What is a "grey market" tractor?

   / What is a "grey market" tractor? #1  

Esee2248

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Hi and Merry Christmas to everyone. I am very new at this and was reading the threads and the term "grey market" came up. What does that mean? How can you tell if a tractor is a grey market vs ? Thanks, Eve
 
   / What is a "grey market" tractor? #2  
grey market tractors are used tractors imported into the US. The only advantage is price. They usually sell for less than a similar model. The biggest drawback is that even though it might be a name brand you may not be able to find parts. US dealers might not want to sell you parts because the grey market cuts into their sales. You can do a search for grey market machines and find more info.

Sincerely, Dirt
 
   / What is a "grey market" tractor? #3  
Hope I'm saying this correctly...I was told that grey market tractors from Japan (like a Yanmar) are brought in because Japan has a 500 hr max limit on their tractors for emission control...I've seen those and they are very nice, low hour units...All you need to do is get the English version of the decals as to which lever does what...A local dealer sells a lot of these with a new Koyker FEL...Seriously considered one before I came across my BX23.

Don
 
   / What is a "grey market" tractor? #4  
Hope I'm saying this correctly...I was told that grey market tractors from Japan (like a Yanmar) are brought in because Japan has a 500 hr max limit on their tractors for emission control...I've seen those and they are very nice, low hour units...All you need to do is get the English version of the decals as to which lever does what...A local dealer sells a lot of these with a new Koyker FEL...Seriously considered one before I came across my BX23.

Don
Not that simple. There are virtually NO direct crossovers. Kubota USA does not allow it's dealers to provide parts, service, or any form of support for grey market Kubotas, and there is no other significant source for parts. Yanmar does not allow it's parts dealers to sell parts for grey market yanmars, BUT.....there has been immense development of aftermarket parts for grey yanmars.....to the point where we have a 168 page catalog of aftermarket parts for grey yanmars. Many of those models are now supported better than the same age tractors originally sold in the US.

Also, I am not aware of any magic number (like 500), but there is a regressive tax on equipment, going up as hours increase, so there is very little market in Japan for their own used tractors. Like any market not regulated by the OEM, there are widely varying claims by sellers regarding the age and HP of the units. There is also a very shady side to part of the market. Best protection is references. Don't buy from someone who can't/won't give you numerous references, and CHECK THEM OUT before buying. We've been in this market for nearly 15 years, and it can offer a great value to the consumer, or it can be a nasty surprise. Which if these is determined mainly by the seller.
 
   / What is a "grey market" tractor? #5  
Here is Kubota's web page about Gray Market tractors:

Kubota Tractor USA - Gray Market

It contains the gollowing statement which I would conside before purchasing one:

"Please be advised that since April 30, 1997, the importation, distribution and sale in the United States of Kubota "gray market" units under 50 PTO horsepower has been prohibited by a General Exclusion Order of the United States International Trade Commission. If you wish to obtain a copy of this Order, please write to our General Counsel:

Mr. Richard Briggs
c/o Kubota Tractor Corporation
3401 Del Amo Blvd.
Torrance, California 90503
Phone Number: (310) 370-3370 "

Andy
 
   / What is a "grey market" tractor? #6  
I don't know of any hour limit on tractors in Japan. The small family farmer in Japan has a SMALL plot of land, typically in the single digit acres. But they have a tax rate that is microscopic as the government wants them to supply food and not sell the land for houses etc. I was told that farmers pay no property tax - don't know if that is true, but it well could be as there are microfarms next to multimillion dollar houses. Also heard that they get extreme tax breaks on NEW equipment but no break on used equipment. As there is no market for used, it gets shipped away. Vietnam, India, USA, etc. Many are low hour as they time it takes to till 3 acres a year is short!

Often the rear ends and transmissions are water damaged as they may be operated under water tilling rice paddies. You get what you pay for in some ways, but like a box of chocolates....

jb
 
   / What is a "grey market" tractor? #7  
Again, it's been a while and was going off of my aging memory...LOL.

Don
 
   / What is a "grey market" tractor? #8  
My understanding of gray market tractors is that they are built overseas for that market and not for the US. They are bought up and shipped over here as used equipment that are not supported by the US companies that sell those brands. Some do not even have a US company of that brand. They are not limited to just compact tractors, but also yellow iron and compact trucks. There are probably other vehicles too, but those are what I'm aware of.

The good point is that you can get them cheaper then anything else. The negative is that finding parts can be very difficult, though like mentioned, some gray market brands are getting better support with more and more parts becoming available. If you were to consider buying a gray market tractor, be sure that you have a good source of parts. Do not rely on the person selling it who will tell you that he can get you anything that you need. He might be able to, but he might also have to wait three months for those parts, if he can get them at all. I would only consider it if I knew somebody personally who has a proven history of being able to get parts. It's just not worth the risk to save a few grand if something simple breaks on it and you cannot get the parts to get it working again. There are more then just a few tractors out there that are parked for the last time out in a field and nothing more then rusting monuments.

Eddie
 
   / What is a "grey market" tractor? #9  
Hi and Merry Christmas to everyone. I am very new at this and was reading the threads and the term "grey market" came up. What does that mean? How can you tell if a tractor is a grey market vs ? Thanks, Eve
The difference is :
Gray market tractors don't meet OSHA & EPA regulations.
 
   / What is a "grey market" tractor? #10  
Buying Grey Market Tractors is a REAL Experience.

1. Only buy after you are sure your dealer is reputable.
2. Research, Research, Research.

Some Grey Market Tractors are almost identical to Tractors sold by US dealers under another name. For example Hinomoto manufactured a tractor and sold it under the Allis Chalmers name. They made the Allis Chalmers 5015 which was a 15 horse power tractor. The 5015 is the exact same tractor as the Simplicity 9518. I am not sure but Hinomoto probably made other tractors for the Japanesse market under its own name. If Himomoto produce the 5015 for use in Japan and it was shipped here used you could easily get parts.

But I own an Iseki TS 2205, (anyone what to buy a cheap 22 hp tractor?), which has no twin sold in the US. Iseki did make tractors sold in the US through Massey Fergerson, White, Bolens and I think Agco. My tractor is quite simalar to a Bolens G242 but stuill different. I bought a parts manual for my tractor but it is in Japanesae. Part are extremely hard to find and expensive. If I need some parts they must be ordered from Japan. A set of gaskets for my water pump cost me nearly $30.00.

Now here is the positive and negative for me. I bought my Iseki 2wd 22hp tractor 4 years ago with less than 600 hours showing on the meter for $1,700.00. It now setting behind my shed because it has a fuel injector problem. It isn't a Bosch injector pump so I am finding it really difficult to find someone to fix it. So I bought a New Mahindra 3325 two years ago. I can get all the parts and service I want for it.

So make sure you know what you are buying.

Don
 
 
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