New Tractor Sales Are Declining

[Hay Dude]

I was at (2) Ag dealers yesterday to pick up parts. I noticed lots of new inventory on the lots. This is probably the typical February restocking I see all dealers get this time of year.

 

[TimberFarm]

There is a Kubota dealer near me and even last fall there was zilch on his lot. Now the place is packed with tractors and implements. Like so packed you wonder where he is going to put stuff. Don't know what prices are, but there are a LOT of tractors that are in the 40hp and below range. If people don't come running to buy in the next couple months when the weather really gets nice, I imagine there will be some good deals there because I can't imagine sitting on all that inventory.

 

[Blue Mule]

Massey Ferguson has been running ads lately for a "spring sales event". Compact tractor with loader, "payments as low as $425/month!"

When I bought my Workmaster 40 with FEL they gave me 1.9% which put me at $280/month but that was a couple winters ago now.

 

[Cahaba Valley Farm]

Thanks for the market updates guys. I too have been seeing Kubota adds running on TV for spring. Dealer is still stocked full of inventory.

 

[CloverKnollFarms]

Consumer credit card debt was nearly 20% higher in Q4 of 2022 than in Q4 of 2021… it is expected to continue to rise in 2023.

That does not bode well for consumption as we move forward, on all fronts.

 

[tradosaurus]

Consumer credit card debt was nearly 20% higher in Q4 of 2022 than in Q4 of 2021… it is expected to continue to rise in 2023.

That does not bode well for consumption as we move forward, on all fronts.

Much of that is self-inflicted by instant gratification.

 

[CloverKnollFarms]

Much of that is self-inflicted by instant gratification.

Agreed… but at some point math trumps desire. Even if the desire is there, math will not support it.

 

[Hay Dude]

I feel semi-lucky that I have most pieces in place to continue to make a living before interest rates shot up above 8%. Much of what I have is owned. Some is financed at laughably low rates (in today’s terms).

Diesel fuel and insurance costs are bad enough, but I really feel bad for the small company owner that has to eat the 8-10% interest excrement sandwich on an equipment loan-purchase today.

 

[Cahaba Valley Farm]

I feel semi-lucky that I have most pieces in place to continue to make a living before interest rates shot up above 8%. Much of what I have is owned. Some is financed at laughably low rates (in today’s terms).

Diesel fuel and insurance costs are bad enough, but I really feel bad for the small company owner that has to eat the 8-10% interest excrement sandwich on an equipment loan-purchase today.

Hay Dude, do you think the tractor industry is going to keep calling their captive financing zero percent when it gets that high?

 

[Hay Dude]

Sucker born every minute!