New Tractor Sales Are Declining

[dgl24087]

New sales may pick up based on used pricing I've seen from private sellers this week. $50k for a Ford 6610 2 wd cab tractor with 4500 hours, no loader, and AC not working.

 

[sd455dan]

New sales may pick up based on used pricing I've seen from private sellers this week. $50k for a Ford 6610 2 wd cab tractor with 4500 hours, no loader, and AC not working.

IMO That is a ridiculous price.

I posted a Craigslist Ford 4610 four wheel drive with a loader and about 2500 hours a few weeks back for about 18K No cab though.
It took about 2 weeks to sell.

 

[Cahaba Valley Farm]

IMO That is a ridiculous price.

I posted a Craigslist Ford 4610 four wheel drive with a loader and about 2500 hours a few weeks back for about 18K No cab though.
It took about 2 weeks to sell.

The market for used tractors is undergoing a major correction right now. A lot of these loco prices are people just testing the market to see where the top of it is.

 

[thebmrust]

For 2032R ($28,300) & 2038R ($30,640) tractors, Deere is offering 3.9% for 84 months. Insane (to me) pricing.

 

[thebmrust]

Tractorco.com is a few hours away from us. They used to have some smaller used/refurb import tractors for about $7-$8k. During covid they appeared to raise their prices about $2,000 per unit. Now one can’t get anything from them under $10,000.

Full disclosure, I don’t know if they have the same sized tractors then and now. But when we were in the market back then, that’s what I remember seeing.

Edit: I just checked the Deere site, a few years ago the 1023E was $14k and it’s $16,440 now (end of Feb 2023).

 

[Hay Dude]

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

It must be getting tougher with each passing month of rising interest rates!
I just made a verbal agreement on a rake and the seller had “discounted financing”, which I will take instead of the cash back. The cash discount was pretty light compared to the 3.9% 5yr financing. I figure 3.9% is about money market savings rates right now. They gave me about 8-10% off MSRP, too.
This is all “old hat” for me. I’ve seen 2 cycles of high interest rates and watched my parents deal with that knuckle head back in the late 70s when int rates were 20%.
Cycles, cycles and more cycles. Just no war. PLEASE, no war.

 

[2manyrocks]

Except rates still aren't high compared to other rates since 1980. The real problem is the rapid destruction of purchasing power.

 

[Hay Dude]

Except rates still aren't high compared to other rates since 1980. The real problem is the rapid destruction of purchasing power.

Agree, but 1980 was nearly 45 years ago, and although we had an economic dunce in charge of our country, along with the gas lines and oil shortage, that seemed like a one-time crash of epic proportions.
Todays interest rates, prices and fees are much higher than normal.

And why do we have rapid destruction of purchasing power?
In my life and many others I talk to, it’s the doubling of energy prices, increased taxes on utilities, crushing inflation on food, increased tuition costs and much higher interest rates on our HELOCs or any other variable interest rate accounts we have.

Those are huge expenditures in the daily life of Americans.

 

[2manyrocks]

Cause vs effect. Oil price shock ripped through the economy back then. Today is the self inflicted result of continuing to increase the money supply by 6 trillion over the span of two years while not listening to anyone else that it was too much too fast coupled with record spending and stimulus programs. Some extremely bad decisions were made in 1913 that put us on this path.

 

[ruffdog]

As long as people keep spending like crazy, inflation will keep going.

https://www.npr.org/2023/02/25/1159...on-recession-consumer-spending-interest-rates