New Tractor Sales Are Declining

[Torvy]

I love ya Jeff, but when the "dominant" player cannot deliver, people buy from those who can deliver. This phenomenon is not just going on with tractors. Mike's "speculation" is much less wild than yours. Was the upward spike in sales because Kubota had lots of inventory it was selling cheap? Nope. Market forces drive purchasing behavior. People buy based on a collection of well-known and studied factors. They stop buying for similar reasons in the opposite direction.

 

[Torvy]

Torvy, if you can afford to wait until next year I think you will find some deals.

I'm too old to wait too long for a deal. It would be different if I was just looking to upgrade.

I have 12 weeks of school left before I retire. I have fences to install and a host of other tasks that require more power than my muscles can provide. Once the time comes to buy, I'll get the best deal i can and start working for my family rather than someone else's.

 

[Hay Dude]

Yeah but with high interest rates comes another opportunity for people who have capital to invest.

Well, yeah Cahaba, but the topic is “new tractor sales are declining”, not “money market interest rates are rising”.

Tell ya what’s worse is used tractor interest rates, they’re like 8% now.
At least manufacturers still have bought-down interest rates to get buyers in the door.
Used? Not so much

 

[ovrszd]

If I needed a new tractor, I'd buy it.

To think I can win in a speculation situation with Big Corp is naive.

I think we will see a severe Depression. I'm not buying anything. I don't want my liquid assets tied up servicing a large purchase.

 

[Jstpssng]

If I needed a new tractor, I'd buy it.

To think I can win in a speculation situation with Big Corp is naive.

I think we will see a severe Depression. I'm not buying anything. I don't want my liquid assets tied up servicing a large purchase.

I have my liquid assets stashed as deeply as I can. However, inflation can still render that useless. It's just a cycle though... some times are good, others aren't. Hopefully I stay healthy, as that trumps all else.

 

[Citydude]

I'm too old to wait too long for a deal. It would be different if I was just looking to upgrade.

I have 12 weeks of school left before I retire. I have fences to install and a host of other tasks that require more power than my muscles can provide. Once the time comes to buy, I'll get the best deal i can and start working for my family rather than someone else's.

Good plan. My tractor is the most important tool I have in developing our property. In no way could I have accomplished what I had to do without it.

 

[ovrszd]

I have my liquid assets stashed as deeply as I can. However, inflation can still render that useless. It's just a cycle though... some times are good, others aren't. Hopefully I stay healthy, as that trumps all else.

Absolutely

 

[Fixastuff]

I didn't watch the video but maybe sales are down because they aren't tractor available to purchase?

 

[CloverKnollFarms]

Our dealers are stocked to the gills with tractors. Maybe next year I will buy. Our new labor contact is going to bring a 50% pay increase, and I have a feeling most folks wells will be drying up at that same time…
It will be a good time to buy

Inflation is raging. Rates are going up, and up, and up… now the Fed is actually using the word “pain” instead of “soft landing”. Man, if only someone could have seen this coming… oh…wait…

I may find a good deal on a very lightly used utility tractor come next spring

 

[Hay Dude]

Our dealers are stocked to the gills with tractors. Maybe next year I will buy. Our new labor contact is going to bring a 50% pay increase, and I have a feeling most folks wells will be drying up at that same time…
It will be a good time to buy

Inflation is raging. Rates are going up, and up, and up… now the Fed is actually using the word “pain” instead of “soft landing”. Man, if only someone could have seen this coming… oh…wait…

I may find a good deal on a very lightly used utility tractor come next spring

Noticing the same
Inventory has mostly caught up.
Dealers and private sellers prices will drop noticeably as many buyers are driven off to the sidelines due to higher interest rates. .This will cause a glut in inventory since demand will drop.
Throw in a collapsing economy, horrible economic policy and record 41 year inflation and 100%-200% increase in fuel prices and you will have a buyers market for cash buyers. Financed purchases may at least get somewhat lower purchase prices to offset higher lending rates