Thoughts on Pricing - Selling my L3901

[kantuckid]

Given that a tractor has no title in KY any I buy from a private sale is a tax free purchase-save me 6%. From a dealer it depends on the other states tax laws, not KY's. On road vehicles it becomes a far different senario as I'll pay tax no matter where I buy. Bought in some states they collect then transfer the taxes to my states via reciprocity agreements. Either way I pay. When I re-built wrecks I paid then too as I had no car dealer license to avoid taxes. I typically drove them a short while to gain use from paying taxes.
Each state is different in some ways and to say what fried1765 says is not gonna hold water in all states? but a private sale tractor is not gonna be taxed often anywhere. Some states like MO give their own citizens a break on dealer trade-in senarios that I wouldn't get when I buy there.
I bought a Kawasaki Mule new from a WV dealer who said he wasn't compelled by his state to collect out of state taxes based on my address so I saved by his discount plus the 6% over a KY purchase.
A large factor in road vehicle tax laws and r.e. trade-in regulations is determined by the extremely powerful auto dealer lobby in all states plus the politicians protecting against sales across state lines. I doubt any state I pay sales tax on a private sale tractor or other off-road or non-titled vehicle. A few states don't have titles on motorcycles. Also scooter laws vary even within city & county lines within states.
Generally speaking, if I don't file taxes on my farm I don't get any exemptions. Like I said earlier, i bought a used UTV from a dealer here and when they got audited I was later charged sales tax plus interest! Web sellers like Amazon and ebay you'll pay sales taxes. Some sellers on large ticket items private sales collect the funds themselves after the sale to avoid taxes and fees.

 

[ljjhouser]

I agree, take time. The 17K-19K buyer is wanting to pay what he should have paid 2 years ago. You have a product that they can't even get at the dealer. That 19K buyer may find it is worth paying $1500 more and getting what he wants. A note about taxes. My dealer is in Arkansas. I live in Missouri. He told me that if he delivers the tractor out of state, there will be no tax. I paid him $100 to deliver it. Wonder how many states have that provision? Best wishes.

 

[RickB]

So...... someone buys a private sale tractor in your state, or a nearby state.
Everyone pays sales tax on that used tractor?

You’re smarter than that, or so I thought. But let’s just stir the pot.

 

[DanielDD]

Tractor has been SOLD! I threw in a box blade and got $22K. I'm happy!

Just had the John Deere dealer drop off my new tractor, 5090E cab with a 12 foot batwing. No more sweating!

 

[4570Man]

So...... someone buys a private sale tractor in your state, or a nearby state.
Everyone pays sales tax on that used tractor?

Not likely but they’re supposed to. If you buy through a dealer even used they collect tax.

 

[kantuckid]

"supposed to" is a key word here?

I suspect that some dealers know from experience, that an out of state sale allows them the price advantage of not collecting sales tax on off road, untitled items like a tractor, ATV/UTV, etc..
It's definitely an area thats tightened up in recent years as politicians & various dealers struggle to suck up our money.
The AR to MO delivery seems sort of suspect to me, not that I doubt your experience. There are far less cumbersome ways to prove ones residency? If that's the law it's illogical IMO.
Not to go political- but in recent elections we see much discussion towards residency to vote. I have an ex-DIL who thought she was going to deliver her baby while visiting us in KY from another state. She went to my county clerk and said she lived with us which was untrue and unprovable. That one act caused us to get multiple political phone calls every election asking for her and also lots of junk mail. There's no shortage of bad feelings towards her by us, yet I'm told I cannot get her off the tax roles in my county, only she can do so. I asked the clerk (whom I know) if I could lie and say I'm her...
Obvious point here is addresses are easy to fudge on. Lots of RV full timer's do it or choose what's to their advantage.

 

[kwbretired]

I live in Arkansas & just bought a 2005 JD 5425 in Missouri from a JD dealer & was not charged taxes. They deliverd it to me in Arkansas.

 

[DonaldP]

KK,

I thoroughly enjoyed reading your post! There is a really big difference in feedback that’s based on experience. Thanks for responding.

 

[DonaldP]

Thank you, gentlemen.

Daniel,

I question the Kubota brand viability of “top resell value”.
In my review of used Vs new equip I found that nearly all the dealers I spoke with about used Kubotas were asking a lot for them.

These machines were not anything special (in my opinion), but it was important to note that they didn’t want to budge on the prices they were asking fir the used Kubota equip.

On the flip side, after I determined that I wanted to buy new, the dealers expressed that it was a wise choice as the returns on sold outright or traded in Kubota equip is relatively high.
Now it would seem that the dealers are tooting their own horn so to speak, touting higher resale values for the traded equipment that they give less for, and charge much more for when they sell. If the return at resale is so high, then why do they give so little in trade?

And if they themselves are driving the higher resale values as a marketing tool to sell new, then maybe reality isn’t what they are selling in the first place.

