kubota or mahindra

[rScotty]

The used (pre Tier 4 market) is inflated because people are realizing the post 4 units are problematic. I don't want to call it inflated though, just pre 4 units are more valuable.

Had a buddy call me the other day. Told me at an auction he went to, a 2004 M9 Cab tractor sold for 42 grand. That is what I paid NEW for my 2004. Good return on investment for the previous owner.

You cannot a pre 4 unit over 80 pto around here at all. Either the owners that have them are keeping them (like me) or they get snapped up immediately.

I don't need or want anything post 4 and that includes my pickup truck.

A good investment for sure. I'd call that a good investment - especially since he got the use of it for 15 years e & probably some write-offs.

I have to keep reminding myself that the dollars aren't equivalent. Considering inflation since 2004, by selling his 15 year old tractor at his original purchase price your buddy actually got back about $28,000 worth of his old 2004 dollars. To get back his whole original investment he would have needed to sell for $56,000 in today's money.

 

[RickB]

Considering inflation since 2004, by selling his 15 year old tractor at his original purchase price your buddy actually got back about $28,000 worth of his old 2004 dollars. To get back his whole original investment he would have needed to sell for $56,000 in today's money.

All too often overlooked.

 

[5030]

All too often overlooked.

True but he had all those years of service and in my case with mine, a sizable depreciation and tax write off as well. Only thing I buy new is farm tractors, Everything else, including vehicles I buy used but late model. I let the original owner take the depreciation hit. been doing that for years, especially with vehicles. Always buy off lease with them.

if you factor in depreciation and interest write off (if on a loan), selling a used tractor (pre 4) at the original sale price, is a win win. It's comforting to know that having 2 just like the one that fetched the original sale price, makes me feel good about selling them if I ever do, which is doubtful. Plan on keeping them until I no longer farm.

 

[5030]

I wonder what the resale value is of a Mahindra compared to a comparable year and power of a Kubota? I bet the Kubby holds it's value much better and that is always a consideration because very few owners keep their tractors forever (I'm an exception)...lol

I'll be worn out long before either of my M9's will be.....:laughing:

 

[Industrial Toys]

I have spent many hours watching a guy on youtube tearing apart power tools. The guy knows his materials. If there are hundreds of options in a power tool (plastic and metal) based on cost and performance, I can't even imagine how many there might be in a tractor.

 

[nards444]

I think it is moving in that direction too. No deals, just a take it or leave it price.

But I disagree that the internet is what changed it. Sure the internet has a role, but I think what changed it just as much is how much that the used market in anything has fallen. People would rather buy new today. Manufacturing has embraced that by ensuring that many new things are no longer repairable. Buying an item new then becomes the only option - which adds to the strength of a debt-basic economy in which manufacturers make money twice.... once on the item itself and again by financing the purchase.

This new way of doing debt-based consumerism seems to me to be very different from the old "deal" making economy that relied heavily on a used market in repairable items.
rScotty

I think we are both right and I will explain the internet. The used market has fallen off mainly due to pricing. Things are pricey today specially big things. I just bought a 26hp Kubota this spring, 27k, really 27k worth of material there, I dont think so. Really what has happened in cars, toys, big ticket items is people are financing, yeah I know that argument again. Even with 10-20% down these are sizeable loans. 2-3 years down the road people are selling or trading and still owe a lot and are demanding a lot for used items, IMO tractors, trucks on the used market are artificially priced to high they just arent worth what people are asking, that is why you see high pricing. I stopped buying used in a lot of ways because the cost effectiveness just isn't there. To be honest we are due a price correction on cars, bigger ticket items like tractors, boats etc. I think the next economic down turn we may see that, that and or student loans will be hit.

Here is where the internet has changed pricing and deals. One word is Amazon, Amazon is the internet when it comes to e-commerce. Amazon has changed pricing and markets more than anything. But that has trickled down into other things. In todays world for MOST things(not all) merchants no longer compete with stores in a 30-60 mile radius they compete with stores hundreds maybe even thousands of miles away. In a matter of 15-20 mins I can legit probably browse and get pricing at 4-5 dealers on just about anything. The internet has affected commerce big time, no longer can the local jocal dealer put on the home town tshirt offer free coffee and a steak dinner and win the sale.

Either way were heading to up front pricing/ take it or leave it. I dont know if that is good or not, I tend to think it might be because I think dealers are going to be forced to do their bottom line up front on everything. Remember the internet I can from my house email, phone, etc and pay. Im sitting in NY I can make a deal in AZ save 5k pay 1000 to ship it in a matter of a few hours, 10-15 years ago that wasnt possible.

 

[5030]

Smaller items, certainly, but large items like tractors, no. Transportation will eat you alive at @1.50 per mile (which is the going rate today). So you buy say a Grand L in Texas because the price is good, you then get to add an additional 2 grand to get it back to your place. Then there is the buying 'sight unseen' and it's pitfalls. I never do that. Always from a local dealer or individual where I can go and physically look the machine over. Did just that last spring when I purchased a used M9 from a dealer 400 miles away. Went and physically looked it over, ran it and checked it out carefully before I bought it. Tractors or cars or trucks are way too complex to buy sight unseen, especially used.

 

[nards444]

Smaller items, certainly, but large items like tractors, no. Transportation will eat you alive at @1.50 per mile (which is the going rate today). So you buy say a Grand L in Texas because the price is good, you then get to add an additional 2 grand to get it back to your place. Then there is the buying 'sight unseen' and it's pitfalls. I never do that. Always from a local dealer or individual where I can go and physically look the machine over. Did just that last spring when I purchased a used M9 from a dealer 400 miles away. Went and physically looked it over, ran it and checked it out carefully before I bought it. Tractors or cars or trucks are way too complex to buy sight unseen, especially used.

Disagree people are doing it all the time. Even if pay 2k to ship but save say 3k overall still make sense. If I buy brand new its new and I have a warranty. yeah I wont buy big thing sigh unseen either and understand what you are saying. But people shopping and buying from far is happening and it keeps growing.

 

[fried1765]

Disagree people are doing it all the time. Even if pay 2k to ship but save say 3k overall still make sense. If I buy brand new its new and I have a warranty. yeah I wont buy big thing sigh unseen either and understand what you are saying. But people shopping and buying from far is happening and it keeps growing.

In June, sent private party seller a cashiers check as a $6,400, deposit on $32K used Kubota L48 TLB.
Two weeks later drove the 350 miles into the hinterlands to pick it up.
Paid the remaining $25,600 with another cashiers check, and drove away.
I did not see the machine until the day I picked it up (had 250.9 hours).

Have made three distant car purchases this way, including a very recent purchase of a used Mercedes E350 Sport.
Have not been dissatisfied yet.