New Tractor Sales Are Declining

[Hay Dude]

Yep, but all gave the same corporate financing.

But it’s the overall asking price that isn’t fixed.
Also, you are free to get your own financing through your bank, credit union, etc.

 

[Sid Post]

Don't know about the IQ part. I feel smarter now than last year but how would I know for sure?

Yes, my "faith in humanity" bias as been noted before by several TBNers.
All I can say is it's as valid as pessimism; just less common.
rScotty

I think this is a somewhat divisive issue as I see a divergence. Everyones views are shaded by the people we are around.

You have groups of generally younger folks who perform poorly scholastically and blame others. Then there are those looking for the easy way out so, look for handouts from wherever they may come from. Then there are the ones with little regard for the future and just look for the good times today so, tend to drink too much-smoke dope-and do different drugs. Then there are the aggrieved people who want slavery reparations or "social justice" which I generally take as negative influences.

You also have the people setting new test scores and learning stuff in high school that in times past would have been PHD level scholastic work and those starting businesses whether a simple local sandwich shop or what will become a corporation on a stock exchange in the future.

Depending on who you encounter on a daily basis will shade your view on the future. A 20-something that blames my generation for the world's problems but hasn't really lived any life or experiences on their own irritates me a lot so, I generally avoid them because you can't have a coherent conversation with them about anything with objectivity.

My volunteer work with Adult GED efforts has been both great and a bit ambivalent. Some really blossom with self-confidence and go on to get better jobs and make more money to provide for themselves and those in their family. Others I could never reach because they were often coerced or bribed to be there which can make you cynical if you aren't careful, in my experience. Younger people who are high school drop-outs are a whole different know-it-all problem in many cases because we aren't talking about some third-world country where the child quits to go work the fields to feed his or her brothers and sisters!

 

[Yander]

I think rising interest rates will force dealers to sharpen their pencils, but then all your savings gets gobbled up with higher interest!
Cash is always king in our system. It’s always better to “buy once, cry once”, BUT and its a very BIG “but”, most people can no longer pay cash for these large ticket items in this economy and not with high inflation far outpacing incomes.

Again, depends on your situation. Cash is king in my savings account and my investment account.

 

[Hay Dude]

Again, depends on your situation. Cash is king in my savings account and my investment account.

To be fair to you or others, you also need to know I’m buying machines in the $10,000- $100,000 price range, so while I may pen a check for a $20,000 piece, I usually can’t on a $90,000 piece. Like you said, all depends on situation.

 

[Sid Post]

If you have your money in a 4% interest earning MM account, then 3.9% isn’t too bad.

Yes! And you don't have the risks, rewards, or volatility of the stock market and the swings we see.

 

[Sid Post]

Something most people overlook is dealer overhead in their markups.

In my case, the cash and interest incentives are from the manufacturer, not the local dealership.

Negotiation is really about the dealer 'markup' over 'true invoice cost'.

Personally, I am willing to pay a bit more for dealers or salesman that take good care of me and have the resources to support me. 3 Massey dealers were nice enough but, could not talk about a 5700S/5S beyond what I could read off the brochure. The dealer I am working with actually has this tractor in stock and can service it and I won't be the only one at the dealership using the service department to fix it!

 

[5030]

Again, depends on your situation. Cash is king in my savings account and my investment account.

Be careful with that cash is king in a savings account as banks are getting flakey lately. That cash may vanish in the night and you won't even realize it. Besides as each day passes, that cash is worth less and less...

 

[Yander]

Be careful with that cash is king in a savings account as banks are getting flakey lately. That cash may vanish in the night and you won't even realize it. Besides as each day passes, that cash is worth less and less...

Yeah I don't have a lot in the bank it doesn't earn you much there anyway just enough for about 6 months of liquidity.

 

[5030]

Yeah I don't have a lot in the bank it doesn't earn you much there anyway just enough for about 6 months of liquidity.

In reality considering the devaluing of currency today, any funds in any commercial bank is going backwards. You are actually paying a bank to hold your money today. It earns you nothing. It costs you instead.

 

[Williy]

I purchased my tractor in June 2021 with a loan
for 6 years and next month I hope to pay it off.
I will be saving over $1500 by doing this. I
Purchased the tractor, tiller, brush hog and land
plane, quick hitch and thumb for the backhoe.
SS only paid $250 many many years ago for a
burial and with all the inflation that's happened
in over 20 years SS has raised it to $255! A whole
$5 increase. I feel sorry for people that only have
SS to live on. I don't understand how people can
live on $500 to $800 a month. They almost have
to be complete vegan's unless you get Wally Worlds
box of 32 burgers for approx $25. I was purchasing
distilled water for $1.18 now its $2.24 don't look like
there is any relief in sigth

willy

 

[Williy]

IMHO I do believe that after tax time and the weeds
begin to grow tractor sales will rise. Usually people
wait until after tax time to purchase any big items.

willy

 

[5030]

I purchased my tractor in June 2021 with a loan
for 6 years and next month I hope to pay it off.
I will be saving over $1500 by doing this. I
Purchased the tractor, tiller, brush hog and land
plane, quick hitch and thumb for the backhoe.
SS only paid $250 many many years ago for a
burial and with all the inflation that's happened
in over 20 years SS has raised it to $255! A whole
$5 increase. I feel sorry for people that only have
SS to live on. I don't understand how people can
live on $500 to $800 a month. They almost have
to be complete vegan's unless you get Wally Worlds
box of 32 burgers for approx $25. I was purchasing
distilled water for $1.18 now its $2.24 don't look like
there is any relief in sigth

willy

You must have had a really low paying job when you worked. I get at least 3 times that amount and in reality, with the farm and rental income, it's way too much but then I do spend it and not on WW bargain burgers either. Not giving any back either. I was forced to pay into it and I want it. No vegan here, strictly a carnivore as in steak, chops and other prime cuts.

