JOHNTHOMAS
Super Member
- Joined
- Apr 14, 2008
- Messages
- 7,717
- Location
- Somerset, Ky
- Tractor
- F2690 4WD RTV X1140 MX5400 HST ZD1211
As for trades, I find it hard to imagine that you couldn't pretty much always do better selling it yourself. After all, any dealer has to mark it up, and runs the risk of taking in something with issues that they're going to be stuck with. I have never had trouble selling a clean used Kubota, even around here, which is not a farming environment, really.
First, let's consider what a fair profit is on a used tractor valued at around $16000 that is clean, low hours and documented owner and service history. An easy quick sell for a dealer. $500? $600? $700 $800? $900? More?
If I sell that tractor for $16000 and then take my $16000 to Barlows to buy another tractor, I have to pay Ky sales tax of 6% on my purchase. That's $960 on a $16000 purchase. If I trade my tractor to Barlows and he gives me $15500 trade in for my $16000 tractor then I only pay 6% on the $500 difference for a dollar amount of $30.
Barlows can sell the tractor for $16000 pretty quickly and make $500 and I've saved $430 by trading vs selling it myself for the same $16000 that he sells it for while being able to offer Kubotas discounted interest rate for dealer sold used Kubota tractors.
Now if one has the agricultural exemptions, which I don't, this doesn't apply.
Some things seem so simple but some times there are extenuating circumstances or more to the issue than every one knows about.
PS Technically/legally I/you am supposed to collect state sales tax and send to my/your state dept of Revenue on your sale, sellers legal obligation. If you doubt, check with your state dept of Revenue.