Korean Tractor Resale

Pacesetter300 · Jan 1, 2003

I'm exploring every option I can before I make my final decision on a tractor. Driving everyone else in the house nuts, but hey, I'm havin' fun!!
Through this forum, I have become very interested in the Korean made tractors. Kioti, Century, Branson and Mahindra. I have only seen the Kioti in person and I was very impressed. Based on the comments I have seen here, I expect the same quality features and craftsmanship with the other brands. One thing I'm concerned about is resale value. Should I get lazy in my old age and want hydro and a cab on my tractor, I would want to sell. The Branson recently on eBay for $12,500 got zero bids and even some Kioti's go nowhere. A recent example was a DK40/FEL that was new and bid on in the $10K range. Also, the recent example of Daewoo causes me concern. That doesn't factor in the problems with the nut to the North. What can they charge for a part that glows in the dark?? I guess this is all to ask: How much of a hit should one expect compared to the big three when it comes to resale of a Korean tractor?

Thanks in advance

Pacesetter

Anonymous Poster · Jan 1, 2003

I think it depends a lot upon the dealer network in your particular part of the USA. I have been researching Kioti's and if Hydro is a concern, Kioti is coming out with a 21 hp (CK20)model in just a few months and there is supposed to be a 25 & 30 HP following later in the year. It might be wise to find the nearest "hot spots" for your particular brand of tractor and if it does come to selling in the future you could transport it to that particular dealer for trade or possibly sell on consignment. Kioti appears to be rolling out a hot new line of tractors and as popularity increases so will the dealers taking on the line. IMO the resale value of the Kioti tractors will become less and less of an issue as time goes on.

DavesTractor · Jan 2, 2003

The Korean tractors cost less to start with and probably will resale for a little less as well. I suspect the loss of value will be about the same as a percentage of what you paid for it.

Certainly the Korean tractors are nice machines and are gaining in popularity.

Anonymous Poster · Jan 2, 2003

You might want to check with your Kioti dealer about hydro tractors. They are being sued by Kubota for patent infringenment. This will delay the hydro introduction. Also, they are developing their own hydro system. Why does everyone else use Eaton? Have you looked at the Scorpion Line? Eaton hydros, Kubota engines, this has to help resale values!

Anonymous Poster · Jan 2, 2003

I've been selling many brands of Korean tractors as well as the big three for several years and I've found that the Korean tractors retain their value as well as the major brands. The majors may bring a higher price but they also cost considerably more up from the start. Assuming the percentage of decline is roughly the same the actual dollars lost on investment is much higher on the Big Three.

In fact the single most important factor in depreciation in the real world is condition and hours, in that order. It is much easier to sell a tractor with high hours that looks immaculate than a very low hour tractor of the same model that looks abused. That's why I garage keep my own Millenium T390, wash it after use and keep it waxed. Looks brand new after a 150 hours.

JimMc · Jan 2, 2003

Please correct me if I'm mistaken, but I don't recall anything about the HST being involved. It was an issue with appearances only.

Anonymous Poster · Jan 2, 2003

Here is a link to Kubota's web site and their press release regarding Kioti:<A target="_blank" HREF=http://www.kubota.com/prL49.cfm/>Kubota's press release</A>
I did not come across any mention of Hydro's in the press release.

BTW, there is an entire thread in the related topics forum on this issue...

HayDR · Jan 2, 2003

This must mean Kioti is ringing the sales bell and converting some customers to Kioti Orange, close but not the same as Kubota orange. It's just a legal ploy to discredit Kioti engineering. Kubota and Deere do this all the time. Funny thing Deere went after the Challenger saying their design was first, Deere lost and so will Kubota against Kioti. I guess Dodge needs to sue Ford for their F250 clone of the Dodge truck.

Inspector507 · Jan 2, 2003

The F250 is a Dodge clone??.........jeesh now I know I gotta trade......./w3tcompact/icons/laugh.gif

Anonymous Poster · Jan 2, 2003

CCI, I think you are right on the Kioti sales. They are up a lot over here and may be cleaning Kubota's clock overseas. I don't know about the Ford/Dodge thing though, neither one were smart enough to clone GM's.

SHIFTY · Jan 6, 2003

As far as Ebay-You cant go by an online auction to judge resale or to see how they sell,I have had many idems even 02 Kubotas not even come close to wholesale pricing,and after a few"launches"It brings full retail,It depends alot on the time of the year,location and alot of other variables,their are many who are afraid to purchase online or through an online auction.Branson and Kioti do their share as far as keeping up with the big 3 manufactures,I do feel that Kioti is way ahead of branson due to their expanding dealer network,But I feel that all Korean tractors will be at the same tier as the big 3in a few more years

Anonymous Poster · Jan 6, 2003

all i can tell you is i researched new and used tractors for over 2 months, went to 12 different dealerships, when all said and done found kioti to be the best bang for the buck.

