Posted by BarnyardEngineering on September 21, 2017 at 06:23:45 from (98.17.202.247):
Our local dealer's auction is coming up, where they sell off the used equipment that's been sitting on their lots for the last 6+ months, unsold. Most everything is sold without reserve, and only brings a fraction of the price they had it listed for on the lot.
As an example, they had a Farmall 656 gas hydro, kinda rough looking, sitting on their lot for $6000. Won't budge an inch on price. Sold at the auction for $2300. It's typical for used tractors to sell for 1/3 to 1/2 of the dealer asking price.
Now if they had it marked $3500 on the lot, they could have sold it in a hot minute, and would have been $1200 + auctioneer's commission ahead of the game.
For the longest time, I have wanted to walk into that dealership, sit down at the salesman's desk, and say, "Look, I can wait until the September auction and buy this thing for 1/3 of what you are asking. If I were to pay you what you want for it here and now, what am I getting for all that extra money?"
Anybody know, what do you get, besides a sore behind and a smoking crater in your wallet?
Sure, I am rolling the dice that some idiot doesn't come in there and buy it out from under me, but I have yet to have something I was interested in not be at the clearance auction. I think most everyone knows to wait for the auction.
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