Resale Value - Theoretical question

creeper · Mar 18, 2005

I have learned in my short life , you never know what tomorrow brings.I always keep resale value in the back of my head. I may have financial trouble and need to unload something or sometimes after purchasing a tractor and realizing how much it can be used for , you may decide you need to upgrade to a larger model or different capabilities.There are even a few people that will buy heavy equipment and use it for a big project and then turn around and sell it. If you know what the market is , you have a better chance.

SteveM · Mar 18, 2005

I think it often comes down to the age of the buyer, frankly. Someone in the 'late prime' (politically correct, huh) of their life probably doesnt plan to sell a house and move; no job issue will force a long distance move, and God willing someone at that life stage has less chance of needing to sell the tractor for money.

On the other hand, more and more compact tractors are being purchased by professionals in the 'early prime' of thier lives as they move up the ladder in thier careers - these folks (myself certainly included) have a high liklihood of moving, job changes, income changes (up and down!) etc. Factor in divorce, health, life in general....and the younger you are, the greater the chance for lifestyle change and tractor change.

I know a lot of people who get into some money and buy a big place, only to lose interest in the 'Green Acres' lifestyle a few years later...and they sell their stuff at a huge loss....so this is why you see such differing opinions on resale.

Indydirtfarmer · Mar 18, 2005

Offhand, What is the average bluebook value of a slightly used Henro? /forums/images/graemlins/confused.gif /forums/images/graemlins/crazy.gif /forums/images/graemlins/grin.gif

2nstonge · Mar 18, 2005

From the look of Henro's picture one might assume that he has high mileage, was ridden hard and put away wet! /forums/images/graemlins/grin.gif

DK35vince · Mar 18, 2005

I have never purchased anything with resale value in mind.
I have always purchased my things with my perception of usefullness (to me),and quality vs dollars spent.
That is how I purchased all of my vehicles and tractors and it has always worked out very well for me.
Example, That is why I purchased my 1978 JD 850, 1980 Wheel Horse and 1982 Wheel Horse garden tractors, and my 1991 F-250 Ford truck.
Price and features vs value/quality/usefullness
I have owned all of the above for a very, very long time and still use them all to this day. I will use them till they will work no more.
I purchased my last tractor (Kioti DK 35) based on the same theory.
Works for me.

Youare · Mar 18, 2005

I was concerned about resale value and plan on keeping the tractor all my natural life. The resale value comes into play when and if I should check out of this life before my wife.

The family history of life shortening things is not in my favor. My dad died at age 54 which I am only two years from. I have told my wife what the tractor should be worth should she want to sell it.

Also there may come a time where I can't use it any more and would want to sell it so once again resale value is a factor.
Now I don't plan on checking out for a few more years and have watched the proper things.

I think both issues can be true and not a contridiction.

Randy

jim_wilson · Mar 18, 2005

For buying my tractor resale value was a definite decision point. My original reason for buying the tractor was trying to find the most cost efficient way of getting all the work done around my house that I needed to get done. Before buying the tractor I also factored in renting equipment and paying contractors. While buying a new tractor that would do the job ended up being second most expensive option ( cheaper than contractors but more expensive than renting) if I just considered the outright purchase cost of the tractor as an expense. Purchasing the tractor and then reselling it when the work was done ended up being the least expensive option however when I factored in the resale value.

I spent a decent amount of time researching my different tractor options here on tractorbynet and by looking at dealers and that is what led me into buying a BX23. From previous experience with cars, houses, tools, etc. I also knew that resale value is also usually a good indicator of product quality, reliability and desirability in the marketplace.

johndeere2210 · Mar 18, 2005

Lets face it guys, everything we own will one day be sold, given away or thrown away. I expect that my 2210 will not be the last tractor I own. But if it is, the resale is still important when I am gone and my heirs are deciding what to do with my "stuff". I would hope that my heirs will be getting the maximum value out the things that I have worked hard to accumulate. So I guess that especially as I get older I consider resale to be an important issue when purchasing a major item. /forums/images/graemlins/smile.gif

Volfandt · Mar 18, 2005

I guess I'm a hybrid of sorts as I use resale value as one of the factors when purchasing new but then again I also go into the purchase with the plan of keeping the product till it wears out.

Often times, I come to compromise of sorts in what I purchase. That is, even though I want the "best" there are times when I settle (for lack of a better word) for "better" and lesser times for the "good" models.

No matter what class of product I do purchase, whether it is the good or better, I always take care of them. I do this primarily because I enjoy keeping my machinery properly serviced as well as looking good while also keeping an eye towards keeping them "marketable" as there have been times (thank goodness) when I've enjoyed the proverbial windfall which has then allowed me to "upgrade" to the "best".
Getting a good return on my original investment sort of cost justifies that purchase.

One never knows what the future holds so even though my plan is to keep the machinery for it's entire servicable life, as evidenced by the fact that I generally buy spare consumable parts along with the new purchase, I have even surprised myself by selling off practically new machinery as well as machinery that I've had for years & years and had most all the spare parts for it just so I can get that "coveted" new piece of machinery that I most definitely have to have and can afford /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif

So to answer your theoretical question, it's 6 of this and a 1/2 dozen of the other /forums/images/graemlins/grin.gif

Volfand

aardvark · Mar 18, 2005

Resale value was about the only reason I decided to buy a tractor. When I bought my property here in Florida, the place was a complete mess and I had planned on clearing all the land. After clearing a small area by hand, I decided I needed some help. I got a bunch of quotes to have contractors do the work, and the quotes ran up around $14k. I began looking around for used skid steers in order to just do the work myself, and spent several months in the process. The used skid steers were all pretty trashed and were bringing premium prices. So I started looking for used tractors, and found a similar situation. I realized that I could just buy a new tractor, do all the work, and then sell it a couple years later for say, $3000 than the purchase price. Basically it means I either save $11k by doing all thwork myself and selling the tractor, or I get all the work done, and effectively have a *free* tractor afterwards. So I bought a BX23 with a mower deck for a little over $16k. I'll probably keep it since it has turned out to be alot of fun, but who knows, maybe by the time I'm done with this place I'll have a place with 100 acres, necessitating a larger machine.