What is dealer markup on used tractors?

[acstevemo]

wouid it be resonable to ask for 75% of the prices dealers are asking for used tractors of similar condition etc. 62.5% for quicker sale. Or am I expecting too much?

 

[GeoHorn]

That could be a very lengthy discussion. For the sake of simplicity I would recommend defaulting to the "circumcision paradigm" that simply states you can take 20% off of the top of anything without it making a difference. Good luck.

Sounds painful.

As for used tractors: My local Kubota dealer and I did a string of deals on various equipment and it became obvious they buy lightly-used equipment around 50% of retail and offer it for sale at 75%.

As for your question: You can “ask” for anything. The tone of answer will give you an idea of how close you are to reality. The end-of-the-month is often the best time to make a deal as that is when the accounting is done and any sale at all raises the bottom line.

 

[je1279]

Ive learned over the years that no matter how you price something, folks always want a deal. My strategy would be start 10% less than what dealerships charge and if that generates no interest, slowly go down from there. If you get interest at 10% less and they still want a deal, you have some wiggle room to still get the 62.5% or greater that your looking for. Also, there are very few new and used units available currently which may work in your favor.

 

[PaulL]

wouid it be resonable to ask for 75% of the prices dealers are asking for used tractors of similar condition etc. 62.5% for quicker sale. Or am I expecting too much?

Every market is different, but in NZ for a private sale you could easily ask 90% of what a dealer was selling for. People are always looking for good lightly used equipment. In the US you have more problems with stolen equipment I think, so maybe people are prepared to pay a bit more to ensure clear title from a dealer. 62.5% sounds low to me. But I suspect you'd definitely get a quick sale!!

 

[D2Cat]

To get an idea of selling price to an individual I would suggest looking at similar sales in your area on Craig's List, FB Market Place or similar sites to see what is being offered. You need a competitive price for the item to get attention or buyers will just move on.

 

[NHSleddog]

As much as possible.

 

[chim]

I can tell you my experience from about a year ago. I sold the L3200 in the ad below for $18,500 cash.

It didn't take very long and both of us thought we did OK on the deal. I bought it new for just under $16K in 2012 and spent another roughly $6K and sweat equity on the mower, cab, blower, and other stuff shown with it. Had it for 8 years and took good care of it. Being pre-Tier IV may have helped.

Be prepared for "helpful" buyers who offer half the asking price because they think everyone is a motivated seller. I had a couple of them, and it took the wind out of their sails when I told them that I kept the L3200 for a year after buying the L4240 just to make sure I was replacing the L3200 with the right tractor.

Kubota L3200HST with implements - $19,870

SOLD Jan 17th Kubota L3200HST with implements - $19,870 2012 Kubota L3200 Hydrostatic, Loader w chain slots, 6' LandPride FDR1672 Rear Mower, 64" Pronovost Puma Snow Blower, Rear Blade, Brush Forks, Tooth Rake for bucket, 524 Hours. Custom (steel and safety glass) cab with heat, LED work...

www.orangetractortalks.com

 

[GreensvilleJay]

seems 'green' tractors are worth more...........at least to the sellers !

 

[torch]

Remember that while dealers have certain inherent advantages over private sellers, they do also add some value between trade-in and resale in terms of clean-up and servicing. A private seller who takes the time to detail and service the machine first can probably expect to get closer to a dealer's resale price than someone who just plunks a For Sale sign on a machine in last-used condition.

 

[SDT]

As much as possible.

Bingo.

There is no cookbook formula but "as much as possible" is accurate.

SDT

 

[SDT]

Remember that while dealers have certain inherent advantages over private sellers, they do also add some value between trade-in and resale in terms of clean-up and servicing. A private seller who takes the time to detail and service the machine first can probably expect to get closer to a dealer's resale price than someone who just plunks a For Sale sign on a machine in last-used condition.

Not the dealers that I know.

Trade ins are simply placed on the lot . Absolutely nothing is done to them unless a buyer buys one and pays to have it done. Even flat tires are not repaired.

The only advantage that dealers have is financing.

SDT