Market Watch

[ruffdog]

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.

Just like with car/truck dealerships, once the free flooring period expires, the sale prices come.

 

[Cahaba Valley Farm]

Just like with car/truck dealerships, once the free flooring period expires, the sale prices come.

Ruff do you know how long that period is before it expires?

 

[5030]

Ruff do you know how long that period is before it expires?

Varies by state I believe. I do know that here in Michigan, it's 6 months.

 

[ruffdog]

Ruff do you know how long that period is before it expires?

It all depends on the product. If a item is a strong seller, the "free flooring" will be shorter than what is offered with a tough seller. It is negotiated between the dealers sales team and the manufacture's sales rep on what is offered. If the dealer agrees to take more product, more free flooring may be offered as an incentive.

 

[Cahaba Valley Farm]

It all depends on the product. If a item is a strong seller, the "free flooring" will be shorter than what is offered with a tough seller. It is negotiated between the dealers sales team and the manufacture's sales rep on what is offered. If the dealer agrees to take more product, more free flooring may be offered as an incentive.

Interesting

 

[two_bit_score]

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

Speaking of stocks. Just now:

 

[Goose1776]

I wanted a tractor, a Kubota L5460
I bought the tractor
Was the price of it more than it was in 2019?
Sure it was….
(Glad I wasn’t in the market for a truck)

I also wanted toilet paper,
I bought toilet paper
Was the price higher, than in 2019. ?
Yes it was, it was about double.
But I still bought the paper.
While corn cobs are abundant and available for free, I’d rather spend money on what I want

Will Kubota drop their price on L5460s in the future, due to overall compact tractor sales down 13%. ??
I have no idea, and I’ll be using my tractor too much to really care.

 

[Cahaba Valley Farm]

Will Kubota drop their price on L5460s in the future, due to overall compact tractor sales down 13%. ??
I have no idea, and I’ll be using my tractor too much to really care.

In case you haven't noticed this is the Buying/Pricing/Comparisons section of the forum. People who are in the market for tractors come here to get information. If you aren't in the market for a new tractor and don't care to know anything about the tractor market then you should visit the Owning/Operating section. Here's a link in case you can't find it: Owning/Operating

 

[TractorTYMe]

It will be interesting to see what market will force manufacturers and dealers todo? I know I got my tractor for a pretty good price in June 2020 since it was a 2019 layover. A friend of mine bought the exact same tractor last fall of 2022, and she got it for $100 more than what I paid....which I though was incredible.

 

[Fixastuff]

@Cahaba Valley Farm you probably spend more time thinking about this than most tractor dealers!