Argo Depreciation Too Great to Buy New?

[MarryK]

One aspect we're struggling with in buying a brand new Argo is the seemingly dramatic depreciation if we were to sell it. I understand that dealers try to sell demos and used Argos at top dollar; but, in the real world, I don't see people lining up to buy them on the used market at anywhere near a realistic depreciation. For example, we're looking at a 6x6 650 HD optioned-out at $16,700. If we take really good care of it, I can see it realistically selling for $6,500 in 2 or 3 years. Am I right about this? This is a major factor in our decision to buy a new Argo, so your input is appreciated.

[garbie]

In my neck of the woods Argos hold their value like crazy. I bought my 1997 bigfoot for $3500 and even though it needed work and wasn't in the best of condition it was a steal. Here is a link to one near me. ARGO - Thunder Bay ATV For Sale - Kijiji Thunder Bay Canada. it will probably go for close to that too.

[MarryK]

Garbie, thanks for your reply. You kind of prove my point: People are looking to by $3,500 Argos, not one's that are $10,000 or $12,000. Our concern is that, based on what people are paying on the used market, after only a year our 6x6 650 HD with a bunch of options that costs $16,000+ will only truly sell for $8,000. We realize an Argo isn't an investment, but it's concerning to buy a product with such real-world depreciation.

[Robinhood02]

yup we've had the same expirience up here , a fully loaded 8x8 runs 35,000 + and 4 years later it sells for 8,000, argos do have a good warranty though, up to 3 years, soon as it goes off warranty they seem to drop fast, i suspect it has more with the ability to financing rather than the value, it is easy to get financing for new but nearly impossible to get for used machines. and yet you put that machine where there is dealer financing and the value goes way up again.

[plott hound]

older ones seem to hold up.a guy near me just sold his old codger for 5700.00.damn thing was just a little newer then mine.1984 or so.

[LarryW]

They seem to drop fast on price but once they get to a certain point where most people could afford they seem to flat line it seems. I assume most of you guys numbers are canadian? How much is a bottom of line argo in US? Anybody have any ideas? I remember when you could get a base line max II for $5,000 US. That was only like 5-6 years ago or so.

[Noel Woods]

Alot of the used machines out there have been dogged out. When you look at them, the chains may be loose, the sprockets worn out, tires either don't hold air or have plugs all over them, the oil is low and jet black, filters dirty and clogged, and the body banged up. Machines like this will not fetch top dollar.
On the other hand, sometimes a used machine, with a new engine, refurbished transmission, new tires, and clean appearance can bring double the money of the other machine. It depends alot on how the machine has been maintained. A well serviced machine, in good shape, will bring a good return. Where I live, in East Texas, I find myself surprised as to what these things sometimes bring.

[AlaskaGrizzly]

I've bought 3 argo's over the years up here in Alaska.

Frist was a early 80's 8x8 and it needed a lot of work, hours unknown. Paid $3000 in 1995. No ideal on what it cost new. Sold it it in 2005 for $2300.

Second was a 2003 Conquest, 80 hours, excellent condition. I bought it in 2005 for $8300. It was around $13000 new. Still own it.

Third was a 2000 Conquest, 190 hours, decent condition (it needed a lot of cleaning and some new bearings). I bought it in 2009 for $5000. It was a also in the $12,000 - $13,000 range new. Still own it.

I'd have to say any new machine will drop in value by at least 1/3 in the first couple of years. I've been seeing a few used Avengers up for sale here in AK that probably cost $20,000 to $25,000 new in the $15,000 to $18,000 price range. Still too much for me even consider the need to upgrade the conquests.

[chinook]

It's a small market. Two out of the three I've owned were bought by people who really didn't know what an Argo was, they learned they’re really overkill for running dry logging roads. When they went to sell them they found not a lot of interest & lowered the price to get ride of them. I wouldn't say they depreciate poorly; you just have to be patient when you get ready to sell. These people also bought compulsively, I watched all winter counting on this pattern to repeat itself and it did. So I guess I proved your point???? I’ve bought used 3 times letting the first guy take the hit.

[Castro]

I am laughing right now. Argo atv's hold their value better than any other "toy" out their. Like anything you buy it looses about 1/3 value the very moment you take legal possesion of it. From there the drop in value is small, and based on how much maint the owner does. I have a 2001 (10 year old) bigfoot. It will sell all day for 5 grand. Tell me any other toy out there that you can sell after ten years of abuse for 50% of its cost new. I have a honda 400ex (same age), built with just about every Mod you can do, including a custom holy carb, big bore kit, titanium valves, big cam, full exhaust, tank, plastic...ect. I can get maybe 1.5k for it, about 14% of new cost- not including upgrades. I would say a decently maintained argo will hold its value quite well. Try and get a car dealership to buy a car back from you a few weeks after buying it and see what real purchase depriciation is.

