used 2520/price depreciation for 240 hours

[Magilla1]

I have a quote for a used 2520 with a FEL and 62" MMM with 240 hours on it. They're quoting about $4500 less than what the same thing would cost new. (Roughly. They're looking for $16,250 for the used machine).

What kind of depreciation would you expect? Is there some kind of formula folks use for each hour of use? The machine looks like it's been pretty well maintained, but it's obvious it's been used to do a real 240 hours of work.

 

[hizoot]

Iwas quoted 16,300.00 for a new 2010 2520 w/fel ....no mower but...i think people are asking too close to retail....considering 0% finance,new warranty,and you know how it will be broken in

 

[Deadman]

buy new..... There is usually a reason guys sell nice tractors! :laughing:

 

[smstonypoint]

What kind of depreciation would you expect? Is there some kind of formula folks use for each hour of use? The machine looks like it's been pretty well maintained, but it's obvious it's been used to do a real 240 hours of work.

There has been some academic research on tractor depreciation, but it has focused on utility and larger tractors. Here's an example.

http://ageconsearch.umn.edu/bitstream/21800/1/sp00du01.pdf

There may be rules-of-thumb for CUTs, but I am not aware of any.


Steve

 

[BethesdaEC]

I am about to buy a 2520 and I did a little casual research on used tractors and the examples that I saw where all close to the price of new and when I started adding the things that were missing it really got close to the price of buying new. i.e. I wanted a backhoe and some of the examples had turf tires and I wanted R4 or they had a MMM and I don't want one. Buying new you get a warantee and just what you want and nothing you don't and all for couple thousand dollars more.

My JD sales guy just went in for surgery Monday and will be out for 2 weeks, otherwise I would be buying Saturday. He believes that he will be back a week from Saturday, that is when I will be pulling the trigger. Good luck.

 

[OneMarineE5]

I have a quote for a used 2520 with a FEL and 62" MMM with 240 hours on it. They're quoting about $4500 less than what the same thing would cost new. (Roughly. They're looking for $16,250 for the used machine).

What kind of depreciation would you expect? Is there some kind of formula folks use for each hour of use? The machine looks like it's been pretty well maintained, but it's obvious it's been used to do a real 240 hours of work.

Hi Magilla1, I just ordered a brand new 2010 2720 from a dealer in Whiteford MD....far better price/deal than waht a smaller dealer in my state of PA was giving me even though I was giving them a L130 lawn tractor and a Frontier snow-blower as a trade-in that I purchased new from them. My cost for 2720 $16440.43 and that includes R4 tires and I-Match. My 62" deck $2440.00. At this rate, a 2520 new would be close to what you paid.

I really agree with hizoot....asking too close to retail. And then when you consider how much a new tractor can come down from retail!!!!!!!!

Note! My comment about out of state dealer. It is only a 25 minute drive from me.....deal has nothing to do with crossing state-lines. This dealer is large with many locations including dealerships in Pennsylvania....their PA dealerships are too far from me. The trick here is a larger dealer that moves more volume. Me - I'd get a new one

Good luck and keep us posted!

 

[OneMarineE5]

Oops! I said "paid" I meant what you were considering paying:ashamed:

 

[yak651]

I found a "used" 2520 with loader on craigslist with no hours. Turns out the person paid for it before the deal went thru with the land they were buying, that went south and the dealer wouldn't give them their money back. They were asking basically what they paid for it. I made a low ball offer, they came back and in the end I offered $14.5k as my final offer. After about a week they called back, not a lot of people of money laying around to buy one of these without financing, so they took my offer. I was pleasently surprised when I went to pick it up that it was brand new, .5 hours with the plastic still on the seat and the stickers on the tires. The only drawback was I wanted R4s and it came with turfs, but after using the turfs it turned out ok. I would make the person a much lower offer, all they can do is turn it down. I don't think there are many people around buying these with out financing.

 

[JD Greg]

I recently bought a 2007 JD2520 with 84 hours, MMM mower and a fully hydraulic
heavy duty front blade for $13,500. Private party deal, so no sales tax.

Greg

 

[Zebrafive]

I wish there was a simple formula. $x.xx per hour of use. Then take off for any damage/repairs needed. But I do not know of one. Also the the first 100 hours of use have to be worth more than the last 100 hours of use.

I think the only way a cost per hour might help in a decision is comparing two used units, not used to new. I would expect 30-40% less than new and if I were looking at two used tractors and one had 500 more hours on it then I might want to have a cost per hour in mind to determine which is the better buy.

So if I thought 7000 hours was to be expect life and the unit cost $16,000 new, I would calculate $2.30 per hour. So the one with 500 more hours would have to be $1,150 less.

Finally the number of hours would not be my primary consideration. Condition, options/included extras would be more important to me than hour difference.