Price Check Supply/Demand Doesn’t Seem Right

[robertm]

So, for grins, I thought I’d check the used market on tractors, since I have a few friends looking for used units, and it seems the market is bare.

Now, I’m not John Thomas, but I’m kind of his red-headed stepchild in terms of quantity of tractors traded, so I’ve done this a bit. I have a good feel and the data to back up how trades typically work. Today baffled me.

I threw my BX2670 with all implements on the trade table, and for kicks, played it against a B2601 with less implements. I figured I would find either a lowball trade with a good deal on a new tractor, or a great trade offer with a high-priced minimal discounted new tractor. Instead, I was blindsided.

Really, these dealers have nothing in stock. New or used. The dealer said, “We really want your tractor!” Okay, they all say that, but in my eyes, they have nothing, so getting a newer trade and selling a new tractor would be two sales, not one. Apparently, cutting a hog in the $&#?! is the name of the game in today’s market.

Based upon reasonable pricing of what I see on three equipment trader sites, they offered about $8,000 less for my tractor than it appears to be worth, considering the sale price is likely reduced slightly for sale, and the new tractor was offered at a sale price more that MSRP of the tractor including the $900 in Kubota offers.

With the last five purchases, and four trades, I’ve never seen this. While selling outright could be an option, I feel like no one knows when Kubota will finally ship orders out.

 

[rademamj1]

I was at my Kubota dealer just today buying parts and filters, and commented to the Manager what a nice tractor inventory he had, with total 15 tractors on location and probably another 12 tractors in grates. He said only 3 tractors are available, the rest have already been sold. Order now if you want a tractor by July.

 

[Monster5601]

Messick's posted a video a week or two ago talking about supply issues, doesn't look encouraging.

 

[workinonit]

It's not just Kubota. And I have no idea why the dealer would be trying to short side you on your trade in. I bought a new JD 5090 and traded my old 5310, loader, 4 in 1, fork and grapple. The day they picked up my tractor my salesman who is a good friend called me for permission to have someone call me about my tractor. I talked to the kid and they sold my tractor that day for $1500 over what they gave me for a trade. Same day. But now my tractor was in good shape and nice even though it was 20 years old almost.

 

[SDT]

So, for grins, I thought I’d check the used market on tractors, since I have a few friends looking for used units, and it seems the market is bare.

Now, I’m not John Thomas, but I’m kind of his red-headed stepchild in terms of quantity of tractors traded, so I’ve done this a bit. I have a good feel and the data to back up how trades typically work. Today baffled me.

I threw my BX2670 with all implements on the trade table, and for kicks, played it against a B2601 with less implements. I figured I would find either a lowball trade with a good deal on a new tractor, or a great trade offer with a high-priced minimal discounted new tractor. Instead, I was blindsided.

Really, these dealers have nothing in stock. New or used. The dealer said, “We really want your tractor!” Okay, they all say that, but in my eyes, they have nothing, so getting a newer trade and selling a new tractor would be two sales, not one. Apparently, cutting a hog in the $&#?! is the name of the game in today’s market.

Based upon reasonable pricing of what I see on three equipment trader sites, they offered about $8,000 less for my tractor than it appears to be worth, considering the sale price is likely reduced slightly for sale, and the new tractor was offered at a sale price more that MSRP of the tractor including the $900 in Kubota offers.

With the last five purchases, and four trades, I’ve never seen this. While selling outright could be an option, I feel like no one knows when Kubota will finally ship orders out.

Dealers are in business to make money for the owners.

Dealers expect to make money on both your new tractor and your trade and do not offer anything close to retail price for trade ins.

Dealers are in the driver's seat at this time.

Now is not the right time to buy.

SDT

 

[Peter 315]

Dealers are in business to make money for the owners.

Dealers expect to make money on both your new tractor and your trade and do not offer anything close to retail price for trade ins.

Dealers are in the driver's seat at this time.

Now is not the right time to buy.

SDT

Very true.....

 

[nybirdman]

It's not just tractors,trucks,atv's also.I called four dealer before I found what I wanted in a new ATV.My local Kubota dealer has little inventory including implements.Couldn't get a rear blade until June.Local Chevy dealer has maybe four new trucks when they normally have 30-40.

 

[sea2summit]

So, for grins, I thought I’d check the used market on tractors, since I have a few friends looking for used units, and it seems the market is bare.

Now, I’m not John Thomas, but I’m kind of his red-headed stepchild in terms of quantity of tractors traded, so I’ve done this a bit. I have a good feel and the data to back up how trades typically work. Today baffled me.

I threw my BX2670 with all implements on the trade table, and for kicks, played it against a B2601 with less implements. I figured I would find either a lowball trade with a good deal on a new tractor, or a great trade offer with a high-priced minimal discounted new tractor. Instead, I was blindsided.

Really, these dealers have nothing in stock. New or used. The dealer said, “We really want your tractor!” Okay, they all say that, but in my eyes, they have nothing, so getting a newer trade and selling a new tractor would be two sales, not one. Apparently, cutting a hog in the $&#?! is the name of the game in today’s market.

Based upon reasonable pricing of what I see on three equipment trader sites, they offered about $8,000 less for my tractor than it appears to be worth, considering the sale price is likely reduced slightly for sale, and the new tractor was offered at a sale price more that MSRP of the tractor including the $900 in Kubota offers.

With the last five purchases, and four trades, I’ve never seen this. While selling outright could be an option, I feel like no one knows when Kubota will finally ship orders out.

Well if I'm used to selling 100 widgets for 7 clams a month to cover my expenses and put enough in my pocket to stay in business and am happy I'll sell 100 widgets until I get tired of selling widgets. But I need to source and sell 100 widgets at seven clams so I have 700 clams at the end of the month.

Now if something happens and I can only get 50 widgets a month, I've got to sell them for 14 clams or I can't cover expenses. Maybe I can sell them for 12 clams a month and cover expenses without paying myself but how long will I do that?

Dealer isn't trying to bend you over, he's reacting to the situation he's in and trying to stay in business.

If you are shopping for a new tractor don't go to the guys with a nice big shiny building right now.

 

[Username Taken]

Re: Supply/Demand Doesn稚 Seem Right

Low inventories are the result of people's buying habits being changed by cultural phenomenon. Look at the RV industry.

Most of the new units from Kubota and Deere are made in the South where there aren't as many useless and stoopid Kung Flu shutdowns.

Slow-downs, yeah. The usual suspects keep trying to slow, if not shut, everything they can for any reason they can. They do that ALL the time.

But it's going to break loose sooner rather than later IMO. The manufacturers that are on top of this are going to reap some serious rewards. The rest will be left sucking wind.

A guy I know was building houses back when this all first started. I told him to go on like nothing happened. He did but I don't think it was based on my advice. If anybody has been paying attention, housing is going ape. And hes getting rich(er)

Tractors, especially small tractors, are selling like hotcakes. It's not that there's a produtcion shortage. I don't buy it. They're just being bought like crazy. Because people are taking a bigger interest in their property and because tens of thousands of people are moving out of the City and the 'burbs, into small-town USA, and buying small tractors in the process.

Go look at you dealers and count the number of unsold Big Units sitting on their lots collecting dust.

Production will catch up, IMO. Sooner rather than later. And if you wait, you can be in a buyers market instead of sniffing the ground in a seller's market.

Disclaimer: Following my advice can result in poverty and despair. Be warned!!

 

[Thomas]

Even our local Kubota dealer starting to feeling the pinch B models and L models and up very little to pick from,also looking at 4-6 weeks plus wait time more so if it's special order.
Far as second hand tractor inventory if tractor in good shape might set week or two than has new home.