My MX 5200 gained $13k in msrp since I purchased 3yrs ago

[MechanicalGuy]

As yours appreciates in value, so do mine (at the same rate I might add), mine may be more as they are both pre 4 units. As much as none are built anymore, that makes mine even more valuable should I ever decide to sell them. Getting harder and harder to find pre 4 units in good condition today and both of mine get excellent care.

I was not aware of the pre 4 status. I assume u mean emissions. Tier 4.

 

[RSR]

Considering the value of the dollar is dropping like a rock, you aren't any farther ahead. If anything you are going backwards.

Huh?!?

The dollar is the strongest it's been in 10+ years. To the point that it's hurting the global economy and discussions are ongoing about how to devalue it.

USD value - Google Search

 

[scootr]

The dollar may be relatively strong internationally but inflation which is at a 40 yr high deflates all currency.

 

[RSR]

Sure, inflation plays a roll. But the comment "the dollar is dropping like a rock" is not correct. It is the exact opposite. Relative to the Korean Won or Japanese Yen, the dollar is 40-50% higher than it was 1 year, or 3 years ago. (Look at the graphs in the link I posted. It's staggering.)

 

[MechanicalGuy]

Sure, inflation plays a roll. But the comment "the dollar is dropping like a rock" is not correct. It is the exact opposite. Relative to the Korean Won or Japanese Yen, the dollar is 40-50% higher than it was 1 year, or 3 years ago. (Look at the graphs in the link I posted. It's staggering.)

It's a fact that it's purchase power for domestic goods is at a low. When it takes $42k to buy what it took $28k just three years ago, it has dropped in purchase power. Relative to other currencies may be a different story.

The car I bought last year in March is $5k more today. The truck I bought in January of this year is $5k more today. The trailer I bought last month was 8k less one year ago. Gasoline that was $1.39 two years ago is $3.40+ today.

He absolutely is correct in that the purchase power of a dollar has dropped.

 

[RSR]

It's a fact that it's purchase power for domestic goods is at a low. When it takes $42k to buy what it took $28k just three years ago, it has dropped in purchase power. Relative to other currencies may be a different story.

The car I bought last year in March is $5k more today. The truck I bought in January of this year is $5k more today. The trailer I bought last month was 8k less one year ago. Gasoline that was $1.39 two years ago is $3.40+ today.

He absolutely is correct in that the purchase power of a dollar has dropped.

I'm not arguing prices, and inflation have gone up (about 10% year-over-year).

The statement wasn't that the purchasing power of the dollar was going down. It was that the value of a dollar was going down. Those are two different things, with the value typically assessed on the global market relative to other currencies. As opposed to purchasing power, which is what you're talking about.

The "value" of the dollar, as measured relative to other currencies, is at a 10+ year high.

That means it's a lot cheaper to import the same foreign goods right now, then it was a year ago.

 

[scootr]

I'm not arguing prices, and inflation have gone up (about 10% year-over-year).

The statement wasn't that the purchasing power of the dollar was going down. It was that the value of a dollar was going down. Those are two different things, with the value typically assessed on the global market relative to other currencies. As opposed to purchasing power, which is what you're talking about.

The "value" of the dollar, as measured relative to other currencies, is at a 10+ year high.

That means it's a lot cheaper to import the same foreign goods right now, then it was a year ago.

Whoever thinks its cheaper to import something now hasn't imported a thing in the last 2 years. Prices of goods, and freight have skyrocketed!

 

[MechanicalGuy]

I'm not arguing prices, and inflation have gone up (about 10% year-over-year).

The statement wasn't that the purchasing power of the dollar was going down. It was that the value of a dollar was going down. Those are two different things, with the value typically assessed on the global market relative to other currencies. As opposed to purchasing power, which is what you're talking about.

The "value" of the dollar, as measured relative to other currencies, is at a 10+ year high.

That means it's a lot cheaper to import the same foreign goods right now, then it was a year ago.

No one, and I mean no one, is walking around talking about their dollar being "up" or "high" or being worth a lot. I think 99.8% of anyone reading his post absolutely understands what he was getting at, even if there was a slight technicality regarding the semantics of his words.

When I talk about "value" of my money, as do most common folk, they are referring to purchase power. That's the thing that makes common sense. Who cares about the ten year correlation to the yen or Euro? Does that put food on the table?

I mean, I even doubt that you believe the dollar isn't dropping like a rock in regards to what it was just a few years ago.

Tell me of the below, what doesn't cost significantly more today (in dollars) than it did a year ago, two years ago, or ten years ago:

Milk
Eggs
Cheese
Automobiles
Tractors
Bullets
Beer
Guns
Steel
Gasoline
Diesel

Who the hell cares about the dollar to the euro when cheese has gone from $6 a bar to $18 a bar?

Every single item on that list has gone up significantly. As in "it takes more dollars to buy than it did in years past".

 

[tradosaurus]

I believe I paid 28k and one the website now it says msrp of $42k with loader. My $28k was actually a lil below msrp as I got a half decent deal at the time. It was the only dealership willing to deal with me. I remember the transaction well.

But you also only buy an mx 5400 or 6000 now...no more is the 5200. So there's that.

I paid $30K in March of 2021 for my MX5400 with loader after using the 20% equine discount.

 

[RSR]

No one, and I mean no one, is walking around talking about their dollar being "up" or "high" or being worth a lot. I think 99.8% of anyone reading his post absolutely understands what he was getting at, even if there was a slight technicality regarding the semantics of his words.

When I talk about "value" of my money, as do most common folk, they are referring to purchase power. That's the thing that makes common sense. Who cares about the ten year correlation to the yen or Euro? Does that put food on the table?

I mean, I even doubt that you believe the dollar isn't dropping like a rock in regards to what it was just a few years ago.

Tell me of the below, what doesn't cost significantly more today (in dollars) than it did a year ago, two years ago, or ten years ago:

Milk
Eggs
Cheese
Automobiles
Tractors
Bullets
Beer
Guns
Steel
Gasoline
Diesel

Who the hell cares about the dollar to the euro when cheese has gone from $6 a bar to $18 a bar?

Every single item on that list has gone up significantly. As in "it takes more dollars to buy than it did in years past".

Why I originally posted was because I didn't initially think he was referring to purchasing power, which is what led to my initial reaction of, huh, that doesn't make sense.

To some extent, it is semantics. However, as an engineer I believe details matter. One of my favorite examples is there is a difference between,

"Let's eat grandma", and "Let's eat, grandma."

Subtle, but important.

Regarding your list, yes, domestically produced items are going up. Again, I'm not arguing they aren't (go back and read my posts carefully). However, for imported items (like tractors) you may start seeing some changes. Again, take the time and go look at how the value of the dollar to the Yen and Won (where most tractors are manufactured) has changed in the last 6 months. A company importing tractors from Japan or Korea, and selling in the US has had their ability to purchase foreign goods from those nations increase by about 30% over the last 6 months. That is a fact. Whether or not they pass those savings onto the customer, or if that favorable value of the dollar persists long enough to make a measurable impact on long term pricing, remains to be seen.

These market forces are precisely why Chinese crap is so cheap. China purposefully devalues their currency, so that their imports are economically attractive.

The fact of the matter is we live in a global economy, and prices are determined by a lot more than just the inflation we are experiencing in the US.