Tractor lots are full

[Blue Mule]

The local Kubota dealer is stacked front to back and top to bottom with tractors now. And considering that a small compact with FEL is pushing $35k now I'd say they'll continue to be stacked up for a long time.

 

[ddbackhoe]

Looks like the loading docks in Ca. are finally catching back up. Tends to make one wonder, are these the 2021-2022 that no one could get or 2022-2023?

 

[bdhsfz6]

My local Kubota dealership has more stock now than I have ever seen before. One of the salesmen told be candidly that they overestimated the post pandemic demand. That, plus the large price increase has depressed the local market.

 

[plastikosmd]

Not surprised

Orange dealer that I drive by has more than I have seen in 15 years.

Gonna be tough

 

[Tinhack]

It's going to get worse. 20 "large" company stores are at or near bankruptcy. Who can afford the 25+% inflation markup coming out of COVID and the continuing 7-10% monthly.

Yea, yea, I know. The math wizards keep saying 3% but that doesn't include the real necessities or even real prices.

 

[2manyrocks]

Just happened to watch a YT channel discussing Mac computer sales yesterday. They said new Mac sales fell by 25% month over month following a prior month decline and attributed the decline to people having bought a lot of computers during the stay home period, but now they've gone back to work, don't see the need to upgrade the computers they bought so recently, and inflation is eating up their spending power. The video even used the "recession" word. So some Macs are on sale today at Black Friday prices.

Been watching another house listing in Nashville. Was listed for $550k last October, 22. They are now at $475k. I'd say active listings are about double what they were a year ago. Prices still way too high, though compared to pre-covid levels.

Taiwan handled covid far differently than the US right from the onset in January, 2020. Despite a population density greater than New York City, they never had covid rates like the US, didn't shut down, didn't hand out money, and their inflation rate is something like 2%. USA has been a case study in what not to do.

 

[Tinhack]

Don't forget the $20/hr coffee makers and servers that got a forced raise. Starbucks was on the list too. I wonder why.

 

[scootr]

I read that car dealers were actually starting to sell at below MSRP again.
Soon we will all have less spending power and prices will drop to get what little money is available causing the dollar to regain value. Imagine that...supply and demand working as it should.
Hang in there. Delay those major purchases when you can.

 

[5030]

...so I was up at my Kubota dealer on Tuesday (paying for my stump grinder in full) which I said I'd do as I don't want them having to floor plan it, I don't play that way and the owner and I were talking and again he told me he wants me to come work for him. He wants me to deliver new Kubota products to customers, something he does presently and having me do that will allow him to stay in the dealership and do what he does best, sell Kubota's. Sells a pile of them as well. Used and new.

When I retired, I kept my Class A CDL and he's the only one at the dealership that also has one so he wants me there to drive the rollback and deliver Kubota's. Sounds like fun. besides, I'll get to play with all the new stuff.

I'd only do it part time, I have way more than enough stuff on the fire as is.

 

[5030]

I read that car dealers were actually starting to sell at below MSRP again.
Soon we will all have less spending power and prices will drop to get what little money is available causing the dollar to regain value. Imagine that...supply and demand working as it should.
Hang in there. Delay those major purchases when you can.

I don't know about all that. The FRN has turned into Fiat currency under this administration and I don't see that turning around until they are gone from DC.

 

[scootr]

Monetary Digest, Quoted 20 yrs ago

Since August 15, 1971, when President Richard Nixon closed the gold window, the entire world has been on a fiat paper money system. No country’s paper money is redeemable in either gold or silver. History shows that whenever a country moves to a fiat paper currency, eventually politicians print that currency until it becomes worthless, resulting in hyperinflation, which destroys that nation’s economy and impoverishes people who are ignorant of the dangers of paper money.

The consequences are horrible enough when countries go on paper money systems, but when the whole world goes on paper money, we do not know how bad things will get. Truly, we have been in uncharted waters for the last thirty years, and over the last few years, one crisis after another has risen, suggesting that the world’s paper monetary system has been stretched to its limits.

