Used tractors are gold

[bdog]

Why is it so hard to find a reasonable deal on a used tractor? I have been watching the papers, etc trying to find a used tractor for soem time now and everyone I find is way overpriced. I don't know if people are paying these prices or what but it blows my mind when you see 5 year old tractors with no warranty, no 0% financing, 500 hrs, and they are asking within $1000 of what a brand new one can be bought for.

 

[bp fick]

Asking price and selling price are two different things.

1. You don't know if they sold at all. Pretty likely they have not.
2. If they did sell, what was the final agreed upon price? Don't know.
3. The price at the dealership, while "only" a $1000 more, will include paperwork fees, delivery, and wait for it....sales tax. That's another $1000 that won't be involved, in most states, when it is a private party sale.
4. The advertised price might reflect the fact the zero down, zero interest was used to buy the tractor in the first place and the payoff is still pretty high.


Thus, the difference might be as much as $3000 very quickly in real dollar terms. Let's say that is on a $15,000 tractor. My math shows that as a 20% savings. Not everything is whacky as it first appears.

 

[Egon]

Tractors depreciate at a different rate than do cars. A 500 hour tractor could be considered new in terms of total hours expected.

 

[SpringHollow]

What do you mean, no good deals - $5700 like brand new 4WD John Deere (4000 series), loader, backhoe, forks, etc etc - free delivery no matter where you are - yep, Craig's list scam. Besides the too good to be true, free delivery without knowing where you are and pictures from Early summer when we have a foot of snow are dead give aways.

Ken

 

[RoyJackson]

I did a quick study of John Deere CUTs several years ago. I focused on the 755, 855, 955, 670 and 770.
I may still have the spreadsheet somewhere, but what it boiled down to was about a 20% depreciation over the first 5 years. After that, the asking prices remained pretty consistent and the rate of depreciation dramatically slowed (almost stopped, in fact).
Now, this study wasn't scientific and the sample size wasn't too big. I focused on Deeres and their resale value is probably higher then many other brands. Also, CUTs were not as popular in the late 80's to mid 90's (the build years of the used tractors I studied), so there was less availability.
This is a subjective view, but I think CUT owners held on to their machines longer in the 80's, 90's and early 2000's, so less used machines on the market.

 

[deputy11]

Not sure how you can say "overpriced". Economics 101 says that anything is only worth what someone is willing to pay and supply and demand enter into it. People ask what they do for a tractor because they can and do get it. Most do build some "wiggle room" into their asking prices, the trick is to find out how much they will wiggle!

 

[two_bit_score]

Why is it so hard to find a reasonable deal on a used tractor? I have been watching the papers, etc trying to find a used tractor for soem time now and everyone I find is way overpriced. I don't know if people are paying these prices or what but it blows my mind when you see 5 year old tractors with no warranty, no 0% financing, 500 hrs, and they are asking within $1000 of what a brand new one can be bought for.

They may still owe as much as they are asking because they haven't paid off the 0% financing yet.

 

[buck12]

I looked for a year and bought about a year ago. I didn't find what I thought was a good deal on a tractor. However I found a package deal, tractor, trailer, and implements, for what I thought was a good deal and bought. I can feel the pain of anyone looking for a used tractor. Good deals are few.

 

[buck12]

Economics 101 says that anything is only worth what someone is willing to pay and supply and demand enter into it.

Our county tax assessor told me good luck with that and that my property was worth what he said it was worth.

 

[dcyrilc]

I looked for about a year also. I settled for a 30 year old 4WD gear tractor with FEL (JD2240) for $7500. It included 8ft RB, 105 disk plow, and a 7ft landscape rake. It also came with duels, an extra mounted front tire, and an extra front and rear tire unmounted. It needs some work, but is still functional without it. All-in-all, I think I got a good deal.

 

[/pine]

last year (after shopping for 3 years, one seriously) I bought a 15 year old gear Kubota 4x4 w/FEL and 470 hours for $5500...no 3ph attachements

After I add 3 rear and 1 forward remote hydraulics I expect it to go up in value and hold that value for at least another 2000-3000+ hours

 

[varmint]

After looking for a year or so in 2002-3 (admittedly, I don't live in a hotbed of farming activities) I found a new looking (and running) 1992 or so Kubota B8200... it had under 500 hours, and a front loader and rear blade. The blade is a really good J. D. I also paid extra for the 9" post hole auger, which I needed. The tractor is a gear drive, and 4WD, with good turf tires. I had to find and install power steering, which was a project that required modifying the loader supports. All told, not counting my labor, I have invested about $8000 in it. On the other hand, it has worked perfectly for about 7 years, plowing, spreading topsoil, grading, and installing scores of wooden fence posts. Other than the gear drive, which is a pain when clearing heavy snow, back and forth, I am completely satisfied, and think it's still worth most of what I have in it. I consider it a working investment that holds its value, if you take care of it. My tractor lives in a shed, gets waxed once a year, and has only about 150 hours more on the clock now that it did. My advice would be to get what you want, and don't worry so much about the cost, because whenever you have to sell it, assuming you take good care of it, the value should still be there. I can't imagine a better made tractor than my older Kubota, but then, it's the only tractor I've owned.

