Price Check What did you pay for your tractor

[Torvy]

A factor many don't know or understand is elasticity of Supply or Demand.

Fuel is fairly inelastic, there are not good substitutes so we pay what we must.
Tractors are more elastic than fuel as some people could use an alternative for their needs or put off purchase indefinitely. (those of us not planning to live off of our farm incomes). The rush to buy now is partially fueled by the expectation that prices will continue to rise.

With durable goods, like tractors, you are unlikely to see significant price drops. What you will see in a few years is that dealers will deal more as demand will taper off. The base prices will not go down unless we have a period of deflation. Of course various policy decisions could swing all predictions into a tizzy.

This is a broad inflationary cycle. It is not limited to tractors or trucks. It will not fix itself and since there is some denial going on, don't expect action to curb it much for another few years. This type of cycle pushes everything up. 'prices' will not return to normal. You will likely see prices come down as a percentage of income, but only after inflation is dealt with.

 

[Hay Dude]

If manufacturers “collude” on a constant basis that “prices will increase next year, so buy NOW”, it could be quite a boost to their bottom lines. I guess that’s always kind of implied, but with the upside down chaos we are living in for the last year, people will believe it. Covid will be used as an excuse, real or imagined, to increase prices.
Course, they’ll eventually slay the golden goose (their customer) when the customer runs out of disposable income.

 

[Torvy]

If manufacturers “collude” on a constant basis that “prices will increase next year, so buy NOW”, it could be quite a boost to their bottom lines. I guess that’s always kind of implied, but with the upside down chaos we are living in for the last year, people will believe it. Covid will be used as an excuse, real or imagined, to increase prices.
Course, they’ll eventually slay the golden goose (their customer) when the customer runs out of disposable income.

They are dealing with real cost increases. Raw materials and labor are both going up. That money is not coming out of thin air, it goes directly to prices. When JD caved it only made things worse. That is peanuts, though, compared to the topic which shall not be discussed.

 

[Hay Dude]

They are dealing with real cost increases. Raw materials and labor are both going up. That money is not coming out of thin air, it goes directly to prices. When JD caved it only made things worse. That is peanuts, though, compared to the topic which shall not be discussed.

Definitely
Thats why I said “real or imagined”.
There are some manufacturers who are piling-on. Its a chance to make more money, and if it can get them out of debt, build new facilities, hire more people, etc. they will exploit it. Its a part of capitalism.

 

[fruitcakesa]

My wife wanted the cab, but all the tractors added such a premium for a cab..

That is why I feel I got a great deal on the M. Sure came in handy today while doing the first of probably 2 passes of snow plowing on the 3 driveways I plow.

 

[jdmeth]

Bought two months ago, JD 1023E, $18200. They want $20700 for a 1025R.

 

[coobie]

To much ..But we still love it.

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[RalphVa]

I was looking at 4 tractors, the John Deere 3025D, the 3035D and the Kubota L2501 Gear Drive and the L3301 Gear Drive. The 2021 3025D was $18499 but rose up to $22,499 on the 2022, while the 2021 3035D was listed at $22,602 but is going for 26,499 on the 2022. I looked at the Kubota L2501DT and the L3301DT but they were even more, but I found a deal when someone had to sell their L3301, and got it for 19K. It seems prices are going up even faster than the cars, as even 2019-2020 used cars are selling above what the new 2021 models were a year ago.

Used tractor prices are outrageous. I paid $19.4k for the JD2025R in 2015. Now, it seems to be still worth about $17k (this is with FEL, absolutely no use without an FEL unless strictly a farm tractor). The Kubota B I want is about $24k with loader. Waiting to hear what the Kubota dealer is going to give me for the 2025R, but the local JD dealer is interested in it, too.

 

[LS Tractor Owner]

I purchased my LS XG3025 w/ BH, rear remotes, box blade, and PHD for $21,500 4/2019. To do the same package now would be around $29,000.

I could sell it now and make a few grand profit.... but another new machine would take that profit plus some more to get.

 

[3 Horse Ranch]

Look like? what does that mean? No one can tell future reality by “ look like”. History says when supply goes up enough to beat demand, prices will retreat. May take years, but will happen.

Yeah, that's why will can still buy cars at 1960 prices.

 

[3 Horse Ranch]

Looking at a New Holland Boomer 50 cab and the price will be in line with the horse power, if it ever gets here.

 

[vinicius zidal]

I was looking at 4 tractors, the John Deere 3025D, the 3035D and the Kubota L2501 Gear Drive and the L3301 Gear Drive. The 2021 3025D was $18499 but rose up to $22,499 on the 2022, while the 2021 3035D was listed at $22,602 but is going for 26,499 on the 2022. I looked at the Kubota L2501DT and the L3301DT but they were even more, but I found a deal when someone had to sell their L3301, and got it for 19K. It seems prices are going up even faster than the cars, as even 2019-2020 used cars are selling above what the new 2021 models were a year ago.

