New Tractor Sales Are Declining

[scootr]

Funny….I’m seeing just the opposite on larger tractors. VERY little used inventory. I think Covid years (20-21) resulted in a LOT of buying.
Shelves are pretty bare in my buying category.

I think it’s because interest rates are at a 15 year high and people with existing tractors are holding onto them. They aren’t trading in on newer or new ones until rates come down to reasonable levels again.

Could be new prices are so high for under 50hp tractors that buyers are put off. Couple that with high interest and you got reason enough for some degree of a new sales slow down. Heck the hobby farm costs too much too. I think buyers feel pricing will go down sooner or later. So why not put off that big purchase and see. I think alot people staying put - holding their cards right now.
Things I'm buying now are things I can pay cash for.

 

[Hay Dude]

Could be new prices are so high for under 50hp tractors that buyers are put off. Couple that with high interest and you got reason enough for some degree of a new sales slow down. Heck the hobby farm costs too much too. I think buyers feel pricing will go down sooner or later. So why not put off that big purchase and see. I think alot people staying put - holding their cards right now.

The hobby farm costs too much because all the citiots came out and bought them. That raised demand and prices. Tractor dealers know this and raised prices praying on people’s fears of leaving cities and having their own little farm.

 

[scootr]

The hobby farm costs too much because all the citiots came out and bought them. That raised demand and prices. Tractor dealers know this and raised prices praying on people’s fears of leaving cities and having their own little farm.

Wonder how long it will be before all those dreamers flood the market with their failed farming adventures... I remember reading something about people (NYers) flocking to TN AR KY in 2020 and selling 1 yr later when reality hit.

 

[Cahaba Valley Farm]

Funny….I’m seeing just the opposite on larger tractors. VERY little used inventory. I think Covid years (20-21) resulted in a LOT of buying.
Shelves are pretty bare in my buying category.

I think it’s because interest rates are at a 15 year high and people with existing tractors are holding onto them. They aren’t trading in on newer or new ones until rates come down to reasonable levels again.

With where interest rates are now I can't imagine anyone looking at used anything.

 

[scootr]

Private cash sales is where the market is at right now.

 

[Cahaba Valley Farm]

Private cash sales is where the market is at right now.

I haven't seen a drop in prices to support that idea yet. Last time I checked used was almost as much as new.

 

[scootr]

I haven't seen in drop in prices to support that idea yet. Last time I checked used was almost as much as new.

There are fewer buyers of everything due to the economic climate. Purse strings are tightening up which will bring the prices down, that economics 101. It will happen slower or faster in certain industries and regions. But it is coming

 

[5030]

I doubt dept free farming even exists. Very few people living dept free too. In fact records show the average American is carrying more dept today than anytime in the last 10 yrs

Not me, basically all paid for.

 

[Yander]

I suspect that John Deere and Kubota will let the Mothership cruise along, but I wonder what the up and comers (Kioti, LS, Mahindra, etc.) do. They liked gaining market share during the pandemic, and are going to want to continue to build their brand. Additionally, they are not going to want to see their dealerships close, and have to rebuild a dealer network. Finally, they are going to want to keep their factories busy.

I don't know what strategies they might want to pursue, but I'll bet there are lots of discussions about how to make lemonade out of all this

I could see the Kioti, LS, Mahindra doing better in an economic downturn because of their price point.

Whatever some may feel about John Deere or Kubota, just as many others feel they are overpriced. If I had to have a tractor and I was already struggling financially I wouldn't be buying a Kubota or a John Deere.

 

[Yander]

I know this threat is focused mostly on tractors and their prices but something that, affects that that is happening it's the food prices.

Obviously food is not a discretionary item and yet I don't think we're at the worst of our food inflation issue.

I'm sure your wives or whomever does the grocery shopping in your house can tell you every time they walk in and walk out they have less groceries and more money out of their pocket.

It is a fact that will affect discretionary spending of all types tractors, cars etc.