Why are dealers having record years

[murphy1244]

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

very yes worth it.

 

[AKfish]

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 have to keep eating... all over the globe - I'd guess.. Ag equipment sales, agricultural commodities, livestock prices -- all very strong -- domestic and export sales!

Land prices reflect the agricultural market strength - high and rising. Even the move to alternative energy production has influenced land prices. Wind farms, solar farms need land.. and they offer a check every month for that space.

And, folk's have undertaken a renewed push to be more self-reliant. Urban gardens, small farms, organic food production. All influence equipment sales.

AKfish

 

[LazySusanFarms]

A lot of the purchasing can be driven by tax law decisions. Many large farmers buy new equipment once the depreciation is through and they need more deductions. Immediate deductibility of capital equipment expired on Dec 31st

 

[boomer613]

I am curious how much of a factor it is with the interest rate being so low. I just refinanced my land for 4.45% (raw land). As for tractors, I couldn't afford a new one if I didn't get a 5.5% loan. And as noted by another poster, the appeal of self sustainability probably has lead to many sales.

 

[IslandTractor]

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

Toothbar is very useful if you want to dig with the FEL. Not so useful if you are trying to just move piles of dirt or use the bucket to level ground. Most toothbars are easy enough to remove with a few bolts.

Hooks are worth it so you can chain objects that don't fit easily in the bucket. Logs, implements etc etc. Easy to weld a few on yourself with a bit of backing plate. Bolt on is possible too.

By the way, you did well on your DK40se price.

 

[mogwai]

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?

Have you looked at commodity futures lately? December corn is trading at $5-7/bushel and Dec soybeans are ~$13/bu. Those prices are driving this market. CRP acres are coming out of grass at a torrid rate. Land rental in my country has climbed a bunch...alfalfa fields are being herbicided for conversion to row crops.

The ethanol subisidies are driving much of this. Worldwide food shortages may also be in play

 

[Verticaltrx]

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.

IMO this isn't a good business practice when you are trying to sell something, good year or not. Sure, there will be a number of people who come along and pay list price, or whatever they are asking, but there are also plenty like myself that will take my business elsewhere.

When I bought my Kubota I called every dealer within 100mi (dozens) and told them the same thing, I have cash, I'm buying this particular model for my business ASAP, what's your best out the door price? Many gave me MSRP figures and I quickly crossed them off the list. Found three dealers that had very good prices and picked the dealer that I liked best from them. Never even physically went to any dealer until I was ready to buy, just over the phone. Part of how a dealer interacts with you is based on how serious they think you are.

 

[Lebneh]

Like Vert I called all the dealers I could find (I went over 100 miles). I had them all quote me identical line items (and include free shipping). I narrowed it down to the 3 best and called for their "best offer". I then took the best offer I got to the dealer closest to me and said "if you match this I will buy right now".

 

[Gary Fowler]

I think the boom in sales of land and small tractors has a lot to do with the baby boomer retirements. Many of them have a bank full of savings to invest in new retirement homes and they are tired of the city so they come to the country looking for land and of course they need a tractor or two to fight the grass. I think the trend will start to fall off in the next 5 year as the last of them come to retirement age.
OFF TOPIC BUT: Investing in land is a good idea. Do you ever wonder why none of the investment guys ever recommend it? I think it is too long term because they want instant returns or losses so they can reinvest and make their commission on stock sale after stock sale. They are like lawyers, they make money whether their clients do or not. Its not like you are going to get someone different if you switch firms either.

 

[Gary Fowler]

Like Vert I called all the dealers I could find (I went over 100 miles). I had them all quote me identical line items (and include free shipping). I narrowed it down to the 3 best and called for their "best offer". I then took the best offer I got to the dealer closest to me and said "if you match this I will buy right now".

That is not very ethical but is done all the time(guilty also) But that is really like requesting sealed bids then opening them and asking the high bidder if he wants the job for low bid or LOWER.
If they were honest dealer they would have offered you the price of the other dealer to start with. However that seems to be the way the game is played which is why I hate to buy new anything, shop shop shop and then go back to the first guy and say I'll give you this much cash now. They still make money because even the low guy is still high. Internet has helped the consumer a lot in getting local retailers to lower their prices some.