Does B T South take Trade Ins?

Does B T South take Trade Ins?

We generally don’t encourage trade-ins or guarantee that we will accept used equipment in trade. However, we occasionally offer a trade-in option when it is a popular model that we sell and at a value that would allow us to sell it quickly. We want to be transparent that we are best geared and suited toward selling new equipment, and that we lose some of those advantages when selling used equipment. And that selling privately comes with some advantages that usually allow used equipment owners to get more for their equipment by not involving a dealer.

 What advantages do I have by selling privately?

• It’s no secret that for dealers to remain in business, they have to make a profit to pay their staff and cover their expenses. As a middleman between used equipment sellers and buyers, those costs get passed on. 

• Sales tax will have to be collected a second time when a dealer sells a used machine, so whatever sales tax was paid when it was originally sold is effectively lost value, to be collected again if sold through a dealer. In private party sales, tax is seldom collected.  

• If there is safety equipment missing, like belt covers or a discharge chute, then a private buyer may not even care, but as a business, dealers need to buy and replace those pieces, which adds expense without necessarily adding value. 

• As a buyer of your used machine, comparing the dealer as a buyer vs an end-user private buyer. The dealer has the option of buying a brand-new clean machine with full warranty at wholesale cost. So, in a way, you are competing with the manufacturer. Whereas the private buyer does not have that option. 

How are dealers less suited at selling used equipment than new equipment?

• When dealers buy new equipment to stock their stores, they don’t have to pay for it until it is sold to a customer. If they buy 10 of the same thing, they can display one in the showroom and stack the other 9 in their warehouse. When a dealer buys a used machine, it ties up the their money and display space until the unit is sold. This means they either need to buy it at a price that allows it to sell quickly, or they need to profit more to cover the cost of tying up their resources. 

• Dealers use manufacturer-subsidized low-rate financing to help sell new mowers with low monthly payments. Used mowers are not eligible for this subsidized financing, which means a used machine could be priced $1,000 less than a new mower, but still have a higher monthly payment. To make used equipment attractive over the new equipment it requires a substantial discount. 

Some other considerations in selling used equipment:

• Despite how good a shape a machine is in, a used machine is used. Think about it: if you had the option of a brand-new machine versus one that was in great shape or almost new. If you are like anyone else I know, you will expect a healthy discount to persuade you into buying the used machine. It’s just human nature, and it’s the “drive the new car off the lot” effect that we’ve all heard about. 

• Accessories and upgrades like baggers, lights, etc, are not likely to add much value because most buyers don’t value those items enough to buy them.  They often end up getting thrown in at pennies on the dollar. The number one question people ask about a used machine for sale with a bagger is “How much for it without the bagger?”

If the seller does pull accessories off to discount the machine at the buyers request, then there is a good chance the seller will never sell the accessories by themselves, unless they are universal type accessories that will work on almost any mower. 

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The points above may help explain why dealers are often hesitant to take trade-ins, and why used equipment owners can probably get more for their equipment by selling it privately. That being said, some customers just do not want to deal with selling their equipment and they accept the cost of trading. Depending on how much demand we have for the model, the time of year, and our own cash flow situation, we sometimes offer a trade-in option. It’s our hope that customers will understand some of the hurdles that come with handling used equipment and not take offense at the limited value we may be able to allow.