Resale value as a function of purchase price

[art]

Resale of a tractor has many factors. The original cost. The condition. The age. What is the life time expectancy of the tractor. What is available for parts!!!! The last two are the largest concern. Many tractors if you are looking for initial price you might be better off shopping under the label of who made it! That company should be the lowest price of that unit as it has not handled as much and of coarse everyone wants to profit from their sales. Not all equipment is designed the same. Some will only give you 3,000 hours of good use and some would give you 10,000 hours. All compacts!!! That is also the difference of the original price normally. For a home owner your use will be about 100 hours a year max! Many tractors are built with that in mind today! Lawn mowers is 40 hours a year with a ten year life cycle for the starter or small units.

 

[Geotech]

"While resale was a small consideration on my car, tractor, etc"

Then why are you being so rude?

And yes, leading with "so invest in a mutual fund then" is you being rude.

What is your expectation with that statement? Me: You're right prof fate - never mind about buying a tractor. I'm just not cut out for it!

 

[TractorNH]

If you want a hobby where you might break even then consider collecting NFA registered machine guns. You can afford to shoot them on occasion and if you own them long enough the increase in value generally eliminates the cost of ammunition (depending of course on how often you use them). Their value increases since there's a defined and never increasing supply of legal to own options since they all had to be registered pre-'86 to be legal.

Of course the real question is, can you really put a price on fun? You only live once so get what makes you happy and enjoy it.

 

[mred2]

Geotech, I hope no one here is being rube. I think most here are trying to answer questions. And some may express themselves differently than others. There are many things that determine the purchase of most things, Use, Price, Budget, Parts, Dealer support, Weight, Options, Resale, and more. People will come up with a lot more and put them in every order. I think for a lot of them here, current budget is close to the top.

 

[plowhog]

- never mind about buying a tractor. I'm just not cut out for it!

Please consider that most new owners come here with questions about tractor operation, functions, what they could accomplish with it, etc.

There is nothing wrong with evaluating resale value, but your post probably hit a few people as odd as it seems this is your primary focus. You wouldn't make a first post on a dating site about what sort of pre-nuptial agreement your date might agree to, as that would be out of place. So maybe you are numbers focused, which is OK, it's just that the focus you chose to lead with is not what is normally encountered here.

 

[Geotech]

Thanks Plowhog. I get it. This was not my first post. I have posted several other questions about several other things. Seems not totally unreasonable to discuss resale value on this forum when the conversation about 'buy a tractor vs hire out the work' is not poo pooed upon. I don't see a difference in the logic.

Anyway, it wasn't even my intent to start a conversation of using resale value as a reason to buy one model vs another. Mostly wanted to know if other folks noticed what I was noticing and what the implications might be - i.e. maybe a bunch of folks would jump in and say that they bought a bigger used tractor than they initially planned on for this reason.

If you read the title, it states resale value as a function of purchase price, not purchase price as a function of resale value.

 

[Garandman]

We bought the L3200 new in 2014 because it seemed used Kubota B and L were selling for their new prices of 3-4 years prior.

 

[atsah]

I do take resale value into consideration for one reason, if I drop dead tomorrow, the Mrs can sell everything I own and everything I own I have purchased with the thought of her doing so.

If I lived alone It wouldn't be of concern to me..

 

[prof fate]

What exactly is your concern?
Losing money? Losing the least amount of money?

Then buy a $300 tractor. Can only lose 300 bucks.
Or buy a 15,000 one and maybe lose 10% - less than 100%, but it's $1500 not 300.

If the cost/resale is your prime concern, then it sounds TO ME like you're looking at it like an investment...which it isn't. Unless you get a used tractor for a steal (which is possible) it's a tool - it's VALUE lies not in teh resale but in teh WORK IT DOES.

A kubota with 200 hours is worth more than one with a 1000 - be that a year old or 20 years old. So the more you use it the more you devalue it - BUT - the point is the more WORK you get from it. So while it's cash asset value goes down, the RETURN ON INVESTMENT is on the WORK it does.

You need to change the criteria you're using to buy a tractor. Odds are a JD or Kubota will retain more value..or maybe just be easier to sell. My Kioti was $3500 ish less than a comparable Kubota...and I'm expecting that it's resale value (due to name brand recognition) will be less as well. But I also have $3500 still in my pocket. that too has a value to it.

And how you pay for your tractor should be factored in , if money is the main criteria. Lost interest or opportunity if its in savings, insurance/interest if you're borrowing.

"While resale was a small consideration on my car, tractor, etc"

Then why are you being so rude?

And yes, leading with "so invest in a mutual fund then" is you being rude.

What is your expectation with that statement? Me: You're right prof fate - never mind about buying a tractor. I'm just not cut out for it!

 

[prof fate]

My concern is she'll sell my guns for what I told her I paid for them...

I do take resale value into consideration for one reason, if I drop dead tomorrow, the Mrs can sell everything I own and everything I own I have purchased with the thought of her doing so.

If I lived alone It wouldn't be of concern to me..