The following categories indicate the average price ranges: Compact Tractor – Engine capacity less than 30 HP, costing $9,000 to $12,000. Mid-Size Tractor – Engine capacity around 30 to 80 HP, costing $25,000 to $50,000. Large Tractor – Engine capacity about 100 HP or more, costing between $50,000 and $80,000.

 

[vinicius zidal]

Mid-size tractors with 30 to 75 hp usually cost anywhere from $25,000 to $50,000. Larger tractors with about 100 hp, 4-wheel drive, and a cab tend to run $50,000 to $75,000. Tractors with 100 to 150 hp usually cost anywhere from $75,000 to $150,000.

 

[Doughknob]

Yeah, that's why will can still buy cars at 1960 prices.

Sure can, relatively. Cars cost no more today than they did then when inflation on everything is taken into account. Long-term prices go up. Short term they bounce around. It is this short term bouncing i am talking about.

the big spike from this covid/supply thing will bounce down………

 

[Torvy]

Sure can, relatively. Cars cost no more today than they did then when inflation on everything is taken into account. Long-term prices go up. Short term they bounce around. It is this short term bouncing i am talking about.

the big spike from this covid/supply thing will bounce dow………

This is not a Covid supply thing. Basic economics. Money supply too big, lots of inflation. Rapid up ticks in government spending, lots of inflation. The supply chain issues are compounding it, but take those away and we would still be looking at high inflation. Politicians are using the supply chain issue as a way to mask the underlying economic problems. Economically, short term is usually less than 3 years. This will take longer to resolve.

 

[jezreel]

Sure can, relatively. Cars cost no more today than they did then when inflation on everything is taken into account. Long-term prices go up. Short term they bounce around. It is this short term bouncing i am talking about.

the big spike from this covid/supply thing will bounce dow………

This is correct at its most basic level. The problem is how they are building cars/trucks today. All I need is a truck with a Chassis, Gear Box, Engine, and Body. Give me manual seats, windows/locks and an OK radio and that's all need. This business of tailgates that open in 5 different directions, back-up cameras, state of the art computers, 20" wheels and tires, and the list goes on. My Very Basic 2019 F-150 XLT 4x4 had a Sticker Price of $42K, I bought it new in April of 2020 for $28,500. Ford did NOT lose money on it, for sure. It just shows you the mark-up on the trucks these days. My 1994 F-150 XL had a Sticker of $15K, I got it for $12K. Considering inflation $12K = $24K today. The cars/trucks are just like everything else today. . . Bigger - Better - Fancier - More Expensive.

Never in my life did I dream the BIG Selling Point of a pick-up truck would be the stinkin' Tailgate! ! !

Arrrrrrgh! ! !

 

[Doughknob]

This is not a Covid supply thing. Basic economics. Money supply too big, lots of inflation. Rapid up ticks in government spending, lots of inflation. The supply chain issues are compounding it, but take those away and we would still be looking at high inflation. Politicians are using the supply chain issue as a way to mask the underlying economic problems. Economically, short term is usually less than 3 years. This will take longer to resolve.

so it is not a supply thing huh? u are saying all the bare lots (tractors, cars, etc) are because there is too much money and people are simply buying Many more cars and tractors than before, thus emptying all the lots? I don’t think so. Lots are empty because of supply issues, not because of much higher demand.

 

[Torvy]

so it is not a supply thing huh? u are saying all the bare lots (tractors, cars, etc) are because there is too much money and people are simply buying Many more cars and tractors than before, thus emptying all the lots? I don’t think so. Lots are empty because of supply issues, not because of much higher demand.

Nice change. We were talking about inflation.

 

[3 Horse Ranch]

so it is not a supply thing huh? u are saying all the bare lots (tractors, cars, etc) are because there is too much money and people are simply buying Many more cars and tractors than before, thus emptying all the lots? I don’t think so. Lots are empty because of supply issues, not because of much higher demand.

Actually it's a combination of factors. Watched an Tractor Mike video from about a year ago and he said he had expected a glut of tractors on the lots when the Covid shutdowns came, but as he said, he couldn't have been more wrong. The tractors flew off the lots faster than the dealers could get new stock. As the supply chain woes increase dealers can't get enough tractors to satisfy demand Start adding in 7% inflation and the prices will eventually reach a point where demand will drop and the prices will stabilize. The only prices that are likely to drop are those artificially pumped up by less than honest dealers looking to make some extra cash.

 

[TractorTYMe]

My dealer had knocked off $5k from MSRP in late June 2020 for my T474 since it was a "layover" 2019 model, I paid 27800 with a cab/loader for mine. Then later that fall Covid shortage hit the market as it appears.