FarmTrac Troubles

[California]

I doubt anybody knows yet.

But one scenario we have see in other industries is that a bankrupt's creditors assemble something like New Farmtrac that is legally isolated from the old company. It remains responsible to pay the old creditors, but in this case nobody knows how far down warranty customers rank in any creditors list. Debts to suppliers and the credit company may exhaust any assets before they work down the list to the warranty owners.

 

[montanaman]

He is being up front with respect to the warranty, it may or may not have one, and the future of Farmtrac.
A curosity question is: If the tractor is bought from a dealer that has terminated their agreement with FT, while FT is shut down looking at their options, when/if FT re-organizes and stays in business, will they honor a warranty? Hummm are they required to by law, if as has been said here, that the company has suspended sales.

Mark

Well one would THINK since the tractor is their tractor and sold as a new tractor, it shouldn't matter where it was sold from. If the dealer terminated, and the tractors were left for the dealer to sell, it really should not matter in the grand scheme of things. There were a few folks in my area of the country that wanted to be Montana dealers and later learned that tractors do not sell just by parking them next to your wholesale tennis shoe store and when they terminated, if they sold off their inventory, it still has a full warranty. There were a few dealers that thought they could break every advertising rule set by Montana and dump tractors in other dealers areas, and they still have full warranty even though these dealers were terminated.

Keep in mind that this is just the way I see it and I am not a lawyer. If I was, my time would be far too valuable to tell you what I think without charging you!

I think the chances at this point are very slim of a warranty no matter where you buy.

Ken

 

[HayDR]

I doubt anybody knows yet.

But one scenario we have see in other industries is that a bankrupt's creditors assemble something like New Farmtrac that is legally isolated from the old company. It remains responsible to pay the old creditors, but in this case nobody knows how far down warranty customers rank in any creditors list. Debts to suppliers and the credit company may exhaust any assets before they work down the list to the warranty owners.

1. We see the Farmtrac dealers jumping ship if they can.
2. We see Textron hammering existing dealers with inventory.
3. Dealers have admitted that most of the tractors on a Textron floor plan are frozen assets.
4. Bankruptcy and liquidation seem to be the relief the dealers are welcoming.
5. Consumer laws are working against the dealers to sell these tractors.
6. Consumer confidence in Farmtrac is at an all-time low.
7. The public has been made aware on Jan 18, 08 that reorganization was needed. Since then there has been no public announcements.
8. Good products need support and there is little to no support for the Farmtrac dealers or their consumers.
9. Rumors are rampant and nobody is in charge.
10. Some legal entity will soon file suit and the house of cards will fall.

 

[rustyanchor]

Time will tell.
I would be interested to see what the ebay tractor brings for a final price.

Mark

 

[rustyanchor]

WOW my last post got me genuine "Member" status, no more "New Member" Yippee, now to post enough to be a Super Duper Platnum Gold Silver encrusted with diamonds Member

 

[bluechip]

Well. That is my ebay listing. It was a difficult decision to list this on ebay, but I cannot afford to have any "frozen Assets" I am under no pending litigation (as a defendant anyway) and I certainly am not considering bankruptcy so my assets are not frozen in any way. I have been notified by certified letter from the floor plan company that I can only dispose of these tractors "in the normal course of business" (and to be sure not to forget to pay them). My normal course of business includes Ebay and internet marketing. It is only Farmtrac NA policy that prevented marketing in this way while I was an active dealer (and I agree with that policy is necessary to mainatain an orderly market). I guess if they don't want me to do it, they can buy back my inventory (as is required by Arkansas Law). At this moment I don't expect that to happen. So, I have decided to try to sell one now and again if there is any buyer interest at all. I too am interested in seeing what it brings.

Bottom line: If I have to pay for this tractor, I own it. and if I own it I can think of no legal reason that I cannot sell it. That is provided the floor plan company gets paid. Whether there is any market is another concern altogether. In any case, I feel I have been as honest as I know how to be about the circumstances and the interest being conveyed and cannot imagine a buyer having any false ideas of the interest in the property being sold. The way I see it, it is no different than a bank selling off inventory of a foreclosed creditor, they don't warranty anything either.

There are many Farmtrac dealers I have talked to that are in much worse shape than I am and my biggest fear is thay my listing this tractor on ebay may in some way negatively impact them..of course anyone that would sell one of these tractors "in the normal course of business" without disclosing the condition of Farmtrac NA would, in my opinion, be commiting nothing short of fraud. Some dealers may want to sell with a dealer backed warranty, and if so may expect and deserve a higher price. Frankly I cannot think of anything that I could do that would make anything worse than it already is for any of us. So I am attempting this "experiment". There are lots of watchers (75), many of which may be fellow dealers wondering where the bottom is.

