Market Watch

[Cahaba Valley Farm]

As many of you already know, my thread 'New Tractor Sales Are Declining' was shut down by the moderators due to political comments that were made so I restarted the thread under a different name titled, 'New Tractor Sales Are In The Tank' which was moved to the Front Porch.

The old thread can be found here: New Tractor Sales Are Declining

The new thread can be found here: https://www.tractorbynet.com/forums/threads/new-tractor-sales-are-in-the-tank.466661/

Both of these threads are market watch threads to inform buyers and sellers what is going on in the tractor market at any given time. I welcome and encourage all of you to participate in the discussion as the more reports we get on what's happening out there across the country the more all of us can be informed as consumers about the current state of the tractor market.

Best Regards,
CVF

 

[DaBear3428]

can I play too?

 

[plastikosmd]

I didn’t even know of the “front porch” area

Thx!

 

[Cahaba Valley Farm]

New market report just dropped today and sales are continuing to plummet. Sales of below 40hp tractors are down 13% since July of last year. As you will see in this video, the inventory to sales ratio is now exceeding where it was in 2019.

 

[CloverKnollFarms]

But...

Tractors are selling like crazy in some remote town in some state.

 

[Paystar]

It don't matter. It is pretty obvious by now we are never going to see pre-covid pricing again no matter what happens. That ship has sailed.

In my case, Kubota shot themselves in the foot with me. When they price rose significantly mid deal when buying a new M7060 cab, I walked away, started buying old restored tractors and discovered I like them WAY better then new tractors.
So I won't be back manufacturers.

 

[Paystar]

Saw a post in the LS section about a new diagnostic tool on the market.

Here is my new diagnostic software. The beauty of it is it works on my Ford, Allis, Massey's, and my Kubota's and I don't even need to buy a specific wire harness for it to work on all those brands.

 

[ultrarunner]

Happened to meet someone that works for a name brand dealer and asked if buyers are still waiting forever to buy new and he said only in a few cases as inventory dealers ordered is now in.

Supply and Demand along with belt tightening and desires put on hold…

 

[Cahaba Valley Farm]

But...

Tractors are selling like crazy in some remote town in some state.

 

[2manyrocks]

Mahindra dealer just outside Nashville said their sales are down and didn't want to take my Mahindra in for consignment sale.

 

[ddbackhoe]

Saw a post in the LS section about a new diagnostic tool on the market.

Here is my new diagnostic software. The beauty of it is it works on my Ford, Allis, Massey's, and my Kubota's and I don't even need to buy a specific wire harness for it to work on all those brands.

How do you fix anything without a hammer and fitsall wrench?

 

[ddbackhoe]

New market report just dropped today and sales are continuing to plummet. Sales of below 40hp tractors are down 13% since July of last year. As you will see in this video, the inventory to sales ratio is now exceeding where it was in 2019.

I still wonder where all of those units magically appeared from.

 

[Paystar]

How do you fix anything without a hammer and fitsall wrench?

Use the ratchet as a hammer.

 

[Cahaba Valley Farm]

I still wonder where all of those units magically appeared from.

The demand dropped off last year and continued on into this year.

 

[2manyrocks]

It don't matter. It is pretty obvious by now we are never going to see pre-covid pricing again no matter what happens. That ship has sailed.

In my case, Kubota shot themselves in the foot with me. When they price rose significantly mid deal when buying a new M7060 cab, I walked away, started buying old restored tractors and discovered I like them WAY better then new tractors.
So I won't be back manufacturers.

It's the manufacturers and the dealers, too. One dealer flatly refused any trade in value for my 35 hp Mahindra with only 771 hours. They are using new car dealership management methods so far as I can tell. They are highly focused on new unit sales and only have two or three used tractors for sale at two locations despite apparently having very high volume new tractor sales. They just don't want to fool with used tractors. I have no idea what their repair service is like a few years after the sale.

Although I've wanted a cab tractor with AC, part of me just wants to get the Mahindra repaired rather than buy any more farm equipment.

 

[Cahaba Valley Farm]

It's the manufacturers and the dealers, too. One dealer flatly refused any trade in value for my 35 hp Mahindra with only 771 hours. They are using new car dealership management methods so far as I can tell. They are highly focused on new unit sales and only have two or three used tractors for sale at two locations despite apparently having very high volume new tractor sales. They just don't want to fool with used tractors. I have no idea what their repair service is like a few years after the sale.

Although I've wanted a cab tractor with AC, part of me just wants to get the Mahindra repaired rather than buy any more farm equipment.

It's amazing how fast things turned with this industry. I remember two years ago the FOMO craze that was going around and the bad advice that was being given out by different tractor groups on FB. They were telling folks to just pay whatever price they were asking because supply was low and no one knew when it was going to return. Now those people couldn't get rid of those overpriced tractors if they tried.

 

[ruffdog]

Just like with stocks....the smart people buy low and sell high.

 

[Cahaba Valley Farm]

Just like with stocks....the smart people buy low and sell high.

Exactly.

 

[2manyrocks]

Another dealership marked down one of their TYM 394c models by $1,000 to move it because they were starting to have to pay interest on it. It's one thing to carry a lot of inventory when the dealership doesn't have to pay much interest on it, but increased interest costs can eat a hole in the dealer's pocket if they end up sitting on a lot of new machinery.

The high volume TYM dealership has sold 20 T474 hydros in the last two months for something like $27,500 each.

 

[Cahaba Valley Farm]

Another dealership marked down one of their TYM 394c models by $1,000 to move it because they were starting to have to pay interest on it. It's one thing to carry a lot of inventory when the dealership doesn't have to pay much interest on it, but increased interest costs can eat a hole in the dealer's pocket if they end up sitting on a lot of new machinery.

The high volume TYM dealership has sold 20 T474 hydros in the last two months for something like $27,500 each.

Thanks for the report 2mr.