AchingBack
Elite Member
On the news today, the Kubota dealer in Medford, Oregon is closing due to our valley's loss of agriculture activity. Farm land is becoming housing tracts.
Dealers how are sales during this tough time
- Thread starter deere755
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art
Super Member
As a child I remember Dad and mom both talking about how hard it was to originally get the IH dealership in 48 and they were pretty much told they didn't stand to much of a chance.
At the time there was IH dealers within 15 miles each direction and by 25 they were engulfed. During the sixtes I watched four go, the early eighties took them out to about 25 miles and only one of them left. Much the same as ours, this is a family business also.
It used to be you could low crawl to farms in any direction from that location in less time then you could drive it today!
At the time there was IH dealers within 15 miles each direction and by 25 they were engulfed. During the sixtes I watched four go, the early eighties took them out to about 25 miles and only one of them left. Much the same as ours, this is a family business also.
It used to be you could low crawl to farms in any direction from that location in less time then you could drive it today!
wallace
Veteran Member, Approved Advertiser
Well here goes the rates....
I just got a fax yesterday and now used equipment went from 7.5-8.5% up over 11%.
Ya I know you guys are going to say that used not new, but remember the attractive rates you are seeing on new equipment are what called buy downs.
Manufacture buy the % rates down with their profits so higher rates cost the manufactures more of their profits and we all know the manufactures want their profits.
I just got a fax yesterday and now used equipment went from 7.5-8.5% up over 11%.
Ya I know you guys are going to say that used not new, but remember the attractive rates you are seeing on new equipment are what called buy downs.
Manufacture buy the % rates down with their profits so higher rates cost the manufactures more of their profits and we all know the manufactures want their profits.
ultrarunner
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It's a shame... Good Family run Kubota Dealer... I talked to them today about a B26 a friend is looking for and learned the news.
AKfish
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There are several reason's that loan rates haven't approached the ground level that the Fed has established for "interbank lending" - currently around 1%.
Prime Rate | Federal Funds Rates Discount Rate Fed Fund Reserve Lending COFI
The nasty intermingling of good paper and bad paper (derivatives) in the mortage lending market hasn't cleared out of the belly of the snake, yet. So, there's a serious problem of "trust" among banks and other corporate institutions. Everybody's scared to death that the current debt that many institutions are carrying is still loaded with those crap mortages. So, they're not willing to loan money to one another. At least, not at the realistic rates that the Fed is making the money available.
And the Fed bailout money hasn't gone much farther than the locked safe's of AIG, etc (except to buy up smaller banks). The government has discussed how they can intervene and buy up the individual "toxic" mortage loans directly and therefore restore "trust" in the financial markets... that hasn't taken place -- so, the bailout money hasn't done much except calm the surface water's but the underlying currents haven't been realigned.
Given the dimensions of the problem; it will take quite a bit of time to straighten things out - (and when Congress reconvenes) it's gonna be a REALLY big light show!!
But the current level of economic activity is certainly not the underlying basis for the current interest rates available on used equipment - IMO.
AKfish
Prime Rate | Federal Funds Rates Discount Rate Fed Fund Reserve Lending COFI
The nasty intermingling of good paper and bad paper (derivatives) in the mortage lending market hasn't cleared out of the belly of the snake, yet. So, there's a serious problem of "trust" among banks and other corporate institutions. Everybody's scared to death that the current debt that many institutions are carrying is still loaded with those crap mortages. So, they're not willing to loan money to one another. At least, not at the realistic rates that the Fed is making the money available.
And the Fed bailout money hasn't gone much farther than the locked safe's of AIG, etc (except to buy up smaller banks). The government has discussed how they can intervene and buy up the individual "toxic" mortage loans directly and therefore restore "trust" in the financial markets... that hasn't taken place -- so, the bailout money hasn't done much except calm the surface water's but the underlying currents haven't been realigned.
Given the dimensions of the problem; it will take quite a bit of time to straighten things out - (and when Congress reconvenes) it's gonna be a REALLY big light show!!
But the current level of economic activity is certainly not the underlying basis for the current interest rates available on used equipment - IMO.
AKfish
there is lots of used stuff available now, more than I can recall in the last 5 years. People are not plunking down $20,000 for a nice clean used tractor. Most are choosing to finance. The 0% programs are out there, most companies have thrown more money at that and they have gotten better. We don't have may issues with getting loans, but the standards for credit have gone up.
Farmwithjunk
Super Member
Yesterday afternoon, I spent a few minutes with the owner of a large multi-outlet John Deere dealership. I'm shopping for a couple 100hp tractors for the mowing business. He told me that the number of customers walking through the doors is down dramatically in the last month (as compared to last Nov/Dec) Even the special finance rates aren't drawing sales as expected. People are just sitting on their hands until this current economic crisis blows over. All I know is, I've NEVER got the level of one-on-one attention as a customer that I'm getting now when I walk in the door, checkbook in hand. That applies to several dealerships I've visited in recent days. It's a very good time to be a cash paying tractor buyer.
Oleozz
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Lots of folks pulled money from the stock market and have invested in land, people that are non-farmers. You can see the trend in this area, one nice spread bought by a dentist, another beautiful farm bought by people who own a building supply business. Most farmers that I know cannot afford these high land prices and being the good business men that they are don't take the gamble.
MessickFarmEqu
Super Member
land is really out of control. We've been seeing farm land at 12-15,000 per acre for awhile. You see many more people renting land rather than buying.
case in point about the land, my cousin has been trying to get me to buy a 42 acre tract near him that has about 25 acres in field so he can rent the field from me...I've been less than enthused about the endeavor....but the price is right IMO ($117k)