tc24da - new or used?

[dholly]

Need a little input with this one.

Thanks in part to TBN plus 0% for 48 mos, I've narrowed my search to a tc24da w/ 12la FEL, 60" MMM sd 914a w/ loaded R4s. I also want the rear hydraulics single remote kit, grill guard, block heater, rear light and armrests.

I've checked with my local dealers (within 1hr) and several 'big city' dealers in buffalo-rochester-syracuse area (within 2hr). I excluded all dealers that came in priced at $1,000 or more over the lowest price quoted. Unfortunately, all the local dealers, including the one I bought my last Ford at, made the first cut. One was $2k high! And, they wouldn't budge.

That left me three (3) potential deals within 2 hrs quoting reasonable prices. However, one dealer threw me an unexpected curveball, so I'm having a hard time deciding on which deal gets the nod. Here's the alternatives:

1.) 1:30hr from home. $17,000 - incs freight, setup, delivery and all mentioned above except no block heater and the arm rest and light kits are carry-out, not dealer installed. When asked "What is your policy regarding warranty or normal scheduled service work during the warranty period and after, i.e., pick up/delivery?", the reply was "Pickup & Delivery is at owner expense." No mention of full fuel fill-up at delivery.

2.) 2:00hr from home. $17,730 - incs freight, setup, delivery and configured as desired. When asked "What is your policy regarding warranty or normal scheduled service work during the warranty period and after, i.e., pick up/delivery?", the reply was "Pickup & Delivery is at dealer expense for warranty items during warranty period. For 50hr service, we'll send tech to perform on-site service, only customer expense is cost of filters. Oil is on us." Full tank of fuel.

If you're still with me here, I'm sure you're thinking... what is your problem, PICK DOOR #2 YOU IDIOT! Well, since neither of my two trailers is ideal for transporting this thing, I surely should, except...

3.) Same dealer as in 2.) above has a USED 2004 tc24da w/ 12la FEL, 60" sd 914a MMM, loaded R4s. 110hrs sold new by dealer one year ago and rec'd on trade-up to tc33 in Dec. Loader NEVER used, all mowing hrs. Dealer will install all items to make my desired configuration and sell for $14,500. Balance of warranty applies, dealer did 50hr and will include 100hr service as part of pre-delivery prep. All pickup and delivery during warranty period covered by dealer. Don't know if it was stored indoors by original owner (forgot to ask, sounded like there was a good chance that it was), but it has been out on dealer lot since trade-in in the winter elements, etc.

Having just written a really big check for a new home, the 0%/48mo deal on new really is ideal. Still, to compare, with $600 cash back thru 3/31 on the new, if I were to cash either of the two new deals, my net cost is $16,400 or $17,130 respectively. Therefore, the used tc24da represents a $1,900 or $2,630 savings over new respectively. And that goes a long ways to paying for a rear blower.

So... whadda ya think? TIA for your .02!

[edit] see attachment for pic of used tc24da

 

[thcri]

Snow blower would be awful nice, especially up in your area. Then again how much will you pay in interest on the used one? The hours I sure wouldn't let bother me none. As I said I would look to see what the interest rate is going to be on the used tractor then compare. Now if your going to write a check for the used one then don't worry about the interest. If your going to write a check for the used one offer in what he is asking and see if you can get in to split a blower with you or even on the new one and throw that blower in on your free interest.

Ok I rambled too much here.

murph

 

[dholly]

Thanks murph, lol, I'm doing most of the rambling. Even though I can afford the one time payment, right now I really prefer not to... so that NH financing sure is tempting me to go new even though it's more $. Plus, -0- hrs and an extra year of warranty are worth something. Heck, it might be worth a whole lot if something big goes wrong. On the other hand, I just hate passing up what might be a real good deal! I don't know how much, if any, wiggle room is still in the used price, I haven't tested those waters yet. Does the used price strike you as enough of a discount to warrant writing the check? I dunno how much first year depreciation is realistic on this tractor, it's hard to find resale comps. Still too new I guess. That's where I hoping to catch some opinions from the regulars here.

 

[rpeter]

How are you going to pay for the used one? If you pull the money out of the bank them it is costing you money to make that payment. You have not figured that into the calculation. You will find that the price difference is about ½ of what you said it is. Is it still worth it /forums/images/graemlins/confused.gif /forums/images/graemlins/confused.gif /forums/images/graemlins/confused.gif

 

[jim_wilson]

When I was shopping for a tractor pretty much everybody told me that the first year depreciation is the worst hit. The deal on the used one looks pretty good - especially if the loader hasn't been used at all. 110 hours is a lot of mowing but 110 hours on the tractor isn't all that much. Don't know much about New Holland reliability but my Kubota BX23 that I bought July of last year now has almost 190 hours on it - and there hasn't been any real big warranty issues outside of a few minor annoyances like a broken air filter bracket and an issue with the seat. 110 hours of abuse on the loader is a lot different type of hours than 110 hours spent driving around in circles mowing the lawn.

 

[hazmat]

$15,000 @ 3% (CD rate?) = you could earn $450 a year in interest.

The used machine is NOT discounted enough with 0% available.

If he threw in the blower - trust me you need the blower (I went to college in suny Ithaca CU '97) - maybe you've got a deal.

 

[dholly]

Yes, basically I'm talking about writing a check for the used one vs. 'pay-as-you-go' on the new.

The way I see it, I would need to earn 3.25% to 4.5% on $14.5k principal annually for four years to equal the $1,900 to $2,630 savings if I bought the used by writing a check now. Money market rates aren't likely to see that level anytime soon and, of course, market return is always a coin toss in the short run. So, yes, writing the check today does have it's costs, but they don't seem terribly onerous to me. At least not so much as to be able to dismiss this used option out of hand.

Now if I pay as I go, I am not earning anything as I won't have any principal invested. Again, there's a cost but since I can't predict interest rates or market return I can't quantify it. If I do leave a like amount of principal invested and earn something, anything, at least I have the remaining principal working as I draw it down. On paper that wins, but as I said, I'm kinda cash poor right now so to do that would have to come at the expense of paying down the new house mortgage.

I'm thinking the best compromise here is to buy new with the 0%/48mo. and throw the like principal amount against the 5-1/2% mortgage. That's the equivalent of a guaranteed 'return', IMO. If I can't be guaranteed at least that from the bank or market on a principal balance as it's drawn down, leaving the $ in the bank and drawing it down is the same as a net loss.

I just realized, I didn't have these kind of money problems before my wife talked me into this new house. /forums/images/graemlins/crazy.gif

 

[Soundguy]

Personally.. I'd go for the newish/used one. My last 2 NH tractors were in that category.. a year old.. and a few hours.. etc.. a scratch or dent here.. but otherwise good machines at a decent discount.. both originally sold/serviced at the dealer...

Soundguy

 

[jwstewar]

</font><font color="blue" class="small">( I'm thinking the best compromise here is to buy new with the 0%/48mo. and throw the like principal amount against the 5-1/2% mortgage. That's the equivalent of a guaranteed 'return', IMO. If I can't be guaranteed at least that from the bank or market on a principal balance as it's drawn down, leaving the $ in the bank and drawing it down is the same as a net loss.
)</font>

I'm thinking you just answered your own question and made your decision right there. Seems to me that is the way to go and go ahead and make a deal on the snowblower at 0% while you are doing the deal.

 

[dukenyc]

If you don't mind, would be willing to list the names of the dealers? I am in the same area (between rochester and syracuse) and I am also in the market for a new (first) tractor.

thanks.