Buying a new tractor?

[t1kilo]

I was on YouTube this morning and ran across this video from a few months ago. I found it very interesting and thought some of you who might be considering a new tractor might like to see it.

 

[CloverKnollFarms]

Already been discussed here...

To me, it seems a little biased and other tractor channels have already sort of picked it apart.

It's funny to hear a tractor company that used to be the TYM of the industry, become the one to sort of bash the newcomers, like they were at one time.

Oh how we forget history. People are very value oriented, and in the past five years value is becoming harder to find in the tractor industry. The big three continue to lose market share in the compact tractor segment, from the numbers I’ve seen. Seems fitting to scare people from considering them, with broad generalizations, to shore up your share as we enter a challenging economic period for consumers.

 

[tacticalturnip]

Neil already took a pretty good ribbing for this bit of fear mongering; I felt it a bit unbecoming of him.

Now, that isn't to say there won't consolidation in the industry, but it's not likely going to be one of the OEM manufacturers. Kioti, TYM, Mahindra, LS; these companies are not likely to go anywhere any time soon. Where I would predict problems would be with these companies contract out to other manufacturers. Even then, it'll be interesting to see how brands attached to a distribution model (Rural King, Summit) do compared to more traditional dealers (Bad Boy, McCormick [compacts]).

 

[t1kilo]

I didn’t take his video to be bashing anyone. If his numbers are factual, then what he’s saying makes some sense.

I’m surprised I didn’t see the earlier thread. I’m on the forum pretty much daily and enjoy the banter. Sorry for bringing it up.

 

[CliffordK]

I was on YouTube this morning and ran across this video from a few months ago. I found it very interesting and thought some of you who might be considering a new tractor might like to see it.

Let's take a look at the "other" tractors he listed.

The first 5 of them are pretty well established US tractor companies. I can't say they'll all survive, or won't merge with another, spin off product lines, or even drop product lines. But, they have a lot of US history.
Many of them seem to be importing their compact tractor product lines.
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Bobcat
Case - International
New Holland
Massey Ferguson
Yanmar

Then we get some of the new kids on the block.
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Bad Boy
Mahindra
Kioti
LS
Rural King
Solis
Summit
TYM

Some of them are well established internationally. So, even if their US presence fizzles, they may still have international support.

We're also in an era that there are a number of small Chinese imports that are flooding the market. There are good and bad aspects. In some cases it is a market not well covered by domestic manufacturers. Yet, I'm now on the prowl for hydraulic lines, and what a PAIN.

Nonetheless, the number of Chinese manufacturers are limited, just often rebranded. So, if one importer vanishes, there may be others that will still be able to supply most of the parts.

Parts like engines are often made by a 3rd party. So, Yanmar, Shibaura, Deutz, and others might show up in the tractors, and one may have support for the engine beyond what the chassis manufacturer supports.

Then there is E-Bay. There is a lot of stuff on E-Bay. As well as tractor breakers.

Are Belarus tractors under US sanctions?

 

[DK35vince]

Strange, just a few short years ago Neil and several members here were telling us repeatedly how Kubota and John Deere had 80% of the compact tractor market and these other company's were fighting for what's left.
Now he is saying its 65-75% just a few short years later.
Sounds to me like these other tractors company's are chipping away pretty good at their compact market share IMO. .

 

[CloverKnollFarms]

Strange, just a few short years ago Neil and several members here were telling us repeatedly how Kubota and John Deere had 80% of the compact tractor market and these other company's were fighting for what's left.
Now he is saying its 65-75% just a few short years later.
Sounds to me like these other tractors company's are chipping away pretty good at their compact market share IMO. .

They are. Especially in the post Covid era of new pricing.

 

[Hay Dude]

Strange, just a few short years ago Neil and several members here were telling us repeatedly how Kubota and John Deere had 80% of the compact tractor market and these other company's were fighting for what's left.
Now he is saying its 65-75% just a few short years later.
Sounds to me like these other tractors company's are chipping away pretty good at their compact market share IMO. .

They should be. Although Deere & Kubota have their advantages, I have seen where other brands like Massey and Yanmar are just as good, if not better in some respects.

 

[Yander]

Even then, it'll be interesting to see how brands attached to a distribution model (Rural King, Summit) do compared to more traditional dealers (Bad Boy, McCormick [compacts]).

I personally wouldn't touch any of these models, new or used; at least not yet. I see them being a flash in the pan for support, but I hope I'm wrong. They are probably good tractors for the $ but I would worry about long term dealer and parts support. By flash in the pan I mean they won't be around in 5 or 10 years.

All the others (Kioti, Mahindra, LS, TYM) i wouldn't hesitate to buy if the deal was right. But when I tractor shop I generally shop Yanmar (Yanmar built), NH (Shibaura engines), Massey Ferguson (Iseki or Shibaura engine) or Kubota (Kubota built). I typically don't shop the other models but if one comes up as a great deal, I would consider it.

My point, there are so many great tractor makers out there that this video by Neil discredits his knowledge or integrity in my book. I don't trust him to be anything but a salesman.

 

[Torvy]

If i was generous, I'd say his biggest problem is that he is too young or uneducated to to understand how people tend to act in a downturn. He's young, but smart and family has been in the business for years. He's just trying to get ahead of what's coming by scaring people into buying his brands over the less expensive ones.

Dad had an IH dealership in the 70s-early 80s. Oof. I lived through how bad it can get.

Here's what happens...people who may otherwise overspend for paint or perceived quality will buy "inferior goods". (As an economic term, inferior simply means market perception, not actual quality).

The big boys lose market share to 3 places...used sales, lower cost brands, or people simply opting out of a purchase altogether.

Since he posted the video, we have started to see this. The Korean brands have continued to chip away at Kubota and JD. As mentioned earlier, this is how Kubota got viable in the 70s...bargain brand during hard economic times.

The implication that the smaller brands only could fight over the scraps left by the big boys has been proven wrong time and time again. It is the big boys who are most vulnerable in terms of share. As more people get other brands, the myths around value start to be dispelled. When/if we recover, the best of those brands will have a more lasting share of the market.