In simple terms look at the math (we'll use rounded numbers to make it easy)
Assume you are trading in a CK20 tractor/implements that cost you $12,000.
Assume a new CK20 with the same stuff is still $12,000.
+ The brand new CK20, if financed at 0% costs $12,000 to the buyer.
- A used CK20, if financed at roughly 5.5% will cost an added $1500 in interest for a total of $13,500 to the buyer.
+ Assume the dealer gets financing from Kioti to floorplan a tractor on his lot. In essense he borrows the tractor (or perhaps rents it at a low price) until he sells it.
- A dealer essentially buys a used tractor at the trade in price, so it actually costs him some cash flow.
+ Assume the dealer needs to make $750 on a new tractor to stay in business. That price is built into the $12,000 selling price the consumer pays.
- The same $750 profit margin must be SUBTRACTED from price he can give you, so he can add it to the sales price when he sells it.
+ A new CK20 comes to the buyer with that "new car" smell.
- A used CK20 comes to the buyer with some real questions that lurk in the back of the buyers mind like if this was such a good machine why didn't he keep it?
So, a consumer walks in and wants to buy a tractor from a dealer. There is a used (54hr) CK20 and a new CK20 sitting side by side.
The new CK20 costs $12,000, the dealer makes $750, the consumer pays 0% interest.
The used CK20 value is $12,000 LESS $1500 interest equalizer ($10,500) less $750 dealer margin (value now only = $9750) and we have not even figured out the dealers potential lost cash flow on floorplanning (if available) and even more importantly we have not calculated anthing for 1st year depreciation yet! So the consumer saves some money (pays ~$10,500 or a bit more), but the trade in given is going to be at least $750 lower than the consumer pays, the guy trading in is the loser.
These numbers strictly are the math to show an EQUAL deal where the consumer is ACTUALLY paying EXACTLY $12,000 for a used tractor. So with that in mind, the consumer would actually be better off buying new for exactly the same price.
So I suspect that if you tried to sell it outright, you could sell it for more than a dealer would give as trade in, however, you would still be competing with the "0% financing" factor and that drives down your value. As does the dubious concept of buying from an individual who may not be trustworthy in the eyes of the buyer (no reflection on you personally, just a real observation that some buyers might have). While I think Kioti probably is a good brand, it has much less name recognition to many consumers than John Deere or Kubota have, so that also MAY (in newer markets) hurt the value of the Kioti. So there are lots of factors that hurt the price of 1 year old machines.
NOW, it all changes if the machines are in great demand and in short supply. But lets be honest here, there are lots of people selling CUTS now and lots of brands to choose from.
Financing numbers based on 5 years, $0.00 down payment. Now an uneducated consumer might not do the math, so he might pay more than $9750, and end up actually paying more in TOTAL dollars for the used tractor, but the math above is an example of a rational purchasing decision. Changing the terms of the loan (% rate and/or years), including a down payment, or paying cash would all change the numbers, but the concept would hold true. And this would be why our Mama's told us to do our homework when we were kids because some day we'd actually have to use math.
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