Anonymous Poster · Jan 7, 2003

Pacesetter: Yes. I don't understand the comments on how much less Korean tractors are priced. I just spent a many month investigation, culminating in a purchase, of 2 liter engine size tractors. I seriously considered Mahindra (made in S. Korea), Century, Deere, NH & Kubota. The prices I got for all 5 were less than $2k different from the least to the most with the standard loader and a backhoe. The Korean tractors had more standard features though. But the basic tractors were priced almost identical. Either I got high pricing from the Korean tractor dealers, or, good prices from the majors, or, there really isn't that much difference. You might check around and see if you can't get better deals from the majors. I can tell you one thing, a 10 year old NH or Kubota or Deere will almost certainly sell for more, and, if the new pricing is similar, the depreciation hit will be less. JEH

Pacesetter300 · Jan 7, 2003

Grimreaper, You found the same circumstance I did. As part of my education, I checked with a Mihindra and Branson dealer. The pricing for what I was asking about (4110 and 4320 respectively) was close to $20K with FEL. I can get a L3830/HST or DK50 for that kind on money. I certainly won't buy one at a greater distance than these two dealers, because there's no one else to support me. Some in this group are getting much better prices and I don't blame them for looking/buying. Just not in the cards for me.
pacesetter

DavesTractor · Jan 8, 2003

We sell the 4020 Branson with the BL20 loader for under $16K. We figure if we keep the price up at full list we won't be able to encourage shoppers away from the Big 3, so we make the price as competitive as possible. It seems to be working so far. Make a little, and sell a decent volume of tractors is the way to go.

dancce · Jan 8, 2003

Hey Grimreaper,

Consider this:
Who knows for sure what the hot sellers will be in ten years or so.Ten or fifteen years ago, Kubota was not a well known brand. Granted,back then JD was,but they were actually making their own tractors then. NH is definitely not the same today as then. Can we even say F-O-R-D?
The compact tractor market is relatively new for everyone and is dominated by Japan and South Korea.

Dancce

Anonymous Poster · Jan 8, 2003

Pacesetter: The new 30 series Kubotas are really nice. But, be aware the 3830 has been cut to a 3 cylinder engine (and some other stuff). Its predecessor, the 3710, was a 4 cylinder. Not that it makes that much difference, but they used a cheaper engine in order to put in more glitz-well, not all glitz, the new seat is really comfortable. The "video game" dashboard is silly though and costs $250 m/l if something goes out. But it is a nice tractor that has (or can be added) everything from mid pto, creeper gear, etc etc. Why do you want the HST? The number of dealers, as you said, does make a difference. I have 10 or so NH dealers within 90 miles and there are many JD and Kub dealers as well. Have you looked at the JD 990? That is a very solid tractor-the whole thing is made by Yanmar. It is ALL metal, even the gas tank. Doesn't have a separate shuttle shift though. I got a price of $25,025 including BH & loader. It the loader had been a bit stronger, I might have bought that-I need a loader with 2,000 rating to lift vaults. Anway, good luck. John

Anonymous Poster · Jan 9, 2003

Dancee: Too bad you're not around here. I really wanted to get a good look-see at the Zetor. The Century dealer around here who carried Zetor never had one on the lot in the months I was looking. Was impressed with it when I saw one at State Fair in August. Of course, you're right. Who knows how the market will change in the future. Ford & subsequently NH has been making their subcompacts (or at least buying engines, etc.) in Japan for nearly 20 years. The old 2120 series was made there. And Yanmar has been supplying Deere for a good long while. But Deere & NH are full line ag manufacturers (as well as industrial equipment). I doubt if the Korean stuff will run them out of business, so parts will always be around. JEH

Anonymous Poster · Jan 9, 2003

Yep Deere and CNH will be around, just probably ALL made outside the USA before too long the way things are going.

dancce · Jan 10, 2003

Grimreaper,
Yes sir, I also wish we were closer--we have a good selection of both Zetors and Centurys in stock.
Of course you are right about JD and NH being full line.(I have a hard time saying" manufacturers" in that sentence,though!!). Can't really fault them for outsourcing so much of their lines,--they have a responsibility to their stockholders.
Your point, about the longevity of both these companies, is well taken,and I too, doubt that the Koreans will run them out of business. At least not in the near furure

Too bad someone can't actually manufacture these tractors here in the US---but that's a whole 'nother topic!!

Dancce