Does buying an "almost new" CUT make any sense?

HighTwelve · Jul 30, 2004

Does buying an \"almost new\" CUT make any sense?

I am writing this post out of a sense of sheer frustration. Over the last year I have gone after several low time 30-35 HP major brand CUT's with FEL advertised here or there - mostly on the web but a couple locally. I just lost another one and I have yet to close a deal, not because I can't afford the tractor, but rather because the owners always want almost new pricing for a used tractor.

I'm sure that most people are being honest when they say that there is absolutely nothing wrong with their, say, 100 hour old beauty, but looking at it from my point of view:

1. A new unit comes with a two or three year warranty and a local dealer who sold it to me and is obligated to support it.

2. The financing that the dealers are offering right now is attractive even though I could pay cash. I mean, I'd be crazy to ignore zero percent financing.

3. Even if the used tractor is perfect, it's likely coming in from far away and it's doing nothing to get me a relationship with the local dealer.

4. What if there IS something wrong with it?

Unless we are talking about a real USED tractor, say, a five or more year old unit with 500+ hours, in today's market with the incentives out there it makes just more sense to me to buy new.

I will give one example out of many - this particular tractor is available locally, 75 hours, Korean brand, $17,000 w/ aftermarket loader and finish mower. This manufacturer's warranties are not transferable. The same tractor brand new with the factory loader (a bigger and better loader BTW) and a decent finish mower is about $19,250. There is a three year warranty and zero percent financing for three years.

Why would I NOT go for the new tractor? Somebody tell me where I'm wrong here.

KiotiJohn · Jul 30, 2004

Re: Does buying an \"almost new\" CUT make any sense?

Welcome to TBN. I see no reason not to buy a new tractor for all the reasons you pointed out. The price difference usually isn't enough to justify paying for someone else's time of use. A used "new" tractor is often a good deal, but if you're not saving enough to really make it worth losing warranty, why do it? You already know the answer, go buy a new one, use their money if you can and enjoy knowing you have a warranty. On mine, it's 2 years parts/labor and 1 year parts. John

RHP · Jul 30, 2004

Re: Does buying an \"almost new\" CUT make any sense?

Hello High Twelve!
To me, buying an "almost new" cut makes alot of sense. This is exactly what I did. My NH35D with NH loader came with 200hrs from a private owner. It also came with 6mos. remaining on the full factory warranty and the previous owner purchased the extended warranty which transferred to me for a small fee. /forums/images/graemlins/ooo.gif

In addition,included with the purchase was a like new 10000gvw trailer, rotary cutter and box blade. The entire package came my way for close to $10,000 off the original purchase price. /forums/images/graemlins/smirk.gif

I believe this makes great sense to buy used, however, deals like this are few and far between. For a few thousand more, I would buy new.

If I was buying new, I probably would have gone for the 40 or 45D, however I'm certainly happy with the machine I have. I wasn't even looking for a new tractor when I found mine, but when I heard of the deal I counld not resist! /forums/images/graemlins/wink.gif

NO Regrets! !

JDgreen227 · Jul 31, 2004

Re: Does buying an \"almost new\" CUT make any sense?

HighTwelve,

Welcome to TBN... /forums/images/graemlins/smile.gif

If I were in your situation, I would certainly buy the new tractor, for saving only a few thousand dollars buying used isn't really worth the money. There was an ad in my local news last week, someone was selling a 2002 JD 4310 with the 430 FEL and 72 inch RB with 40 hours ( !!!!!! ) for $17,500.
No mention if it was a 4wd or Ehydro, but a sharp buyer could deal for a new 4310 with the features and the same attachments for $3000 more. One of the positive factors about buying a new CUT is they do not depreciate anywhere near as fast as an automobile does, however, that is also the same reason used tractors command a high price.

Buy the new one, that way you will be certain of getting what you want, and to me the peace of mind having the warranty and the good rapport with the selling dealer is worth it.

Just my opinion, but I'm the type of person who always buys new vehicles and then runs them 12 to 15 years before I get a replacement.

ChrisW · Jul 31, 2004

Re: Does buying an \"almost new\" CUT make any sense?

I think that it really depends on what kind of deals the new ones have. If the financing and everything is the same then I can see buying the used one if it will save you $2000 or more. I actually have a Kioti LK3054 listed over in the classifieds that is a 2003 with 100 hours on it. I will take $2000 less than what I paid for it but will not go any lower at this time. The reason is because it is still brand new and just getting broken in. I just did all the first time maint and it is ready for another 50-100 hours before oil change is due and 300 hours before trans fluid. The way I look at it is if no one buys it, I am still using it every week to mow and it works fine. Just needing to downsize so I am not willing to take a HUGE loss. The others you have seen may be in a similar position.

