Tractor sales suffering in this economy?

[7cats]

A JD 2305 was listed for $9500 equiped as follows:
"2007 JOHN DEERE 2305 with 200CX Loader, LX4 52" Cutter 24 Hp, Diesel, 62 Hours, 4WD, Hydro Transmission, Counter Balance Box, 3 pt. hitch, Category 1, Garage Kept"

It was a seven day listing and no one bid on it. Was the price too high or is the market for tractors simply that bad?

 

[gamble77]

Smaller equipment (read weekend warriors) has slowed down...large AG equipment is coming and going at a crazy pace...

 

[radman1]

CUT sales have to be significantly reduced compared to recent years in most regions. The construction equipment sales are also down. Whenever you see 0% financing, sales are slow. The CUT tractor market has had low financing and other incentives for quite some time.
Large ag equipment and tractors have experienced tremendous sales recently. I suspect that will be cooling off soon. Corn and soybeans have taken big drops in price from earlier this year. Corn was near high of $7.50/bushel this spring, and now near $3.50. Utility and smaller ag tractors haven't had the tremendous sales like the large ag tractors and large equipment. Still long waiting list for large ag tractors, planters and sprayers.
Also equipment prices have increased more than 15% this year due to higher iron and shipping costs.
I purchased a Case-IH Maxxum 125 Pro with FEL for 79K and 0% financing earlier this year and took 6 months to get it from England. My brother ordered a Case-IH Magnum 245 with most of the bells and whistles for 170K with 7-8 months wait and built in the US. Both of us are trading in other tractors to lower the price. Both tractors should be good for 10-15 years.

 

[7cats]

Sorry, I neglected to mention that listing was on ebay.

 

[MessickFarmEqu]

Whenever you see 0% financing, sales are slow. The CUT tractor market has had low financing and other incentives for quite some time.

We've had 0% financing for 6-7 years.

Things are shifting. I had recently heard that car sales are off 30%, but we're hearing CUT sales off in the single digits. Its not nearly as bad as you may expect.

 

[HayDR]

We've had 0% financing for 6-7 years.

Things are shifting. I had recently heard that car sales are off 30%, but we're hearing CUT sales off in the single digits. Its not nearly as bad as you may expect.

AEM | Industry Trends - U.S. Ag Flash Reports: September 2008 Flash Report<br />U.S. Unit Retail Sales

2008 Year to date Sales
less than 40 HP- Down 12.9%- units-82,309
40 -100 HP- Down 11.5%- units-53,775
100+ HP- Up 33.2%- units-19,339

 

[excelagator]

I went to get filters the other day and The dealer came over and started talking. We walked out to a 2320 in the shop. he went in ran the numbers with my 04 2210 (287 hours) ,200cx FEL and 52" MMM as trade. I would get a new 2320 with 200cx FEL and MMM. The differance would be $8,900 with 0% for 4 years. JD site is listing it with attachments at $18,459.00. So I am "roughly" getting $9,559 for trade-in. I would like to see what he is charging for the 2320 tractor, then again just a number game.

I think it is a good time to start looking, but the next couple of months maybe be even better!

Dan

 

[7cats]

excelagator, that is excellent information. Thank you.

 

[excelagator]

Thanks 7cats!

Just be cautious on Ebay. I ran into a scammer on Ebay and wanted to charge only 5K for a very new and loaded Kubota BX24. If you find something on there don't put a deposit down. If everything is legal the seller on ebay will understand because of all the %$# scammers.

Dan

 

[radman1]

We've had 0% financing for 6-7 years.

Things are shifting. I had recently heard that car sales are off 30%, but we're hearing CUT sales off in the single digits. Its not nearly as bad as you may expect.

Intermittant 0% financing has been going on for past few years. Especially with off time of year, less desireable models, model changes etc. It is now becoming the norm to have 0% financing across the board on CUTs. They don't just hand out 0% financing because thier just being nice to buyers. Sales had been in the double digit increase for several years. Now no more increase but instead a decrease in growth. That is alarming to many companies. There is a flood of CUT manufacturers, Mahindra, JD, Kubota, Kioti, Bobcat, NH, Case-ih, Massey, Iseki, Branson and a host of lesser known companies. I see CUTs sitting on lots for months at a time.