New Tractor Sales Are Declining

buckeyefarmer · Jan 3, 2023

Drove by local kubota dealer last night, semi was parked outside their gate ready to make a delivery this morning.

2manyrocks · Jan 3, 2023

A few Kubota dealers in middle Tennessee back in April, 2022 told me they were having trouble getting enough tractors, lawnmowers, and skid loaders to meet demand.

From a dealer perspective, should dealers be ordering more inventory to sell this year (2023) or is it time to be more conservative about ordering inventory? Do you think dealers will try to stock up if they can or will they scale back this year?

CloverKnollFarms · Jan 3, 2023

All I know is that the lots are full here, better than I’ve seen since prior to Covid. Local Kioti dealer said he is already adjusting his trade in values, because he isn’t going to be able to sell used units for what he could a year ago. There is just too much in stock and therefore competition

bdhsfz6 · Jan 3, 2023

Same at my local Kubota dealer. More on the lot now than there has been in the last 3 years.

BleedingOrange · Jan 4, 2023

I,m 74 years old, and from my experience trying to deal with dealers and salesman of all kinds, 99.9 % of them are outright liars, and crooks. I get the impression that they would steal from their own parents and grandparents, if they got the chance. The day is coming, when dealers of all different items are going to have to face reality, and smart buyers are going to be able to once again, get a fair deal when purchasing big ticket items. Many people, thru various reasons, have been unfairly taken advantage of, big time. The correction is coming, sooner than later, and it,s going to be time for many dealers to receive their dose of karma.

Blue Mule · Jan 4, 2023

I shopped EVERY brand during the winter of 21-22. Ended up buying the largest compact tractor New Holland offers. The next step up would have gotten into the "utility" tractor class.

Just for kicks and giggles, last week I online shopped the same tractors. H O L Y cow....prices have gone insane. It looks like the average cost has gone up $8,000 in 12 months time on the tractors I was shopping last winter. I just can't hardly believe it. No wonder they aren't selling! $35,000 for a compact tractor with FEL only? Get outta' here.......

sd455dan · Jan 4, 2023

Have to think financing interest rates jumping up due to the FED raising what the prime is based on is part of the equation. That and how devalued the dollar has been pushing up MFGR prices.

Was looking at Branson's new 2515 when the dealers were first ordering them
was quoted 16k with FEL included for the non hydro.

A few months ago as high as 24K.

Just saw Dave's tractors ad for 18.9k

ONLY $21,950 4×4 TYM 2515H Tractor – 2,200 LB Loader Lift Capacity! SPECIAL PRICING! $3,250 total discounts!

» ONLY $21,950 4×4 TYM 2515H Tractor – 2,200 LB Loader Lift Capacity! SPECIAL PRICING! $3,250 total discounts! |

www.davestractor.com

Looks like the prices are Finally coming down for buyers on some brands and models.

Not so much... for some others though.

finn1 · Jan 4, 2023

sd455dan said:
Have to think financing interest rates jumping up due to the FED raising what the prime is based on is part of the equation. That and how devalued the dollar has been pushing up MFGR prices.

Was looking at Branson's new 2515 when the dealers were first ordering them
was quoted 16k with FEL included for the non hydro.

A few months ago as high as 24K.

Just saw Dave's tractors ad for 18.9k

ONLY $21,950 4×4 TYM 2515H Tractor – 2,200 LB Loader Lift Capacity! SPECIAL PRICING! $3,250 total discounts!

» ONLY $21,950 4×4 TYM 2515H Tractor – 2,200 LB Loader Lift Capacity! SPECIAL PRICING! $3,250 total discounts! |

www.davestractor.com

Looks like the prices are Finally coming down for buyers on some brands and models.

Not so much... for some others though.

Where are you getting your data on how weak the dollar is? The dollar is trading at about 1.35 Canadian dollars, and 1.09 Euros. That’s the strongest the dollar has been in years.

Do you have some data that I’m not privy to or are you just regurgitating right leaning talking points?

Hay Dude · Jan 4, 2023

finn1 said:
Where are you getting your data on how weak the dollar is? The dollar is trading at about 1.35 Canadian dollars, and 1.09 Euros. That’s the strongest the dollar has been in years.

Do you have some data that I’m not privy to or are you just regurgitating right leaning talking points?

Strength of the dollar is not a left or right issue. It’s economic cycles.
Stop with the politics.

PreacherM · Jan 4, 2023

finn1 said:
Where are you getting your data on how weak the dollar is? The dollar is trading at about 1.35 Canadian dollars, and 1.09 Euros. That’s the strongest the dollar has been in years.

Do you have some data that I’m not privy to or are you just regurgitating right leaning talking points?

I think you missed the context. A dollar now, only buys what 80-90 cents (or less) would have bought last year. If the US dollar has 'gained' value compared to Canadian dollars it just means that its worse up there. We all understand the point you're making and it's technically true. But reality is that a dollar doesn't go as far as it used to. So in layman's terms it has been 'devalued.

hiddentacocatneddih · Jan 4, 2023

Dollar is pretty strong. Double bubble and a couple bucks makes a good fiber glass repair

hornett22 · Jan 5, 2023

Kubota dealer in Knoxville seemed to be full. No loaders on many of them though.

They also sell Kioti. Not many of them in stock.

lman · Jan 5, 2023

finn1 said:
Where are you getting your data on how weak the dollar is? The dollar is trading at about 1.35 Canadian dollars, and 1.09 Euros. That’s the strongest the dollar has been in years.

Do you have some data that I’m not privy to or are you just regurgitating right leaning talking points?

Have you been to a grocery store or priced a tractor or construction project? If you haven't noticed that the dollar only buys about half of what you could buy with a dollar 5 years ago, you must be living in a cave.

CloverKnollFarms · Jan 5, 2023

Our Kubota dealers lot is overflowing… no loaders on any of them

2manyrocks · Jan 5, 2023

For want of metal hydraulic tubing, no loader. No loader, no sale.

ted451 · Jan 6, 2023

In my country, unfortunately, nothing is getting cheaper, everything is still in place, I hope that it will stop someday, but when, unfortunately, we do not know

jyoutz · Jan 6, 2023

CloverKnollFarms said:
Our Kubota dealers lot is overflowing… no loaders on any of them

Interesting. Local dealers here have tractors with loaders.

ArlyA · Jan 6, 2023

ted451 said:
In my country, unfortunately, nothing is getting cheaper, everything is still in place, I hope that it will stop someday, but when, unfortunately, we do not know

And what country are you from? Nice to have you here with us. (yes, a sidebar)

Hay Dude · Jan 6, 2023

Back on topic:
One of my local dealer’s lots is stocked full of new Fendts and a couple of new Masseys. Plenty of them, but very few used tractors. I think when the supply chain interruption happened, buyers of new tractors had no new tractors to buy, so they bought up the nations supply of used tractors.

I am looking for a used 150HP loader tractor and they are non-existent and over priced when you find one.

I don’t know if new sales are declining, but my salesman told me leasing is rapidly gaining popularity.
My theory of why leasing is taking off is mainly 2 reasons.
1. Leasing costs less per month (simplistic, but true)
2. New tractors are fully computerized and the typical wrench & grease farmer can no longer fix them. Leasing solves this because service is included.