Just my $.02
ChrisW

Henro · Jul 31, 2004

Re: Does buying an \"almost new\" CUT make any sense?

For me buying used would only make sense if I could get a great deal like RHP did.

But without much savings why bother? You never really know how the tractor was treated by the previous owner. Was it abused in some way that might not appear for a couple years?

For example, recently someone posted on how his son ran his brand new tractor for five hours brush hogging with the brake set! Smelled real bad and burned the hydraulic oil, which he changed immediately. But could that have also weakened the seals/rubber components within the hydraulic system, setting the stage for future problems a couple years down the road? That tractor could end up on the market with 10 hours on the hour meter because the owner "just bought the wrong tractor...want something bigger (or smaller)."

I bought for the long term and a 15% savings over what new cost would not have enticed me to buy used. I'd personally rather know how the tractor was treated from day one and also know it was broken in properly and not abused. A full warranty doesn't hurt either.

rozett · Jul 31, 2004

Re: Does buying an \"almost new\" CUT make any sense?

I had exactly the opposite experience. I have never regretted buying my one year old Cub.

After a 6 month examination of tractors and their specs, I decided that I wanted a Cub 7360. The local dealer wanted a little over $20K for a new one with loader. I looked, mostly on-line, before finding one where the deal made sense. It was a year old, 90 hours on the meter, located at a JD dealer in Alabama. He wanted $13k, plus $1k for shipping. I was paying cash, so financing was not an issue. The balance of the warranty was transferrable. Given the attitude the local dealer demonstrated when I was looking, I was not going to be having a productive relationship with them anyway. I checked out the dealer, talked to the previous owner, and checked photos.

Now almost 3 years later, I have worked the Cub very hard. It has never been to a dealer for repairs, and I have never regretted the decision..... not mention saving $6k.

/forums/images/graemlins/smirk.gif

RoyJackson · Jul 31, 2004

Re: Does buying an \"almost new\" CUT make any sense?

It really depends on the deal you get...

I bought a 2003 790 Deere (with 419 loader) with 24 hours on it for about 3 thousand less then a new one would have cost. However, I am paying a higher interest rate then if I'd purchased new.

I'm pretty happy with my deal...so, it just depends.

Of course, my philosophy is...buy the tractor and don't worry about any other opinions. There's always going to be a guy that says "If I'd known you wanted a (enter any type of vehicle, boat, plane...), I could have got you a better deal" after you made your deal. You're happy about your purchase...why bust your balloon?

So, buy the tractor you want and don't worry about other opinions...

To20Chris · Jul 31, 2004

Re: Does buying an \"almost new\" CUT make any sense?

You are coming out about where I did - I've heard lots of comments about the resale value of various CUTs, but from what I've seen used CUTs in good condition with low hours are not that common. That makes it a seller's market, and real good deals are hard to find. And if the seller is not very motivated (i.e. just wants a change in size, etc.) then their not going to accept taking a big hit.

It makes a lot of sence to buy slightly used if you can get a good discount, but for $2250 I would forget it. I'd think the better loader, warranty, and financing would rule out the used machine. There could be situations that would change my mind, such as if you knew the tractor and it's history well, or could finance it some other way, but in general I think you'll have to be very lucky and/or patient to make the slightly used route work out. I bought new for these reasons.

A really used, older, cheap tractor can make sense, IF you have the time/ability/tools/facility to work on it. If it has been well cared for it probably has a lot of hours left in it.

hockeyhead · Jul 31, 2004

Re: Does buying an \"almost new\" CUT make any sense?

( I am writing this post out of sheer frustration. ) Been there, I looked, new, used, slightly used for years before I bought new. All I can say is educate yourself on exactly what you want and expect to see in each brand. Be patient in your search and quick on the trigger when you find a good deal. I myself could not find any deal on a 1 or 2 year old "cut" to convince me not to buy new.

chim · Jul 31, 2004

Re: Does buying an \"almost new\" CUT make any sense?

As others have posted, a lot has to do with the deals you can find. When I was ready to buy, I spent a fair amount of time looking and learning what was available around here. When looking at the numbers, condition of the used equipment, condition of the attachments, tire types, etc. I decided to buy a new one. It could very well be that a week after I bought my new tractor a used one came onto the local market that would have been a better choice. It does kinda surprise me how few hours some used tractors have. I saw some with only double digits on the hour meters. Of course, they had prices so near new that I figured I'd be ahead by simply getting a new one and breaking it in myself...............chim

jwstewar · Jul 31, 2004

Re: Does buying an \"almost new\" CUT make any sense?

