Are there enough used CUTs out there?

[nards444]

Just for fun, I regularly scan Tractor House less than 40hp tractors in MN and WI. There is generally a disproportionately high number of SCUTs compared to CUTs listed. My speculation is that they were traded in on a bigger tractor.

yeah have seen that too. I think the price looks right on scuts and I think they are perfect for the suburban 1/4acre 1/2 acre plot type deal. But really what your looking at is garden tractor with a loader and many figure that out

 

[rScotty]

What is the grey market? I致e seen it mentioned several times on this site.

The gray market is a 2nd hand market which has been going on for a long time with cars, tractors, trucks, machine tools.... just about anything. In this case, grey market tractors are overseas models of name brand tractors which were sold new in some other country than the US and then imported into the the US as used machines - all without going through the US dealer's system. Kubota and Yanmar models are popular on the gray market because of their high quality and worldwide sales. Grey market models are typically sold here for a fraction of what a similar US model used tractor would cost. Not surprisingly US dealerships tend to hate the corresponding grey market models. There are good buys to be had in grey market tractors, and good reliable grey market dealers too. But you need a lot of mechanical knowledge, a source of sound parts, and the ability to tell a good grey market dealer from the hucksters.

How does a grey market come about? In some countries - at one time Japan was an example - the government supported their export machinery manufacturers by by making it financially difficult for their small domestic landholders to keep on working with older machines. New machine production and sales are encrouraged by requiring annual use fees (licensing) that rises rapidly as the farm machinery ages. This is then coupled with a decreasing depreciation schedules. Not surprisingly, that combo kills off their domestic used tractor market and trade-in value. The farmer has an incentive to buy new, but what about his old machines which were designed to last forever? The solution is either the scrapyard of the grey market buyer.

Grey market buyers overseas go around and buy up these old tractors for low prices, put as many as possible in a shipping container, label the container in a way to best bypass tariffs and trade restrictions, and hope to ship it somewhere to make a profit. The quality and parts availability on these tractors ranges from almost impossible to easy. Some are heavily worn and little more than running junk, and others are only lightly used and well maintained.

One big advantage for the mechanically talented or mechanical hobbyist kind of guy is that the grey market favors the types of machines that were designed to last and to be rebuilt. As a result, the grey market tries to concentrate on models with a lot of original quality and classic or unusual features.... keeping in mind that a lot of junk can be added to a shipping container just to fill up space....

Grey markets flourish because of trade policies, internal legislation, lack of manufacturing, and comparative dollar value. The target consumer either has no domestic manufacturers of their own, or a population with more mechanical resources and need than money.
rScotty

 

[Diggin It]

yeah have seen that too. I think the price looks right on scuts and I think they are perfect for the suburban 1/4acre 1/2 acre plot type deal. But really what your looking at is garden tractor with a loader and many figure that out

Disagree. I couldn't even drive mine around a 1/4 - 1/2 acre lot. I've currently got close to 4 acres and it sits a lot while I use other machines for many tasks it's too big or not nimble enough for.

 

[nards444]

Disagree. I couldn't even drive mine around a 1/4 - 1/2 acre lot. I've currently got close to 4 acres and it sits a lot while I use other machines for many tasks it's too big or not nimble enough for.

Thats possible, but thats what they are designed for, whether they work for everybody or not is a different question

 

[nards444]

The gray market is a 2nd hand market which has been going on for a long time with cars, tractors, trucks, machine tools.... just about anything. In this case, grey market tractors are overseas models of name brand tractors which were sold new in some other country than the US and then imported into the the US as used machines - all without going through the US dealer's system. Kubota and Yanmar models are popular on the gray market because of their high quality and worldwide sales. Grey market models are typically sold here for a fraction of what a similar US model used tractor would cost. Not surprisingly US dealerships tend to hate the corresponding grey market models. There are good buys to be had in grey market tractors, and good reliable grey market dealers too. But you need a lot of mechanical knowledge, a source of sound parts, and the ability to tell a good grey market dealer from the hucksters.

How does a grey market come about? In some countries - at one time Japan was an example - the government supported their export machinery manufacturers by by making it financially difficult for their small domestic landholders to keep on working with older machines. New machine production and sales are encrouraged by requiring annual use fees (licensing) that rises rapidly as the farm machinery ages. This is then coupled with a decreasing depreciation schedules. Not surprisingly, that combo kills off their domestic used tractor market and trade-in value. The farmer has an incentive to buy new, but what about his old machines which were designed to last forever? The solution is either the scrapyard of the grey market buyer.

Grey market buyers overseas go around and buy up these old tractors for low prices, put as many as possible in a shipping container, label the container in a way to best bypass tariffs and trade restrictions, and hope to ship it somewhere to make a profit. The quality and parts availability on these tractors ranges from almost impossible to easy. Some are heavily worn and little more than running junk, and others are only lightly used and well maintained.

