Tractor Depreciation

[spock]

How much does your tractor depreciate?

I am thinking about trading my L3430HST /723 Fel with 110 hours in on a L4330HST / 853 FEL.

But it seems my existing tractor is only worth $13,400.00 to the dealer that sold it to me. Orginal price $18,500.00

That would leave me with $5100.00 for the 110 hours and seven months I've owned it.

$46.36 an hour of use BTW.

So I am wondering if anyone else has tried to upgrade tractors and what did your tractor bring.

Thanks


Spock

 

[Charliebrn]

Keep in mind that you bought it at retail and are selling it at wholesale. The dealer needs to make a profit. If you want to maximize your return, sell it outright. I'd bet you could sell it for a couple grand more that way....

 

[ledebuhr1]

Why are you selling it?? I am thinking about the L3430 HSTCab. Does it not have enough power for what it does??

Thanks

 

[cowboydoc]

Look at it from your point of view too. If you were going in to buy a new one or a used one you're going to have to get alot better deal on used to buy used. If there's not much difference, even with a 110 hours, a person is going to buy new. So figure in 2 or 3 thousand below new and then 1 or 2k for the dealer profit and you see why you lose $5000 trading.

 

[gerard]

I think like most things that depreciate you'll take your biggest hit when the items relatively new. I think over time as new tractor prices increase due to inflation, your existing one will become more valuable. I know when I was looking for used tractors it seems like they were only 3-4K below a comparable new one so I bought new. 110 hours is like right off the lot and, as mentioned, if you sell it yourself you should make out much better. Used compacts don't seem to last long..........

 

[sandyc]

Not to brag but my dealer gave me everything I paid for my tractor on a trade. Of course I bought the first one from him so he was making a few bucks off me. The unit I traded had about 60 hours or so on the meter.

 

[BobinCols]

Spock-In January of this year I traded my 2 year old 3010HST with 225 hours on a 3130HST for $3000 difference. My trade was the same as new condition. I don't know how much I received for the trade or how much the new tractor cost, I offered them $2000 difference, they came back at $3500 and we ended up at $3000.. The dealer had my 3010 for sale for about 4 months as he kept selling new ones with Kubota's financing. He had to wait for a cash buyer to buy mine. I would find out how much the 4330 was and offer what you are willing to pay difference and go from there.

 

[Jim_Becker]

Don't forget to add back in the sales tax savings, if any, when you are comparing trade-in versus private sale/full price for new purchase. In some states that can be a bundle of cash since you only pay the tax on the incremental amount between the trade value and the new vehicle price.

But like automobiles, there is a big chunk of depreciation up front when you make that machine "used" and as was stated, trade-in dollars are wholesale dollars.

 

[spock]

Charliebrn, you make a valid point.
Just seemed kinda low for what I think of as a "new" tractor.

 

[spock]

cowboydoc
Well you have a point.
But losing 5 grand for no more hours is a bit of a suprise. At least to me.

Oh well.


Spock