New Tractor Sales Are Declining

[ovrszd]

Jeeps or Samurai do not do what a SxS can do. If I just want to get around on my property, my Outback can do that. The SxS has a dump bed AND can pull a trailer. Sure, I think they are overpriced, but I also understand supply and demand.

As for tractor demand, you still see some people purchasing because they see rates rising and are fearful that will continue (rightly so). There is also pent up demand due to previous inventory problems. On the flip side, rates have already stopped others from considering a tractor (especially where it is more want than need). Other think prices will fall as the recession builds and are waiting to buy until that happens. In our case, we will soon have a need and will make the best deal we can at that time.

Ummmm,,,, what can a SxS do that a Jeep or Sami can't?

When you answer that I'll list the things a Jeep or Sami can do that a SxS can't. Then we'll compare cost. This will be entertaining.

 

[jyoutz]

Ummmm,,,, what can a SxS do that a Jeep or Sami can't?

When you answer that I'll list the things a Jeep or Sami can do that a SxS can't. Then we'll compare cost. This will be entertaining.

As a forester, I have spent the past 35+ years driving in the woods on rough mountain roads, skid trails, and off road for wildland fires. They are different machines for different uses. Daily I drive Jeeps or 4x4 trucks, but for driving on old washed out roads or off road, we bring a SxS. They can go places that would tear up a Jeep or truck and they have a much lighter foot print on the land. And they are also excellent for deer or elk retrieval when the animal is shot in some really rough county.

 

[Torvy]

Ummmm,,,, what can a SxS do that a Jeep or Sami can't?

When you answer that I'll list the things a Jeep or Sami can do that a SxS can't. Then we'll compare cost. This will be entertaining.

It doesn't really matter what a Jeep can do that a SxS cannot do. I have a truck for those tasks. The SxS has a dump bed. SxS is also 6" shorter and 12" narrower than the smallest jeep. That means I can get it into places the jeep will not fit. The bed is also bigger than the smallest jeep. For me, right tool for the job. I don't need to go on the road, again, I have other tools for that job. Prices are bad, but that is because of demand.

 

[Cycledude]

This is about the third straight quarter that tractor sales have been on the decline. As mentioned last year, I believed the huge surge in compact tractor sales was tied to the overheated housing market and once that popped we would see demand sharply fall. My father has also reported seeing Kubota commercials running on television a lot lately which is very unusual given the time of year and where we are located in the country. My best advice to anyone considering the purchase of a new tractor is to sit and wait it out. If this trend continues we could see some real bargain buys coming next year.

Here is a video from a guy that has been covering this since the start of the year. This most recent video is his best to date.

Tractor Sales may be declining in your area but they sure are not declining in my area.

 

[ovrszd]

As a forester, I have spent the past 35+ years driving in the woods on rough mountain roads, skid trails, and off road for wildland fires. They are different machines for different uses. Daily I drive Jeeps or 4x4 trucks, but for driving on old washed out roads or off road, we bring a SxS. They can go places that would tear up a Jeep or truck and they have a much lighter foot print on the land. And they are also excellent for deer or elk retrieval when the animal is shot in some really rough county.

I've vacationed in the Rocky Mountain high country of Colorado for 35+ years. SxS are the worst enviromental thing that has happened to the high country. Extremely hard on trails because they are always spinning and tearing up the fine material on those trails which causes severe errosion. This Summer I was on a couple trails that I hadn't been on for 8 years. The damage was horrible. To imply they are better for the environment is simply wrong.

A SxS will make the trip quicker than a Jeep or Sami. But it required a heavy duty pickup and a trailer to get there. At the end of the day this combination is not environmentally friendly. Handy, but not better.

 

[Blue Mule]

This is about the third straight quarter that tractor sales have been on the decline. As mentioned last year, I believed the huge surge in compact tractor sales was tied to the overheated housing market and once that popped we would see demand sharply fall. My father has also reported seeing Kubota commercials running on television a lot lately which is very unusual given the time of year and where we are located in the country. My best advice to anyone considering the purchase of a new tractor is to sit and wait it out. If this trend continues we could see some real bargain buys coming next year.

Here is a video from a guy that has been covering this since the start of the year. This most recent video is his best to date.

Current inflation is grossly understated in the media. I'm 44 and it's the worst in my lifetime. My grandfather is 85 and says he's never seen things in general as bad as they are today.

So, if you're deciding between gasoline, groceries, and daily needs versus buying a new tractor, chances are the tractor is going to lose that decision. It makes perfect sense to me. Families are getting to the point where they are picking and choosing where the money goes.

I personally think tractor sales, home sales, vehicle sales, anything that typically gets financed will not recover in 2023. And probably not in 2024. It's going to be a LONG time before we get back to the 2016-2020 land of milk and honey.

 

[5030]

Not sure if that is true or not.

Arcelar sold their stuff to Cleveland cliffs

Then you have nucor, SDI and us steel

It's Accelor Mittal and it's Indian (as in India) held btw. Nucor is also majority held by offshore 'silent partners' and SDI isn't a taconite (virgin steel maker), they are a remelt mill using mostly scrap from Omni Source which they own. Not sure about US other than they have really downsized in the past decade. Hard for domestic producers to compete with offshore owned mills.

Spent a lot of time at SDI before I retired. The outfit I retired from was a major investor in SDI. In fact one of my long time friends is still the plant manager of a related business on SDI's property in Butler, Indiana.

 

[5030]

Prices are bad, but that is because of demand.

No, prices are bad because of inflation and the devalued dollar.

 

[rScotty]

Prices are bad, but that is because of demand.

Doesn't it make more sense to say that prices are high rather than bad?

 

[scootr]

Based upon being a wage earner through 4 recessions I would say this is the worst situation I remember. The 1973 oil embargo was bad but it had a foreign cause and the consumer bounced back rather quickly. The consumer is the most important key to any economic recovery. The consumer fuels the machine. After the high interest rates and weak economy of the late 80s the consumer confidence was slow to emerge but it did and the economy flourished until the S&L loan crash of 2008. Right now the confident consumer has his head where the sun won't shine. We are in for a good long spell of hard times = higher prices, higher interest rates, and diminished buying power. Even when it starts to reverse (as it does) the confidence will not immediately be there to spur big ticket purchase decisions. I read this recession will take as long as 10 years to fully recover.
I think right now if you got money that you can do without and you want that big ticket item - go ahead and spend it.
Otherwise I see people pulling in spending on all items not just tractors. Appliances, tools, tech, clothing, you name it.
I think right now you should put off any purchases that require borrowing money. Fix the old car and wait. If I'm right you will be glad you did. If I'm wrong you can still buy that shiny thing later.