Is a spike in tractor prices coming?

[Snobdds]

In times like these, why is demand so high on everything? I have family in the construction business. They are building new houses as fast as a 3 man crew can. No let up in sight. To Heck with cost increases, build, build.

Why has luxury spending continued at an unprecedented pace?

There is a lot of money floating around. When a government increases the money supply by $1...That dollar can be spent up to 7 additional times before it ends up in an asset.

Velocity of money.

 

[ovrszd]

There is a lot of money floating around. When a government increases the money supply by $1...That dollar can be spent up to 7 additional times before it ends up in an asset.

Velocity of money.

My interpretation of the effect of "Stimulus" money. Shouldn't people start being concerned about the end result? I haven't saw any action to slow it yet. I'm in rural Agriculture environment.

 

[rjpotts]

The cure for high prices is high prices.

 

[Hay Dude]

In times like these, why is demand so high on everything? I have family in the construction business. They are building new houses as fast as a 3 man crew can. No let up in sight. To Heck with cost increases, build, build.

That’s so obvious on the build part for multiple reasons
1. Interest rates are historically low
1A. FHA raised the threshold for mortgages to $650,000
2. Homes are a tax shelter
3. Home generally increase in value over time so they are a good investment in troubled times.
4. People are fleeing cities because of failed leadership, crime and riots.

 

[Milo]

They're still building around here (mostly commercial) but residential sure slowed down, thankfully. With building materials and labor both so high the cost was approaching $300 per foot. After paying $200,000 for a lot you could end up spending $800,000 for a 2,000' house!

 

[ovrszd]

They're still building around here (mostly commercial) but residential sure slowed down, thankfully. With building materials and labor both so high the cost was approaching $300 per foot. After paying $200,000 for a lot you could end up spending $800,000 for a 2,000' house!

Our 1,978 sq ft living space house with 540 sq ft attached garage cost us $125 per foot 3 years ago. Never imagined at that time the building costs would rise as they have. That's why I'm so surprised by the building surge. Didn't even slow down thru sinfully inflated material costs.

 

[VH5150]

I went to my local Kubota dealer last week and saw a row of shiny new LX2610's with cabs (oh man I'd love one of those!) but I didn't even bother to ask what the price was because of inflation. New Kubotas were already out of my budget pre-inflation and now they're even more so.

Side note - seriously, why can't they just put the price on the dang tractor? I really dislike having to ask a salesperson.

 

[sixdogs]

I went to my local Kubota dealer last week and saw a row of shiny new LX2610's with cabs (oh man I'd love one of those!) but I didn't even bother to ask what the price was because of inflation. New Kubotas were already out of my budget pre-inflation and now they're even more so.

Side note - seriously, why can't they just put the price on the dang tractor? I really dislike having to ask a salesperson.

That's how some sell things. The they can size you up to see if you are a somebody or a nobody and to what degree you look price-malleable.

Just call on the phone and ask the price. Say you couldn't find the price tag on the tractor. Or, in pre-pandemic times, get the retail price on-line and knock off 10%-12% or 15%. If they balk just say you'll think about it and call them back. That scares them because you could slip away.

A good dealer has to make a buck, however, so I always leave some on the table and I do my homework in advance so if they give me a great deal I just say "yes" right then. No "I'll think about" it at that point.

Just my free advice.

 

[ovrszd]

That's how some sell things. Then can can size you up to see if you are a somebody or a nobody and to what degree you look price-malleable.

Just call on the phone and ask the price. Say you couldn't fine the price tag on the tractor. Or, in pre-pandemic times, get the retail price on-line and knock off 10%-12% or 15%. If they balk just say you'll think about it and call them back. That scares them because you could slip away.

A good dealer has to make a buck, however, so I always leave some on the table and I do my homework in advance so if they give me a great deal I just say "yes" right then. No I'll think about it at that point.

Just my free advice.

And very good advice Six.

 

[Gallows]

I ordered a LX3310 on Dec 15. The good. It's locked in at 0% The bad. He said prices will definitely be going up for anyone ordering in January. Worse? They aren't scheduled to get LX3310 until January 2023