Bargaining for a 3 Year Old 'New' Tractor

Welcome to our latest video, where I answer a viewer question about a "new" three-year-old tractor that's been sitting on a dealer's lot for quite some time. If you're like Keith, who’s been researching the perfect tractor for his 20-acre camp for the past two years, you’re in the right place. Today, we’ll explore how to approach purchasing a tractor that has been on a dealer’s lot for 3 years, how to decode the VIN, and how to negotiate a fair deal.

Keith has decided on a 40 horsepower tractor, primarily because there’s a dealer just 4 miles away and another dealer for the same brand only 10 miles the other direction. After closely monitoring dealer websites and lots, Keith found a tractor that may havbe been listed on the lot for three years, with its model year shifting from 2022 to 2023 and now to 2024. The price has changed each year as well.

Can you use the VIN on an unsold, older model year tractor to your negotiation advantage? Unfortunately, decoding the VIN (Vehicle Identification Number), or serial number as it's more commonly called, to determine the exact age of a tractor can be challenging. Manufacturers often keep this information tightly guarded. For instance, Kubota, one of the most popular tractor brands, doesn’t provide a serial number break to denote the year of production.

Since manufacturers rarely disclose the exact age of their inventory, the best approach is to inspect the tractor's physical condition. A tractor that has been on the lot for three years will likely show signs of aging, even if it hasn’t been used extensively. Look for:

Faded Paint: Exposure to the elements can cause the paint to lose its vibrant color.
Weathered Seat: Check for any signs of cracking or wear on the seat.
Rust: Any exposed metal parts might start showing signs of rust.

Assuming the tractor is indeed three years old, you’re in a good position to negotiate. Typically, tractors increase in cost by around 3% each year, so a three-year-old tractor should be priced approximately 10% lower than a new one. This gives you ample room to negotiate.

However, consider that the dealer might be trying to recover costs associated with having the tractor on their lot, including interest fees and profit. The price might be higher than expected due to these factors, so be prepared for negotiation.

The Dealer Dilemma
Keith's situation is further complicated by the proximity of two dealers for the same brand—only 14 miles apart. This close proximity can create a competitive environment but also poses risks. I would say it's likely that one dealer will give up the franchise because of low profitability and tight margins. It could drastically impact the resale value of the tractor if both dealers exit the brand.

When considering buying a three-year-old tractor that’s been sitting on a dealer’s lot, remember:

Inspect the Tractor Thoroughly: Look for signs of aging and wear.
Use the Serial Number Wisely: While it might not provide the exact age, it’s a good starting point.
Negotiate Based on Market Trends: Understand that a three-year-old tractor should be priced lower, but be aware of potential additional costs.
Be Cautious About Dealer Proximity: Multiple dealers for the same brand close to each other might indicate a volatile market.

By following these tips, Keith and others in similar situations can make an informed decision and negotiate a fair deal on their next tractor purchase. If you have any more questions or need further advice, feel free to drop a comment below!

Tags: #TractorBuyingGuide #UsedTractor #KubotaTractor #TractorNegotiation #ValueInsightPortal #TractorCondition #TractorDeal #FarmEquipment #CompactTractor #TractorMaintenance

00:00 Introduction
01:39 Why the VIN number may not help
02:55 How to spot aged, but new, inventory
04:02 Dealer attitudes about inventory
06:11 The importance of serious inventory
07:15 Too many dealers in one area?

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[gregforster]

On US tractors made since 2006, the offroad diesel engine has a manufacturing date (mm/yyyy) label on its valve train cover. The tractor manufacturing date will be pretty close to this engine manufacturing date within a couple of months.

[goforit]

Good, to see you are Still putting out videos, with Valuable informational we want/need…. Have a “new” tractor sitting in a enclosed storage unit, purchased November 30th 2020, with a whole 25 hours on it - Between delaying retirement due to financial reasons, Covid, and some health issues, it has only been used twice - But, as far as I’m concerned, it’s still New - Looks new, smells new, no wear and tear… But, even with that said, a 3 year old tractor is NOT A NEW TRACTOR - and, dealers that are trying to pass them off as NEW, IS FRAUD…!!!

