Are CUT Manufacturers pricing themselves out of the market?

[etpm]

the 1980's yanmars might still be running.

Mine still runs very well. A 1980 or '81 YM2310.
Eric

 

[Cahaba Valley Farm]

I have been following the CUT market for 5 years and the conclusion I reached is prices will not come down as long as the industry can continue to convince the consumer to accept it's free financing in exchange for overpaying for the equipment.

 

[arrow]

Our

Absolutely. One good answer that works for everyone is to buy low hour used equipment. Tractors that have been used enough to be proven, but not enough to be worn.

I am old enough to remember another time - the 1950/60s - when new prices got totally out of reach.
What happened back then was independent & inexpensive repair shops sprang up everywhere almost overnight. Maybe that will happen again.

Our present work force prefers to use their thumbs.
Don’t think enough kids are coming out of vocational schools nowadays for this to happen.
I keep thinking of the song “ln the Year 2525”. There is a line saying we’ll have no use for our arms and legs.
I think l see us moving toward that now.

 

[Hay Dude]

I can remember when our small community had a Ford and an International Harvester dealer. They went away 30-40 years ago.

We had an International Harvester dealer, too.
Only dealer in my little town. The owner was a good man. When he became elderly, he promoted his son in law to run the operation in the mid 70's.
He was a gold digger and a piker. He took cash payments, pocketed them, and never took the units sold for cash off the books.
IH Corporate got wind of this and one day at sunrise, about 20 lowboy trucks showed up. They took all remaining inventory and removed the franchise from him.
Sad ending, but IH didn't have many years to live anyway.

Here's what's left of the business. Still painted IH red!

 

[ultrarunner]

I can remember seeing people pitch fork hay onto a wagon pulled by mules. An old 2N was a luxury item.

My earlier memories pitching hay onto the wagon.

 

[Hay Dude]

"You will own nothing" is the way we are going.
I feel like the last 10 years everything has doubled in price (or more) but wages up maybe only 10-30% in most occupations?

I mean go back 60 years ago, my dad was a mason and supported the whole family on his salary alone and we lived in a decent single family home and had a car and a truck.

Today? Both spouses need to work to have the same unless you have a very high single income spouse.

Wheres all this going? Who can/wants to pay 35k for an oversized 4WD garden tractor with a tiny loader?

 

[jyoutz]

I say yes. I baulked and bought low hours used for 40% less than new.
Manufacturers have definitely crossed a line where a lot of people refuse to go no matter the product.

I looked at the used market for months before buying new. I couldn’t find anything for less than about 85-90% of new, unless it was old with a lot of hours.

 

[ultrarunner]

Growing up most moms were stay at home…

The mom across the street held a union job and her husband was plant super intendant.

Us kids would ask why the neighbors were taking annual big vacations and new cars every other year and dad said it’s because they both work.

As both spouses started working the disposal income increased and they had quite an advantage in most cases.

Now it is somewhat rare to see stay at home spouse… at least here.

That extra money gets spent and almost forces all into the work force just to keep up.

 

[jyoutz]

How's the price of eggs in your area?

Haven’t bought any in years. The chickens keep us in more than we can use.

 

[jyoutz]

To my way of thinking, it's insane for a first time non-business tractor buyer to even consider buying new. They shouldn't be taking a loan out for any machine unless it's going to pay for itself.

It’s all about cash flow. If someone has few other debts and an income that supports the loan, what’s the problem? People have work to do to maintain their land and saving for years doesn’t make sense. As I posted, it’s sometimes difficult or impossible to find deals on used equipment, and then often not the size/capability machine that is needed.