Wonder why?

[cathy liebchen]

They are too hard to resell is why they don't want them. Its all supply and demand. The guy here locally doesn't take them either. its Kubota, JD, Massey, New Holland only. No second tier brands. Doesn't mean they are not good machines, just no demand for them

 

[jcbGM]

Trades on any type of iron are tough Especially for a smaller compact tractor dealer. Most of the new inventory is on floor plan. Say dealer has $2k profit in the sale of the new $20k machine he sold to you, and you want him to take a trade of $10k value. The mfg takes their $18k regardless of the trade, he effectively invests his $2k profit and $8k of his own money in your trade. It crushes cash flow until he moves your machine. Yes, he could potentially sell your trade for $12k and come out ahead, but he could also sit on it for many months. Additionally, as a branded dealer, you really don’t want to be selling competitive used equipment. Doesn’t help your parts and service business (where the money is)

 

[Atchuuu]

Could also have something to do with financing. Maybe they can get you into financing of a new or used brand X but have a harder time with other brands. ????

 

[tjkubota93]

First thing to cross my mind is they don't want to fool with getting parts or fixing one of those. Second thought was they don't sell. They probably got burned on one or two somehow.

 

[Geotech]

Anybody thought to just call and ask?

 

[Atchuuu]

Anybody thought to just call and ask?

Good idea. I talked to Trevor and he is a very nice guy. His response was "they don't have much demand for those tractors in his area. They sit too long. In order to take one in trade he would have to make a low offer and wholesale it out. Instead of doing that, and potentially creating hard feelings, they just don't take them in trade."

 

[Diggin It]

If I could have found mine used, I'd have jumped at it if the price was right.

 

[curtthegreat]

I kinda get it. When I go to my LS dealer, he always tries to have a large variety of the new LS line ups on display. In the corner lot where he keeps the trade in/consignment tractors, whether they are green,orange, or red, they just look out of place, in a sea of new blue tractors. No different when I drive by a lot that sells green, orange, or red, any other color than that of the dealers color, looks out of place to me. Granted those used tractors on my dealer's lot are well used, most of the time probably 20 years and up, and not any real head turners, better off going through a private party to avoid the dealers higher cost on a tractor that old. Now, if by chance someone brings in a 2-4 year old green,orange,red, he's probably gonna put it on display. But who trades one of those in, that new, on a LS?

 

[prof fate]

The issue is likely if htey sell it the buyer will come back for service...and they don't want to service all the 'off brands'.

If it's a good unit they can sell it, regardless of brand - just buy it right, aka CHEAP. "Yeah, we take LS tractors on trade. $500 is the most we'll pay though" LOL

New units, at least in cars and powersports, are not bought by the dealer, they just pay a flooring charge (aka interest) on the inventory. When you take a trade you're buying that with cash from your bank account.

So you trade a $5k tractor in on a 19k new kubota - the dealer has to pay kubota say, 16k at the end of the month since htey sold it. that leaves them 3k profit - but if htey had to shell out 5k on the used one, they took 2k out of their bank account.. Sure, they'll sell it for $9k or more at some point.

Why 9k? Well, if all the did was sell the new one, they make $3k. today.
With the trade, they spent 16k plus 5k, 21k out of their pocket, 19k back in, so they're short $2k. They'll want to make the 5k back, the 3k profit they wanted in the first place, and 1k or more for selling the used tractor.

I've known dealers that won't take money out of their pocket, or rarely will., So the most they'd offer is 3k on the trade...

In the car biz they make more money on used cars than new ones. I doubt tractors work that way.

 

[Geotech]

Good idea. I talked to Trevor and he is a very nice guy. His response was "they don't have much demand for those tractors in his area. They sit too long. In order to take one in trade he would have to make a low offer and wholesale it out. Instead of doing that, and potentially creating hard feelings, they just don't take them in trade."

Sounds reasonable.