Are CUT Manufacturers pricing themselves out of the market?

[airbiscuit]

Obviously people are still buying CUTs. They have enough $$, or can finance. Higher new prices will drive up used prices. People that can't afford used CUTs, may turn to old farm iron, or do without.

 

[mikester]

How's the price of eggs in your area?

 

[dougtrr2]

I think they are too expensive. Periodically, I "build" one on the Kubota site and am surprised at the price.

But, I think it is more a matter of perspective. To me, $20 is still a significant amount of money. But, I think there are a lot of younger people out there where $100 just barely hits their radar. Scale that up to the price of CUT's and I think we are in the minority.

Doug in SW IA

 

[BlueKnife]

I look at the price of new CUTs, and I blanch. I wonder if the price is growing out of reach for more and more first time buyers. Maybe it's that we get locked into what the prices were when we were first interested in CUTs. Maybe I''m just an old fart that says I remember when ... I was lucky enough to buy all my CUTs used for very good prices (after a lot of searching).

• So, do CUT sales continue unabated?
• Do first time buyers simply buy smaller/cheaper models?
• Do first time buyers wait longer to buy?
• Or ???

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.

 

[dodge man]

I bought a JD about 6 years ago. I can’t imagine I’d buy one today when I see what people are paying for them now. It’s not just cuts though, a lot of things have just shot up due to inflation. The market will adjust eventually to what people are willing to pay.

 

[2manyrocks]

The exact numbers will vary based on options and discounts, but the prices I paid for a 2022 l2501 and a 2024 Jetta were in the same ballpark.

Saw a yt video saying the median price of a home doubled in the last 40 years when adjusted for inflation.

I don't think we'd see other brands like TYM entering the market unless they thought there is room to beat Kubota and John Deere prices and still make a profit.

 

[rScotty]

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.

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.

 

[2manyrocks]

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

 

[bdhsfz6]

Prices will continue to go up as long as there are buyers willing to pay them.

I'm on my 6th and 7th Kubota's since 1979, and the only one I paid full price for was the first. Maybe I've just been lucky but I received more in trade than I paid new on every one. Perhaps because my equipment is kept indoors, treated well and serviced regularly.

By trading up, my biggest cash outlay was $11,500. I expect it will be much higher though, if and when I trade up again. YMMV.

 

[chim]

Do you continue to buy bread? It costs a lot more than it did when we were married in 1970

I expect tractors to keep selling OK. One thing is that people today would rather make monthly payments on loans than sock the cash away until they have enough for the purchase.