New or slightly Used? Specific situation

[StAngerSandman]

Well, I think I have decided on an M5-111 tractor. Want to buy before the end of the year for tax purposes. Need something larger than the Mahindra 2555 for mowing 80 acres, and we are thinking of picking up another 40 acres next year... With tax incentives, and current pricing, I'm thinking that it is time to buy something now, finish using the 2555 and backhoe for some more projects, then let it go next year.

Primary use for this tractor will be mowing, moving hay bales, general clean up around the farm and helping while we build the house. May do more later, including running some hay equipment once we are there and more established.


Looking at several local options, and trying to determine how to value the warranty, "New/New" vs "Pretty **** New", and additional options.

Tractor 1 = Brand New, 12 speed, buddy seat, stereo, air ride seat. Standard Loader. 540/540E "standard" PTO. Price after Equine discount = ~$60K

Tractor 2 = 2020, 350 hours, 20 months warranty left. 24 speed, buddy seat, stereo, air ride seat, self-leveling loader, 540/1000 PTO = $60K (+long drive and shipping)

Tractor 3 = 2017, 300 hours, ZERO warranty, 12 speed transmission, nothing extra at all = $51.5K (closest option, hour away)

My general thoughts so far:

A) Really feel like I would like the self-leveling loader
B) 1000 PTO would be nice, and opens up a lot more mower options.
C) Don't know that I need the 24 speed transmission, but in general I don't hear people complaining about having too many gear options...
D) None of these are from my local dealer, they are at $66K for the same tractor as #1. I'm willing to go out of state for that type of price difference.
E) Love the price on Tractor 3, but would add a buddy seat, air ride seat, etc. That would be like $1500. That takes me to $53K. The incremental $7K is a lot, but after taxes, etc. the gap seems smaller and there is not warranty behind it. Hate paying $7K for a warranty on a newer tractor...
F) I don't care at all about the 300-400 hours on a machine I expect to go for 5K plus hours.

What am I not thinking about? Which would you choose and why?

Thanks for your help. Need to dial something in pretty quickly before the tax year ends or these are gone...

Sandman

 

[oosik]

It's your money and your decision. Nobody knows your exact conditions better than you. I've "managed" for 38+ years out here. Without a cab, with only 8 speed, without a buddy seat, without an air ride seat, without any type of radio, without self-leveling loader and without two speed PTO.

MAN - I never realized how really rough life has been out here.

 

[jaydee325]

Sandman,

From your description, it sounds like you are using your equipment in a commercial farming setting vice hobby farming. Since you are considering picking up some additional acreage, it seems you are eyeing future expansion as well.

That would lead me to tractor #2 due to its additional capabilities you can grow into. Yes, the price difference is substantial over#3, but in a couple years, spending the extra money will be a fading memory! Especially if you grow into areas that require that tractors capabilities.

Good luck.

 

[nybirdman]

For tax reasons,warranty and being "new",I would go with option 1.Self leveling loader parts can be added I believe.

 

[StAngerSandman]

Thanks for the feedback. I am pretty sure I will be happy with any of them, and the normal "cheap guy" in me is leaning hard toward option #3 because of that, but I'm thinking that in this specific circumstance with some tax advantages, the incremental price to buy up makes some of these "nice to haves" become much more attractive...

At this point, the goal is to invest money in the farm so that it can become more commercial. I am hoping to build up an agri-tourism and event space over the next few years on the land, and that will include at least 20-30 head of cattle.

 

[mred2]

I assume the same other items, rear remotes, 3rd function, etc. I stack hay once a year, but would love a self-leveling loader. I like # 2, but how much to ship? And I would think the warranty is worth at least $5,000. But is the local guy going to be happy to do the warranty work? Mine would but I would be put on the bottom of the list. And the bank likes new better. Make sure than anything used is check out real good. Good luck!

 

[Jstpssng]

It's my belief that any major problems are going to appear before the warranty runs out. If option 3 has been taken care of and there have been no problems, it will be a good tractor for you and has already taken the initial depreciation.