With each crisis, the politicians print more paper money, laying the foundation for future crises. In the days following the terrorist attack on the World Trade Center and the Pentagon, the Federal Reserve “increased liquidity” by $200 billion. And, immediately before the reopening of the New York Stock Exchange the following Monday, the Fed lowered interest rates another half-point. On October 2, the Fed dropped rates still another half-point, the ninth rate cut this year. Most everyone is aware of the Fed’s rate cuts for they are highly publicized, but “liquidity” increases are less known because the media do not make a big deal of them. Money supply indicators measure the amount of money in the system.

 

[Paystar]

They aren't full enough because prices are still ridiculous around here.

 

[2manyrocks]

Probably the classic inflation price ratchet will keep tractor prices elevated because the tractor mfgs all have to buy raw materials whose prices have gone up and likely aren't coming down. It's not like a house where someone paid $250k ten years ago and has room to negotiate on price. But there is coming a time when this market is going to turn against the dealers.

 

[5030]

One thing I will say and that is I was told many purchasers are still taking advantage of the Kubota 0 percent financing, which is why my dealership is moving tractors like they are. I know there are hidden costs involved, fully aware of that but I wonder how many new purchasers are aware of that? Not many I presume.

 

[5030]

Probably the classic inflation price ratchet will keep tractor prices elevated because the tractor mfgs all have to buy raw materials whose prices have gone up and likely aren't coming down. It's not like a house where someone paid $250k ten years ago and has room to negotiate on price. But there is coming a time when this market is going to turn against the dealers.

Not just tractor dealers but any and all retailers, grocery stores included. It's already biting new car dealers in the butt, especially those ones who were price gouging. Have a Toyota dealer up town that was doing that and the word is out on them. Not selling squat now. I wonder how long they will survive, I'm watching patiently for the liquidation sale.

 

[lman]

I read that car dealers were actually starting to sell at below MSRP again.
Soon we will all have less spending power and prices will drop to get what little money is available causing the dollar to regain value. Imagine that...supply and demand working as it should.
Hang in there. Delay those major purchases when you can.

Supply and demand doesn't work so good when money is printed with no regard for increasing the money supply that decreases the value of a dollar and results in our current inflation.

 

[5030]

EXACTLY

 

[Tinhack]

I'm watching patiently for the liquidation sale.

Even so, take control of the vehicle when you pay. There's a lot of dealers going face down with customer's money in their pocket and the vehicle still in the lot. Don't fall for the paperwork or make-ready delay. Take the paperwork and vehicle right then and there. Otherwise, walk away because you're the last one in line if it comes to distributing failed dealer assets. Even a lawyer can't help.

 

[jyoutz]

Monetary Digest, Quoted 20 yrs ago

Since August 15, 1971, when President Richard Nixon closed the gold window, the entire world has been on a fiat paper money system. No country’s paper money is redeemable in either gold or silver. History shows that whenever a country moves to a fiat paper currency, eventually politicians print that currency until it becomes worthless, resulting in hyperinflation, which destroys that nation’s economy and impoverishes people who are ignorant of the dangers of paper money.

The consequences are horrible enough when countries go on paper money systems, but when the whole world goes on paper money, we do not know how bad things will get. Truly, we have been in uncharted waters for the last thirty years, and over the last few years, one crisis after another has risen, suggesting that the world’s paper monetary system has been stretched to its limits.

With each crisis, the politicians print more paper money, laying the foundation for future crises. In the days following the terrorist attack on the World Trade Center and the Pentagon, the Federal Reserve “increased liquidity” by $200 billion. And, immediately before the reopening of the New York Stock Exchange the following Monday, the Fed lowered interest rates another half-point. On October 2, the Fed dropped rates still another half-point, the ninth rate cut this year. Most everyone is aware of the Fed’s rate cuts for they are highly publicized, but “liquidity” increases are less known because the media do not make a big deal of them. Money supply indicators measure the amount of money in the system.

I have to question what is gold as a backer to money? It’s a metal that really has no use or value other than what society places on it. It really has no intrinsic value.

 

[scootr]

I have to question what is gold as a backer to money? It’s a metal that really has no use or value other than what society places on it. It really has no intrinsic value.

How would we trade if not for an agreed upon unit of value? What do you suggest we use instead of the century old gold value?
What was used as money before coins?

Native copper, meteorites or native iron, obsidian, amber, beads, copper, gold, silver and lead ingots have variously served as currency. People even used live animals such as cows until relatively recent times as a form of currency.
How'd you like to take a cow to the grocery store and bargain for some eggs and cereal?