You make some good points here and Jd's zero interest for new is hard to compete with. I will give it a day or so and probably make some adjustments. Thank you for you input.Unless you bought at an extremely good price, I'd say you might be a touch high just from looking at the discount from your purchase.
I'm sure the items are as advertised, barely used and in superior shape but from the buyer's point of view you are competing against new price, factory financing, the hope of dealer support etc. That might mean a steeper discount, or waiting for the right buyer is necessary.
I don't know the new pricing on the items so you maybe could argue that you purchased at a great price, much lower than most people can get. If so, you might want to show what the MSRP price is rather than the price you paid. As a simplistic example, lets say you bought a widget for $500. It normally sells for $700 but you are such a great negotiator that you got a better price. You want to sell it for $450 because you've never used it.
As a buyer looking at it, which looks better? $700 retail, never used will sell for $450 or Paid $500, never used will sell for $450?
Somebody else will have a better knowledge of the actual value but it's a more local market than a national market for previously owned equipment.
JD's financing and the fact that a lot of interested folks just don't have that kind of cash in the bank. Much easier to swing a loan from JD. Will a regular bank down the street, finance a used tractor like a used car? Serious question, I don't know myself.Jd's zero interest for new is hard to compete with.
They usually will finance a buyer with good credit. A credit union also will finance as that's more in line with consumer lending, which is the bread and butter of the credit unions.JD's financing and the fact that a lot of interested folks just don't have that kind of cash in the bank. Much easier to swing a loan from JD. Will a regular bank down the street, finance a used tractor like a used car? Serious question, I don't know myself.
Wow.....You sure did cover a lot here and it is well thought out and makes sense. You must be smarter then the average bear, boo boo. I'm guessing your old enough to know about that. (could be wrong) Tomorrow or the next day, I will spend a good bit of time on Craig's List and see what I can come up with. Thank youThey usually will finance a buyer with good credit. A credit union also will finance as that's more in line with consumer lending, which is the bread and butter of the credit unions.
But the interest rate is going to be much higher than what Deere offers. I would expect the rate to be in the 5% to 9% range, which really makes competing against Deere's 0% a hard sell as the additional capital cost of the loan with the interest will add at least $1,500 in total cost as compared to an offer through Deere.
This sometimes makes the selling of used equipment a bit more challenging. But the benefit of the implements, assuming someone wants them, allows you to discount to make a deal happen.
Also, many people don't know what this equipment really costs until they price it out. You can always negotiate down a little to sell the unit.
Basically, here is how a dealer determines resale price and trade in price.
They check to see what the equipment will bring and realistically does sell for in their area. Then they subtract 25% for their gross mark up. Then they subtract the cost to "make ready" for sale, which would be any repairs, any parts or service needed to get the machine ready. They take the "make ready" costs and subtract it from the total which brings them to their trade in price.
So for example, let's say the tractor sells for $20,000 in their area (actual documented sales, not listed prices of for sale equipment)
They would subtract the 25% OR $5,000 which brings it to $15,000. They then subtract the costs to make any repairs and also clean up the equipment. Let's say that's another $1,000 between cleaning and servicing the equipment, so the trade in offer would be $14,000........
A trade in offer would be the same as a "wholesale sale" to the dealer by someone looking to get rid of their equipment and not on a new equipment purchase.
I would suggest checking around your local area and see how many of the same tractors are for sale. In some areas, they can be hard to find, which will help your pricing. As far as the implements go, they are as likely to sell to individuals not interested in the tractor as they are to those interesed in a package deal.
I would point out in your add the implements are all Category 1 and it looks like many have the IMatch bushings on them. If the IMatch is for sale with the tractor, I would point that out in the add as that's worth $250 to $300 used all day long.......
I would also list the implements for sale separately, in their own ads. They are likely to sell faster that way. List each implement in it's own add so when buyers are searching, they will find them easier. Make sure in the ads to not list what you paid, just the asking price. I realize you were just asking our opinions on the price. Don't drop the prices too quickly as anyone interested will make you an offer anyways.
It's a little late now for the tiller, but I would expect that to be of interest to many.
Last, but not least, watch out for scammers.......No checks, no holds for shipping overseas, no checks for more than the purchase ans cash refunds of the difference, blah, blah, blah.....If someone does buy something with a Cashiers Check, I would meet them at the bank where they are planning to get the cashiers check to make sure the check is valid. Even if you take cash, check it carefully as its easy to counterfeit money now with colored printers, etc...the papers always the hard part.
Another thing I have noticed is the banks in our area are pulling the "Old $100 bills from circulation and most I am seeing are all the new ones. So if someone has a bunch of the old 100't without the extra security features, check them carefully. I hate to think we can't trust some people but its the reality of what's going on these days......
Sellers beware of all the low life, scum, criminal, thug, thieving low lives who like to take from those who work for a living.
Good luck with your transaction.......
You guys are making interesting comments which gives me much to think about. Again, thank you all.Forgot to add one key point.
Yes, Deere financing is a key point your missing - BUT you have a selling point a dealer doesn’t. No Sales Taxes.
Your market tends to be higher priced than the South and Central US. As well from memory there are no sales tax exemptions and tax is comparably high to other regions. 10% offsets the interest on a 5 year credit union loan at 6% basically. So when the buyer says - I can get 0% at Deere - remind them your aware of that and then point out they’d be financing in taxes and show the interest total on a 5 year note at 6% total - then remind them of the price of a new 2032 with loader and no attachments and the payment. In the end they come out cheaper with yours AND get extras.
Payment logic - been practiced by successful salespeople for years. Have 2 sheets - one showing a 2032 price from Deere and one showing loan amortization on your unit at full price.