How to Sell tractor that still has balance on loan?

[Industrial Toys]

My Dad always impressed upon me to buy NEW! If your into tracors and equipment, your always evolving and your needs/methods changing. I will never probably buy new again.

I guess, trying to sell a very low hours tractor, you are in competition with the dealers and their incentives. Most people buy on time, so why not pay a few extra bucks to a dealer and get new.

Probably the best bet is to trade something like that in, if you are getting something different. You have a little bargaining power to do the sale. It's like guys with boats or campers. They keep going bigger and trading in, thinking they are doing OK, and the onen day they want to cash out, they get a nasty surprise!

 

[peterc38]

That may not be your biggest problem. I found it very, very difficult to sell a showroom condition, very low hours JD CUT once, and get my money out of it.

I know I won't get all my money and that is not the goal. The goal is to get enough in private sale than a dealer will give in trade. Maybe that was not clear in my OP.

My question is merely one of needing advice on the logistics of such a deal.

 

[murphy1244]

I would go with the two check deal that was brought up. Its straight up and square deal then.

 

[peterc38]

I would go with the two check deal that was brought up. Its straight up and square deal then.

Thanks, I agree that seems to make the most sense if the numbers don't work to trade it.

 

[vtsnowedin]

I needed a larger tractor than my "b" series and for other reasons that I can't spend time typing on a phone.

Do you have any advice that pertains to my original post?

I gave that already. I agree with the two checks system and added to make sure the paperwork goes correctly.
The other comment is off the topic and perhaps sounded a bit snarky. Good luck with your trade.

 

[HCJtractor]

You could also take out a small personal note from your bank or from a home equity line , prearrange this until you have a firm buyer , then wire the payoff to the lender, and have them fax a paid off note to you for the buyers satisfaction. Then collect the money, pay the bank back , and be done, only for a few days interest. That way the buyer stays out of it.

I agree, a private sale will probably net more money.

 

[peterc38]

I gave that already. I agree with the two checks system and added to make sure the paperwork goes correctly.
The other comment is off the topic and perhaps sounded a bit snarky. Good luck with your trade.

Thanks

 

[Will_C]

I have bought items that had outstanding balances. I used the 2 check method, 1 to pay off the loan and one for the balance. It was simple because it was with a local bank, but I don't see why dealing with a reputable company like KCC should be much different- get a payoff letter and call KCC and have the buyer talk with them if they desire.

The other option of a local loan would be good as well. If you have a good relationship with a local bank, they should be to do the transaction electronically with Kubota in a couple of hours, or perhaps your Kubota dealer could facilitate the process.

Good luck,

Will

 

[stingray1]

If I was buying that tractor I would call and confirm how much is owing, cut a cheque to them and one to you for the remainder

This is basically what I did on a Harley I bought but, I kept $200 of the remainder to be paid to the seller upon receiving the clear title signed over to me. I got a bill of sell explaining all this and I took the bike home on the day of purchase.

 

[JOHNTHOMAS]

In Ky a new none agricultural tractor purchase is taxed at 6% unless there is a trade in. The new sale price is reduced by the trade in price to determine sales tax on the difference. I have sold some Kubotas straight out but usually trade the old to Barlows and finance the new one at 100% and take my equity out in cash. In my situation I have to get at least 6% more in a cash sale than a trade in to be equal. Barlows gives me a fair price on my trade ins and I've done several with him. Kubota also gives reduced interest on used Kubotas sold thru a Kubota dealer which is incentive for dealer purchase of used equipment.
The two check method should work fine if your buyer can feel secure doing it. KCC can be contacted for pay off for so many days and they sned your original note to pay document back to you when the debt is paid off. One warning is that you ensure the debt has been paid off or you will still be liable for the debt and a bad check to KCC will leave you still owing. If your buying a new Kubota from a dealer they may help you do the transaction and I'd give them some money for doing it myself. Have done some deals using Barlows and I always build in a couple or three hundred dollars for them since they handle all of it and the tax incentive for me is some times there. Also some buyers feel more securegoing thru a dealer.