Tractor Prices in Today's Economy

[Gypsy Rose]

The trade-in value of the 790 ranges from $4K for the manual steer model to $5.8K for the 4WD. Resale price is in the $6-8K range. The FEL is worth maybe $3K judged by the low clock hours. Your $8K price, including FEL, is in the ballpark for the manual steer model and is an excellent buy if your tractor is a 4WD model.

If that's the case, is there really that big of a discrepancy between asking price and sales price? Virtually every 790 (w/MFWD and FEL) that I've seen advertised is priced at 11k or above. Are you saying that there is typically a 30% - 40% difference between asking price and sales price?

~Kevin

 

[flusher]

If that's the case, is there really that big of a discrepancy between asking price and sales price? Virtually every 790 (w/MFWD and FEL) that I've seen advertised is priced at 11k or above. Are you saying that there is typically a 30% - 40% difference between asking price and sales price?

~Kevin

What asking price? I said trade-in price, not asking price.

Trade-in price is what a dealer will give for a used tractor traded-in as part of a tractor deal. Resale price is what the dealer will realize when he resells that trade-in tractor. The difference represents the dealer's cost for servicing the trade-in to get it in shape for resale plus his profit plus the cost of any warranty the dealer might add to sweeten the deal.

Get yourself a copy of the tractor blue book to see how this works.

 

[Gypsy Rose]

What asking price? I said trade-in price, not asking price.

Trade-in price is what a dealer will give for a used tractor traded-in as part of a tractor deal. Resale price is what the dealer will realize when he resells that trade-in tractor. The difference represents the dealer's cost for servicing the trade-in to get it in shape for resale plus his profit plus the cost of any warranty the dealer might add to sweeten the deal.

It seems that you have misinterpreted my reply. From what you've cited (from the blue book), resale price for a 790 with FEL and very low hours should be in the 9k to 11k range. From what I found, the advertised prices seem to be considerably higher than that. (The spread between asking and actual sales price is what I was referring to, not the difference between trade-in and resale.)

As one who is new to the used tractor market, I was trying to figure out what the typical difference is between asking and sales prices. If it turns out that the difference is not usually that great, I was curious to know if the tractor market has been impacted by the current state of the economy.

Get yourself a copy of the tractor blue book to see how this works.

I'm not interested in purchasing a blue book of tractor values since I've already made my purchase. It was merely a matter of curiosity.

~Kevin

 

[Builder]

Over the past month I put a lot of time into researching and ultimately buying a JD tractor. My search brought me often to TractorData.com to review specs and look for pricing info on the models I was interested in. I spent many an hour pouring through TractorHouse ads, eBay autions, craigslist listings, discussions on this forum, etc.

What I found in the marketplace, though, was that a lot of tractors just weren't selling at the asking prices advertised (or selling at all, for that matter).

Ultimately, I ended up buying a 2002 JD790 with #70 FEL and 75 hours on the clock for $8k. (Along the way, I missed, by a matter of 2 hours, a 2001 790 w/400 hrs, #70FEL, LandPride rototiller and 5' rotary mower for $8.5k.)

My question is this, are these seeminly low prices related to overall downturn in the economy? Or, is it just that January was a good time to buy? (We recently hit 34 below zero here in Vermont.)

I've also wondered if the compact tractor market is being impacted by the many whose "gentleman" farms (often debted to the nines) may be currently strapped for cash in this economic downturn.

Just curious to know what others have found.

All the best,
Kevin

Kevin,

3 months ago I scored a CAT(AGCO) Challenger 47HP 4x4 tractor with 750 hours, a full a/c cab, quick attach FEL and 2 rear remotes for $14,850. I thought that was an unbelievable deal.

YES, economic times are VERY tough and owners are dumping used equipment for 60-70% (or less) of what they would have gotten maybe 9 months ago. I'm on the front lines and construction companies that use equipment are going under at an unbelievable pace.

The construction/landscape/maintenance industry is in horrible trouble and equipment is being sold off to stave off bankruptcy. However, nobody is buying the equipment because none of the same companies have any money to buy!

Look at the average TBN member who doesn't use his tractor for anything more than a hobby-he/she may also have lost their white collar job and the first thing to go is the toys!

 

[Gypsy Rose]

The construction/landscape/maintenance industry is in horrible trouble and equipment is being sold off to stave off bankruptcy. However, nobody is buying the equipment because none of the same companies have any money to buy!

Look at the average TBN member who doesn't use his tractor for anything more than a hobby-he/she may also have lost their white collar job and the first thing to go is the toys!

I noted that you are in PA. Interestingly, when I was looking for my tractor I found quite an abundance of CUTs in the northeast corner of the state. In the end, it became very much worth my while to make the 280 mile journey from Vermont to Pennsylvania for the purchase. Seems that there were an awful lot of tractors on those large-lot subdivisions - many for sale.

 

[Builder]

I noted that you are in PA. Interestingly, when I was looking for my tractor I found quite an abundance of CUTs in the northeast corner of the state. In the end, it became very much worth my while to make the 280 mile journey from Vermont to Pennsylvania for the purchase. Seems that there were an awful lot of tractors on those large-lot subdivisions - many for sale.

You're right. Believe it or not, PA is the most rural state in the country. More people living in rural zip codes than any other state.

Combine that with a population of like 20 million people and you have a lot of sub-cuts.

 

[Gypsy Rose]

You're right. Believe it or not, PA is the most rural state in the country. More people living in rural zip codes than any other state.

I was looking at population density by state and see that Pennsylvania ranks #10 at 277 people per sq mile, vs NJ (#1) at 1171 and Alaska (#50) at 1.2 people/sq mile. (Here in Vermont, we're at #30 with 67 people/sq mile.)

Hmmm. I wonder what the number is for tractors per capita by state?

Just a little sub-zero morning musing . . .

~Kevin