Is there a rule of thumb for the price of used attachments? A local dealer has a Harley T-5 they got back on a bad debt. They have it listed for $6995. Funny, because the same dealer quoted me $6495 for a brand new T-6 last week. Anyway, any ideas on a fair price or what would you would consider the max price for it to be a good deal? It is in good condition and has been reconditioned by the dealer (new seals etc, they say).
Used Attachments price - Rule of thumb?
- Thread starter MichaelRB
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Anonymous Poster
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MichaelRB: Can't speak to the particular attachment you mention - though a dealer trying (note I said trying) to sell a used implement for more than new sounds familiar. I have been to many auctions and priced lots of stuff. Rule of thumb??? You can seldom get a decent attachment for less than 1/2 of new. A dealer will usually want around 2/3 of new. Auctions? I've seen stuff sell for more than you can buy the same thing for new. But the 1/2 is usually in the ball park - if there knowledgable bidders there. If you get something for much less than that, you might have have repair/fix-up costs that bring it up to around 1/2. Example: I bought a Danuser F series PH Digger at auction last year for $450 (really cheap). But by the time I redid the seals (which required a different pinion gear), painted it, etc. I have about $750 in it. Just about 1/2. I could give other examples. A thing is worth what you can get for it!!! The knowledgable seller/knowledgable buyer rule doesn't always hold though. JEH
Gary_in_Indiana
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I agree with Grim on the auction thing. One other thing to add on the buying of equipment then fixing it up is that many times you will find that by the time you buy it and spend the money to fix it up you'll wish you'd never bought it. There are some items that just aren't worth fixing up.
As to the specific item you mention, the fact that they "got back on a bad debt" may have something to do with it. Despite the euphemism, it's a repossession.
I don't know if implement dealers sign recourse papers on implements they sell or not. If they do and it's full recourse, the dealer could well stand to lose money on this resale if the price doesn't cover all of the lenders added costs and fees.
If there is no recourse, then it probably still belongs to the lender who's trying not to lose money on it. The dealer has it on his lot for free and is trying to make a profit over the amount the lender needs. The lender could end up selling it for a lot less later, but you have to wait for them to realize the real market.
I've gone to regularly scheduled auctions (trucks) and bid on the same repo for two, three, four weeks in a row and been the top bidder on a repo only to have them turn down my bid. After a while, no one else even bids because they realize the lender is way off the money on what they want.
I was trying to buy a refrigerated semi trailer a while back and after a few weeks it got to the point where the auctioneer just asked me what I wanted to give this time. No one else even wanted to bid. On the fifth week, I put in a bid of $15,000 which was $6,000 less than I'd offered them week one. They then offered to accept my earlier $21,000 price which, of course, was no longer on the table. We eventually got together somewhere in the middle.
The lender finally realized there wasn't going to be anyone coming along to completely bail them out and they needed to take what they could get and move on. You might find the same kind of situation here. If you're not in need of the equipment immediately, patience and persistence just might pay off for you.
As to the specific item you mention, the fact that they "got back on a bad debt" may have something to do with it. Despite the euphemism, it's a repossession.
I don't know if implement dealers sign recourse papers on implements they sell or not. If they do and it's full recourse, the dealer could well stand to lose money on this resale if the price doesn't cover all of the lenders added costs and fees.
If there is no recourse, then it probably still belongs to the lender who's trying not to lose money on it. The dealer has it on his lot for free and is trying to make a profit over the amount the lender needs. The lender could end up selling it for a lot less later, but you have to wait for them to realize the real market.
I've gone to regularly scheduled auctions (trucks) and bid on the same repo for two, three, four weeks in a row and been the top bidder on a repo only to have them turn down my bid. After a while, no one else even bids because they realize the lender is way off the money on what they want.
I was trying to buy a refrigerated semi trailer a while back and after a few weeks it got to the point where the auctioneer just asked me what I wanted to give this time. No one else even wanted to bid. On the fifth week, I put in a bid of $15,000 which was $6,000 less than I'd offered them week one. They then offered to accept my earlier $21,000 price which, of course, was no longer on the table. We eventually got together somewhere in the middle.
The lender finally realized there wasn't going to be anyone coming along to completely bail them out and they needed to take what they could get and move on. You might find the same kind of situation here. If you're not in need of the equipment immediately, patience and persistence just might pay off for you.
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Gary_In_Indiana: You're right - the more complicated the thing is the more you can get screwed in an auction, but if you know a little about what you're buying and get it cheap enough you've got some room to work.
Re: reserved auctions - I never, ever go to an auction that isn't absolute since you have the risks of the auction process without any possibility of coming out. Might as well buy the thing from a dealer in the first place. Any time the owner can pull it back if he doesn't get enough forget it.
Small world - I was raised ??? (I guess) some in New Haven.
JEH
Re: reserved auctions - I never, ever go to an auction that isn't absolute since you have the risks of the auction process without any possibility of coming out. Might as well buy the thing from a dealer in the first place. Any time the owner can pull it back if he doesn't get enough forget it.
Small world - I was raised ??? (I guess) some in New Haven.
JEH
Gary,
I come to TBN to get away from what I'm studying in school and here you are talking about the subtle aspects of my Secured Transactions class, thanks a lot. /forums/images/graemlins/wink.gif
What guy pays for used implements will be driven by your specific market. If you go to an auction and there are 100 box blades, for example, lined up to be sold, then you'll likely pay less than you would if there were only 5. Unless, of course, there are 100 box blades and 500 bidders, then you'll pay more. In other words, shop around until you get a feel for your specific market and then you'll know whether you're in the ball park or about to get ripped off.
Clint.
I come to TBN to get away from what I'm studying in school and here you are talking about the subtle aspects of my Secured Transactions class, thanks a lot. /forums/images/graemlins/wink.gif
What guy pays for used implements will be driven by your specific market. If you go to an auction and there are 100 box blades, for example, lined up to be sold, then you'll likely pay less than you would if there were only 5. Unless, of course, there are 100 box blades and 500 bidders, then you'll pay more. In other words, shop around until you get a feel for your specific market and then you'll know whether you're in the ball park or about to get ripped off.
Clint.
