Trade-in value - 4200

[herbenus]

Well the dealer finally made it out to evaluate my 4200 for trade-in. 4200 manual, 600 hours, loader. I had prepared myself for disappointment, which was a good thing. They were only willing to give $7000 trade-in. This really burst my bubble. I've seen ads for this tractor for between $10,000 and $14,000. I didn't expect that for trade-in but please... Guess it's time to start running some ads.

 

[bigpete]

/forums/images/graemlins/frown.gif

It doesn't matter wheter it's a tractor, car, motorcyle, or dogsled. When you need to upgrade you will always do better if you can sell it first-person. You can't blame the dealers either. Their expenses to prep and hold inventory over time is what drives the trade-in vaqlue down.

After some recent negotiations with my dealer, he was very honest about his margins. He was clear that a different dealer may have different margins based on everything from facility lease terms, to geographic transport costs, to training costs for technicians and secretaries, to heating and cooling costs, to potential market and inventory turn rates. Basically, my dealer said he applies a depreciation rate of $15 to $25 per hour for small compacts depending on the known use of the machine and any apparent unusual wear and tear. Second, if he knows there is a part that will have to be replaced, he deducts his parts+labor costs. Thirds, he applies a set amount (profit+present value of money, i.e. interest) based on the machine type. This last factor is based on the demand for certain types of equipment and his estimate of how long he will have the machine sitting on the lot. Sometimes he knows he can turn a machine fast at auction for top dollar (rare) or that he can move it through his dealer network if demand is high for a particular model. Other times, such as in the case of consumer L&G equipment, he knows there is a much larger and faster paced market.

Right now the 2210 series is in high demand and he would apply a $15 per hour depreciation and would not expect to have much, if any, in refurbushment or repair costs because they are so new. In addition, the demand is high for 2210s and he feels that he might not have one of these sitting around past the spring thaw.

Bottom line is that a high-demand machine in good shape will trade better, but it is nice to keep that overhead in your pocket if you can. The other half of the equation is how much of his mark-up on the new equipment he is willing to share with you to get /keep you as a customer.

Good luck!

 

[cowboydoc]

Yeah trade-in is terrible. When I was buying the 6415 I thought about trading the 4430. The neighbor had a 4440 I was going to buy. But they would only give me $8500 on it. They usually go for $13-17k on the lots.

 

[herbenus]

And I had expected as much. But I was in buying filters a while back and let them know I was shopping. It didn't cost anything to have them come out and look at it. I guess I was just hoping for a great deal, but it was not to be. But now I know what they'll give so I do have a starting point.

 

[bigpete]

The other tactic is patience. The deal might get better as dealeship volume decreases in the next few, cold months. It may not amount to much, but you might find the deal improving by several hundred, or even over a thousand by letting them know that the deal is unaffordable right now due to the low trade-in value or high new equipment costs. I would very kindly, almost sadly, tell them you understand that they have to make money like any business, but make sure you also let them know you can't afford that big of a depreciation "hit" on your investment and you will have to consider all your options over the next couple of months. You might then ask them to do a comparison of specs for their product compared to a couple other brands so that you can consider their offer fairly when looking at other brands. After you get the comparison from the dealer, sit tight for a few weeks and I'll bet your phone rings before January is up.

My Pop always told me that the best beaches are made by water running over stones, not by hammers crushing rocks /forums/images/graemlins/wink.gif

 

[art]

Big difference with the front axle problem that they had at the introduction. Only those with belly mowers at the time of sale got changed and it takes about 2500 plus from what I've heard to straighten that out. That would be the difference of the resale you might be looking at.

 

[Theowegian]

HI !
Sounds like a nice little tractor. I checked with Machinerylink.com which shows that the tractor should bring maybe something like this:

1999 year...$10,061-11,200.....4200
1999 year...$12,173-13,551.....4200 4WD and Hydro

You might want to check out that link. Its a good place to start. And dont forget, you have a loader that is worth at least a thou or two, also.

Hope this helps.
/forums/images/graemlins/smile.gif

 

[herbenus]

Those confirm other numbers I've seen.

 

[RoyJackson]

"They were only willing to give $7000 trade-in."

That's really surprising!
A buddy of mine just traded an 855 in on a 4310. They gave him $12500 for his 855. Nice machine, but definitely well used...had 945 hours and was somewhat dented up. They're asking $13.5K for his old machine. I doubt if they get it though.
If your 4200 was a gear tractor...well, I'd guess that's why the trade in value was so low.

Heck, I got a $7000 trade offer on that 670 (gear tranny) of mine.

I understand why you're disappointed. I think I'd try another dealer or another brand machine.

 

[yellowsocks93]

Yep, gear models do bring lower resale. /forums/images/graemlins/frown.gif I wanted to sell my 4300 to my place of work but they would only give me $10,500 for trade on a new 990. I though for sure it would be higher since it only has 122 hours on it. It's currently listed in the classifieds for 13,500 OBO.