Should you trade in your tractor when you buy a new one.

[bdhsfz6]

Whenever I sell a tractor or vehicle, I always do it at a location away from my home. It's easy with a vehicle, I just drive to the nearest McDonalds to meet the buyer. I do the same with a tractor but usually just drive it out to the main road.

I always request a certified check and call the issuing bank to verify. I never accept cash.

 

[check]

Never traded in anything on a new one, and I even regret the last time I returned my leased truck (a 2014 F150) to lease a new one. I thought I was doing so well because they gave me $3500 to terminate the lease instead of buying out the truck, so instead of buying it for $25,000, they gave me $3500, making it, I thought, worth $28,500. Ha! A few days later, they had it up for sale for $35,000! Don’t know what they eventually got for it, but I sure would like to know.

Anyways, I leased a new 2016, and then was smart enough to buy it out at the end of the (2-year) lease for $31,000. Still driving that truck today, and I’m sure if someone wanted it they would pay more than $31,000. For a 6-year old truck!

But then I would have to pay through the nose for a new one, and this one is fine. May very well drive it into the ground.

 

[m1garand762]

It’s a raw deal but unless you have a farm use tax exempt card, a non profit status tax exempt card, or live in one of the few states with no sales tax you’re going to have to pay sales tax on a tractor.

Who pays sales tax on a private sale? And who pays tax ar a dealership every dealer I have ever been in does not charge tax to anyone who comes in

 

[Hay Dude]

Who pays sales tax on a private sale? And who pays tax ar a dealership every dealer I have ever been in does not charge tax to anyone who comes in

Private sale, theres no sales tax, but Ohio State Sales tax is 5.75%, unless you are exempt.

 

[mred2]

In Alabama, tractor are treated the same as a car. It is an auto tax rate.
About 1/4 as much as general sales tax. But an implement is the general tax rate. 10% at this time.

 

[RalphVa]

About $3k difference in my case. Traded in the 2015 JD 2025R with 430 hours on it and H130 loader for $13k. Dealer had a buyer who dealt in JDs for $14k. It is worth about $17k if I wanted to see it myself. Less hassle to just trade it in.

Outrageous because the $17k is only a little more than $2k more than I paid for it in 2015.

 

[JethroB]

Local Kubota dealer here usually has a few used pieces of equipment and tractors for sale on consignment. Not sure of his cut though, flat rate or %? That might be a middle ground vs. a private sale or trade-in. High visibility and he has to deal with the tire kickers and payment issue.

 

[4570Man]

Who pays sales tax on a private sale? And who pays tax ar a dealership every dealer I have ever been in does not charge tax to anyone who comes in

Virtually nobody is going to pay sales tax on a private sale. But it’s standard practice for a dealer to charge sales tax even on a used tractor unless you fall under one of the few exemptions.

 

[Reddogs]

Private sale, theres no sales tax, but Ohio State Sales tax is 5.75%, unless you are exempt.

I thought all farmers had an agricultural exemption in the states, I always tell that to the dealer and get no taxes on any tractors or quotes from them.

 

[Hay Dude]

I thought all farmers had an agricultural exemption in the states, I always tell that to the dealer and get no taxes on any tractors or quotes from them.

They do, but I thought we were talking about a non-AG tractor.
A utility tractor, used by a land owner to scoop stone, cut grass, etc is not eligible in most cases for a state tax exemption because its not being used to produce a crop.

If you walk into a dealer and tell them you are a farmer, when in fact you are not, you are breaking the tax code laws.