New vs. Almost New

[holzboat]

There seem to be quite a few "almost new" tractors for sale. If you were looking at $10,000 - 15,000 one, how much would you have to save to make it worthwhile to buy used. New comes with free/cheap financing with insurance, and a warranty. Used usually means cash up front, no warranty and no sales tax. I've seen 2-4 year old garage kept tractors with very few hours but they often ask almost new prices. What's your cutoff point?

 

[rtimgray]

For the CUT market, where say we're talking in a $15,000 to $25,000 for a "new" price, for me the breaking point is about $5,000 - $6,000. Of course, all of that is extremely situationally dependent. New, as you mentioned, is more or less a known quantity that in a lot of senses is "easier" to buy and has better peace of mind than buying used or nearly new. So anytime someone compares buying new vs. used, it really depends alot on what the used tractor is - hours, conditions, past history, how much do you believe what the seller is telling you, etc.

The only reason I say all of this is because I just went through this decision. At first I was looking for a larger tractor than I currently have, then decided to go for one a little smaller than what I have, and ended up with one about the same size as I have now. I priced new tractors in the same size that I eventually found a used one, and it was about a $10,000 difference with what I ended up buying. However, in the course of the search, as I looked at different tractors, that $5,000-$6,000 range of difference seemed to be what made a used tractor more attractive than a new one, and the greater that number got, the more attractive used tractors looked.

Obviously, the used tractor I bought comes with more risk than a new one, but for the difference that I saved, I can do a lot of repairs, and in my situation, it is a 2nd tractor, so I can afford some downtime.

Anyway, that's my thought, for new vs. used. For new vs. almost new, if the difference is only a couple thousand, I would probably go new....

Good luck and take care.

 

[chim]

The last two I bought were new. Both times when searching for used tractors the better the prices were on the used ones, the worse the condition. There are screaming deals on used tractors if you have a lot of patience or are lucky. After a few months of looking I surrendered both times.

 

[bp fick]

My first two were new. One develops a sense of the quality of the these machines and that may provide confidence is buying a select, prime, used one the next time.

My most recent "used" tractor was clocked at 24 hours and I saved almost 30%. No brainer for me. It was just the planets lining up and it was a really good move, for me, at the time. It was a very painless decision.

 

[Corey MARSHALL MACHINERY]

Hi Holzboat,the big killer is the interest Rate. IF you are within a few thousand of a new tractor it doesn't pay.
I usually show my customers on paper the payment difference so they at least see how close it is.

 

[Bluegill2]

I saved 4k on my 'used like new' 14 hr L3800DT 2 years ago.

I will always go for the 'like new used' if the savings are good.

I don't finance...

 

[murphy1244]

I saved 4k on my 'used like new' 14 hr L3800DT 2 years ago.

I will always go for the 'like new used' if the savings are good.

I don't finance...

What happened to the Great resale value that Kubota supposedly has? I thought so.:laughing:

 

[davrow]

What happened to the Great resale value that Kubota supposedly has?

I still believe in the "great resale value". Not all buyers are as well informed as those on TBN. Someone buys those "used like new" for near new prices not knowing any better, just seeing it is less than MSRP.

 

[Bluegill2]

What happened to the Great resale value that Kubota supposedly has? I thought so.:laughing:

I got lucky...

 

[Wayne64SS]

i couldn't touch anything that close to new for much less than a new tractor. I normally don't finance either, but when they're giving you money for free, you take it. It just doesn't make sense to lose warranty coverage etc etc for such a little bit of money off. I'm in NY too and I went out of state for mine, nobody local wanted to play the game.

 

[TSO]

i couldn't touch anything that close to new for much less than a new tractor. I normally don't finance either, but when they're giving you money for free, you take it. It just doesn't make sense to lose warranty coverage etc etc for such a little bit of money off. I'm in NY too and I went out of state for mine, nobody local wanted to play the game.

Free money is never free ... especially in terms of 0% financing.

