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| I guess basically what I am saying is that the guy who paid more for the machine when he bought it new will need to get more for his trade than the guy who paid less if he is to achieve the same cost per hour of ownership.
I used the different trade in prices to illustrate the difference required to achieve the same cost per acre. I’m not suggesting that the dealer can actually offer such vastly different trade in prices to their customers. He would have to pick some number that makes sense and keep it similar for all of his customers. This thread is about high depreciation and that almost certainly causes a significant increase in depreciation for the single unit purchaser.
The salesman basically told me the same as you just did in that they tend to not make as much money per unit on the multi discount sales. He said that they are willing to do that because of the big benefit in the future. The discounts from multi unit purchases means they will be able to entice them to trade in again much easier in the future. To use the figures I was using it is much easier to get the guy who paid $850000 new to trade with a $750000 offering for trade in price than the guy who initially paid $1000000 for his combine. They can secure a supply of used machines to resell. Basically they can make less on the initial sale because they are setting themselves up to make money on the used also.
We may not be entirely in agreement but I also think we are basically saying the same thing. I suspect most of the problem is that I’m not explaining what I mean very well.
Edited by havin’funfarming 9/12/2024 07:18
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Class 10+ Combine Depreciation. Specifically X9 and new AF11
