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 02-04-2007, 20:24 Post: 139536
duke8444



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I have search the site and have found nothing in relation to getting into buying container loads of tractors and try to start a buisness in fixing them for resale. Does anyone have information on these container buys.






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 02-08-2007, 17:04 Post: 139659
earthwrks

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I know a guy who does it in Arkansas with heavy equipment and gets a lot of people mad at him because he tries to pass them off as "originating" in the USA. And it's pretty obvious that they came from other than here because the controls are backward and the control labels a,d other critical labels are in Japanese.






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 02-08-2007, 17:37 Post: 139660
Billy

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Duke, I don't know a thing about container buys but I'd be real leery about it. I could be wrong but doesn't container buys equal gray market? You better pick one that has a parts supply or you might wind up dead Wink yeah right






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 02-08-2007, 18:46 Post: 139661
earthwrks

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You can try it but I would be up front with people otherwise you could be in a world of hurt up to and including a dirt nap (that's maybe an exaggeration). Many a guy has bought these gray-market tractors and comes to TP looking for manuals, parts and service only to find little or no solice.

I'd consult a lawyer specializing in contract law and strict liability before proceeding to cover your legal butt. If there are any local dealers of name-brand CUTs around you may find in short order they may try to run you out of town or at the very least try to detract from your business.

I know guys back home that were selling a tractor (FarmPro??) that was made in China. The dealer was smart enough to sell them at a used car lot a friend of mine owned---that put another layer of people to get through when things went bad. And things did go bad on the sales end when the car lot owner was showing many persons a machine on his lot (he had two)---but he would never move the tractor off his lot. People would stop in and say how they liked the tractor they bought. Turns out the dealer, in order to not pay commission had the deals routed to another location. This is what happened to me selling for the con-man from Arkansas: He would lease--not even buy--new equipment from another dealer like a $100,200 excavator, and park it on a car lot I was temporarily operating my excavating business from. Then he brought two more machines, which were gray-market. I was suppose to sell the machines and make a commsission for keeping an eye on them and for sales. Instead he put his phone number on the signage and routed the calls to him and then sell them a different machine thereby feeling since I didn't sell THAT particular machine I wasn't owed a commission. We parted ways as soon as I caught on this when guys would come onto the lot saying "oh yeah I have bought this, this, a this from him."






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 02-09-2007, 19:42 Post: 139688
duke8444



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Hey Guys,

Thanks for the feedback. I agree with everything you guys have questioned and I am looking real careful at this and I am not jumping into anything. I know this is real risky and probably real easy to get burnt.


Thanks,
Duke






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 02-09-2007, 19:54 Post: 139689
earthwrks

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You might want to take a look at other web sites of those selling gray-mkt things to get a feel of who offers what and for how much, and check out return/warranty policies too. Then you have to lok at product liability insurance which could eat you up. That sid you might be ahed to just buy the minimum, use them for a few hours and sell them one at a time as used tractor. Also you might have to find out from your state about what qualifies as a "dealer" to keep your butt out of trouble.






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 02-12-2007, 13:25 Post: 139712
duke8444



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Earthwks,

I appreciate all your comment about the container tractor buys. The reason I am even looking at this is for something to do when I retire in a few years. I have already cleaned up a few tractors of my own and then peddled them. I have actually sold them so quick, I thought my prices were too low, but by then they were gone. They were John Deere and Kubota’s tractors so they were gone fast. An example is a JD 650 I picked up for $2,000 that was fine mechanically but looked pretty rough. I used this tractor around the house for two years and then one winter cleaned it up with the idea of selling it. I put it in the paper and sold it the next day $4,000. This area of south center Kentucky does not have many used tractors for sale in this price range and they appear to will sell quickly if they looked OK. I am redoing my Kubota L 2850 with a loaded and I have a few guys are already interested in it and it is not really for sale right now. I may just keep it myself.

However, in seeing the demand that appears to exist, I started to think about they grey market container tractors to fix up and sell. The more I check, the more risky it appears unless you are a real dealer. Also the cash outlay up front is substantial. A full container of 16 tractors or a half container of 8 tractors at about $2,500/$4,000 must be sent to the broker before you see anything. They have your cash for about 30/45 days before the container gets delivered and you only can ask for a mix of several different brands on the container. Where I live, I believe only the Yanmars will move and anything else I could sit on for a long time. It would definitely kill any kind of cash flow. With the problems you have brought up, buying individual tractors and fixing them may be the way to go and not get into the whole dealer situation.

Duke






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 02-12-2007, 15:44 Post: 139713
kthompson



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 Container Tractors

Duke, near me there was a farm supply store that had a dozen or more of those tractors. Sold fast at first them problems hit. He did not have service and I was told there was at least one lawsuit. Not sure of that nor the details. A Kubota dealer a mile from him, brought in some of the grey market and don't think they have sold for him. If they have they are moving very slow. Now his prices are always higher than most anyone else.

As to fixing up and selling name brands, had a dealer tell me there was money in that if you were doing so with tractors of the age of those who wanted gardens. Meaning you wanted to deal with tractors from the era of the tractors being new at the time those you would be selling to were using them. Mental connection, seems to work with cars also.






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 02-12-2007, 16:25 Post: 139714
earthwrks

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I'd try eBay for selling. Look at the ones being sold first.






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 02-12-2007, 16:48 Post: 139715
earthwrks

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Kenny I agree with the observation about the eras, etc. I've noticed that myself.

But, Kenny what's the connection of liking really old tractors and young women? Perhaps a "foot" in each era Smile






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Discussion Boards > Active Subjects > Messages as Posted > Tractor Projects Forum

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