 

[Wayne64SS]

Free money is never free ... especially in terms of 0% financing.

please elaborate.

 

[TSO]

Every time I have seen 0% ... it comes with money built in somewhere. These companies are in business to make money. If they offer 2.9% and expect to bring in an additional $1500 in interest, it's a safe bet that they have $1500 (or close to it) built into the purchase somewhere for 0%.

For example, the 2.9% might come with a rebate that 0% does not have.

Every time I've called a Kubota dealer to ask for pricing on a new tractor, the first thing they ask me is "are you paying cash or financing ?"

In my experience, the only way to truly get 0% is to pay with cash.

 

[Wayne64SS]

I maybe gave up a couple hundred bucks over a cash price. It really depends on whether the place you're buying is in the business of selling tractors, or in the business of getting rich off every sale. Not to mention alot of people can't qualify for 0%.

 

[Gary Fowler]

I got true % financing on my LS purchase but only for 24 months. Most of the 0 down 0% interest for 5 or 6 years has a built in charge in the price to cover some % of the finance charge. Any honest dealers will tell you this also. The free FEL or 0 financing is the same thing, a kind of bait and switch but when you get the total cost for cash figures vs financing there is always a fee in there for the free money.
Except in the rare instance of the exceptional deal, if you buy used and have to finance it, it will cost you more in interest regardless of who you finance with. Used finance rates are higher than new rates in most cases. Sellers of very nearly new almost always want the net loan value or more when selling. When a person buys for 0 down and 6 year payments, one still has nearly new cost in the loan amount outstanding after a year of payments. Boats and motorcycles are the worst of the lot for this and sellers have to take a beating to get rid of them. Tractors can command a bit higher resale value but NOT FOR ME. NO way would I pay within $1-2K or new price for a used tractor.

 

[polarred21]

Hi Holzboat,the big killer is the interest Rate. IF you are within a few thousand of a new tractor it doesn't pay.
I usually show my customers on paper the payment difference so they at least see how close it is.

What interest rates are available on used equipment?

 

[polarred21]

Except in the rare instance of the exceptional deal, if you buy used and have to finance it, it will cost you more in interest regardless of who you finance with. Used finance rates are higher than new rates in most cases.

This is what I'm seeing. Used Kubota BX prices that are high and then the interest rate puts you at a total pay back price of a new one.

Paying cash or financing is the biggest decision maker here.

Yes there is built in cost with "0 for 60" as salesmen commonly speak, but you need to look at the final cost and not the monthly payment.

How many times have you been asked by a car salesman, " how much do you want your payment to be?"

 

[Beltman60]

Every time I have seen 0% ... it comes with money built in somewhere. These companies are in business to make money. If they offer 2.9% and expect to bring in an additional $1500 in interest, it's a safe bet that they have $1500 (or close to it) built into the purchase somewhere for 0%.

For example, the 2.9% might come with a rebate that 0% does not have.

Every time I've called a Kubota dealer to ask for pricing on a new tractor, the first thing they ask me is "are you paying cash or financing ?"

In my experience, the only way to truly get 0% is to pay with cash.

So you'er saying the used tractors with a couple of hundred hours on them for maybe 4k less than my new 0% financed tractor with a full warranty is really only $2500 less than new?
glad I bought the new

 

[TSO]

So you'er saying the used tractors with a couple of hundred hours on them for maybe 4k less than my new 0% financed tractor with a full warranty is really only $2500 less than new?
glad I bought the new

No, I'm not talking about anybody's particular deal ... Almost all of my vehicle purchases are used, my ZTR was used ... I like buying used IF the deal is worth it.

What I'm saying is that someone here posted buying new with "free money" meaning 0%... and I'm just pointing out, so people understand, that 0% is not "free" money. There's a catch. Even if you, the consumer, aren't aware of it, it's most likely there.

 

[Wayne64SS]

I agree, I buy almost everything used and pay cash for all of it, some deals are actually deals.