[Obsessed]

Castro I agree...your Honda sounds like every 4wheeler, snowmobile, boat, motorhome, car or truck I ever purchased...

in fact when I got my first used 6x6 back in 2006 not only was I impressed with how well these machines hold their value, I was equally impressed with how many of the other toys could be replaced with a single family investment...

One good machine can possibly replace a couple of 4wheelers, a couple of snowmobiles, and a small fishing boat... In addition, they can be enjoyed by more than one person at a time, can be great fun in every single season, and can be well suited for both work and play. Another thing I noticed is that a worst case repair was typically much less than other types of equipment which are often not worth repairing (although routine general maintaince is much more important)

I think that part of what we see when we compair pre-owned machines to brand new ones is the fact that the machines built by Argo have evolved a lot in the past few years which has decreased the preceived value of the prior models to many consumers....in addition prices have gone way up and the average machine now costs about 25% more than it did just 3 or 4 years ago and so that also messes up the comparison a bit... a good example is just last year the entry level Argo 6x6 was 7k and this year they start at 10k...no wonder a used machine will be hard to compair to the cost of new

really do luv my argo

[chinook]

I'll use my 2005 Avenger as an example:
First owner bought it new at a Sportsmans show for $23,500. He found he didn't like that it tore up his lawn. Second owner bought it for ???? and found it was overkill for running the logging roads in his area, he wanted something sporty. (rhino, razor, 6x6)
I bought it from him in 2007 with 73 hours on it for $9800 (then had it shipped to AK $1200)
It now has 260 hours on it and I added an aluminum rack.
I tested the market a year ago, asking $10,500 thinking we didn't need his & her's Argos I had people interested it right away. (Yes I came to my senses, we need two Argos...Red Heads LOL)
I don’t know what it really means or proves, but I think after their initial drop they hold there value very well.
For were they take me in the fall, they’re priceless.

[Robinhood02]

I'll use my 2005 Avenger as an example:
First owner bought it new at a Sportsmans show for $23,500. He found he didn't like that it tore up his lawn. Second owner bought it for ???? and found it was overkill for running the logging roads in his area, he wanted something sporty. (rhino, razor, 6x6)
I bought it from him in 2007 with 73 hours on it for $9800 (then had it shipped to AK $1200)
It now has 260 hours on it and I added an aluminum rack.
I tested the market a year ago, asking $10,500 thinking we didn't need his & her's Argos I had people interested it right away. (Yes I came to my senses, we need two Argos...Red Heads LOL)
I don’t know what it really means or proves, but I think after their initial drop they hold there value very well.
For were they take me in the fall, they’re priceless.

Yes this is exactly my point, once they drop to 10k or under they seem to stay there for a long time, i think it is because most average people have up to 10k cash to play with (or can come up with it) on a toy without getting some sort of financing for the toy, it is nearly imposible to get financing for these as used units so if one needs financing they have to buy new, the inability to get financing eliminates 75% of the people that may have wanted one, so the less people the less value, the minute you offer financing the market opens up dramaticaly and you get 10 people wanting the used unit that that without financing nobody wanted it, what you could only get 10k for without financing you can now get 15k or more, like i said it has ALOT more to do with financing than the value, you should try it ,it is unbelievable the difference it makes

[MarryK]

I think everyone has good points here, which is why we're now looking at scaling back. Financially on a 6x6, it seems to me that a 580 versus a 650 will sell for around the same price in several years, so if we don't need the 650's Admiral steering, 5 extra HP, or skid plate, we can maintain a better resale value down the road. Look at it like this, if our Argo is only going to be worth $6,500 the minute we take delivery, it's wiser to buy a 580 at $9,000 than a 650 at $12,000. Also, I think options prove a huge loss in that they are so expensive new, but not considered by a used buyer as having value, so we're cutting back on options. It's one of those situations where on the one hand we know we're buying a toy, but we don't want to be too dumb about it, either.

[Moosetalker]

One thing we have going for us here is the oilpatch, every few years you can pick up units from a rental fleet. So if a guy is patient the new admiral drivetrain ones will eventualy come in to that under 10k market by then its most likely to be a 15K market with oil blasting thru the roof.
The biggest prob with those is abuse Drive it like you stole it seems to be a common theme with guys using rentals.