Thinking about trading M5040

[foreman Etexas]

I purchased a M5040,4x4,ldr in august well now thinking about going to 8540,4x4 cab/ldr.Tractor is basically new(160hrs) paid 26,900 trade in value towards the new tractor is $18,500,man thats alot of to bite off. Is this about right? And another issue wife stopped at NewHolland dealer and seen the new POWERSTAR 4.75,and is hooked got me the price and brochures on it. I like the Kubotas but im thinking I will be able to get a better trade in going with another brand. What to do...

 

[eagle107]

That is about right. A dealer can easily sell a new tractor to someone at 0% financing than sell a used tractor at 4.99% financing. It is a bad market for trade-in/used tractor at the moment. The New Holland Powerstar is one heck of a tractor; I would look at them also. The Powerstar´s cab is supposed to be phenomenal. You could wait another year, but prices continue to go up and by the time 2013 and 2014 roll in, prices will go much higher due to Tier IV emissions standards on the engines.

 

[foreman Etexas]

That is about right. A dealer can easily sell a new tractor to someone at 0% financing than sell a used tractor at 4.99% financing. It is a bad market for trade-in/used tractor at the moment. The New Holland Powerstar is one heck of a tractor; I would look at them also. The Powerstarｴs cab is supposed to be prenominal. You could wait another year, but prices continue to go up and by the time 2013 and 2014 roll in, prices will go much higher due to Tier IV emissions standards on the engines.

Yeah she liked the room in the cab alot better than the kubotas,just not much room in it when we go feed cows, me,her,and the 2yr old in the M7040.Price loaded Kubota M8540 $41,000 and the Powerstar 4.75 $42,500 more$ for smaller HP tractor

 

[eagle107]

Yeah she liked the room in the cab alot better than the kubotas,just not much room in it when we go feed cows, me,her,and the 2yr old in the M7040.Price loaded Kubota M8540 $41,000 and the Powerstar 4.75 $42,500 more$ for smaller HP tractor

Yeah, that is the hard one; family comfort versus more tractor. The NH has an instructor's seat which would be nice for your wife and little one, and the cab is roomier and more ergonomic. However, the Kubota beats the NH in almost all the other categories, except for fuel efficiency. The NH would be running at 2300 RPM while the Kubota is running at 2600 RPM to make the HP, but the Kubota should have more torque at 230 engine displacement versus the NH at 195 engine displacement. Also, you have to take into account resale value. In the Ag tractor line, I am not sure which machine would hold its value more overtime. I am thinking Kubota, but NH is pretty high up there also.

 

[wcampbell47]

I purchased a M5040,4x4,ldr in august well now thinking about going to 8540,4x4 cab/ldr.Tractor is basically new(160hrs) paid 26,900 trade in value towards the new tractor is $18,500,man thats alot of to bite off. Is this about right? And another issue wife stopped at NewHolland dealer and seen the new POWERSTAR 4.75,and is hooked got me the price and brochures on it. I like the Kubotas but im thinking I will be able to get a better trade in going with another brand. What to do...

The dealer is only going to give you wholesale value. Can you sell it yourself? The dealer offered me $5500 on my B7510 and I find the same model for sale on line for as high as $8500.

I only owe $400 on the B7510 so that puts me in a different ball park than you.

 

[foreman Etexas]

Yeah could sell it myself,I was just thinking they would get close to what I wonted since I was purchasing another new tractor from them. Im talking about an 8,000 dollar loss in 5 mths,hows that for Kubota resale? I am going to see what NH and JD dealers will give me on trade,im not brand loyal and obviously Kubota not customer loyal either, you buy there stuff and get crap for $$$ when you go to buy more orange. So if I add it up right the new tractor is 41,000 in 5 mnths loss will be somewhere around 10/11 thousand. I know some folks gonna say thats the way it goes,I dont agree,dealer gonna make money on my new purchase,my trade-in on same tractor,then on my new tractor. Heck no way im I going to take another 8 grand loss on kubota.