[mty]

Now it's been 30 years ago, but I worked for Kubota dealer back then. At that time Kubota considered the year of the tractor whatever date it was sold. So if a tractor was delivered to the dealer in 2021 and it sat on the lot not sold until 2024, Kubota would have considered it a 2024 model. I don't know if that's the way they still do it, but seeing as how they don't publish a S/N list, I tend to think that's the way they still do it.

I don't think you have to worry much about a 3 year old tractor, but a friend of mine bought a very low hour tractor that was 10 years old, and when he started using it the tractor more or less fell apart. The story on the tractor is a local construction contractor also has a hobby farm and more money than he knows what to do with, he buys tractors and other equipment just for a tax write off and a lot of the stuff just sits in the shed. It was a 10 year old 100hp JD with right at 200 hours on it. My friend paid premium because of the low hours, but when he actually started using it he had all kinds of leaks and other problems. So it's almost harder on a tractor to just sit than it is to actually use it.

[charlesperry]

My Massey Ferguson GC1723e actually has a model year stamped on the serial number plate. I thought so and paused the video and went to my barn to make sure.

[jeromebecigneul]

LS has a model year of production right on the tractor. Must be an honest manufacturer.

[RobertBrothersJr-dcnr]

Great video Mike and great explanation. I do wish tractor manufacturers would make it easier to figure out when the tractor was manufactured. Thanks Mike I enjoyed your video.

[davids]

Just went thru this. I want a 24 hes got 22. 23. Been sitting in the sun for 2 yrs dont want it

[romanschroeder]

If you use the serial number on the tires to determine how old they are, the tractor is probably about the same age too.

[rodgerneeb]

New means that the factory warranty clock hasn't started yet, it could have been abused and had it's first 50 hours service.
Used can mean someone bought it, let it set in their climate controlled garage used it a fraction of an hour and decided they needed a larger one, traded it in with most of the warranty stil left but the clock having been started.
Both new and used can be anywhere between the paint is still curing, to a few years of setting around.
He didn't have what I described in stock, he had to order mine, it was assembled from components still in the pipeline and had the previous years features. It had 4 hours on its hour meter, filling all the fluids, driving around and double checking everything, apparently take somewhere around 4 hours run time. So basically the difference between new and used is super hazy and it has more to do with your skill as a negotiator what it's worth.

[fhuber]

You can look up the tractor and find cosmetic changes from year to year. They moved the light switches every year since I bought my tractor. 2020 is one place, 2021, another, 2022 another, 2023 another and 2024 still another place.

There's almost always some change from one year to another.

[dman]

This is true insight. Just went and visited a kioti dealership, they had 3 kiotis in stock... Could order me one ... Nah.

[jamieebersole]

If he's just looking at the website, what are the chances it's a popular seller so they just keep the ad up and flip through the tractors? I know our one local dealer does that with implements

[chiefkyle]

Would think it would be unethical - if not outright illegal, to hide such pertinent information from consumers.

[MorganOtt-neqj]

Some dealers want to make $100 on one sale, others want to make $1 on a hundred sales. The latter work harder for the customers.

[Townie]

You're wrong about Kabota . The 16-digit serial number is on the right-hand side up by the front, both labeled and stamped. The 10th digit gives you an alfa code for the year of manufacture. The code can be found on the internet.

[timrowan]

Sounds to me that one dealer was 4 miles from camp and the other same brand dealer was 10 miles from home don’t know how far home and camp are from each other they could very well be 250 miles apart not 14

[andrewgee]

If the tractor has really been sitting on the lot for three years that tells me they aren't serious about being on the business. Their prices are too high and based on what things were selling for during supply chain problem time period. They don't understand the current market. Anything will sell at the right price. They probably primarily sell something else and just signed up to be a dealer for a lower tier brand.

[viridianloopers]

I didn’t know it at the time I purchased my Mahindra 2665 but after listening to you talk about this I now know my tractor was one they must have been paying interest on. Thinking back I remember telling myself that it looks like it’s been sitting for a while, and it had been. Bottom line I got $2000 off listed price, a W R Long 3rd function valve and had my rear wheels turned out to a wider stance. Had I seen ur video two years ago I would have kept asking for more. All in all I left satisfied that I got a good deal and no regrets👍

Your channel has really educated me on tractor stuff. You provide a great service to the whole community. Thanks!

[jaclynalley]

Im a woman and i think some dealers (not all but some) treat women customers differently than they do men when negotiating a equipment just sayin..