Re: Used pricing on PT\'s....
Dave: I was going to say that I was the Dirty Dog who... but I thought your puppy might object. /forums/images/graemlins/smile.gif
Anyway, this thread has shown just how much people value their PT machines. I had done some research before deciding that I'd like to buy one, and talking with the participants here has helped confirm my decision.
Tracdoc seemed to hit the nail on the head, it seemed. There are two competing issues right off the top. First is the emotional attachment we have to our stuff, especially our tractor stuff. Getting a good price on selling this stuff is, at least to me, a sort of a confirmation that others value my stuff as much as I.
Second is the numbers, the math, the analysis of the market value. While this is not a hard science, there are usually good indicators to guide you such as past sales price for roughly equivalent equipment of similar vintage, and expected lifetime of the equipment. In addition, other factors such as opportunity costs may also be included depending on the situation.
In general, it seems to me the emotional factors, the 'cool' factors, are a big part of the decision of what to buy. But when it comes to 'how much', you really need to concentrate on the analysis. When a market price for used stuff, or even new stuff, is driven by the 'cool' factor, prices start getting out of hand.
So, on one hand, yeah Dave, you've got a cool piece of equipment there. But let's see, what's the depreciation at your asking price? Assuming a $9,100 new price, loss of $2600 over 15 years, that's $173/year or about 2% per year.
So, based on those numbers, you expect that your tractor will have approximately 50 years usable life.???
Ok, so you don't think so. To sell the machine for what you're asking, as Gravy said, you have to look for someone who won't know what the going prices are. Or, as Bill C. mentioned, you find someone who won't know what the going prices are AND can only afford the $6,500 for the vintage machine instead of paying the near incremental cost for a new one.
But in the latter case, I tell you that if had to stretch my money to cover the cost, I'd be sure to research it first. Then I'd find a used machine at the going rate. For example, let's talk the high end of the used market, say you got one of those refurbished machines for $4,000. Then bought the auger and hoe attachments new. That'd put you at around $6,000 for a refurbished production model machine with a factory warranty and new attachments. That's the math!
One of the questions you posed, Dave, was:"The question that always comes to mind for me is what else is there that can load, do light excavation, and dig post holes for around $6000-7000 or so? " Well, apparently, you can get either a 15 year old out of production machine or a factory refurbished production machine! Hmmm???
I agree with everyone here that the PT's are cool machines (enough so that I'm in the market to buy either new or used.) And, Dave, you've got a cool machine (and a nice puppy too!) And, yes, I could use one in the near future and factored that into my offer (that's the opportunity cost for me.)
But, as others have said, the best indicator is the market itself. See what you get. I'm sure there is someone out there willing to pay the freight; you just got to find them (and don't tell them about this forum!)
Regards,
Ben
Dave: I was going to say that I was the Dirty Dog who... but I thought your puppy might object. /forums/images/graemlins/smile.gif
Anyway, this thread has shown just how much people value their PT machines. I had done some research before deciding that I'd like to buy one, and talking with the participants here has helped confirm my decision.
Tracdoc seemed to hit the nail on the head, it seemed. There are two competing issues right off the top. First is the emotional attachment we have to our stuff, especially our tractor stuff. Getting a good price on selling this stuff is, at least to me, a sort of a confirmation that others value my stuff as much as I.
Second is the numbers, the math, the analysis of the market value. While this is not a hard science, there are usually good indicators to guide you such as past sales price for roughly equivalent equipment of similar vintage, and expected lifetime of the equipment. In addition, other factors such as opportunity costs may also be included depending on the situation.
In general, it seems to me the emotional factors, the 'cool' factors, are a big part of the decision of what to buy. But when it comes to 'how much', you really need to concentrate on the analysis. When a market price for used stuff, or even new stuff, is driven by the 'cool' factor, prices start getting out of hand.
So, on one hand, yeah Dave, you've got a cool piece of equipment there. But let's see, what's the depreciation at your asking price? Assuming a $9,100 new price, loss of $2600 over 15 years, that's $173/year or about 2% per year.
So, based on those numbers, you expect that your tractor will have approximately 50 years usable life.???
Ok, so you don't think so. To sell the machine for what you're asking, as Gravy said, you have to look for someone who won't know what the going prices are. Or, as Bill C. mentioned, you find someone who won't know what the going prices are AND can only afford the $6,500 for the vintage machine instead of paying the near incremental cost for a new one.
But in the latter case, I tell you that if had to stretch my money to cover the cost, I'd be sure to research it first. Then I'd find a used machine at the going rate. For example, let's talk the high end of the used market, say you got one of those refurbished machines for $4,000. Then bought the auger and hoe attachments new. That'd put you at around $6,000 for a refurbished production model machine with a factory warranty and new attachments. That's the math!
One of the questions you posed, Dave, was:"The question that always comes to mind for me is what else is there that can load, do light excavation, and dig post holes for around $6000-7000 or so? " Well, apparently, you can get either a 15 year old out of production machine or a factory refurbished production machine! Hmmm???
I agree with everyone here that the PT's are cool machines (enough so that I'm in the market to buy either new or used.) And, Dave, you've got a cool machine (and a nice puppy too!) And, yes, I could use one in the near future and factored that into my offer (that's the opportunity cost for me.)
But, as others have said, the best indicator is the market itself. See what you get. I'm sure there is someone out there willing to pay the freight; you just got to find them (and don't tell them about this forum!)
Regards,
Ben
