New Tractor Sales Are Declining

[Cahaba Valley Farm]

I believe the equine discount has changed. As I recall, it was 20% when I purchased my L2501 in April, 2022. It seems to have been replaced with a flat $1,000 customer instant rebate for cash buyers plus a flat equine discount of $1,000 for the L series. Equine Offer Landing Page.

Yeah it's gone.

 

[2manyrocks]

With interest rates rising in the USA, I also wonder if the 0 interest financing will continue.

 

[hiddentacocatneddih]

Kubota makes up for 0% in the orange paint and volumes they sell

They probably have a little more cost cutting in their line since they build their own engines and tractors. Companies like deere have to pay yanmar along with other suppliers

 

[drumminj]

Go to the Kubota website and search equine discount. It’s all there on the site with cash discount prices for different classes of equipment. A few thousand dollars; nowhere near 20%.

My bad, you're right. Not sure when it changed, but at least earlier this year it was still live (I know of several folks who leveraged it).

My point still stands - at least earlier this year (and in years prior) one could get a 20% discount if able to pay cash.

 

[nrosario]

My bad, you're right. Not sure when it changed, but at least earlier this year it was still live (I know of several folks who leveraged it).

My point still stands - at least earlier this year (and in years prior) one could get a 20% discount if able to pay cash.

I concur that it was available, but good luck getting a "TRUE 20%" discount.
I tried that with multiple dealers, and the best I got, once you compare prices was 9%.
Local/family-owned dealers are rare in my area, and big franchises are destroying the market.

 

[Cahaba Valley Farm]

Local/family-owned dealers are rare in my area, and big franchises are destroying the market.

That's exactly what is happening with Deere and all their dealer consolidation, destroying competition which is destroying the market. It's really a form of price fixing.

 

[plastikosmd]

Kubota makes up for 0% in the orange paint and volumes they sell

They probably have a little more cost cutting in their line since they build their own engines and tractors. Companies like deere have to pay yanmar along with other suppliers

Business models vary. “In house” does not always equate “cost savings” or the ability to “cut corners” in order to save overhead/turn profit

 

[MinnesotaEric]

Last year purchased a new utv. Only one that was in my range within 100 miles. This year my friend had problem finding one, got used. My tractor dealer has LS, Branson, TYM, Bobcat and maybe others on the lot. He seems to be moving a lot, but not sure when you compare what's on the lot.

Demographically, peak spending by boomers is 2022. Peak economic activity for the next 30 years was also 2022 as worldwide, many boomers didn't have as many children as the usa boomers.

 

[cathy liebchen]

Scotty, dealer cost on a tractor is 23% below MSRP. Kubota's Equestrian discount is 20% off for cash buyers. So if you take a dealer like mine who only knocked off $700 (Manufacturer rebate from Kubota) from the MSRP price then there is the profit for the dealer. In my case he was going to make about $5200 more in profit if I financed versus just $780 in profit if I took the cash discount and that was just the tractor, no extras. So if you do the math he was charging me around 4% a year to finance that tractor for 60 months. I could of gone to any bank or credit Union and financed for that.

I'm surprised that the FTC hasn't cracked down on this industry for doing this as this is in my opinion a form of predatory lending.

We got the big cash discount and didn’t have to pretend to have a horse

 

[Cahaba Valley Farm]

We got the big cash discount and didn’t have to pretend to have a horse

So you got 20% off a new Kubota without using the equine discount?