 

[jk96]

One thing you have to keep in mind is financing. At 0% for 60 months there is a lot more incentive for prospective customers to buy new as opposed to used. This means that your dealer is most likely not going to get top dollar from your trade when the customer has the option of 0% on a new tractor or 5% on a used for not much less.

*Edit - I was in the same situation as you with CaseIH. I was looking to upgrade to a larger tractor and mine was only 2 years old. The hit I was going to take changed my mind. Ended up keeping what I've got. I don't think its just Kabota, you'd most likely have the same issue with any of the other brands as well.

 

[foreman Etexas]

One thing you have to keep in mind is financing. At 0% for 60 months there is a lot more incentive for prospective customers to buy new as opposed to used. This means that your dealer is most likely not going to get top dollar from your trade when the customer has the option of 0% on a new tractor or 5% on a used for not much less.

*Edit - I was in the same situation as you with CaseIH. I was looking to upgrade to a larger tractor and mine was only 2 years old. The hit I was going to take changed my mind. Ended up keeping what I've got. I don't think its just Kabota, you'd most likely have the same issue with any of the other brands as well.

I was meaning that no way will I give kubota any more money(I didnt use kubota financing),just keep the ones I have and give my money to another tractor brand...

 

[TripleR]

Have you contacted Barlow's, I know some on here have had good luck with trades.

You might also try other dealers in your area. I had to trade in a relatively new gear transmission truck once when I was unable to use the clutch and had to go to another dealer to get what I thought was a fair trade-in.

 

[foreman Etexas]

Have you contacted Barlow's, I know some on here have had good luck with trades.

You might also try other dealers in your area. I had to trade in a relatively new gear transmission truck once when I was unable to use the clutch and had to go to another dealer to get what I thought was a fair trade-in.

Thanks for the info TripleR,you just figure kubota dealer would give you more for your trade and especially the one you spend all your money with. I was in know way exspecting not to take a loss,and im talking about turning around and spending another $54,000 with them(tractor&batwing)..

 

[TripleR]

Thanks for the info TripleR,you just figure kubota dealer would give you more for your trade and especially the one you spend all your money with. I was in know way expecting not to take a loss,and im talking about turning around and spending another $54,000 with them(tractor&batwing)..

I guess I am kind of use to that as I have run into the same thing with cars and trucks though not tractors "yet". When I went to trade my Toyota in, I was given a low ball trade in value and demanded to see the Sales Manager. I took him out into the display area where there was a poster extolling the high resale value of Toyotas. I asked him in no uncertain terms, if that is true and you are selling cars trucks with this promise, then what the h**l is with the offer for my truck on trade in.

After a lot of loud talking and me telling them to keep the deposit and getting in my truck to leave, I got what I wanted. I still drive Toyotas, but don't buy them from that dealer. My son in law keeps a truck for maybe a year and always gets a good trade in on a new one.

I keep my trucks and cars until they are essentially useless and sometimes give them away, so trade in doesn't mean much to me right now. We are pretty much the same way with tractors and buy used if we find one worth the money.

As I get older and have more trouble walking back to the shop, I may have to change my thinking though, so I may need to pay more attention to trends.

 

[foreman Etexas]

Yeah they claim to have good resale but these are real numbers
august "NEW"2011 Kubota M5040 sync.shuttle,4x4,LA1153 LDR,0hrs $26,900
december 2011 same tractor"160hrs" trade-in-value $18,500
Just gonna put these numbers out there for others to see,what there Orange tractor will be worth 5mnths after you buy it..."it still looks NEW"

 

[weldermike]

I love toyota trucks, bought one for 600 bucks once and put 150 thousand miles on it, and besides tires the only problem I ever had was the idler tensioner blew on the belt. Almost made a deal on a brand new one till the dealer told me the interest rate on the finance, somewhere in the sixes. they told me it was so high because of the high resale value. They are full of it!! So I bought a chevy.

 

[weldermike]

Just for a referance, I just traded in new l4400 that I bought 5mths ago for an mx5100 and it depreciated $3g, w 70hrs on it. I wasnt happy but understand the business, so seemed it was fair.

 

[foreman Etexas]

Just for a referance, I just traded in new l4400 that I bought 5mths ago for an mx5100 and it depreciated $3g, w 70hrs on it. I wasnt happy but understand the business, so seemed it was fair.

