New Tractor *** Resale ???

T_Bone · Jan 21, 2009

Hi All, I'm thinking of buying a new ag-tractor and thinking in the 50hp PTO range, 2wd, ROPS. My usage well be for 2/3 front loader use and 1/3 3pt use. About 500hrs maximum when I'm done with it in 3yrs. Cost is approx $35k OTD complete

Cab and MFWD is running another $15k or $50k OTD

My questions:

1) What kind of resale could I expect at 500hrs and if spec'd correct for other use ?

2) Would this be a hard re-sale item size wise?

There's about $10k difference to jump too the next power level at 70hp PTO but is resale more easy?

3)What kind of discount should I expect off of MSRP?

Suggestions?

Ya, I'm tired of looking at used junk and I don't have a place for rebuild nor the time.

T_Bone

Mike M · Jan 21, 2009

For loader use I think you should go with 4x4.

These new tractors seem to depreciate about like cars do ?

You can usually find some good low hour ones used as people trade them off like cars where in the past thet kept them forever.

I can't even begin to guess what the market will be ?

CumminsMan · Jan 21, 2009

Maybe you should think about a 3 year lease.....no worries about reselling

Nebraska Cowman · Jan 21, 2009

I don't think you can justify it. Even at 500 hours a year your fixed cost is going to be over $10 an hour.

Nebraska Cowman · Jan 21, 2009

Remember the "DIRTI 5"

Depreciation
Interest
Repairs
Taxes
Insurance

Hugh MacKay · Jan 21, 2009

T Bone: Are you serious, best have your head examined. You'll resell that for close to 50%.

Don't believe me, try them on a 3 year lease.

OliverGuy · Jan 21, 2009

Looked at Kubota? Watseka IL Kubota has a 2WD one for you for a heck of a lot less than that. Better resale on a 4WD though.

Anonymous-0 · Jan 21, 2009

Rather than buy new, how about looking for a slightly used tractor. Look for one that is just a few years old and has just a few hundred hours on it.

I strongly suggest you look at a 50hp John Deere 5205. Those are a much more inexpensive "value" series tractor that can be had with 4wd, but not a cab. John Deere just barely discontinued this model, but there are plenty of low houred used ones on tractorhouse and probably some new unsold ones on dealers lots across the country. Those seem to hold their value extremely well. Sorry its not a fully loaded tractor, but you'd lose your shirt on one of those.

Pete@Pequawketfarm · Jan 21, 2009

I agree- look for a GOOD used 5205 or something comparable. The depreciation alone on new would make me depressed. I found a good used unit, low hours 4wd with loader for less than half of a new one. 2 years later it has cost me nothing but fuel and regular maintenance. FWIW- my neighbor has a 5205 that they have hit everything but the lottery with and no troubles to this point. My 2c- Pete

Mike (WA) · Jan 21, 2009

I just bought a 2006 Kubota MX5000- 50 HP, 4WD, ROPS, loader. Manual trans. Has 320 hours, and the only way to tell it from new is some scuffing of the paint where you put your feet on the floorboards. Always shedded, paint is perfect. Paid $17,800 at the local Kubota dealer (he had taken it as a trade-in on a 70 HP model). If you're looking at $35K+ for similarly equipped new, I'd have a lump in my throat every time I used it, knowing I'd get less than half when done with it.

Ray · Jan 21, 2009

I would lease one,it can be deductable and you won't tie your money up.

GordoSD · Jan 21, 2009

There's a pretty sharp MX5000SU on external_link, with loader for 16.5K

Gordo

TreeFarmer1414 · Jan 21, 2009

T_Bone: If your use is going to be 65% loader work, 4WD is the only way to go. And even then with some serious loader work, you will definietly want something on the 3-point for counter-weight. I use a New Holland TC45A with FWD. Just something like a box blade on the 3-point (about 500 pounds) makes a world of difference. BTDT. Just my $.01 (not worth $.02)

Anonymous-0 · Jan 21, 2009

IF YOU ARE YSING THE LOADER THAT MUCH DO NOT BUY 2 WHEEL DRIVE. SELL OVER 250 NEW KUBOTAS EACH YEAR .. OVER 86% ARE 4 WHEEL DRIVE. CAN,T HARDLY EVER SELL A 2 WHELL DRIVE WITH LOADER. NEW 50 HP IS LOT LESS THAN WHAT YOU HAVE BUDGET .. THE MX EVERYBODY IS TALKING ABOUT IS A GOOD TRACTOR BUT
MADE FOR PRICE THAT IS WHAT THE X STANDS FOR. I HAD RATHER SPEND A LITTLE MORE AND GET A SHUTTLE TRANS. GIVE ME A E-MAIL AND I WILL TRY AND HELP YOU. J.W.

Bill R · Jan 21, 2009

T_Bone,

I have a "01 Kubota M6800 MFWD, hyd. shuttle trans, Kubota LA1162 self leveling loader, skid steer quick tach, open station, rear wheel weights, 960 hrs. 68hp. Priced much less than new. Shoot me an email if interested.

Bill R

Anonymous-0 · Jan 21, 2009

Well I don't know what it would have cost new, but my father went into the kubota dealer one day to get filters and they had an L2900 with loader clutchless (not hydro, but the one in between) 4wd 200 hrs 30 or 35 hp and R4 tires on it for I think 12 or 14000. previous owner had traded on more hp model. He bought it on the spot cause he figured it was almost new for less than 2/3 the cost of new. He wound up getting 7000 for his 20 year old kubota so he made out like a bandit. I think that may be a better deal to try for. Harder to find but i think worthwhile. We've never done a thing to it as far as breakdowns or parts failures. Runs great.

I think that is a good idea of what to expect for resale value. Not too good.

Anonymous-0 · Jan 21, 2009

The 5205 4wd is so cheap even when buying brand new that they don't depeciate hardly. They are a good deal and make more sense to me than buying a little compact.

Hobo,NC · Jan 21, 2009

Go new and never look back,,, I'm tired of looking at used junk and I don't have a place for rebuild nor the time,,, says it all

I work on a few botas,,, at the 500 hour mark it gits costly to repair so why buy used and spend as much to keep it up as a new'n would cost,,, time is money

Traditional Farmer · Jan 22, 2009

Buy a low hour used unit that someone else has taken the $$$$ hit on should be plenty of repos around in the coming months

Kelly C · Jan 22, 2009

I just took a look at those. Question. WHy does the 5205 sell for $10,000 less that a comp Case IH DX55?

New Tractor *** Resale ???

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