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

[ruffdog]

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,

Yep....that pretty much sums it up.

 

[Hay Dude]

Yeah, but even the high school home ec teacher can get it wrong.

What he says is true and its not agenda driven, as your opinions are.

 

[ruffdog]

What he says is true and its not agenda driven, as your opinions are.

That is your OPINION and I can have the same about you.

 

[Username Taken]

Thanks for proving my point. You cannot understand Econ by simply searching the web and pulling quotes from a website and assume that you or the reporter actually understood the context in which the quote was made. In 2019 the inflation rate was 2.3%

Current US Inflation Rates: 2000-2025

The annual inflation rate for the United States was 2.3% for the 12 months ending April, compared to the previous rate increase of 2.4%, according to U.S. Labor Department data published on May 13, 2025. The next inflation update is scheduled for release on June 11 at 8:30 a.m. ET, providing...

www.usinflationcalculator.com

The Murray Gell-Mann effect should always be considered in these matters.

There is no one answer but dumping TRILLIONS of dollars into an otherwise healthy economy might, just might, have something to do with inflation. And there are those of us who still think Maynard was an idiot. A mathematician wearing his Father's shoes. Among other things....

The Fed buying BILLIONS of dollars of equities (which I don't think they're supposed to do) also might have contributed to inflation.

At least they can say we got more than 3% economic growth. At 10% inflation, that puts us 7 points in the hole but, like I said, Gell-Mann.

Whatever. You can't fix...... I forgot already

 

[airbiscuit]

Other factors that haven't been mentioned as much.

• The flurry of tariffs on steel (and other things) raised the price of anything metal and started the increased buying
• Covid resulted in more retirements = more purchases of tractors for property (Retirees are a good target market for CUTs)
• Home prices escalated freeing up more home equity loan $$
• Stimulus checks brought more discretionary income for many (down payment for 0% financing)
• Supply chain shortages resulted in reduced inventory and instilled a "Buy if you can find one in stock" mentality

and yes the forces of inflation (even if transitory) reinforce the buy now mentality

I don't see prices or availability improving anytime soon, but I do think they will moderate as CUT manufacturers gear up to take advantage of demand - especially Korean manufacturers who are keen at increasing their North American presence.

 

[Doughknob]

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.

I am laughing. knobs present opinions as facts.

 

[ovrszd]

All I know is it does no good to sell a product you own at an inflated price if you have to replace it at an inflated price. I didn't even have to "research" that on Google.

 

[5030]

The flurry of tariffs on steel (and other things) raised the price of anything metal and started the increased buying

Toss in domestic mills as well. They increased their price in lockstep with offshore suppliers and so did the service centers. I'm paying about 35% more for structural than I was a year ago. All about profit which causes the end user to increase the product price to consumers as well.

I will only purchase domestic rolled materials, never import and that can be an issue at times.

 

[rScotty]

The stock market is not as good a barometer of economic health as many believe. I also did not say that everything is 100% due to inflation. Some of the rise in stock prices is monetary inflation. Rising stock prices themselves are not inflationary. Stock prices have little to do with producer or consumer prices. Bond values are reactionary, they respond to actions by the fed and to reactions by people who see bonds as a safe harbor against inflation. The inflation problem is in its infancy. The only solution is to shrink the money supply. The economy works best when people stop messing with it. Slamming on the brakes is almost as bad as hitting the gas on a patch of ice. Better that no one hit the gas in the first place. Now we have to go along for the ride and the drivers have never driven on ice before. Hang on.

Yes, Torvy. I agree with all of that. I am not an academic economist; I do some hobby level advising for friends, non-profits, and small municipalities. Small towns have a big problem right now. My viewpoint is often different from people whose opinion reflects politicians, news, and internet.

BTW, since you apparently think that the American Consumer is in for a rough ride, I agree. There's blame enough to go around, and no particular group or political philiosopy is exempt. My own bias leans toward demographics for explanations.
I mostly blame credit that is too easy, downsized banking reserve requirements, selfishness, and a overly abundent money supply. That is an bad combination.

I don't think the supply chain slow down matters in economic terms. That my be short sighted on my part. But my bias is to see it as being a side issue which may or may not contribute to a larger financial problem. Shortages could be a benefit as easily as a detriment. It's a symptom, not the problem.
I wish the stock market was that independent as well, because that could help save the whole system. B am afraid that there are too many pension funds invested in it right now & that ties the market too closely to the overall economy.

My own opinion is that we do not yet know if this slide will end slowing uneventfully - as most do - or in a terrible crash.
But it is getting to be very late in the game to be making significant changes.

Nor is it all bad. A falling financial picture plays to the strengths of those who have spent a lifetime being financially conservative. They deserve a time to shine, too. A tip of my hat to the ghost of my dad and his depression-era philosophy. A general financial downturn finally gives the turtles a chance to catch up in this game.
rScotty

 

[Steppenwolfe]

Dude, I literally teach economics. Your statements clearly show you don't understand economics. Attempting to regurgitate something you read on the internet will not magically help you understand the words you type. Just stop. Fed policy is only part of the problem. Massive influx of federal dollars into an already smoldering economy has quickened the inflation. The Fed is trying to take a measured approach, but it is like trying to stop the Mississippi with balsa wood. The supply chain issues are just a boil on the backside of an elephant. Those, too are caused, in part, by poor policies. If the supply chain issues were magically fixed tomorrow, the prices of new equipment would not drop.

Please tell me you don't teach trickle down economics...