It's your money and your decision. Nobody knows your exact conditions better than you. I've "managed" for 38+ years out here. Without a cab, with only 8 speed, without a buddy seat, without an air ride seat, without any type of radio, without self-leveling loader and without two speed PTO.

MAN - I never realized how really rough life has been out here.

That's what happens when you retire early... you struggle for the rest of your life, never able to afford the luxuries of life like a Harley, or maybe a nice Power Wagon.

 

[fried1765]

It's your money and your decision. Nobody knows your exact conditions better than you. I've "managed" for 38+ years out here. Without a cab, with only 8 speed, without a buddy seat, without an air ride seat, without any type of radio, without self-leveling loader and without two speed PTO.

MAN - I never realized how really rough life has been out here.

I heard long ago that Eastern Washington can be very tough!:laughing:

 

[oosik]

Yea guys - it can be a real bear, here in Ea WA. Right now - wishing for more moisture. Don't really care - rain or snow. Accumulative moisture total since Oct 1, 2019 is only 2.64".

BTW - I gave the Harley to my son three years ago. Now it's a BMW R1200 GSA out in the little heated shed. Got tired of the turn-out exhaust and constant "BLATTTT". 20 years of that is more than enough.

Hey StAngerSandman - don't take my previous post too seriously. I have the EXACT tractor & implements I want. You get exactly what you want/need. We are in two totally different environments and have completely different needs.

I bought my 2009 Kubota M6040 - brand new in 2009. I have never needed any warrantee work on the tractor. If those low hour tractors have been properly maintained you should have no problems.

 

[Bavarian]

My opinion, in that HP range, I wouldn't put too much weight on a 1000 PTO option. 540 is enough.
Even though, my choice would be possibly #2. The biggest factor are the 24 speed and the self leveling loader. Specially for cutting or baling, you have more options to find the proper speed.
Handling the bales later with the self leveling loader makes it way easier.

Even if there are users reporting no issues with their equipment, I personally would not buy any of those three without warranty. The reason is, all three have an aftertreatment system. If something goes wrong early after purchase, it can be costly. That does clearly rule out #3.

 

[StAngerSandman]

Thanks to everyone for their feedback. The "it is your money and your decision" point is always true, these forums are to help people understand how they might get the best bang for those hard earned dollars. I am begrudgingly willing to spend more money to get features I know I will use, (example: cab was a must for me on this one) but some of these incremental features are much harder for me to value, because I have never had/used the before. That is why these forums are such a useful resource.

My opinion, in that HP range, I wouldn't put too much weight on a 1000 PTO option. 540 is enough.
Even though, my choice would be possibly #2. The biggest factor are the 24 speed and the self leveling loader. Specially for cutting or baling, you have more options to find the proper speed.
Handling the bales later with the self leveling loader makes it way easier.

Even if there are users reporting no issues with their equipment, I personally would not buy any of those three without warranty. The reason is, all three have an aftertreatment system. If something goes wrong early after purchase, it can be costly. That does clearly rule out #3.

I fully agree with you on most every front. Just about every additional option on #2 is what I would consider "nice to have, but probably not NECESSARY". With that said, I took a day this week to travel up there to look at it and ended up working out a deal on it.

Overall, the condition was nearly perfect, and the fact that it is only 3 months into the warranty gave me enough comfort to pull the trigger. This gives me 88% of the full warranty remaining, 92% of the 3 year powertrain warranty, and 95% of the emissions warranty. When comparing to new, I either saved 15% from what my dealer could do on a similar new one, or paid the same as I would have for a new one without all the extra options from a dealer 3 hours away. Decided I could give up the new tractor smell for the extra options.

Now I just need it to be delivered and put it to work!

Sandman

 

[Bavarian]

Congratulations, you made yourself a nice Christmas present.

Post pictures, or it didn't happen. ( I hope you know the rule on this forum ).