Better Deere reslae value

[robert23239]

Looking to buy a new tractor and I thought I would also look at what is the best reselling model. I would like hear opinions. So if decide to keep it only 3 or 4 and than trade up or down what would be the best model.


Or the 2000 series (2720)


Thanks

Robert

 

[jcmseven]

All the JD machines resell pretty well; I should know, I have had six JD compacts in six years. On average I would say the large frame machines and mid frame 3000 series machines are very popular for resale, with the 4000 in particular only being handicapped by their high initial cost---which limits the clientele somewhat. The small machines such as the 2305 sell well, too. I am seemingly always being asked if I know someone wanting to sell a 2305, so it is a hot little tractor. The larger 2020 series machines sell well also in general, but in particular the 2520 and 2720, at least in my locale, probably would be the most challenging to resell when needed. The reason is that these two machines, much like their predecessor, the 4115, are priced too close in my opinion to the lower HP 3000 series tractors. Thus, at times they can be tough to move new, much less used as many potential buyers--whether new or used--will go for the bigger machine that costs negligibly more. I would say logistically they would be the most challenging to get a solid resale from, but this is compared with other JD's. The other issue encountered is that JD, much like the automotive industry is devaluing their machines by offering prolonged low interest, or zero interest, financing plans. This is good in that it keeps JD selling machines in a tough economy, but bad in that it makes a fresh used machine harder to sell for a straight cash sale. Since tractors of this quality last so long, they tend to have rapid initial depreciating to their residual value, then plateau. If one looks at TractorFinder or one of the other websites, one can see many times a tractor with 1000 hours on it is priced similarly to one with 500 in the same condition. Although I do not know for sure, I suspect both those example hour machines would have lost most of their values within the first 100 hours, then stabilized after that. In short, I would buy the machine you like and can afford, and sell it only if you have to do so later. From experience, buying one with the thought of selling it in one or two years probably will be less financially desirable.

John M

 

[TomWhite]

The small machines such as the 2305 sell well, too. I am seemingly always being asked if I know someone wanting to sell a 2305, so it is a hot little tractor.

I don't remember whether it is on tractorhouse or machinefinder, but on one of the two there are always a bunch of the 2305's. A bunch.

 

[LBrown59]

Looking to buy a new tractor and I thought I would also look at what is the best reselling model. I would like hear opinions. So if decide to keep it only 3 or 4 and than trade up or down what would be the best model.


Or the 2000 series (2720)


Thanks

Robert

I bought a Bolens tractor new 42 years ago.
Still have it.
So much for resale value.

 

[AKfish]

Looking to buy a new tractor and I thought I would also look at what is the best reselling model. I would like hear opinions. So if decide to keep it only 3 or 4 and than trade up or down what would be the best model.
Robert

John M's comments are spot on. Buy what you want/need. You will likely take a significant monetary hit; regardless of tractor model by selling, trading and upgrading in just a couple of years. The value of tractors does plateau and the steepest part of the curve is on the front end.

John Deere has one of the best (maybe THE best) support networks industry-wide for parts and repairs. That is one of the major reason's that 20-30-40-50 year old JD's sell for what they cost new - or nearly. People recognize that owning a JD is a good long-term investment given the relative ease of obtaining replacement parts or repairs.

AKfish

 

[LBrown59]

Looking to buy a new tractor and I thought I would also look at what is the best reselling model. I would like hear opinions. So if decide to keep it only 3 or 4 and than trade up or down what would be the best model.


Or the 2000 series (2720)


Thanks

Robert

Due to the new tractors financed at zero percent you will have a hard time selling any used tractor against a new tractor.
What makes any difference what your used tractor is worth if you can't sell it because of this.

 

[Karl2]

Looking to buy a new tractor and I thought I would also look at what is the best reselling model.

Like the others say JD tractors usually do pretty well on the used market. Now which model is likely to retain the highest resale value is highly dependent on your location if you intend sell/trade it locally at a later time. Up here JD models that are in highest demand are those that can be used for both commercial snow removal in winter and commercial mowing/landscaping in summer. The former requires serious hp while the latter calls for relatively light weight yet large enough for mowing large areas in a reasonable amount of time. This usually translates into high demand and best investment return on the high-hp cabbed models from the 3000 and 4000 series. If one is only into commercial snow removal then the 6000 series is most popular.

 

[Spudland_Dave]

The other issue encountered is that JD, much like the automotive industry is devaluing their machines by offering prolonged low interest, or zero interest, financing plans. This is good in that it keeps JD selling machines in a tough economy, but bad in that it makes a fresh used machine harder to sell for a straight cash sale.

Around here the compact tractor market is and has been for the past 10 years strong enough that on ANY color tractor the price difference between a fresh used (worth buying) & new is so slim that unless the used machine you're looking at is EXACTLY what you want, you're better off buying new. Add in the warranty aspect and the comfort of knowing what kind of oil and how often it was changed and a used machine for me was ruled out in about 2 days when shopping last year.

 

[jcmseven]

Dave, I think you are right about this, but it definitely seems to have become more-pronounced within the past 1-2 years, which I feel in no small part is related to the long-term low to no interest financing plans.

John M

 

[Spudland_Dave]

John,
I dont know if its because of financing on the new ones...the way I see it is the new ones havent gotten cheaper, the used ones are going for more money.
Typically when financing is "Cheap" the used market values go down to nothing....take a look at the auto industry for example. A used full size truck cost much less today then a comparable model 10 years ago. Used trucks used to be 15-18k, now you can get a new one for that and the used trucks are 6-9k tops.
Seems like the used CUT market is holding its own...heck I've seen some "deals" on craigslist for relatively new Deere's and Kub's for MORE then what I could run down to the dealer and pick a new one up for...

 

[jcmseven]

Yes, I agree. And what it does to those folks (like me) who tend to trade often is really make us think about when we trade and whether it is a good idea. As I have noted in previous postings, I am guilty of buying machinery to fill a specific need which I have at the time. Frequently, either the job is done more quickly than I thought or my need changes and I would be "stuck" with something I really do not need. Fortunately, I have had the financial wherewithall to be able to trade into different machines, but it definitely is a losing monetary proposition. The problem I have seen is that the new machines can now be had for so little and prolonged finance terms, that off the top, many folks wanting to by used either go new or want the seller to finance them themselves. I sold my dad's 757 last year to a friend who is a good guy. He got a great deal, but even then he wanted a prolonged period to pay the machine off due to the fact that otherwise he could have gone to the local dealer and done almost as well on a new one. He is a friend, trustworthy, and I did not need the money right at the time so the deal turned out OK for the both of us. This, of course, does not always happen that way. Therefore, I have mentioned to posters who buy with an intent to trade into a different machine relatively soon that this might be a bad idea.

John M