Yeah $3g sounds great,even $5g would have been within reason for me

 

[DieselnHooters]

I agree Foreman, $8,400 seems excessive , I believe they can resell it for 22 or close to that so they should bite the bullet and and give you that much hence selling you a much more expensive unit and keeping you as a customer.

 

[firejunkie]

If any dealership (car or tractor) gives you for trade what they sell it for, they would be out of business in a matter of a few months. They all have floor plans to sell a certain amount of units in certain time frames both new and used, insurance, payroll, overhead etc etc. To sell units for what they paid (except in rare gotta move this unit soon situations) would be suicide.

And for example, after much comparing the day I bought my unit (MX4700 with FEL w/ss attach front, front and rear hyd, 4wd, R4's, box blade, and rake for 27k w/0% pymt of 395/month with insurance-warranty) my other choices that day was a rented unit (with above options put on for 3k less with 50hrs on the clock with above finance $378 a month) or a 2006 Cat challenger MT275 with 690hrs and above equipment already there (except front remote hyd ) price 13,500 with no warranty and 5.5% interest and a $275 pymt for 4yr.

As you can see, (my) best option was a new unit. And the rental unit could be 0% as well because it was a rental unit through the dealer, if a used unit interest may have been in the 4-5% range and even at 6K less would have came to the same payment. Lets be a bit realistic.

 

[foreman Etexas]

If any dealership (car or tractor) gives you for trade what they sell it for, they would be out of business in a matter of a few months. They all have floor plans to sell a certain amount of units in certain time frames both new and used, insurance, payroll, overhead etc etc. To sell units for what they paid (except in rare gotta move this unit soon situations) would be suicide.

And for example, after much comparing the day I bought my unit (MX4700 with FEL w/ss attach front, front and rear hyd, 4wd, R4's, box blade, and rake for 27k w/0% pymt of 395/month with insurance-warranty) my other choices that day was a rented unit (with above options put on for 3k less with 50hrs on the clock with above finance $378 a month) or a 2006 Cat challenger MT275 with 690hrs and above equipment already there (except front remote hyd ) price 13,500 with no warranty and 5.5% interest and a $275 pymt for 4yr.

As you can see, (my) best option was a new unit. And the rental unit could be 0% as well because it was a rental unit through the dealer, if a used unit interest may have been in the 4-5% range and even at 6K less would have came to the same payment. Lets be a bit realistic.

$8400 isnt very realistic.None have said buy it back for what was paid"new".

 

[firejunkie]

I was not implying new price, assuming they can put it on the lot for about 23k that is a 5k discount, they would more than likely sell it for 21-22k to move it. that only leaves them 2-3k profit and may take them a few months to sell, they pay all there overhead and insurance at a few hundred per unit per month they may only make 2k on the sale, sales man gets 300, manager get a couple hundred, mechanic gets paid to check it out and prep it for sale, dealership makes 1k or less profit to stay open. Yup they are taking you to cleaners for sure.

Its simple all types of cars truck equipment take a hit upon being used. Don't trade a few months after buying anything. You are guaranteed to lose on the deal.

 

[foreman Etexas]

I was not implying new price, assuming they can put it on the lot for about 23k that is a 5k discount, they would more than likely sell it for 21-22k to move it. that only leaves them 2-3k profit and may take them a few months to sell, they pay all there overhead and insurance at a few hundred per unit per month they may only make 2k on the sale, sales man gets 300, manager get a couple hundred, mechanic gets paid to check it out and prep it for sale, dealership makes 1k or less profit to stay open. Yup they are taking you to cleaners for sure.

Its simple all types of cars truck equipment take a hit upon being used. Don't trade a few months after buying anything. You are guaranteed to lose on the deal.

It wasnt a planned thing,just have gotten way more land lately. The tractor has nothing but alittle mud on tires,I will wash it,take it to dealer and pick up my new one(all hauling on me). Was just saying alright you got me when I bought new,just give me 21 for tractor make cple hundred(again)(I will lose cple thousand),and then get me on the next new one,not on all 3....