I've got a 2019 Kubota SVL95 with around 1500 hours on it. The machine works fine, AC even blows cold and strong, tracks are new, service has been kept up with, retail it would be a $54,000 machine, give or take. I've been kicking around trading it in for a new SVL97, not because there's anything wrong with it but, just because a newer machine would be nice and it's the one I use most often, so I reached out to see what the dealer could do. They offered $33k for the trade. Now I get that they need to make money but, is $20k below retail a typical offer for a trade in? I've never bought new equipment or traded anything in so I don't know. If that's the norm, I'm going to just hold onto what I've got or sell it myself and buy something without a trade. There's no way I'm going to let it go for $20k below going rate, I really expected the trade value to be closer to $50k.
I think that’s pretty typical with a dealer, they try to make as much as possible all the time. Which there is nothing wrong with. You will save 30 grand worth of tax if you trade it in though which obviously is not worth the extra 20 grand you could get if you sold it privately. I think the issue now is the dealerships are not having a hard time selling new equipment, if things were a bit slower you’d probably have a better shot at getting a better deal. I typically always sell my equipment privately rather than trade it in.
I think the trade value should be around 45K. What are they wanting for a new one?
That's crazy. List the machine for sale on ebay.
A lot of considerations go into trade values. I either advised on or set trade values at a dealer for twelve years. First two things you have to realize is that asking prices for a machine on a dealer's yard are only a starting place to negotiate a sale. What you see advertised does not represent any type of reality on what those items actually will sell for. The other item is that what ever maintenance you say you did has little to no meaning to the dealer. You are basically selling the machine the same way they are, "AS IS." The dealer's appraiser will inspect your potential trade looking for the same types of issues that you as a buyer would be looking for that are used for leverage in the sale negotiations. He will also know the costs of what it takes to sell the piece of iron. Check fluids and clean are first. Any necessary repairs come next and finally, marketing and administration which will include things like the people to do the paperwork and paying the commissions to the sales force. If you are negotiating on a new piece of equipment you usually have plenty of leverage to get a better price on your trade. All the dealers of all the major brands have various buckets of money to dig into in order to sell a new machine. You just have to play the game and learn how to use their need for sales against them.
Is this a personal machine or business? Like Tags said there are tax consequences.
Ranch machine so kind of both, the transaction is exempt from sales tax.
Base was $78,300, fully optioned was about $91k. $45k on trade I could probably live with, I still think it's a little low but, it's closer.
Yes but, used equipment is also moving very quickly and at premium prices. I guarantee my machine would sell for $55k or more in less than 2 weeks if the seller has access to financing. It would take me a little longer to sell it because I'd need a cash buyer or one that can arrange their own financing, which means I'd probably be selling it for a little less than that but, definitely nowhere near $33k.
You are 100% correct about that, finding the right buyer with cash can very tough when selling a machine for 45-55k, but they are out there. The other thing about the dealer is they don't want to sell your machine, they want to sell a new machine, yours could be a nightmare in disguise, especially if you have no service records, they have no idea. Once they have yours it's their problem and they may back it up with a 30 or 60 day guarantee. They also may offer financing, all these things cost the dealer in the end, so they figure all those potential costs in.
Here is the thing. They have some amount that makes sense for them to pay based on what they want to sell it for, plus prep work and hassle, plus the hit their sales of new equipment will take by possibly satisfying a buyer with a used machine instead, plus the profit they need to be a business. You have some amount you want to get based on what you could sell it for personally, including the hassle of selling. Go in there "belly first" and say, if you want this machine this is what it will cost you. They can say yes, no, or negotiate. Git a figure in your mind that you would accept, go in high and see if they come up to what you need to get. If not, sell it elsewhere.
At the dealership I worked at they focused on disrupting Kubota skid steer sales, to where they ordered (or Deere pushed) very plain jane models trying to compete at the Kubota price point.
I never heard back from the dealer after pushing back on the trade value so I'm just going to hang onto it for now. It runs fine, I just thought it would be nice to have a machine nobody else had farted in. I'd look at other brands but since I work alone a lot, not having a door that allows me to get in and out with the arms up is a deal killer for me. When I'm driving fence posts, I need to be able to get out of the cab and reach in to operate the machine while I'm holding the posts for the driver. I actually get in and out with the arms at least a little up all the time, I just can't live with a door that swings out and prevents that.
Get a jcb with a side door!
….or hit yourself in the head with the biggest hammer you can find, that would be better than trying to find parts or support for a JCB. TAK or Kubota offers the roll up doors. It really is too bad JCB can’t get their **** together, I think the side door is a great idea, they just can’t offer the durability or the dealer support.
Agreed. Tak or Kubota is a far superior choice.
Did you have a jcb?
Nope. But a local public works has one and there is always something wrong with it, AND the dealer they bought it from shut its doors. Now they need to take at least an hour and half ride to get it to a dealer, they had a budget, the Tak and and Kubota were more and this is where they landed. They primarily bought it for snowblowing the walkways around town, and every time they go to use it something breaks. It's the only one I've ever seen around in our area, that doesn't say much for their presence in the construction industry by me. I didn't mean to offend you if you have one, I'm just speaking from what I've seen…
No offense. I don't have their skidsteer, but I have jcb telehandler. Have been using them for a long time and been very happy.
For what it’s worth - in feb / march I traded My either 2017 or 2018 svl 95 standard flow cab appx 600 hours on a new svl 95 right before the 97s were out (i think the 97 was going to be appx 3k more , for really a very similar machine) but I got 42k for my trade.
Check auction sites 2018 with 1300hrs sold for 34k. Prices are high right now but...45 trade in idk 40 maybe but dealer will get you on other end. Used equipment for a dealer is a risk it .costs us 1200 a day to fix tradins. We work on all kinds of great auction finds customers bring us. If you want to play you have to pay and if you cant fix it yourself plan on paying another 10k after your action deal. It's the same for the dealer they could easily spend 10k on your trade in when the mechanics could be working on a customer machine where the money is coming in not out. Dont think for a minute the dealer will make 20k on your trade in.