One big advantage for the mechanically talented or mechanical hobbyist kind of guy is that the grey market favors the types of machines that were designed to last and to be rebuilt. As a result, the grey market tries to concentrate on models with a lot of original quality and classic or unusual features.... keeping in mind that a lot of junk can be added to a shipping container just to fill up space....

Grey markets flourish because of trade policies, internal legislation, lack of manufacturing, and comparative dollar value. The target consumer either has no domestic manufacturers of their own, or a population with more mechanical resources and need than money.
rScotty

There's a large grey market on used cars from Canada up here (20mins from canada) In canada leasing for one year is huge like 80% of all new cars, something to do with taxes etc. Either way all these 1 year old cars come over with 5-10 max 15k on on them and you get the first year depreciation discount and the exchange rate. Bought my last truck for 34k that was a 55k truck. No brainer.

 

[chas0218]

Few good ones to be found and when you do find one, it's priced as if they only used it to move piles of feathers at the pillow factory.

OMG yes, I have been looking at 30hp or less units and for $3k more I can get 0% and brand new.

Same around here, if itç—´ under 10 years old your better off buying new with a warranty for the most part and whatever buying incentives they are offering.
Why buy a 6 year old scut for 12k when a new one is 15k(just a example).


Jim.

That is the boat I'm in now get a tractor for a few $1000 less without warranty or just suck it up and buy new.

I don't think it has anything to do with emissions but anything with a loader and diesel brings a premium price tag. I've been looking for a used 30hp or less tractor for 2 years. Trying to find a decent deal on one is like finding hens teeth. Sure there are a bunch for sale but a couple that come to mind are $10,000 and $15,000. 10k for a 1989 ford 20hp with finish mower and the other is a 1996 32hp Kubota. Both have loaders and good shape but they are on crack if they think they will get that. The Ford has been for sale for over 1 year and he came down to $9000 firm.

 

[jonsstihl]

I sold my 2006 b7800 with a snow blower for the price I paid for it ten years ago. I used it for ten years put 500 hrs on it and it didn;t cost me anything other than the taxes I paid on it when I first bought it.

I had a bunch of calls and it sold within a week. at 17,000 canadian. with loader and snowblower.
my new used tractor I paid 37,700 canadian but new price would have been around 54-55 thousand . I saved 17,000 $ and the one I got has 550 hrs and looks brand new. It took me two years to find it . the money I saved buys a lot of attachments.

I think I will be able to do the same thing with this one in ten years. the price of new tractors just keeps going up and that raises the used prices.

 

[check]

I sold my 2006 b7800 with a snow blower for the price I paid for it ten years ago. I used it for ten years put 500 hrs on it and it didn;t cost me anything other than the taxes I paid on it when I first bought it.

I had a bunch of calls and it sold within a week. at 17,000 canadian. with loader and snowblower.
my new used tractor I paid 37,700 canadian but new price would have been around 54-55 thousand . I saved 17,000 $ and the one I got has 550 hrs and looks brand new. It took me two years to find it . the money I saved buys a lot of attachments.

I think I will be able to do the same thing with this one in ten years. the price of new tractors just keeps going up and that raises the used prices.

Good for you, Jon!

 

[rScotty]

That is the boat I'm in now get a tractor for a few $1000 less without warranty or just suck it up and buy new.

I don't think it has anything to do with emissions but anything with a loader and diesel brings a premium price tag. I've been looking for a used 30hp or less tractor for 2 years. Trying to find a decent deal on one is like finding hens teeth. Sure there are a bunch for sale but a couple that come to mind are $10,000 and $15,000. 10k for a 1989 ford 20hp with finish mower and the other is a 1996 32hp Kubota. Both have loaders and good shape but they are on crack if they think they will get that. The Ford has been for sale for over 1 year and he came down to $9000 firm.

Out here in the Westen US those prices might be 10% high, but I they would have tobe rusted and dented to come down $2500.
rScotty

 

[nards444]

Out here in the Westen US those prices might be 10% high, but I they would have tobe rusted and dented to come down $2500.
rScotty

Im not sure new used tractors are really holding value. Nothing that is 2-3 years old is worth around 10% less than what new cost, that really seems to be the going rate anything within the 2-3 even 4 year old range is only about 10% less than new maybe 15%. I think its more of financing demanding that pricing. You see it in boats too. You get all of these people buying tractors for 0% or so spread out 6-7-8 years. Again like I said loans aren't bad. But what happens is 2 years down the road they are selling because they really dont need it, trading in etc. At that point they went 0 down or little down and 2 years in still owe a lot. So a lot of the pricing you see is that people want to get their money back, to me its not true value of machine.