 

[Sid Post]

You must have had a really low paying job when you worked. I get at least 3 times that amount and in reality, with the farm and rental income, it's way too much but then I do spend it and not on WW bargain burgers either. Not giving any back either. I was forced to pay into it and I want it. No vegan here, strictly a carnivore as in steak, chops and other prime cuts.

I tend to think you missed his/her point. Not everyone is making as much relative income as they did in the past. Many jobs that were marginally good in the past are no longer so. Food inflation is biting a lot of working families really hard. Seniors on Social Security only in reality generally live below the poverty level which is what Social Security was supposed to be, support for the poorest seniors so they literally didn't starve to death.

Today, Social Security is viewed as a "right" and as a "retirement plan".

I will further suggest seniors on Social Security have an inflation rate that doesn't follow government measures very well because it assumes spending on only a subset of most expenses and doesn't factor in the lack of spending on things not included because of poverty. I have personally seen seniors that did not use Air Condition in Summer or Heat in Winter because they could not afford food, housing, medicine, and electricity at the same time. How do CPI and other inflation measures account for NOT spending on things because of poverty?

And yes, I used POVERTY intentionally regarding seniors because the ones who don't have great pensions or accumulated wealth and depend on Social Security as their only retirement income are every bit as poor as the common measures people use to define "poor" for almost any demographic group you want to call out or can identify.

My pension payout is nowhere close to accounting for inflation on things like healthcare, housing, and, food in my case which is driving my choice to buy a tractor to add to my "toys" to make income on side jobs in retirement. This isn't an option for many which is why you see stories like the 80 year old janitor that returned to the high school so he could afford to "keep the lights on"! I'm glad the students got him a good "GO FUND ME" but, I don't consider that to be part of my retirement plan. And no, I'm not really worried about personal poverty because I have a good self-directed 401K and some real property income. What I don't know is if that level of income will provide a comfortable retirement which to me does not include a >$100K car, motorhome, vacation home, etc. I'm looking for a good solid middle class retirement that allows me to travel some, eat Sunday breakfast at the local Cafe with friends, and do similar things. If I can backpack in Europe or Asia, that is icing on the cake! If things really go bad, I can still eat fish out of my ponds and fish tanks (Tilapia), use my 7' tiller on my 40-acre homestead for a garden, etc.

 

[jyoutz]

I purchased my tractor in June 2021 with a loan
for 6 years and next month I hope to pay it off.
I will be saving over $1500 by doing this. I
Purchased the tractor, tiller, brush hog and land
plane, quick hitch and thumb for the backhoe.
SS only paid $250 many many years ago for a
burial and with all the inflation that's happened
in over 20 years SS has raised it to $255! A whole
$5 increase. I feel sorry for people that only have
SS to live on. I don't understand how people can
live on $500 to $800 a month. They almost have
to be complete vegan's unless you get Wally Worlds
box of 32 burgers for approx $25. I was purchasing
distilled water for $1.18 now its $2.24 don't look like
there is any relief in sigth

willy

Someone had to have retired a few decades ago to get only $500-800/ month for SS. I just checked my personal SS projections online. My expected monthly SS payment (minus deductions) is approximately $2500/month. Of course that won’t be my only retirement income, but it’s far above $500-800.

 

[Sid Post]

Someone had to have retired a few decades ago to get only $500-800/ month for SS. I just checked my personal SS projections online. My expected monthly SS payment (minus deductions) is approximately $2500/month. Of course that won’t be my only retirement income, but it’s far above $500-800.

Some of this depends on your earnings during your work life. However, my biggest concern is the devaluation due to inflation and a slower rate of increase for SS benefits yielding less spending power at retirement.

$2500 today and $2500 ten years from now will not have anywhere near the same buying power at the grocery store, pharmacy, gas pump, or with the electric bill.

 

[ovrszd]

What you get paid from SS is irrelevant. Actually, what your personal retirement fund pays you is irrelevant.

 

[Sid Post]

Hopefully, my B2601, L4600, and the new tractor will fill in for SS and the Pension losses due to inflation differences.

 

[jyoutz]

Some of this depends on your earnings during your work life. However, my biggest concern is the devaluation due to inflation and a slower rate of increase for SS benefits yielding less spending power at retirement.

$2500 today and $2500 ten years from now will not have anywhere near the same buying power at the grocery store, pharmacy, gas pump, or with the electric bill.

True. That’s why it’s only one of three income streams I’m planning on.

 

[jyoutz]

What you get paid from SS is irrelevant. Actually, what your personal retirement fund pays you is irrelevant.

So what do you call relevant?

 

[Sid Post]

What you get paid from SS is irrelevant. Actually, what your personal retirement fund pays you is irrelevant.

So what do you call relevant?

Curious about this as well. When I look at the huge amount of money I have paid into Social Security and the promises made, I think I am OWED something meaningful assuming I'm not a Congressional fatcat with guaranteed healthcare no other American has access to and all the GOLDEN PARACHUTES from the people and businesses they enriched with the legislation their PAC and contributions bought.

While I enjoy doing farm-related activities, that shouldn't be required because my retirement monies from Social Security have been squandered and inflation has taken away the value of my pension.

What happens if I am not healthy enough to cut and bale hay? Or tend to my fish, bees, and garden at some point in my old age?