Market Watch

[ruffdog]

Another dealership marked down one of their TYM 394c models by $1,000 to move it because they were starting to have to pay interest on it. It's one thing to carry a lot of inventory when the dealership doesn't have to pay much interest on it, but increased interest costs can eat a hole in the dealer's pocket if they end up sitting on a lot of new machinery.

The high volume TYM dealership has sold 20 T474 hydros in the last two months for something like $27,500 each.

Just like with car/truck dealerships, once the free flooring period expires, the sale prices come.

 

[Cahaba Valley Farm]

Just like with car/truck dealerships, once the free flooring period expires, the sale prices come.

Ruff do you know how long that period is before it expires?

 

[5030]

Ruff do you know how long that period is before it expires?

Varies by state I believe. I do know that here in Michigan, it's 6 months.

 

[ruffdog]

Ruff do you know how long that period is before it expires?

It all depends on the product. If a item is a strong seller, the "free flooring" will be shorter than what is offered with a tough seller. It is negotiated between the dealers sales team and the manufacture's sales rep on what is offered. If the dealer agrees to take more product, more free flooring may be offered as an incentive.

 

[Cahaba Valley Farm]

It all depends on the product. If a item is a strong seller, the "free flooring" will be shorter than what is offered with a tough seller. It is negotiated between the dealers sales team and the manufacture's sales rep on what is offered. If the dealer agrees to take more product, more free flooring may be offered as an incentive.

Interesting

 

[two_bit_score]

Just like with stocks....the smart people buy low and sell high.

Speaking of stocks. Just now:

 

[Goose1776]

I wanted a tractor, a Kubota L5460
I bought the tractor
Was the price of it more than it was in 2019?
Sure it was….
(Glad I wasn’t in the market for a truck)

I also wanted toilet paper,
I bought toilet paper
Was the price higher, than in 2019. ?
Yes it was, it was about double.
But I still bought the paper.
While corn cobs are abundant and available for free, I’d rather spend money on what I want

Will Kubota drop their price on L5460s in the future, due to overall compact tractor sales down 13%. ??
I have no idea, and I’ll be using my tractor too much to really care.

 

[Cahaba Valley Farm]

Will Kubota drop their price on L5460s in the future, due to overall compact tractor sales down 13%. ??
I have no idea, and I’ll be using my tractor too much to really care.

In case you haven't noticed this is the Buying/Pricing/Comparisons section of the forum. People who are in the market for tractors come here to get information. If you aren't in the market for a new tractor and don't care to know anything about the tractor market then you should visit the Owning/Operating section. Here's a link in case you can't find it: Owning/Operating

 

[TractorTYMe]

It will be interesting to see what market will force manufacturers and dealers todo? I know I got my tractor for a pretty good price in June 2020 since it was a 2019 layover. A friend of mine bought the exact same tractor last fall of 2022, and she got it for $100 more than what I paid....which I though was incredible.

 

[Fixastuff]

@Cahaba Valley Farm you probably spend more time thinking about this than most tractor dealers!

 

[Cahaba Valley Farm]

It will be interesting to see what market will force manufacturers and dealers todo?

Agreed. It's going to be even more interesting to watch because the industry's fix-all solution of zero percent financing is not working anymore. Consumers I believe have finally wised up to that.

 

[Cahaba Valley Farm]

@Cahaba Valley Farm you probably spend more time thinking about this than most tractor dealers!

Haha that's probably true

 

[Goose1776]

In case you haven't noticed this is the Buying/Pricing/Comparisons section of the forum. People who are in the market for tractors come here to get information. If you aren't in the market for a new tractor and don't care to know anything about the tractor market then you should visit the Owning/Operating section. Here's a link in case you can't find it: Owning/Operating

Seems like an extra snarky comment, but I possibly deserve it.
Regardless,
Thank you for the helpful hints for navigating this forum .
I thought my comment:
although possibly a poor attempt at humor, COULD be helpful to other people looking to buy a specific brand of tractor…
As in, I don’t see certain models of tractor’s prices coming down substantially.
Definitely not substantially enough to justify waiting to buy one, if you need one.
If one likes “window shopping” for years before making a purchase, I suppose they could wait indefinitely.
For what it’s worth, I enjoy the threads
you have started on this topic,
and have read them.
I just don’t see Kubota or Deere premium model pricing dropping substantially anytime soon.

