Resale value as a function of purchase price

[Geotech]

I am planning to buy a new tractor in a couple months. Been vacillating between Kubota and Kioti, but it's a tough decision. Kioti resale value is harder to evaluate since there are not as many used Kiotis on the market.

With Kubota, however, it looks like the cheaper the new tractor price, the higher the resale value as a percentage of new purchase price. For example, a low hour (less than 500 hours) L25/33/3901 is usually within about 10 percent of new. However, when you jump up to the L4701 and MX series tractors, the asking price for these used machines has a broader range of deviation from the cost of new. Seems like you get bigger bang for your buck shopping used as the tractor gets bigger/more expensive. Anybody else notice this?

 

[mddorange]

The reason for that is "DEMAND!" The smaller tractors are in much greater demand, partly because of price.

 

[tcreeley]

Higher resale generally means more up front sale price. I view it as what I can use it for- and don't worry about resale. I generally keep things forever.

 

[Diggin It]

'Too high' resale prices are why I ended up going new. If I'm going to pay that price, I want a warranty. I found quite a few K's and JD's that were a few years old for not much less than what I paid new. One thing that bothered me is WHY they were for sale. Were there problems? Owners unhappy with them?

I bought with the intent of keeping it for as long as it runs. Possibly selling it in a few years never entered my mind.

 

[CADplans]

Seems like you get bigger bang for your buck shopping used as the tractor gets bigger/more expensive. Anybody else notice this?

You must be real careful comparing new and used "prices"
many times,,, "new" is an asking price, with discounts available,, then there is 0% (or almost 0%) financing,,,
then
you are comparing that to used tractor "asking" price,,

Used tractor prices always seem high,, there is usually negotiating room built in.

A lot of times, I view "sold" listings on eBay to get used prices that are realistic,,,

 

[oosik]

I must be the weird one - all my time, effort, research, travel, talking in regards to the purchase of a new tractor was directly related to work it would be doing on my property. Never gave a moments thought to resale value.

However - if the resale value of a new tractor is a big item for you - - be sure you have a nice place to store it while you own it - sure as #$%^ don't want it getting scratched. A scratch would surely reduce the resale value.

To each his own.

 

[jeff9366]

All my time, effort, research, travel and talking in regards to the purchase of a new tractor was directly related to work it would be doing on my property. Never gave a moments thought to resale value.

My experience also.

 

[prof fate]

new - visit a dealer or 2. you get exactly what you want. I got 0% financing no money down - so more cash for implements. It's like you don't even have to pay for the tractor..LOL. And delivery included/available.

Used..may have to drive around a LOT to look at tractors. Why are they selling? (if it's really low hours prolly no issues, but I talked to a guy today that had a new mahindra, spent 8 of the first 15 months in the shop..he sold it. low hours..warranty..but a lemon. He lost $2k on it)

Resale value...if you're unsure of your need, then yeah maybe it matters. My kioti has 130 hours on it. I won't get back the insurance money I paid at purchase, or the maintenance money, or fuel used. So if I sold it today i'd be out 1500 dollars. BUT - I have 130 hours on it...can't rent something for $10/hour. So my use of it has value.

It can get very hard to justify somethings monetarily. We paid for brush hogging and snow removal and bought a tractor..dollar for dollar and our time, it's better to pay someone. BUT - we can do sooo much now because we have the tractor..stuff we'd have spent money on (if we had it) or would do with a wheel barrow and shovel, garden tractor and trailer, etc. Very hard to put a price on that.

 

[shooterdon]

'Too high' resale prices are why I ended up going new. If I'm going to pay that price, I want a warranty. I found quite a few K's and JD's that were a few years old for not much less than what I paid new. One thing that bothered me is WHY they were for sale. Were there problems? Owners unhappy with them?

I bought with the intent of keeping it for as long as it runs. Possibly selling it in a few years never entered my mind.

When I moved to the country 6 years ago, I found the same situation. Small used tractors were selling for little less than a new one. I basically gave up. Got my current machine from the estate of a friend who passed away. I have about $6k into it including a bunch of attachments.

But I will likely buy new if I ever decide to upgrade. Unless you find a deal on a private sale, used tractors are not saving you much money. The good news is get most of your money back if you need to sell it

 

[MHarryE]

Partly today's economy. Ag is down, way down. With the tariffs, farm income has tanked - example soybeans are 20% to 30% below last year. At farm auctions I have attended I have found tractors such as a 2016 JD 6175R with 350 hours for 50% of the price I was quoted by my dealer 2 years ago. This is just one example - I have countless others from auctions. However small tractors in the SCUT and CUT range sell very well. My dealer says they keep him in business as ag is not a winning proposition except for service parts sales.