Market Watch

[jyoutz]

Ah, but when the bids are from 3 different dealers that are selling the same brand the differences are negligible. I know the forest service in NM is the exception that proves the rule. In general, federal purchases are a boondoggle. Bids can easily be manipulated. Want to ensure you get JD equipment? Specify JD's proprietary quick attach as a bid requirement. Ditto a billion other possible requirements for billions of other things.

100% agree the dealers and/or manufacturers tend to make money on volume. Sales tax (in most states, will save the feds roughly 5-10% of what locals pay). Of course, much of the overpayment is due to the leadership of federal departments asking Congress for more money as a badge of honor and Congress acting like spending fewer dollars is an affront to their appropriation power. Unlike agencies outside of government or even in some state/local governments, federal departments have to spend their allocated budgets. This problem is apolitical as all parties are complicit in furthering this nonsense. Even if our friend in NM comes in a million under budget, the forest service as a whole will spend that savings to ensure their budget remains high and doesn't offend Congress for daring to save taxpayers.

I would love to see comparisons between costs of government purchases and the pre-tax cost of a similarly sized corporate purchase. While individuals in corporations sometimes try the same shenanigans, their budgets have constant down pressure from stockholders. Example, a boss i had in the 80s wanted Apple computers rather than corporate standard of PCs. He wrote up some BS about why some app would only work on a Mac and got it approved. A year later I was brought in to his department by his boss to obtain the proof needed to fire him. It was almost an undercover assignment.

The Federal Acquisition Regulations are national, and most states have similar laws. I have never seen a brand specified by shenanigans. Every year we end up with different brands on contract. In fact most purchasing is done nationally by GSA and local vendors fulfill the purchases by honoring the national price. I just bought 2 trucks on the GSA contract: F150, crew cab, 4x4, off road tires, for $41K. I challenge you to go buy one for anywhere close to that price. I don’t know how county and local governments do things, but my observation is things are looser in regards to acquisition requirements.

 

[5030]

Has there been a year when the msrp went down and not up?

Not that I'm aware of....

 

[Rdrcr]

Has there been a year when the msrp went down and not up?

I’m no expert either. But, I studied this before I purchased my first tractor. All the information I was able to research lead to a resounding NO. In fact, tractor prices for the same make/model rose 3-5% year to year on average. So a new tractor purchase in general, is more expensive the longer you wait.

The benefit, however, is that most owners are able to sell their tractor (assuming condition is good and equipment hasn’t been abused) for the original purchase price down the road. Tractors are a good investment in some cases.

Mike

 

[2manyrocks]

If you can wait until the tractor market plumets because of overstock, did you really even need a tractor in the first place? I bought mine last year and paid what I think is a decent price. I love it and even with the break in period have managed to put a 100 hours in it with my projects and at my sons. Which is a lot for me. in about 8 months of what I would call useable time. Now that it is broken in and I can do anything with it, I expect to put another 100 on it this year, at least.

I also still love to look at used tractors and will probably do that until I die. I have an eye on a used Yanmar that I wish the dang thing would sell so it isn't a temptation. It is a great deal, or would seam.

My hope is that the market never gets so bad that they cannot sell tractors at a profit, because that would mean it is really bad out there.

If I was still waiting on the market to do whatever it is going to do, I wouldn't be on my tractor tomorrow. But I will be on it tomorrow : ) The rest of you can be smart and wait while I'm enjoying my life now.

I didn't like the $22k price tag of my L2501HST last March, 2022, but there's another member saying she just priced one at $24,411 with Kioti and Bobcat models within a few hundred dollars of that price, too. I've put 150 hours on mine moving a heck of a lot of brush and trees that I could have never done without it or something similar.

Realistically, I don't see anything on the horizon that is going to bring inflation down. I am getting the impression that tractor sales are slowing. Tractor prices may not go down, but perhaps the dealers will start to want customer business enough that they'll return phone calls and treat customers like they actually want their business.

 

[two_bit_score]

Tractors are a good investment in some cases.

We hope so anyway.

 

[Goose1776]

I’m no expert either. But, I studied this before I purchased my first tractor. All the information I was able to research lead to a resounding NO. In fact, tractor prices for the same make/model rose 3-5% year to year on average. So a new tractor purchase in general, is more expensive the longer you wait.

The benefit, however, is that most owners are able to sell their tractor (assuming condition is good and equipment hasn’t been abused) for the original purchase price down the road. Tractors are a good investment in some cases.

Mike

That’s pretty much what I’ve found as well.
The longer one waits to buy a tractor,
generally the more money it costs.
As far as selling tractors, I’ve done ok selling my used tractors, sometimes at a tidy profit, and very rarely at a loss.

 

[5030]

Tractors are a good investment in some cases.

That depends entirely on what the money is actually worth and of late, the value of the currency is dropping like a rock, so you may sell a unit for what you paid for it some years back but you aren't ahead, in fact, you are behind. Kind of like a bank (savings) account. You are actually loosing money on the money you have in the bank, not gaining anything.

No machinery is a good investment today.

 

[5030]

Tractor dealers as well as new car dealers don't want you to pay cash because the all get a kickback from the finance company and Kubota is no exception. Cash is no longer king, finance is.

Additionally, new car dealers are now doing 'creative financing'. I cannot see financing a vehicle for 8 years (or more) when it won't last that long anyway. All that does is keep the finance company in the black. Does nothing for the payee at all except drain their wallet.

 

[jyoutz]

Additionally, new car dealers are now doing 'creative financing'. I cannot see financing a vehicle for 8 years (or more) when it won't last that long anyway. All that does is keep the finance company in the black. Does nothing for the payee at all except drain their wallet.

I wouldn’t finance a vehicle for 8 years, but my vehicles last far longer than 8 years. My 2007 Dodge 2500 is still in excellent condition. I just had ALL of the drivetrain fluids changed this spring, so I’m good for another 100k miles.

 

[5030]

That might play out in New Mexico but up here in the snow and salt belt, it don't. If you can get 4 years before cancer sets in, you are real lucky.