I did have a high use contractor tell me that if I did buy Kubota, that I would probably get what I paid for it down the line based on inflation and other metrics, (that was pre-Covid shortage strains that we are currently experiencing that will have an impact on resale for equipment that is very much more difficult to get right now), but I still have no idea if the general concept of higher resale values for Kubota equipment over any other, is a viable concept that can actually be counted on down the road.

 

[kantuckid]

Based on my frequent, recent searches on FB Marketplace, CL and Ebay there are lots of used tractors for sale but very few great deals used. Kubotas seem to sell overvalued and quickly but once the hours get less attractive they remain on the market for months. In my rural area which has few actual commercial farm operations given this county is 60% national forest lands and nearly all forested, locals mostly don't even recognize brands that are fairly common like my Kioti. Everybody knows Kubotas here!
JD, an obviously popular brand name but you'll see virtually none for sale used except the older, high hours serious tractors or a few late model compact tiny ones or some 2wd w/o a FEL. In the popular hobby farmer utility sizes 4x4 with a FEL- nary a one. Same for NH.
I've seen exactly one Case IH 40hp utility tractor with a FEL for sale used and it's overpriced a bunch. Mostly the same for M-F.
FWIW:
With more time to think I was a buyer for the Kubota in this thread...

 

[AlaskaL3130]

“Dealers often have no merchandise right now and it will get worse due to new Biden child credit checks that are now being sent out as we speak. Even high incomes in 6 figures are getting these checks.”

Thank you Joe Biden! Nice to see families getting a tax break vs. industry and wealthy individuals which was more typical with the past administration. Farm tax exception, reduced tax for child credit, etc....all good. In Alaska we have become accustomed to seeing Big Oil get the tax credits.

 

[kantuckid]

I doubt it's all that simple as stated, I'll bow out now and let you & Joe win this one.

 

[check]

So...... someone buys a private sale tractor in your state, or a nearby state.
Everyone pays sales tax on that used tractor?

13% HST tax here in Ontario

 

[fried1765]

13% HST tax here in Ontario

I believe that in Canada tractors all must have license plates.
Since the tractor must have a plate, the buyer must also pay sales tax.
Tractors in the USA do not have a license plate requirement.
In the USA, used tractors bought/sold between private parties are thus not directly taxable.
As a consequence most USA used tractor private sales do not have tax collected.
A USA private sale buyer is supposed to voluntarily pay sales tax, but it is rarely done.

 

[4570Man]

I believe that in Canada tractors all must have license plates.
Since the tractor must have a plate, the buyer must also pay sales tax.
Tractors in the USA do not have a license plate requirement.
In the USA, used tractors bought/sold between private parties are thus not directly taxable.
As a consequence most USA used tractor private sales do not have tax collected.
A USA private sale buyer is supposed to voluntarily pay sales tax, but it is rarely done.

You have to have a license plate on a tractor even if you don’t drive it on the road? And they’re yearly plates vs lifetime like a trailer? Do tractors in Canada also have titles?

 

[fried1765]

You have to have a license plate on a tractor even if you don’t drive it on the road? And they’re yearly plates vs lifetime like a trailer? Do tractors in Canada also have titles?

Yes! Tractors in Canada do have titles.
I am not Canadian, so cannot answer your other two questions.

Trailers have lifetime plates in the USA?
What states?

 

[RickB]

Yes! Tractors in Canada do have titles.
I am not Canadian, so cannot answer your other two questions.

Trailers have lifetime plates in the USA?
What states?

North Carolina for one.

 

[4570Man]

Yes! Tractors in Canada do have titles.
I am not Canadian, so cannot answer your other two questions.

Trailers have lifetime plates in the USA?
What states?

I don’t know the rules but they just say semi or permanent trailer at the bottom with no expiration date. Only 1 out of my 4 trailers has a plate and I’ve never been pulled over or given a ticket for it. It’s not required for private use trailers in my state.

 

[kantuckid]

In KY not all size trailer are tagged to begin with. Pull trailers are often not checked close either. I had a T@B teardrop RV trailer that had the weight on a signed sticker at the entry door-was 1584#'s. The law is 1,500 as I recall and I never tagged it for many years we owned it. I gave the new owner the new title certificate with it to do his out of state thing. My Gatormade utility trailer came with one when new but never titled. The last equipment trailer I owned had no title and the private seller lost the mfg.'s certificate to get one with so the 3rd owner after me had to pay $25 to get another one to allow getting a title. it's a racket?

 

[fried1765]

I don’t know the rules but they just say semi or permanent trailer at the bottom with no expiration date. Only 1 out of my 4 trailers has a plate and I’ve never been pulled over or given a ticket for it. It’s technically required in my state but apparently nobody cares about it.

Trailers over 3,000 GVW, can be registered in Maine for a total of up to 12 years, at a cost of $20 per year.
Can get a new registration after 12 years.
You do not need to have a residence in Maine to register a trailer in Maine.
New York residents cannot legally own a trailer registered in Maine.