Used versus new 2025R

mahd776 · Apr 12, 2018

Been pricing a new 2018 2025R John Deere at local dealers. Tractor with FEL and a 62 inch MMM is out the door for $19,700. That's with the $900 incentive and a $500 Drive Green Coupon.
I have also checked out a few used units as well and am somewhat amazed at what local dealers value these units at. Example I looked at a 2013 2025R today. Looks to be well taken care off and has 260 hours on it. Also has the FEL and MMM deck. Dealer listed online at $16,900. Said about the best he could do was $16,500 plus tax. So that pushes the price to around $18,000. Not a lot of incentive to purchase used with a $1700 price difference from new with a full factory warranty. And if I want to use it the 0% interest is pretty nice as well.
So do used units hold value that well or is that just a Midwest thing. Or is the pre 2018 2025R that much a better tractor. Have to say that I have been noticing the same thing on other brands and models before I focused on the 2025R. Like I said above not much incentive to purchase used for close to new prices. Thanks!

Slowpoke Slim · Apr 12, 2018

I agree. Add to that the new tractor warranty, and to me it was a no brainer. Just amazes me that folks think something used (matters not what that "thing" is) is worth the same money as something brand new with a warranty. I'm not opposed to buying used, but the price has to reflect the fact that it's USED. Don't think it's a midwest thing. Around here, the used prices were either same or more than brand new, or the tractor was half destroyed with age, neglect and hard use. Same goes for attachments. They are either battered rusty garbage that's half moldering down into the field, or they want brand new price.

I still check the used listings before I buy, but so far, new has beat used every time.

djefferis · Apr 12, 2018

Do they retain value that well - No.

Why is there such a tiny difference? Here are a few thoughts I have on the matter...a. Cost of acquisition - on used items, you have a much higher anticipated mark up vs new...gross profit on new is between 4-15% depending I'm guessing...used, more like 30% - so if I had to pay more as a dealer, you as a customer are going to have to pay more. b. Supply/demand - good clean late model used is not plentiful, basically as a dealer - I have 1 to sell and dont know when the next similar unit will be available - new on the other hand is a phone call away (if I am a franchise dealer). C -which ties into b. if I let my nice used stuff go quickly, my used supply is diminished and I dont have anything to drive the foot traffic in these days of internet shoppping...sure, you see that new with 0% financing is a great deal...but the next person with 15k cash in his pocket looking for a bargain is not as sharp as you...he's only going to stop in if I have something to lure him in - then if I am a professional sales person, I can set the hook and upsell him to a new unit or lead them to something else - perhaps a bigger new unit or something from a higher profit brand. Finally D. Keep in mind every "buyer" thinks used price is negotiable by 5-70% in their mind...some people get that theres "wiggle room" - others incorrectly seem to think if they flash a wad of 100's, your going to melt and kneel down and beg for their money. Starting high gives me room to make the guys expecting 5% happy (and make a profit) and with the unrealistic ones gives me a chance to bring them back to reality and give enough of a "discount" to make them feel like they "won"

Think this example is bad - check out craigslist sometime...people asking above current new price for fair condition 10-15 year old used (you know - because they were made much better back then) - yet when it comes time to sell something, they expect to pay 20% of whatever you paid back then (you know -just because equipment prices have seeming skyrocketed in the last decade..you shouldn't expect to net half of what you paid 10 years ago for lightly used/well cared for stuff...thats just crazy talk)