 

[RoyJackson]

... On the other hand, it has worked perfectly for about 7 years...
My tractor lives in a shed, gets waxed once a year, and has only about 150 hours more on the clock now that it did.

You're only working your tractor 21 hours a year?
Seriously, you probably put a lot of those hours the first few years and I'd guess your machine only gets occasional use now. That's about the same here...first few years were pretty intensive, now it's mostly mowing, snow clearing and occasional FEL work.
Those 8200's are nice though...I looked at one when I was looking for more PTO HP.

 

[Diamondpilot]

With what you are finding and the good financing rates at this time its a good time to also compare the actual cost to a new tractor. My finding was in 2003 it was cheaper in the long run to buy new then a 3-5 year old unit.

Chris

 

[Bob_Young]

Philosophies differ. The neighbor, who runs a large dairy farm, won't buy any tractor new. The place looks like a JD museum...awaiting restoration. Everything has issues, breakdowns are common, and tractors are being worked on almost continuously. Part of his thinking seems to be that the old stuff CAN be worked on. Too much electronics in the new and he doesn't want to tackle it. Bad part is that the breakdown cost in lost opportunity isn't really considered.

My uncle, a small farmer, always buys new. The point he makes is that if you buy new and take care of what you have, after 8 or 10 years you can get what you paid for it when you sell or trade. He's done it again and again. Of course the dollars are weaker and/or the same equipment new costs more. My own limited experience tends to confirm this. The clean used tractors go for premium prices, not far from new. Only the beaters seem to be bargains...and they aren't really.
Bob

 

[powerpace]

Value is right up at the top the first few years. But if you run across a deal that seems to good to be true in an older tractor, start asking around about parts availability. After awhile parts get very scarce.

 

[AKfish]

However I found a package deal, tractor, trailer, and implements, for what I thought was a good deal and bought. I can feel the pain of anyone looking for a used tractor. Good deals are few.

A good deal might "only" be a so-so price paid. But, the condition and overall quality of the machine and implements could just be what was, in fact, the "great" part in the deal.

I bought a package deal on a tractor and attachments, too. I didn't get a steal on the price - but, after looking at the machine and implements (and the record of repairs and maintainance) I jumped at the "deal" without even talking about the price!

After looking at a fair number of other tractors and such - when you come across a machine that's been taken care of - that's what a "deal" is all about!!!

AKfish

 

[forester2]

Maybe I'm all wet, but the prices and availiblity for used 4 wheel drive tractors and even more so for 2 wheel drive, seem a lot more reasonable then they were 10-15 years ago. I believe it's because of the greater number of people who have purchased new tractors the last 20 years for non commercial use and the low financing making it easier for people to move into upgraded machines and buy new instead of used.

 

[Aaron_D]

I started looking for a used machine like many of you. Eventually I gave up and bought new for less than anything I looked at that was used. Still doesn't make sense to me but, I now have a new machine sitting in the garage with a warantee.

I understand the argument that the asking price doesnt reflect the sale price for used but its also not the case from your dealer. Dealers also lower their price 10-15% off msrp and sometimes more if your lucky. Deals are out there, in my case the dealer had a better one.

 

[jinman]

Why is it so hard to find a reasonable deal on a used tractor? I have been watching the papers, etc trying to find a used tractor for soem time now and everyone I find is way overpriced. I don't know if people are paying these prices or what but it blows my mind when you see 5 year old tractors with no warranty, no 0% financing, 500 hrs, and they are asking within $1000 of what a brand new one can be bought for.

Bdog, you didn't say what you are looking for or the price range. I look at the DFW craigslist all the time and find what I consider to be very good deals. Certainly, none of these are just $1000 less than the new price. Here's a couple of examples I saw today on tractors that are big and small.

Small:
2007 KUBOTA L2800 4WD TRACTOR WITH LA460 FRONT END LOADER ATTACHED. ALSO HAS A 6FT LANDS PRIDE FINISHING MOWER. $12,500


Larger:
2008 Case JX 95 MFWD with Great Bend Loader. Quick detach loader (skid steer attachments). 2 SCVS, 3 point, 540/1000 PTO. Interior in perfect condition, heat/air AM/FM/CD Radio. 12 spd trans, 4 wheel drive. 220 Hours, bought new in 08, 1 owner. This tractor has been well maintained and is in excellent condition. Like a new tractor without the new price. $38,500

If you are interested in either of these, you can look at craigslist to find them. Certainly, the JX95 seems expensive, but the price of that used tractor is still much less than new. With either tractor, an offer of cash might just bring a better deal.