New Tractor Sales Are Declining

[Sid Post]

Thats what I do, too. But you are looking at it from a “small timer” perspective. We are both small timers. The BTO’s are where all the sales come from. I’m talking 150HP-500HP, large square balers, $400,000 planters, etc. Those guys lease equipment like you wouldn’t believe.

They can no longer afford to buy and more importantly maintain this new ultra high tech equipment.


About 4 years ago, Kubota ran a MASSIVE leasing program on M6 and M7 tractors. They are all now “coming home”. If you look at the Tractor House on line, you’ll see 15 or so of them all being offered for sale by PNC Bank. They were the financier or them. I am considering one, but still a bit above my pay grade.

Just watched a 2 year old M6-111 with loader and a bit over 200hrs sell for $60K at auction.

 

[Sid Post]

Truth. For bigger businesses, leases provide advantages. For most of us, they are not a sound choice.

A lot of LLC and other corporations lease for TAX BENEFITS.

 

[Sid Post]

It's hard to find dealers like that because john deere is trying to eliminate them

John Deere changed their dealership agreement terms and sole business locations simply cannot afford the new overhead structure John Deere has.

That is why United Ag and Turf in Texas has bought out, what, 100 or more John Deere dealerships? When I go there now, I feel like I'm in a used car lot.

 

[Torvy]

A lot of LLC and other corporations lease for TAX BENEFITS.

LLC is a Limited Liability Company. Not a Corporation. We currently have one for the farm and I've been part of an S-Corp as well. One of my banking jobs was processing small business loans and dealing with all types of entities. There are significant legal and tax differences among the different types of entities.

LLC are taxed as individuals (you file schedules on your personal return). Any business can offset income with the lease expenses. Of course, you can also deduct the depreciation on a purchase.

 

[ovrszd]

Retire? Who wants to do that?

Define retirement.

 

[BnRidge]

Retire? Who wants to do that?

I used to think that way. Why retire when I'm doing what I love to do. Like driving an old beater because it's comfy and familiar, until you get something else that changes that idea completely.

 

[5030]

LLC are taxed as individuals (you file schedules on your personal return). Any business can offset income with the lease expenses. Of course, you can also deduct the depreciation on a purchase.

Which is exactly how we operate.

 

[Lastkidpicked]

Retire? Who wants to do that?

This is EXACTLY the response I'd expect from the people on these boards whom I admire.

Your enthusiasm is infectious, which is one of the reasons I enjoy logging on here.

 

[Yander]

This is EXACTLY the response I'd expect from the people on these boards whom I admire.

Your enthusiasm is infectious, which is one of the reasons I enjoy logging on here.

He's infectious all right,

 

[Lastkidpicked]

Define retirement.

@ovrszd makes a good point, here. Is retirement stepping all the way out and spending time with grandkids?

Some posters on here have put in their time and left the company with their pension. If they take a part time job doing something they enjoy then are they retired?