore wasting time) etc., etc., etc.

It's definitely not a clear line as to when to scrap something and when to keep pouring money into it. I guess a lot of it would be personal preference. Myself, I would consider it foolish to spend $3800 on the engine of 30 year old tractor that likely has a worn out transmission, worn out rear end, worn out wheel bearings, worn out steering components etc. Simply put, there are way too many variables to claim that he is "well ahead" by pouring money into an old tired tractor.

 

[SkyPup]

Resale value means nothing for us since none of our Kubotas are for sale.