I have been actively involved in Chinese tractor sales for 5 years so I do know that tractors can be sold with minimal or no warranty. The tractors still do the job, and the customer saves a lot of money compared to other tractor choices on the market. I am optomistic about parts availability for the Escort tractors as well as the LS tractors as there are enough units in the field to support a profitable parts operation. At least I know what to expect doing business with the Chinese... The Indians really blind sided me. For almost 5 years I heard nothing but how big Escorts and how big Farmtrac was going to be. I better stop now, this is not really the place for me to vent. I just wanted to try to explain the position I have taken since this seems to be an interesting topic to the TBN community. I guess it sort of like driving by an accident, you just have to look and hope you don't see any casualties. I'm afraid we will see some innocent casualties in this matter, and I am doing my best trying not to be one. We have been having excellent KIOTI sales and our new Agtrac line is doing well. With the Lords help, I'll still be posting here (as an active dealer) next year!

 

[rustyanchor]

Bluechip,
Thank you for the reply. As I said I think you did well disclosing the uncertain future of warranty availibility. Reading posts on TBN, some dealers are not so up front with their perspective customers and seem to be trying to, maybe not outright deceive a customer but, avoid telling the whole story. It may only be one or two dealers but as the word circulates, it sounds like many more.

I'll keep a hopeful attitude about Farmtrac and wait to see, not much else I can do.

Mark

 

[fairlane]

blue chip I appreciate post and your honesty it says a lot for you and your dealership. no matter what you sell I think you will do well. its really to bad about farmtrac I think they are good tractors and would have had a good future if they had not left dealers and people stranded and without answers.
no better way to get rid of customer base and loyal dealers.

 

[CDsdad]

I don't have a dog in the Farmtrac hunt, though as I stated before I probably would if I'd of waited a week to buy.

But bluechip, if I was looking for a new tractor, I'd have to at least come talk to you just from the honesty of your Ebay listing and your post here, and I'm in MS. Too bad the corporate folks can't be as honest as some of the dealers. The world is short on good people.

And I have to ask, are there any dealers here who would take Farmtrac back if they get straightened out?

 

[agequipt]

I hope it works for bluechip. I know my self and 15 other dealers would like to move about 2 mil in inventory between us.

 

[claridon]

bluechip,
Thanks for your insight and explanation. I wish you well.
I was very impressed by our local Farm Trac dealership. It's a 3rd generation family owned business and much, much more capable than the Kubota dealer I bought my tractor from. The product just didn't fit me, so I had to pass on the Farm Trac. But I've been impressed by the dealer commitment to serving the customer shown by many of the Farn Trac dealers. You're taking that to another level!

 

[tommybr]

An interested party with a big checkbook is supposed to be in Tarboro this week....everybody keep your fingers crossed!!!!!!!!!!!!

 

[JIGBUILDER]

yeah, I have a FT 60. My previous tractor was a old 460 Long. Both were purchased from my area dealer. I dropped by sat and he has only 4 Farmtracs left. He started handling Kioti several years back. I can feel for those Farmtrac emplyees as I was with Mcdonnell Douglas Aircraft in Tulsa when they closed the Tulsa plant in '94. Most of us were over 50 with over twenty+ years of serviceand I am retired now but it sure has been tuff finding jobs. Just hope those folks and families can hang in there till the money folks get it straight and keep a dang good product going.
JIM

 

[ChesapeakeMarine]

Here is a 555DTC off ebay a dealer is getting rid of. He doesn't sound to optomistic. There is also a 775DTC from another dealer on there with 5 hrs listed as a demo. No mention of the warranty in that ad.


View attachment 95408
BRAND NEW TRACTOR AT A GREAT PRICE! SPECIAL SITUATION READ THE WHOLE AD!

We recently terminated our dealer agreement with the manufacturer/distributor of this tractor. They recently laid off all their employees and stopped business operation. In the mean time, the floorplan company says the invoice for this tractor is due. Rather than pay a lot of interest on this tractor while the company works out its problems, or terminates operations permanenetly (we dont know what is going on between the parties involved). I would rather sell this tractor at a huge discount and pay the floor plan company the difference to clear this tractor (I have 7 more that I will return to the factory if they reopen or liquidate if they do not). YOU SHOULD KNOW THAT YOU MAY OR MAY NOT RECIEVE WARRANTY SUPPORT FOR THIS TRACTOR AFTER THE SALE AND BID ACCORDINGLY.

ARTRAC COMPANY LLC, AS SELLER, WILL PERFORM OUR NORMAL PRE-DELIVERY SERVICE AND THE TRACTOR WILL BE READY TO GO AS ALL NEW TRACTORS HAVE BEEN DELIVERED BY US IN THE PAST. OTHER THAN THAT, WE MAKE NO WARRANTY OF ANY KIND.

NOW ABOUT THE TRACTOR:

This tractor has a heritage that goes back to the famous FORD tractors. the plant in India that manufactures this tractor (still in operation to the best of my knowledge) started building FORD tractors in 1969. They have continued, but obviously couldn't use the FORD name worldwide so they adopted their own. (I am avoiding using the trademark as I have terminated by dealer agreement so technically am not authorized to use thier trademarks in any marketing). The 3 cylinder engine is originally a Ford design as is the 8x2 two stick transmission.

Normally this tractor carries a 3 year limited warranty. If the company gets restructured, you may or may not recieve the benefit of this warranty, but we will prepare the paperwork and attempt to register the warranty with the company.

