Used prices going up, up, up - Tractor Futures!

[Robo 52]

have to assume it's the same for all of you out there - I have been greatly amused to watch prices for used equipment skyrocket as parts and tractor inventory supplies have dwindled, and as usual-new-equipment buyers are scared away by sticker shock, long delivery times and being told 'you'll never be able to put a wrench to that $250,000 toy for which you just mortgaged the rest of your life'.

 

[ruffdog]

Just a supply and demand issue. When supply is more than the demand, prices go down and vice versa.

 

[Torvy]

Just a supply and demand issue. When supply is more than the demand, prices go down and vice versa.

Keep saying it does not make it true. Sure, supply and demand will affect prices on individual items, but this is compounded by an inflationary spiral that we have not seen in decades. Inflation is a money supply issue at its heart and is much bigger than you realize.

 

[ruffdog]

Prices for cars and trucks are much higher now. Supply and demand. A dealer that normally has 500 units on hand only has 20-35. That is a lack of SUPPLY so it drives DEMAND up.

 

[Doughknob]

Keep saying it does not make it true.

nor does trying to predict the future mean your predictions are true….

 

[3 Horse Ranch]

Prices for cars and trucks are much higher now. Supply and demand. A dealer that normally has 500 units on hand only has 20-35. That is a lack of SUPPLY so it drives DEMAND up.

Yes it is a supply and demand issue to some extent but it is also an inflation issue. The kicker is, while supply may increase and/or demand decrease, the value of the dollar lost to inflation will never be regained. As long as the government has the attitude "We have plenty of paper, ink and the presses still work so we have lots of money" this problem will only get worse.

 

[Torvy]

Prices for cars and trucks are much higher now. Supply and demand. A dealer that normally has 500 units on hand only has 20-35. That is a lack of SUPPLY so it drives DEMAND up.

False. Lack of supply is a lack of supply. It does not follow that it changes demand at all. "Normally" lack of supply would increase prices which would decrease demand until a new equilibrium price is reached. An alternative would be that producers would increase supply in response to the higher prices, again establishing a new equilibrium price.

While supply and demand affect prices on individual things, the supply chain issues are not what is causing the majority of the pricing issues.

 

[Steppenwolfe]

While supply and demand affect prices on individual things, the supply chain issues are not what is causing the majority of the pricing issues.

Oh thank God! One less thing to worry about...

 

[Torvy]

nor does trying to predict the future mean your predictions are true….

The difference is that I actually know what I'm talking about. It is not a crystal ball it is economic laws. This is not a guess, it is a 100% certainty. The only question is how many years before we recover. That part would take a crystal ball because recovery will not start until the root causes are addressed. Monetary policy is the root cause. Not a guess, not a prediction. Just a fact. Wishes will not change the facts.

 

[Username Taken]

The difference is that I actually know what I'm talking about. It is not a crystal ball it is economic laws. This is not a guess, it is a 100% certainty. The only question is how many years before we recover. That part would take a crystal ball because recovery will not start until the root causes are addressed. Monetary policy is the root cause. Not a guess, not a prediction. Just a fact. Wishes will not change the facts.

Do things cost more in Japan than they did two years ago? I don't think so. Inflation in Japan is at (-) 0.17%. That is a 'minus' you see there. For 2021

Our money supply is over-inflated, making the money worth less. So it isn't so much that things are going up in price, it's that our money won't buy nearly as much.

Japan, Korea, German......? They couldn't care less. Our goods don't cost any more there than they did 2 years ago. It's their currency that's strong. Ours is not.

Wait until the Yen becomes the Global Currency. I wanna hear the excuses then. That'll be fun