New Tractor Sales Are Declining

[rScotty]

If they won't sell it cheaper for cash then it is 0%

It really is that simple.

 

[rScotty]

It really is that simple.

And I understand that digging for discounts and bargaining are fun. I enjoyed bargaining when I was a motorcycle dealer...and I enjoyed customers who bargained. I rarely missed a local used machine auction - more fun than a circus.

I've bought land, houses, vehicles new and used, tractors, implements, tools, animals - you name it. and don't think I've ever not bargained.

But really, if we put aside the fun factor from bargaining we are talking about a tractor here. It is a tool. If you have a use for a tool that is going to be used as much as a tractor is, it makes sense to look at other things than price.

For one thing, tractors just aren't that expensive compared to other large investments. And like any tool, after a few years of use what you appreciate is how valuable it is for your life. A few percent one way or the other in the cost is hard to even remember. It just doesn't make a difference. What you notice are the features you got or didn't.
rScotty

 

[ArlyA]

Here is something to ponder concerning sales. If your company can sell 1000 somethings, you can operate your factory for the whole year. If it looks like sales with be 800, you'll need to shut down for 2 months or switch to building some another product. Both of these options are very costly but if we swtich to offering 0% percent financing, you might sell those 200 units and keep the factory running at 100%. We got 0% on our truck back in 2019 because, I'd guess Ford thought truck sales were rather flat and they were reintroducing a dated product. To hedge there bets and keep the factory operating, they offer an incentive for new buyers like us. Kubota might offering zero percent because they can boost there north American sales by 10% and keep this or that factory at 100% and profitable.

 

[Hay Dude]

Here is something to ponder concerning sales. If your company can sell 1000 somethings, you can operate your factory for the whole year. If it looks like sales with be 800, you'll need to shut down for 2 months or switch to building some another product. Both of these options are very costly but if we swtich to offering 0% percent financing, you might sell those 200 units and keep the factory running at 100%. We got 0% on our truck back in 2019 because, I'd guess Ford thought truck sales were rather flat and they were reintroducing a dated product. To hedge there bets and keep the factory operating, they offer an incentive for new buyers like us. Kubota might offering zero percent because they can boost there north American sales by 10% and keep this or that factory at 100% and profitable.

Yeah sounds good, but if you are offering 0% virtually all year for like the last 25 years, something’s afoot.
It means the “0%” financing is baked into the cost of each unit.
What I think Kubota has done is incrementally raised their tractor prices to the point where “0%” game is just an every day part of doing business.
They KNOW people crave 0% financing and making payments with “no interest” because it validates their intelligence that they bought a tractor and made Kubota eat the interest.
It’s a psychology game and they should be congratulated for building a business with it.

I still like Kubota, just like I was a big Ford guy, but once I saw what other manufacturers offered 10+ years ago, it opened my eyes and helped me realize there’s happiness outside of Ford with their “#1 in sales” marketing strategy and from Kubota with their “0% financing” marketing strategy.

 

[CloverKnollFarms]

It’s more likely that the finance charge is built into each unit.

 

[Hay Dude]

It’s more likely that the finance charge is built into each unit.

Exactly
And if that’s their marketing strategy and it works, more power to them.
But I maintain there’s no “free” financing. It‘s paid for in the sales price.

 

[jyoutz]

If 0% is baked into the price, they are still lower priced than tractors with green paint and comparably priced to Massey.

 

[scootr]

True true. Just one more reason to buy what you can afford to pay for be done with the financial end.
I was told never to tell the car salesman you were wanting the best cash price. A better price is available if they think you will finance right up until you pull out the check book

 

[5030]

Whitmer voter. Figures!!!!

Dead wrong, Dixon though I'd preferred that James Craig was on the ballot

 

[Hay Dude]

If 0% is baked into the price, they are still lower priced than tractors with green paint and comparably priced to Massey.

Yeah, they are, but the bigger they get, the more “green paint” and Massey becomes an advantage, too.
As an owner of both, I can tell you a 125-150+ Massey is built more for the rigors of farming than Kubota.