The reality of selling a late model used Kubota in today's market.

[Fordtech86]

Just a different perspective

I think you may be on to something

 

[mcmxi]

I think the fudged numbers are the difference in purchasing new (with sales tax) vs purchasing lightly used with zero tax.

Exactly. $45k plus 6.5% sales tax minus $38.5k with no sales tax.

 

[mcmxi]

I googled used tractor loan rates and came up with 6-8% and up to a 5 year term. With this information its easy to see the value of buying new with 0% Kubota financing. At the $38,500 asking price the interest payments over 5 years might be $10,000. The average American has little in savings. Most folks can do without a $38,500 tractor. Just a different perspective. No one mentioned eBay. Good luck.

8% for a personal loan is very high, but even at 8% the interest over five years is about $8k. So assuming a new sale price of $45k for my tractor as it sits it's basically a wash, and my tractor is available now rather than 6 to 9 months from now. Whether or not the typical tractor buyer will see it that way remains to be seen.

I'll make an update if I sell the tractor. I did reply to the party in WA and informed them that $37.5k is as low as I'll go and I won't deliver it for that amount.

Thanks for all the input. It's good to get different perspectives and also a reality check.

 

[58Ford]

I think your price is fair for the market( with local exceptions). It also looks like you know what you are doing. It’s smart to ask for more opinions.
Best of luck on the sale.

 

[mikester]

If you can grow thicker skin and hold on you'll get your asking price. You will get lots of time wasting low ball tire kickers.

 

[BAP]

Unless you are need to sell it quick, give it 2-4 months. January, particularly in the north, is not the best time to sell because most people don’t need to use a tractor much. Wait until it is closer to spring and interest will pick up.

 

[Motion]

As always do as you feel is best. Having two good tractors would be great. You can only operate one at a time which means they'll both remain low hour tractors. and I assume they're kept out of the weather. As time goes on one will make a great retirement investment vehicle (cash). In my experience you're always sorry for what you sold or didn't buy. Just my .02

 

[GreensvilleJay]

I assume the $9200 is the sum of taxes( $2500) + the difference of NEW vs USED pricing.
I wonder why a 'tractor loan' instead of tossing onto the farm mortgage or line of credit ?
As for 'holding out' for the best deal..sooner or later , this economy 'bubble' HAS to burst.
Gas is already $1.45/litre here, diesel the magical $149.9
Spring will be a very.very interesting season.

 

[fried1765]

8% for a personal loan is very high, but even at 8% the interest over five years is about $8k. So assuming a new sale price of $45k for my tractor as it sits it's basically a wash, and my tractor is available now rather than 6 to 9 months from now. Whether or not the typical tractor buyer will see it that way remains to be seen.

I'll make an update if I sell the tractor. I did reply to the party in WA and informed them that $37.5k is as low as I'll go and I won't deliver it for that amount.

Thanks for all the input. It's good to get different perspectives and also a reality check.

Stick with your $38.5K price!
Do not negotiate with yourself!
This is a VERY different tractor buying/selling world than we have ever seen before!

 

[Freeheeler]

After reading this my impression is:
A. you don't need to sell it to keep food on the table, so no hurry to get rid of it for less than you think it's worth.

B. it's advertised for sale, so in my world that means you have a perfectly good excuse to keep it and use it until you get your asking price. I mean really, who wouldn't want an excuse to have that tractor on their property

Good luck either way, but I have a feeling when spring starts to ramp up, you'll get plenty of offers.

 

[mcmxi]

Thanks everyone for such positive and well thought out responses. Every post here deserves 10 likes from me. I really appreciate the different ways you all have of thinking about this situation and it gives me some insight into what potential buyers are thinking about.

I forgot to mention that the couple in WA asked me about adding a cab to the open station. I told them that an aftermarket cab isn't available and that there's no way to upgrade an open station to a cab through Kubota, that I'm aware of anyway. That may have scuttled any potential sale but honesty is always the best policy.

 

[jyoutz]

Thanks everyone for such positive and well thought out responses. Every post here deserves 10 likes from me. I really appreciate the different ways you all have of thinking about this situation and it gives me some insight into what potential buyers are thinking about.