Please email any questions as to how this situation pertains to this tractor only. I will not be able to answer any questions from any existing owners of this brand of tractor as we really don't know anything at this point.

This is a serious auction. I am listing this tractor to sell and all sales are final. Bid to own it as the reserve is surprising low for a 50 HP 4wd tractor with a strong loader WITH SKID STEER QUICK ATTACH bucket.

ALSO INCLUDES REAR HYDUALIC REMOTES

delivery can be arranges as low as 1.00 per loaded mile if you have some time to wait to piggyback the load. faster delivery is 1.75 per loaded mile.

8% SALES TAX IS PAYABLE IF PURCHASED AND DELIVERY ACCEPTED

FYI...This new Farmtrac tractor on ebay auction just ended without being sold. Did not go above the reserve.

Farmtrac 775DTC Tractor-Loader - eBay (item 160206069082 end time Feb-12-08 15:48:32 PST)

I asked the seller if the tractor would be covered by factory warranty. His reply:

"Yes, it has never been registered so it does have the factory warranty. I would have to fax you a copy."

I think it's terrible that FarmTrac is in such trouble. I looked at some FarmTracs at a small family owned dealer back in November and the dealer was very optimistic about the company and the tractors appeared to be very well built.

 

[Robert_in_NY]

This new Farmtrac tractor on ebay auction just ended without being sold. Did not go above the reserve.

Farmtrac 775DTC Tractor-Loader - eBay (item 160206069082 end time Feb-12-08 15:48:32 PST)

I asked the seller if the tractor would be covered by factory warranty. His reply:

"Yes, it has never been registered so it does have the factory warranty. I would have to fax you a copy."

If I recall, the 775 is a Same/Deutz tractor and they have said they will honor the warranty on their tractors regardless of what color it is. Same/Deutz is stepping up to help out in this situation. I think all of the 7 series are Same/Deutz tractors.

 

[chh]

Another one on ebay. BTW my reasons for posting these is not to embarrass anybody. The Dealers are caught in a bind here having to pay for these tractors and not certain what is going to happen with them. Anyway there are some deals floating around out there because of it all. Bluechip's tractor is still going and hasn't met reserve as of yet.
Good luck all.





Item Specifics - Tractors
Make: Farmtrac Fuel: Diesel
Model: 545 Engine Cylinders: 3
Model Year: 2007 Engine HP: 42
Hours: 4 Transmission Type: Manual
Drive: 2WD Condition: New
Serial Number: T2087416










New Farmtrac 545. Based on Ford tractors. This unit is nearly identical to Ford 3000 series. Has Ford style 2+4 trans. High & low range with four gears giving 8 forward speeds & 2 reverse. MSRP is $14,500.00. I am listing it for $100 over cost. Farmtrac is temporarily shut down due to restructuring of company. I am an authorized Farmtrac dealer (Farm & Construction Repair Inc.) you can visit Welcome to Farmtrac to verify on dealer locator. The reason I am willing to take this loss of profit is simple. If the tractor is not sold when invoice comes due I have to pay for it. Don't miss this opportunity to own a brand new tractor at an incredible price! I have been told that the warranty should be honored on parts and labor. I will honor the labor on any sale I make even if Farmtrac douse not. I will cover parts to the extent that I can with what I have on hand if they don't. Warranty is 3yr or1000 hrs which ever comes first. Buyer responsibble for transport on warranty repairs. May deliver - depends on distance.

These are really good tractors based on great technology (Ford). The chances of a warranty issue is slim. NO RESERVE!

THANKS FOR LOOKING

 

[TimC]

It's interesting reading this...

I just went by my local Farm-trac dealer and they had all of their Farm-trac inventory "hidden" way out back in a field. Not one still on their lot. It made me wonder what is going on.

 

[dancce]

It is a pretty sad state of affairs when dealers have to scramble to try to sell tractors on e-bay, just to satisfy the floor plan company----just because their supplier blind-sided them by closing-up shop for financial reasons.
I have hesitated getting in on this thread, bacause I cancelled my Farmtrac dealership about 30 days before the closing. (I was immediately dropped from their wesite.) So I am in a much better position than those that waited until the plant closing. I don't claim to have a crystal ball---I was just getting a lot of bad vibes---so I jumped ship. (Not an easy decision to make.)
I still have 9 tractors on my property, that, legally they had about 30 days to pick up. In 2006 I was the top dealer for Farmtrac in my state.
I hope that the plant will somehow re-open, and continue operations----not necessarilly for my sake---but for the customers that have purchased from my dealership, so that we can take care of any warranty issues and get parts for needed repairs, for tractors that we sold.
That is the really sad part of this deal----we , as loyal ,front line dealers, are seemingly left holding the bag. Our credibility is on the line---and all we were doing was selling a product that we believed in, and making a pretty slim margin to boot.

dancce

 

[sbrace]

I notice today that Farmtrac's web site does'nt work anymore.

 

[dgl24087]

I notice today that Farmtrac's web site does'nt work anymore.

Umm, working fine for me. The only thing not working for me is the link to the 7 series.