used tractor prices - wither they go?

[newbury]

And I mean CUT, not lawnmowers.
Since I've been in the serious market for a tractor for about a month I've been following prices at a lot of sites.
One site I use for a "barometer" is e bay. I figure if pink elephants are going for $1,000 there they might be worth $1,000 elsewhere.
This last two weeks I've seen many "bidding closed, minimum not met".

Has anyone else noticed this?

Do you think the minimums were set too high because Kubota raised their prices?

 

[foggy1111]

At this point, I think there is pricing pressure on most everything....tractors and implements included. Some things are going up...like guns, ammo, seed(?) and maybe some foods....but for most stuff, demand is lacking to pressure prices upward.

In my mind....if our fluberment ever gets it right (key word: IF) prices for many things will rapidly increase.

 

[polo1665]

And I mean CUT, not lawnmowers.
Since I've been in the serious market for a tractor for about a month I've been following prices at a lot of sites.
One site I use for a "barometer" is e bay. I figure if pink elephants are going for $1,000 there they might be worth $1,000 elsewhere.
This last two weeks I've seen many "bidding closed, minimum not met".

Has anyone else noticed this?

Do you think the minimums were set too high because Kubota raised their prices?

I think there are alot of people out there right now don't want to pay full price in this economy. They may think that sellers are desperate for the money and will come down.
I think there are alot of "haves" and alot of "have nots" right now. The people that "have" the money don't want to get off of it unless its a real good deal. They think the "have nots" will be forced to sell at a lower price, but its not panning out. That is the only way this economy has effected me so far (knock on wood), I won't make any large expenditures or go into debt unless I absolutely have to, or the deal is just too good to pass up. Fear is a horrible thing.

Mark

 

[sixdogs]

What is probably happening is a gradual peak in the price and demand for used or all CUT's. Some are selling because they have to and some are testing the waters in anticpation of selling. Unless something happens fast with the economy it is likley selling pressure will increase. Not everywhere and not all at once. "Illiquidity" is a better word in which a seller may be unable to get his price and yet a buyer of a specific item may be forced to pay retail because of low dealer inventory.

I think the net effect of those unsold items is to increase the potential future supply of stuff on the market that should lead to lower prices later on as sellers are forced into making a deal. That's if the economy keeps heading south. North and the thinking is void.

If you can swing it and can get a good deal and want to, buy it. Your net potential risk of loss would be the difference between todays discounted price and tomorrow's potentially lower discounted price. Maybe 10%? 30%?
Life's too short to wait for the ultimate deal. That's my two cents.

 

[chh]

Well I don't know about CUT's, but new tractor prices are climbing quickly. A 105 hp tractor like the one I bought last June is 11 grand higher now(with a FEL). Last year at this time the dealers, could not keep ag sized tractors in stock, right now the inventory is starting to stack up.

 

[rutwad]

Well I don't know about CUT's, but new tractor prices are climbing quickly. A 105 hp tractor like the one I bought last June is 11 grand higher now(with a FEL). Last year at this time the dealers, could not keep ag sized tractors in stock, right now the inventory is starting to stack up.

I figured prices would be down due to less demand. Do you think they will continue to rise this year?

 

[newbury]

I would expect new equipment to cost more due to raw materials. Now if the mfg scaled back production or turned out different equipment they might be able to maintain price increases. Switching production lines from CUTs to something else might not be easy.
But if the used market get's saturated I'm hoping and expecting prices to come down.

 

[Tractordawg]

I figured prices would be down due to less demand. Do you think they will continue to rise this year?

The problem is demand is down so production is down. It is cheaper per unit to make 3000 tractors than 300. Many of the manufacturing costs buildings, utilities, machinery are fixed so per unit costs are skyrocketing.

 

[sixdogs]

Something being missed here. A manufacturer or retailer can make or have whatever cost basis they want but that does not include the obligation of the prospective purchaser to pay that amount. That's why the car makers have a problem today. Their costs are, for example 100% but they remain unable to sell for even 80% of that cost. Folks won't or can't budge and rust never sleeps. It was one thing when buyers could do dumb things with borrowed money but those days are not now.

Which takes us back to CUT's and my expectation that retail or asking prices will be under considerable duress for the forseeable future. A lot of players will likely fail and one who is forced to sell for cash in a distress situaton may well get hosed while one prudent enough to have saved the cash can now benefit.
It's good in many ways because it brings discipline back into the market. The "jerk" dealer that failed to give the least of customer satisfaction or appreciation will likely be repaid. The good dealer will gain their former clients. Hence, it's a rebirth and good for the American way. Or what's left of it.
Just be careful giving unsecured deposits for merchandise not yet delivered. It's the buyer "beware thing".

 

[MessickFarmEqu]

We're seeing very little movement in the price of used compacts, demand still out paces supply. Skid loaders, excavators, and lawn equipment has taken a hit.