2manyrocks
Super Member
- Joined
- Jul 28, 2007
- Messages
- 7,249
Except that inflation is eating up purchasing power much faster than interest rates are rising on CDs.
What good is that when the current rate of inflation is 2 times that? You are still going backwards no matter what.A local credit union ad all week.
11 month CD at 3.5%
I have no idea what will happen with tractor buying over the next couple of years, but what I have learned is that you can get a much better deal once "tractor season" is over and before "tractor season" begins again in the Spring.
Last year, I noticed that prices where starting to jump on used tractors, which is what I was looking at. Reading posts on here about other brands, and deals that where being offered, convinced me to look at buying new. I was able to lock in my price for a brand new Massey Ferguson last November that was what they where advertising as a "Sales" price the beginning of the year. That with zero percent interest convince me to take the plunge and sign the papers. My tractor arrived in June. I waited 7 months for it, and ended up with a 2022 model instead of a 2021, which turned out to be very fortunate for me since they upgraded a few things, like the AC. By the time I got my tractor, the "Sales" price that I was seeing advertised in Missouri and Mississippi was $9,000 more then my price.
I haven't kept up with pricing, but I think there was a spike that may or may not continue. I haven't seen any indication that materials or labor is declining. If I was buying now, I don't think I would be comfortable paying that much money for a new tractor, but when I started looking, I wasn't comfortable with paying $55,000 for a tractor either. I'm still not comfortable with that amount, but it is what it is, and sometimes you have to go outside your comfort zone to get what you want.
Since buying the tractor, I've been amazed at how much more I can get done. My other tractor is half the size of this one and probably a quarter of the speed at getting my place mowed. It's really night and day different. Pay now for what you can use now is probably the most important part of tractor buying. With Winter coming, it's probably the best time to buy!!!
Ummm, then you had an inexpensive year...Getting oneself out of their “comfort zone” is the BEST way to improve. We get into routines and stop trying to do new things, or we don’t do things with faster stronger equipment as we evolve.
I had a VERY expensive year. I spent a lot on upgrades and fix ups, tires, repairs, you name it. It seemed like it would be a down year with the outrageous fuel expenses and parts expenses. I still made more money than previous years because I was able to do more in less time with faster, stronger equipment.
No, I had an expensive year. Of course I’m referring to expenses that were 2-3 times my previous worst year of expenses. Separately, I had acquired more farmland and more customers, plus was able to do more work by replacing slow, small equipment with faster equipment that can handle more work load. Was able to reduce the amount of man hour help I needed and replaced it with mechanization, too.Ummm, then you had an inexpensive year...
I guess I will just keep my cash in the mattress?What good is that when the current rate of inflation is 2 times that? You are still going backwards no matter what.
Shoot, now's the time to borrow $ in the long term given that interest rates haven't caught up with inflation. For my new tractor a local credit union is giving me the full purchase price for 84 months at 4.5%. With the official inflation rate at 8%+ and shadowstats inflation at double that....well that's basically free money.What good is that when the current rate of inflation is 2 times that? You are still going backwards no matter what.
Well that depends on how much money you're talking aboutOpen to better suggestions on where to keep essential cash for a home bound 88 year old?