 

[Paystar]

Seems like an extra snarky comment, but I possibly deserve it.
Regardless,
Thank you for the helpful hints for navigating this forum .
I thought my comment:
although possibly a poor attempt at humor, COULD be helpful to other people looking to buy a specific brand of tractor…
As in, I don’t see certain models of tractor’s prices coming down substantially.
Definitely not substantially enough to justify waiting to buy one, if you need one.
If one likes “window shopping” for years before making a purchase, I suppose they could wait indefinitely.
For what it’s worth, I enjoy the threads
you have started on this topic,
and have read them.
I just don’t see Kubota or Deere premium model pricing dropping substantially anytime soon.

I gotta give you my respect Goose. Very adult-like and respectful response. I'm so used to people on forums going off like entitled children throwing insults back and forth.

 

[ddbackhoe]

The demand dropped off last year and continued on into this year.

Ok, I’ll try to rephrase. Last year, there was little to 0 inventory on dealers lots and reportedly, no one working to build anything. Then this year, wham, dealer lots are overflowing.

 

[2manyrocks]

Interest rates have been held down since 2008. Now that they have had to raise rates, the cost of funds probably makes it more challenging for manufacturers to offer zero percent interest deals. They've got to make up the cost somewhere. So my guess would be that they have to bake these even higher costs into the price of the tractor, but then it becomes problematic when they tell cash customers that there's no discount for paying cash.

I got the impression from two different Kubota dealers that Kubota incentives are always changing. My salesman said he never knew which incentive would work the best for a customer until he went through the various incentive program options for that particular customer.

 

[Goose1776]

Interest rates have been held down since 2008. Now that they have had to raise rates, the cost of funds probably makes it more challenging for manufacturers to offer zero percent interest deals. They've got to make up the cost somewhere. So my guess would be that they have to bake these even higher costs into the price of the tractor, but then it becomes problematic when they tell cash customers that there's no discount for paying cash.

I got the impression from two different Kubota dealers that Kubota incentives are always changing. My salesman said he never knew which incentive would work the best for a customer until he went through the various incentive program options for that particular customer.

I’ve heard the same thing from a couple of Kubota dealers…
Incentives and deals are always changing..
When they had the Equine discount of 20% off MSRP for cash or standard financing, it was much easier, for me at least
Built tractor, and add options online..
Take 20% off the MSRP price on the build sheet, and that was your price.
Those were the good ole days. LoL

 

[5030]

I'll give my dealer credit. he specializes in larger units but the smaller ones he has a few in stock, but not many. Nice thing about Kubota and that is, if he needs one right away and another dealer has it within shooting distance, he can requisition one.... and he does.

The Branson or TYM dealer up town (whatever it is now) is loaded with tractors and they don't seem to be going anywhere. Mostly compact tractors, very few larger ones but then does Branson or TYM make a larger unit??

Have no clue as to the markup on them but I have a feeling he's in trouble.

 

[5030]

Interest rates have been held down since 2008. Now that they have had to raise rates, the cost of funds probably makes it more challenging for manufacturers to offer zero percent interest deals. They've got to make up the cost somewhere. So my guess would be that they have to bake these even higher costs into the price of the tractor, but then it becomes problematic when they tell cash customers that there's no discount for paying cash.

I got the impression from two different Kubota dealers that Kubota incentives are always changing. My salesman said he never knew which incentive would work the best for a customer until he went through the various incentive program options for that particular customer.

Tractor dealers as well as new car dealers don't want you to pay cash because the all get a kickback from the finance company and Kubota is no exception. Cash is no longer king, finance is.

 

[Yander]

If you can wait until the tractor market plumets because of overstock, did you really even need a tractor in the first place? I bought mine last year and paid what I think is a decent price. I love it and even with the break in period have managed to put a 100 hours in it with my projects and at my sons. Which is a lot for me. in about 8 months of what I would call useable time. Now that it is broken in and I can do anything with it, I expect to put another 100 on it this year, at least.

I also still love to look at used tractors and will probably do that until I die. I have an eye on a used Yanmar that I wish the dang thing would sell so it isn't a temptation. It is a great deal, or would seam.

My hope is that the market never gets so bad that they cannot sell tractors at a profit, because that would mean it is really bad out there.

If I was still waiting on the market to do whatever it is going to do, I wouldn't be on my tractor tomorrow. But I will be on it tomorrow : ) The rest of you can be smart and wait while I'm enjoying my life now.