Why are dealers having record years

[boomer613]

I have visited or talked to 5 different dealerships (JD, Mahindra, Koiti). All of them refused to budge on their prices. Literally not a dime lower. Every dealer has told me they have had record sales for the past 3 years. Not sure if this is the case in every state but here in AL and S. TN tractors are selling like hotcakes. I kind of believe them as my local federal land bank has sold record land for the past few years. They more than doubled in new land loans last year. What's up with record tractor and land sales in this economy? If I took a guess, people are tired of losing their money in stocks, homes, mutual funds and savings -- so why not invest in land and buy yourself toys such as the tractor you always wanted.

I ended up buying a Kioti DK40SE with FEL but at the orginal offered price, just under 20K after taxes. I wonder if anyone is having any luck in negotiating a lower price than the initial offer. Thank goodness Kioti was offering a free Front-End Loader.

 

[murphy1244]

I have visited or talked to 5 different dealerships (JD, Mahindra, Koiti). All of them refused to budge on their prices. Literally not a dime lower. Every dealer has told me they have had record sales for the past 3 years. Not sure if this is the case in every state but here in AL and S. TN tractors are selling like hotcakes. I kind of believe them as my local federal land bank has sold record land for the past few years. They more than doubled in new land loans last year. What's up with record tractor and land sales in this economy? If I took a guess, people are tired of losing their money in stocks, homes, mutual funds and savings -- so why not invest in land and buy yourself toys such as the tractor you always wanted.

I ended up buying a Kioti DK40SE with FEL but at the orginal offered price, just under 20K after taxes. I wonder if anyone is having any luck in negotiating a lower price than the initial offer. Thank goodness Kioti was offering a free Front-End Loader.

You did good...I paid 21.500 with toothbar and hooks welded.

 

[boomer613]

You did good...I paid 21.500 with toothbar and hooks welded.

Just curious if the toothbar & hooks was worth the cost? I was considering putting in a toothbar. Does it do a better job?

 

[IronHog]

I have visited or talked to 5 different dealerships (JD, Mahindra, Koiti). All of them refused to budge on their prices. Literally not a dime lower. Every dealer has told me they have had record sales for the past 3 years. Not sure if this is the case in every state but here in AL and S. TN tractors are selling like hotcakes. I kind of believe them as my local federal land bank has sold record land for the past few years. They more than doubled in new land loans last year. What's up with record tractor and land sales in this economy? If I took a guess, people are tired of losing their money in stocks, homes, mutual funds and savings -- so why not invest in land and buy yourself toys such as the tractor you always wanted.

I ended up buying a Kioti DK40SE with FEL but at the orginal offered price, just under 20K after taxes. I wonder if anyone is having any luck in negotiating a lower price than the initial offer. Thank goodness Kioti was offering a free Front-End Loader.

People that can are investing in some self supportability.


That means land+a small tractor.

 

[boomer613]

People that can are investing in some self supportability.


That means land+a small tractor.

Yes, this was the exact reason why I bought a tractor and land a few years ago.

 

[herefromthere]

People that can are investing in some self supportability.


That means land+a small tractor.

Taking this concept further, I think there are folks seeing zero percent financing in a time of rapid currency devaluation as a good way to get something tangible that holds its value, is incredibly useful, and sure beats sitting in front of the idiot box for entertainment. Being able to pay for it with cheaper dollars over a multi-year loan is a bonus.

 

[Spencer C]

I can tell you that our stores were up 40% last year over 2010, and up another 20% over last year. A very positive sign is that the compact construction market has really taken off again here in middle TN. Our CE customers are very busy, both residential builders and commercial construction. In our business, I see leading indicators that the economy has finally turned the corner.

 

[schoolsout]

The tightening grip of the Central State is pushing people to be more self-sustainable.

Agriculture is also a big play and will be very profitable in the near future for those with the means...

 

[schoolsout]

I can tell you that our stores were up 40% last year over 2010, and up another 20% over last year. A very positive sign is that the compact construction market has really taken off again here in middle TN. Our CE customers are very busy, both residential builders and commercial construction. In our business, I see leading indicators that the economy has finally turned the corner.

I wouldn't put a lot of faith in those "indicators." Although it is a good sign (We sell class 3-8 commercial trucks and business is up, too), liquidity is what is driving the economy. The fundamentals aren't there, just the money sloshing around that has been injected by the gov't/Federal Reserve. Kind of like how the equities markets aren't that far from their all-time highs yet bad news in most all aspects of the economy (ours and other Western countries) dominates the headlines. The hot money (first to buy with the newly printed money) is starting to trickle into the economy.

 

[greasemonkeyok]

Even investing your own dollars without borrowing, a 5% annual rate of return with some potential upside doesn't look bad right now.