Value of Kubota L2500

R

rlk

Member
I have a friend who must sell his Kubota L2500 tractor. He bought it new in 1998 and has all the paperwork (manuals, invoice, etc.). It is located in the Raleigh, North Carolina area.

The tractor has 4wd; power steering; 8 forward & 2 reverse gears; good tires; good paint; less than 1000 hrs; and comes with an old bush hog and a box blade.

I spent time last night looking for something like a NADA book for tractors but could not find one. I only found a few for sale in the entire US. Several had a FEL, or were 2WD, so were not comparable.

Of the ones I found that were comparable, the prices were:
  • $6000 - $7000 on a dealers lot, or
  • $5500 from a private individual

Do these prices seem in the ballpark to you guys?

Thanks in advance for any help.

Bob
 
Zoom, thanks for pointing me to your Excel spreadsheet. I remember when you initially posted it, but had forgotten about it.

I have been playing with the spreadsheet and like what I see, however, do have one question:
In Cell B10, Annual depreciation, you use a constant of .02 that is multiplied the purchase price. Do you have a simple explanation of what .02 represents?

Thanks, Bob
 
Looks like I have it set that it depreciates 2% per year based on the tractor's life expectancy of 50 years.
If a tractor is only expected to last 35 years, you can change the number to .03.

I just plugged in my tractor values. I'm wondering if that 2% may be a little high. My depreciation in B15 is $6K. When I look my tractor up online at sites that sell tractors, the values are higher than what's in the spreadsheet. I changed B10 to .01 and now the bottom line tractor value matches what they're really selling for.
 
bczoom said:
Looks like I have it set that it depreciates 2% per year based on the tractor's life expectancy of 50 years.
If a tractor is only expected to last 35 years, you can change the number to .03.

I just plugged in my tractor values. I'm wondering if that 2% may be a little high. My depreciation in B15 is $6K. When I look my tractor up online at sites that sell tractors, the values are higher than what's in the spreadsheet. I changed B10 to .01 and now the bottom line tractor value matches what they're really selling for.
Click to expand...

That's what I was finding as well.

Changing the constant to .01 brings the value inline with the values I'm finding, even though I haven't been able to find many sales of L2500's that I can use for comparison.

Thanks for all your help.

Bob
 
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