I know how you feel. When we were looking, it didn't seem like to many newer, decent used ones were available. Found a few a dealerships, but like you said they usually weren't much lower than new. The ones I found typically either didn't have a loader or the bucket (and he knew what else) was bent all out of whack. I also knew that I wanted a MMM. Either they didn't have one or it was like the loader and bent to pieces and rusted. Found a few older Fords and such but most of them were around $3000 and I wasn't sure they would make to the end of the driveway and I still didn't have a loader or attachments. If they looked somewhat decent they were even higher in price and then who knew if (borrowing from the Unimog thread) it was a Sherwin-Williams overhaul /forums/images/graemlins/laugh.gif. On top of all of this was the great financing offers available. Ended up buying new and having regretted the decision once - OK, maybe a little bit each month when we write that check, but then I go mow the grass and remember that it is worth it. /forums/images/graemlins/grin.gif

TCowner · Jul 31, 2004

Re: Does buying an \"almost new\" CUT make any sense?

This is a tough issue as I generally agree with the majority of posters here. I buy new because I like the latest features and the warranty. However!

The fact that there are many buyers who are looking for clean, sometimes like new, low hour used tractors makes our life a little easier especially if there is someone in your house that may frown on tractor buying.

Each time there is a buyer for our used, low hour, clean tractors it means less of a beating at trade-in time. If buyers will only purchase our used tractors at cheap prices then expect a lot of pain when its time to trade. Frankly, the person who purchased my two year old TC40D with 350 hours probably saved about $3000 off a new one. My tractor was given its service at the each step. The tractor was washed and waxed and it looked like new.

I spoke with buyer a week or so before he bought it and he was very impressed with the appearance and condition of the tractor.

So in my opinion it comes down to this. Someone saves $3000 and lets me take the depreciation hit. Its very likely that the buyer will have hundreds of hours of trouble free service but of course there is a risk. That is the disadvantage of no warranty.

But if everyone has the opinion that a two year old tractor must sell for 5,6, 7 thousand dollars off new then we will have to keep them a lot longer. If it costs $6,000 to trade at two years what will it cost at 5-6 years?

I'm one who appreciates the fact these folks exist.

frank_f15 · Jul 31, 2004

Re: Does buying an \"almost new\" CUT make any sense?

it would have to be an exceptional deal to make it worth it. for the diff. you are talking aout i would probably go with the new unit.

GerardC · Jul 31, 2004

Re: Does buying an \"almost new\" CUT make any sense?

( Why would I NOT go for the new tractor?)

You shouldn't. G

Ledgemere Farm · Jul 31, 2004

Re: Does buying an \"almost new\" CUT make any sense?

I bought my Cub 7260 used with 40 hours on it. The dealer used it as his personal machine for about 6 months. He sold it to me with the full warranty for 3k less than a new one. I also got the financing from Cub as new. It is know 6 years old and has never been back to the dealer. It runs like a clock and i would never part with it. /forums/images/graemlins/grin.gif

Woodbeef · Jul 31, 2004

Re: Does buying an \"almost new\" CUT make any sense?

I'd have to say go new unless you can save at least 25%,especially with the incentives these days.

1savoy · Jul 31, 2004

Re: Does buying an \"almost new\" CUT make any sense?

HighTwelve,

I have to agree with everyone that for a couple thousand savings, it is not worth the risk to buy used. The one thought that may also play in to the used purchase is sales tax. Here in NY the sales tax (8.25%) on the new tractor you mentioned would be an additional $1,588.13. If you can buy tax exempt, then this is not an issue. Just a thought and good luck in your search.

Russ

Birdhunter1 · Aug 1, 2004

Re: Does buying an \"almost new\" CUT make any sense?

I haven't been in the tractor market per se, but I have been looking at trucks. My dad is a Ford salesman and on the lot there are several re-owned Fords that I like that are equipped the way I want one. I had never had a NEW truck buthe used with under 30K were not much lower than a new pcikup equally equipped with absolutely no miles on it and a full warranty. This afternoon I bought a NEW F-150, with low interest and rebates I ended up $40 cheaoer than a used one equally equipped.

goatman · Aug 1, 2004

Re: Does buying an \"almost new\" CUT make any sense?

I am not saying any thing that hasn't already been said.. If you buy used and don't have the advantage of Lower interest rates and warrenty .. Then you should get a 2-3 k below new.. As has been mentioned The cuts in bgood shape low hours do seem to hold their prices... /forums/images/graemlins/smirk.gif /forums/images/graemlins/smirk.gif