Price Check Price and trade pricing

[SuperDutyDave]

Hello

I am considering the following trade.

year old 3720 Cab tractor with 300cx loader (with skid-steer attachment and foundry bucket), fully equipped, including air seat mid-pto aux remotes rear, and a 59" snowblower...tractor has 175 hrs has been stored in a heated garage and is in like new condition. Was fully serviced in spring by dealer 10 hrs ago.

I looking to buy virtually the same tractor in a 4720 with same equipment less the snowblower and no front end loader.

3720 had a list price last year as equipped of $36,747.00 and of course with no trade I bought it for less...

the new 4720 as equipped has a list price of approximately $36,000.00

Dealer asked me what I thought was fair, I am thinking on it...any opinions as to what would be a fair deal to both parties? Dealer readily admits my unit is like new and shows as good as any demo unit or new unit in stock.

Opinions of what a cash difference should be?

Thanks

Dave

 

[SuperDutyDave]

come on...none of you guys can give some guidance on this topic???

really would expreciate some expert opinions.

Thanks

Dave

 

[RoyJackson]

I guess the first question is if the 3720 is paid off. If so, I think I'd ask $32000 trade in value ($32000 trade in is probably optimistic). To me, that would be reasonable...but not justifiable (see below). At this point in time, for the late model and low hours, moving up to a 4720 isn't a particularly good move.

If it isn't paid off (say you owe $32000), that loan will have to be paid off which would leave you very little, if anything, for a down payment.

I'm sure this isn't the answer you wanted. I went through the same thing when I looked into replacing my 790 with a 3320 last year. I couldn't justify it and didn't want the debt I would have accrued once we crunched all the numbers.

Your circumstances may be quite different and maybe you can justify the trade. If a residential or estate owner...probably not. If you're a farmer...well, if the 4720 will be that more efficient, maybe you can.

 

[Kyle_in_Tex]

This is a tough situation. I've thought long and hard about it, like Roy, and stayed with what I have.

Taking the 1st year depreciation is a big hit in the wallet. Let's say you bought a new Super Duty Ford with all the bells and whistles around $50K. Let's also say you drove it for a year and put 12000 miles on it. How much would you say it would depreciate? I would guess around 10-20% Remember when trading something in, the dealer can get new ones for dealer cost. So they can never give you more than they can get a new one from the factory (less another 5-10% for resale profit).

What happens with some tractors is that after 5-10 years, the new ones cost so much more which makes a 5 -10 year old model worth a fair share of its original value. This happens quite frequently with JDeere.

Your best bet would be to sell it your self to someone who knows exactly what a 3720 cab is and how much they are worth. If you keep the dealer out of the picture, you'll save yourself some $$$. My dealer will sell something like this for 5% commission. If you put your whereabouts, maybe someone on this board would be interested.

 

[SuperDutyDave]

Guys

thanks for the "facts of life" lesson on the first year trade issue...I realize it will cost me...its just the question of how much...you don't spend percentages...really curious as to peoples opinion of what it might cost me to trade in real $$$...new 4720 $36K list price...3720 at discounted price with equipment sold to me last spring $37K...

so what do you think? what will I have to come up with to make a deal...that will be fair to me and possible for dealer.

oh by the way I do own my current tractor free and clear.

thanks for any help.

Dave

 

[RoyJackson]

I'll stick with the $32000. He'll have to make some profit and even though it looks new, there's 175 hours on the clock. He'll make a thousand on it, maybe 2K (remember, he's got overhead to pay for).

So, you'd have 32 grand to offer. Put another 2 to 3 thousand in the kitty and that should get the 4720.
I wouldn't go over that...but it is your money. And, definitely read my signature line below...

If you're pretty tight with the dealer, he might go for it.

BTW, why do you want to do this deal?

 

[SuperDutyDave]

thanks for suggestion...i was considering being a little more liberal...but i will stick in the few grand range...i don't knock anyone making a buck...i want the dealer in a position to service me...deal has to be good for both.

why do I want to do this? I had a TN-75 prior to this unit...which I was very happy with...thought i could get away with a smaller unit (I own a much larger unit too)...but I am now finding that with all my duties I need it for it is too small in frame size etc....so if its not too costly I really think I would be better taking my lumps now vs. kidding myself for another season.

Dealer and I will be chatting early next week...we will see what happens.

any others have opinions

Dave

 

[cast_and_blast]

Looking on machinefinder might give you a bit of perspective on this too. I live in MN and there seems to be quite a few 3720's int he area for some reason. I found a 2005 with 327 hours - Cab, Mid PTO, air seat etc. No loader or other equip for $25K from a JD dealer.

Add your 300CX loader and 59" blower and I don't think you'll be at $32K for trade-in. The dealer may price the package at $32K which would mean you're getting significantly less.

I think quite a bit of it will come down to what kind of relationship you have with the dealer and how quickly they think they can move your 3720 as a whole or separate - that may be driven by supply in your area.

Good Luck!

Scott

 

[ducati996]

Guys

thanks for the "facts of life" lesson on the first year trade issue...I realize it will cost me...its just the question of how much...you don't spend percentages...really curious as to peoples opinion of what it might cost me to trade in real $$$...new 4720 $36K list price...3720 at discounted price with equipment sold to me last spring $37K...

so what do you think? what will I have to come up with to make a deal...that will be fair to me and possible for dealer.

oh by the way I do own my current tractor free and clear.

thanks for any help.

Dave

Only the dealer can tell you that - you have to negotiate from two angles - (1) getting the maxium trade in value, (2) get the best possible price for the other machine. You have to close the gap either way by cash or payment/finance.
You will always get the top dollar selling it yourself- so I suspect it will be strongly suggested to do so (probably even the dealer will tell you this). That way you can just work on the best price for the new machine.
If you just let the dealer provide a trade-in value, in my opinion you are leaving money on the table which you now have to make up -

Best of luck

Duc

 

[cast_and_blast]

Remember the tax aspect of the trade too (if applicable). Here in MN it's 6.5%.

So - if you trade-in for (hypothetically) $30,000 and buy for $36,000 you'll only wind-up paying tax on the $6,000 difference. If you sell outright you'd need to get at least $31,950 to make it worthwhile as you would then be turning around and paying tax on the full $36,000 purchase (30,000 * 1.065 = 31,950).

Good luck!

Scott