New Tractor Sales Are Declining

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   / New Tractor Sales Are Declining #1,321  
My finance professor once said that the US economy is too large and complex for central planning to work.

An economist like Milton Friedman wouldn't have done what was done 2020-present or 2008 to present, either.
 
   / New Tractor Sales Are Declining #1,322  
Yes and that's my point. The economy has drastically changed for the worse in just 3 years and the forecast from economic experts say its going to get much worse.
Gad, what short term memories some people seem to have.
3 years ago, March 2020 we were closing schools, undergoing lockdowns etc.
From the wikipedia:
March 16
President Trump issued new guidelines urging people to avoid social gatherings of more than ten people and to restrict discretionary travel.
/edit - didn't realize the presidents name would turn to asterisks
 
   / New Tractor Sales Are Declining #1,323  
It might be 0% interest but from what I'm seeing on their websites for equipment costs they're making it up by charging more for equipment. I'm guessing it is a marketing ploy.

"Hey let's have 0% interest in an economy where the interest rates are going up but charge more for our tractors."

I'd be curious to see what a cash buyer can get one of those tractors for that are overpriced.
Depending on the particulars could still be a good deal. 0% when "official" inflation is 6+% doesn't work out so bad....real inflation is probably more like 12%
 
   / New Tractor Sales Are Declining #1,324  
Gad, what short term memories some people seem to have.
3 years ago, March 2020 we were closing schools, undergoing lockdowns etc.
From the wikipedia:

/edit - didn't realize the presidents name would turn to asterisks
Remember the V curve?

V curve.png
 
   / New Tractor Sales Are Declining #1,325  
One thing is certain. These people responsible for the hell this country is going through right now need to answer some tough questions.
Many say a day of financial reckoning is coming for America very soon. Many also say its’ taxpaying citizens are going to be demanding answers.
 
   / New Tractor Sales Are Declining #1,327  
For me, this has a lot of political content regarding vote buying and pandering to voters by various groups.

When you look at Political Action Committees and who funds them, then look at the laws passed by those benefitting from the PAC money, to me it often looks like vote buying.

In the end, "the cost" is touted as being paid by the other person so, of course, we want the government handout since we don't have "skin in the game". What do you do once you have "taken all of the other guy's/gal's money?" And, what does this mentality do to society? Who would have thought "minimum Mondays" would become a thing? And the list goes on.

Where has governing to the middle gone? The majority of America has generally always been in the middle. Now, with super divisive politics, we are pitting each other against each other to what end?

How did rent and mortgage suspension work during COVID for everyone? Great if you didn't have skin in the game and got to spend your rent or mortgage on a new ski boat, motorcycle, etc. but, what about the working-class family renting out one house that went into foreclosure and bankruptcy because they couldn't cover the "unpaid" rent on the rental house? Or the banks that didn't get any mortgage payments for ~24 months and had to pay for eviction expenses?

Taxing the "Millionaires" sounds good until you become a Millionaire and then it is 'tax the Billionaires!' This is the refrain I hear from of very vocal new voices in Congress that couldn't afford a car and now drive an expensive Tesla. How does someone earning under $200K a year afford a $100K car and an expensive apartment?

And then my personal experience:
I was negotiating to buy a new Kubota tractor as COVID hit. As specced, it was ~$72K but, as COVID hit that tractor could not be built. Then about six months ago, a very similar tractor was specced and priced at ~$96K! Then during my recent tractor search, I was offered a better specced tractor from the same Kubota series for $88K.

$72K vs $96K makes me look elsewhere though, I didn't forget to check in on Team Orange this go around. If I had panic bought at $96K like many people did on motorcycles, boats, cars, and similar stuff and then saw a better version for $88K six months later, what would I do and how would I feel?

Today, that $88K or $96K will get a lot more tractor so, that is a win in my book! Honestly, at this point, I am looking at spending a bit more to get a substantially upgraded tractor today versus a few years from now to combat future price inflation and, to speed up the jobs I'm doing now.
 
   / New Tractor Sales Are Declining
  • Thread Starter
#1,328  
I am currently shopping,new and used.The new prices are staggering but so are the used.Made a offer yesterday on a 5 year old tractor ,the guy wouldn’t even counter and he has had it for sale since last July.
Powell's medicine hasn't kicked in yet. Wait till he ups the dosage.
 
   / New Tractor Sales Are Declining
  • Thread Starter
#1,329  
I,m finally starting to see private sellers adds which states they cann,t afford to make payments any more. Unfortunately, a lot of those sellers are upside down on their loans, so they are going to take a financial beating if they want to get out of them.
Where have you seen these ads?
 
   / New Tractor Sales Are Declining #1,330  
It's not just optimism, it's just that short term trends are so easy to work with. Easy to see, to change, and to see results. The downside to that is that you have short term downturns oscillating with short term upturns.... It can make a person dizzy and pessimistic.

I like to focus on the longer term. And it looks pretty good to me. Things world-wide are healthier, wealthier, and more free than ever before in mankind's history. We are exploring outer space and the bottom of the ocean. Fascination exists at every level.
And for tractors and equipment, nobody is forcing me to buy new; I can fix old things to my heart's content.

For proof of how all this is working in the good old USA, just take a look at our borders. Those people are fighting to get here, not to leave here for a better life somewhere else.

rScotty

Just heard that Americans are in the higher credit card debt than in last 20 years, so I will add that to my list of concerns.
Luckily I’m not, but I fear for my brothers & sisters who are
 
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