John Deere vs. New Holland

[8023]

This is my first posting on your website and I hope you can help. Reading through people's responses has been very informative.

We are trying to decide between a John Deere 4120 and a New Holland TC40DA. Both seem to have the same horsepower and lift capacity we are looking for, but I am concerned about resale value. The John Deere is $1200 more, but I believe it will have a higher resale value over the long haul.

The primary use for our tractor will be to lift and move 1200+ lb. round bales from the trailer, to the barn, to the round bale feeder in a corral - in all kinds of weather and conditions. Additionally, we will be lifting and moving 1000+ square bales. On average, round bales need to be replaced in the feeder every 3-4 days. Other uses will be mowing fields.

If you have any opinions on resale value of these two brands and/or other helpful advice it would be much appreciated. Thanks. /forums/images/graemlins/confused.gif

 

[DocHeb]

The tractors are essentially equivalent. Buy from the dealer that you seem to get along with the best. Resale will not be an issue because you'll love either tractor so much you won't get rid of it.

 

[MikeFromVA]

Welcome to TBN! Since resale seems to be a large factor in your decision, how long do you intend to keep the tractor? If you are keeping it for 10 years, then a difference of $1200 is only $10 per month - that is assuming that you get the exact same for both tractors on resale. Most likely, your will lose very little on the resale - meaning that a $1200 difference now may result in a $600 difference on the resale in 10 years - pure speculation of course.

Seems like you should base your purchase on what you like the most now and which dealer you like to deal with more...

Good luck in your decision.

 

[thcri]

The 1200 is peanuts. I wouldn't even put that in your decision. Put you blinders on and then test drive each one again. Don't look at the colors. Get to know each dealer a bit more. Which dealer do you think is going to give you the best service after the sale. I don't care what color they are, your tractor is worthless if you dealer isn't there for you. Go for the dealer, then the one that fits you bu** the best. You may even want to throw another tractor in the picture just to get an idea.

Murph

 

[Bob_Skurka]

So far I tend to agree with everything that others have written, but I'd like to expand the money issue a bit. Making the assumption that we spend $1200 more for one machine, I think you could also make the assumption that 10 years from now when you sell that machine it will have a $1200 higher resale value.

1) - But during that 10 years the actual dollars value of $1200 will drop relative to inflation at a rate of probably 3% per year. So $1200 more in resale value 10 years hence is not really worth $1200.

2) - And there is opportunity cost that should be applied to the $1200, because if you put that same $1200 into a bank CD or Money Market Fund you would likely earn 3% on average per year over a 10 year span. So buying the cheaper tractor and putting the $1200 into savings will earn you money.

3) - And if you are financing the tractor then you MAY or MAY NOT be paying interest on that $1200 and the rate of interest is an actual cost that needs to be added onto the $1200. Further that amount would also become an "opportunity cost" which reduces your value. Further that amount would also be lost income if you put the money into a Money Market fund.


As far as the tractors, we are talking about two deluxe machines, both are likely to hold their resale value pretty well. Deere may hold it a little better because it is somewhat more popular? But does a Cadillac DeVille hold its value better than a Lincoln Town Car after both are 5 or 6 years old? I suspect that as close as the prices are, there is no real reason to factor in a retained relative value differential for a tractor that will likely be used for a decade or two. Buy the one you like better from from the dealer who will hold your hand and wipe your tears when/if the thing breaks. Personally, I want a strong dealer relationship. I've never had a serious breakdown, but I know I can count on my dealers for my repairs and for good service.

 

[DavidJ]

I think you're putting too much emphasis on resale value. I personally think the dealer is a much bigger influence on whether to spend an additional $1200.00 than anything else. As was mentioned earlier, sit on them, talk to the dealers and their staff, talk to your neighbors, then go with the whole package YOU like best.

 

[BeeFarmer]

I was in the same position that you are in trying to work out a 750.00 difference between two tractors. And to add to that even trying to work out 250.00 from two NH dealers. I ended up getting the tractor that felt good and from the dealer that was fair and close to where I lived. The final cost unless it is completely overboard shouldn't be the decision but the comfort of both the tractor and the dealer. After the fact purchase relationships will mean A LOT!

 

[jinman]

With a 1200# round bale, you are going to have to be very cautious with that much weight out front on the loader. I'd suggest you put a round bale on a trailer and haul it with you to the dealers (both JD and NH). Try those tractors and see how they feel with that load. You might decide you need to go for even more size and weight.

I'm suggesting you do this only because it will be a hassle if you get that tractor home and you aren't pleased with it. I think either tractor will handle the load, but you need to run a little test to see what you think. For example, if the JD's power steering works better with that much weight on the front wheels, all of a sudden it's not a loader issue but a power steering issue. I'd want to know all those things before I took delivery on either tractor. /forums/images/graemlins/smirk.gif

 

[Dargo]

I don't know if it is still the case, but when I last bought a Deere, a 4600, I compared it to the same hp NH. There was several hundred pounds of weight difference in the two tractors. Again, I don't know if that is the case now. At the time I went with the Deere just because it weighed several hundred pounds more and seemed to feel more solid. Basically, I didn't feel that there would necessarily be a quality difference between the two, but the Deere was a sturdier machine and that was what I wanted.

As the others have mentioned, drive both and buy what you like the best. Resale seems to really depend on where you are in the country. JD holds better value here than NH here. I actually made money on the JD 4600 when I sold it! Apparently in some parts of the country Kioti have reasonable resale value. Due to circumstances I'm not aware of, they drop like a lead balloon here. /forums/images/graemlins/confused.gif Kubota used to be about the same as NH, but lower than JD. Now, Kubota holds as much as JD in my area. So, based on all that, who knows what your resale value will be in 10 years.

 

[cowboydoc]

1200# will be fine on that tractor. The loader capacity and hydraulics are the same or better than my 4600 and I lift 1000's of 2000# bales with mine and have never had a problem. It's wise to put one bale on the back end with a three point bale spear. That way you don't have to worry about tipping at all.