New Tractor Sales Are Declining

[Hay Dude]

That is not true for all potential buyers. You can almost always fix the old machine for far less than buying new... there are many cost saving used machine options too. Happy you are getting what you want no matter the cost increase but not everybody will go that route. Our business costs went up 15% last year. Sales declined by the same amount. If you are not watching your expenses and making cost saving decisions then you are in the top tier. Enjoy.

THIS ^ and thanks for speaking truth.
I also see the manufacturers are busy at work lobbying and inventing new ways to get our machine values down or to trade them in. They add luxuries or “can’t do without this” items.

I know this. Long ago, I could afford a decent amount of new equipment. Not anymore. The only thing I will buy new is a truck and even that is becoming increasingly difficult. My gross income is up because I’m working harder with longer hours than ever, but net income isn’t rising with the costs of doing business.

 

[Hay Dude]

I would prefer a 5-year-old or 10-year-old to renovate it and fix it than buy a new tractor these days with such prices, maybe someday they will go down to lower prices

This is why leasing is becoming popular. Trust me fellas, service & parts costs on warranty-expired machines are unbelievable now. I just fixed a wheel bearing myself that 5 years ago I would have had fixed for $6-$700 bucks. Now it’s $1,400! Service truck prices have gone from $90/hr to $140/hr in just 3-4 years.
With leasing, buyers are taking advantage of lower monthly payments, ZERO ownership costs (other than fuel) and just turning machines in after 3 years and getting another new machine.

It’s not all beneficiary to the owner, but one can only make so much money in a year to pay for it, and costs have risen so dramatically in the last 2 years. I believe the dam is about to break on small business people. I predict by 2030 mostly larger companies will use equipment to fix & build things, produce things. The day of the smaller entrepreneur is coming to an end. Too many regulations and too much cost.

 

[5030]

Available & cheap.

Don't know about that part Scotty. Maybe old flogged units but well maintained units command premium prices. I was just at my dealer yesterday and the owner told me he could probably get almost as much as I paid for my M's new as when I purchased them. I realize that money is worth less than then but that still isn't a bad return on investment. He told me he could sell them both very quickly. Something I'm considering lately with the cost of inputs going through the roof. That includes all. the hay tools as well.

If things keep going the way they are (and they appear to be), I'm quitting the farm game entirely. Just getting too expensive today.

Paying 50 bucks a bag for 46 when 2 years ago it was 15 a bag is insane.

I bet I'm sitting on at least a couple hundred thou of equipment.

Lot of hunting trips or a new C7 Corvette.

 

[5030]

I would prefer a 5-year-old or 10-year-old to renovate it and fix it than buy a new tractor these days with such prices, maybe someday they will go down to lower prices

I don't 'renovate' anything. I maintain. No junk here, never will be.

 

[rScotty]

Don't know about that part Scotty. Maybe old flogged units but well maintained units command premium prices. I was just at my dealer yesterday and the owner told me he could probably get almost as much as I paid for my M's new as when I purchased them. I realize that money is worth less than then but that still isn't a bad return on investment. He told me he could sell them both very quickly. Something I'm considering lately with the cost of inputs going through the roof. That includes all. the hay tools as well.

If things keep going the way they are (and they appear to be), I'm quitting the farm game entirely. Just getting too expensive today.

Paying 50 bucks a bag for 46 when 2 years ago it was 15 a bag is insane.

I bet I'm sitting on at least a couple hundred thou of equipment.

Lot of hunting trips or a new C7 Corvette.

Yep. I agree. That was poorly worded... I should have written, "Available and affordable".
I personally wouldn't want an old one that was simply "cheap" either.

But you can get a lot of work out of a machine that is just old, tired, down on power, and with a few idiosyncrasies - but definitely not broken or abused. Those are the ones I used to look for when a friend wanted to get started and had little money.

rScotty

 

[2manyrocks]

.............. Service truck prices have gone from $90/hr to $140/hr in just 3-4 years.

Coincidently, the jack I bought for $89.99 today on sale ($99 before coupon) used to sell for something like $59.99 which is in the similar ballpark of a 50% something price increase.

Leasing can work for operators who can pass on any cost increases to their own customers, but can also put the operator at the mercy of the leasing company if they become dependent on the leasing company for machinery to operate.

 

[Cahaba Valley Farm]

The K&S dealer in Lubbock, TX says
no sales in the month of December.
They did fine in November

willy

Thanks for the feedback Willy.

 

[Cahaba Valley Farm]

Hey guys, Happy New Year. It's good to be back after a long holiday hiatus. Finally wrapped up my pecan season this year and ready to get back in the normal work saddle again.

I want to thank all of you that have provided updates on tractor inventory. I too have been keeping an eye on my local market and nothing has changed with my dealer here. Lots are filled to the brim with inventory and he has been running TV advertisements all holiday season trying to get people back down there to buy. Nothing is moving.

 

[CloverKnollFarms]

This is great news.

 

[Cahaba Valley Farm]

I would prefer a 5-year-old or 10-year-old to renovate it and fix it than buy a new tractor these days with such prices, maybe someday they will go down to lower prices

I would caution you about purchasing a 5-10 year old tractor. Reason being is that was the beginning of final tier 4 emissions regulations and almost all of the manufactures were having problems getting the technology right at that time.