I forgot to mention that the couple in WA asked me about adding a cab to the open station. I told them that an aftermarket cab isn't available and that there's no way to upgrade an open station to a cab through Kubota, that I'm aware of anyway. That may have scuttled any potential sale but honesty is always the best policy.

Everyone’s situation is different and lots of folks have cash on hand. Personally I wouldn’t pull that much cash from investments, nor would I finance a used tractor at 5%+ interest when I can (and did) finance at 0% through Kubota. Especially since the monthly payment would probably be higher for the used unit. Nothing wrong with your tractor; that’s just what I think a lot of folks consider. Good luck whether you keep it or sell it.

 

[fried1765]

Exactly. $45k plus 6.5% sales tax minus $38.5k with no sales tax.

The difference between $45K with sales tax and $38.5 k without tax is $2925.
Where did the $9,200 number come from?

Everyone’s situation is different and lots of folks have cash on hand. Personally I wouldn’t pull that much cash from investments, nor would I finance a used tractor at 5%+ interest when I can (and did) finance at 0% through Kubota. Especially since the monthly payment would probably be higher for the used unit. Nothing wrong with your tractor; that’s just what I think a lot of folks consider. Good luck whether you keep it or sell it.

Just how would you propose to finance through Kubota at 0%, when the new tractor you may want is unobtanium?

 

[jyoutz]

The difference between $45K with sales tax and $38.5 k without tax is $2925.
Where did the $9,200 number come from?


Just how would you propose to finance through Kubota at 0%, when the new tractor you may want is unobtanium?

I just did last month. I was on a waiting list with 5 dealers in 3 states. One called me and had what I wanted. I think it would take forever to wait on one dealer to get inventory.

 

[58Ford]

^^ as did I. Just a BX but I waited 1 week for them to find my unit and another 10 days for the brush cutter. They told me it would take months but clearly didn’t.

also I asked About signing a 0% contract and then not securing a unit until after the offer had expired. No issues with Kubota! They will honor the contract. Nothing is unobtainium, just waitawhileoleum and if Kubota honors the deal and you can afford to wait - why not?

 

[DaveFromMi]

Is it possible to sell it on a contract, like a land contract? If so, then you can collect the interest.

 

[D2Cat]

Selling a piece of machinery on contract would be tough to protect the seller in case of loss. The buyer could destroy the engine or some other major cost and abandon the machine.

When real estate is sold with what use to be "contract for deed" is now a "note and mortgage" and the seller becomes the "bank". A down payment in the neighborhood of 25% is made and the buyer has to have an insurance policy that names the seller as "loss payee" so he is covered for the remaining debt in case of loss.

All this would be too risky for the seller of machinery.

 

[GreensvilleJay]

curious... in #31, you say no way for cab 'upgrade', but arn't both tractors MX6000 ?
Just wondering why you can't order a cab from Kubota with 'some assembly required' ??

 

[SDT]

curious... in #31, you say no way for cab 'upgrade', but arn't both tractors MX6000 ?
Just wondering why you can't order a cab from Kubota with 'some assembly required' ??

Would need to be ordered piece by piece through the parts department at prohibitive expense.

 

[ACDII]

What I have done in the past when listing something is first see what others are selling/sold for, more important are the sold for ones as they give the most realistic price. I did this for an RV back in 2019/2020. Listed it at the end of the season and it sat on RVTrader until late May when started getting hits on it and sold it for asking price in June. Little did I know it would be a hot market or I would have listed it higher and it would have still sold.

When I started research for a larger tractor, I gave some thought on selling my B2410 after purchase, so looked at the auction sites and sure enough, my tractor with backhoe is selling pretty close to what I paid for it 20 years ago.

Your asking price is not unrealistic, but is what the market demands today. In a year or two it may be a very different story, but today is a Sellers Market, and those who hold out, usually get what they ask for.

I have an L4060 HSTC on order, and looking at used, if found, usually 2015 models, the prices are less than $5,000 different between used and what I am getting new for, and those are models without the rear remotes installed. Tack on 6% finance rates and the end result is a much higher purchase price for used, so for those who can wait, they go with new, but those who need it now are your bread and butter.