Tractors and Tariffs

[atsah]

Or they will buy a different tractor that has less or no tariff's.. If someone needs a tractor, they will buy one..

 

[RSR]

And let's remember that 5% doesn't sound like much to many, but it can be the breaking point for some. 5% on $20,000.00 is $1,000.00 which can kill a deal for some. Yes, I know they aren't raising the full price of any given machine, but larger machines could go up that much. It can mean buying a different brand that hasn't raised their price (yet), or buying used instead of new. Or not buying at all. If sales start falling, who does that help?

The point of the article seems to be that the entire tractor price does not go up 5%. Only parts (and potentially material) sourced from China will go up that much.

I admittedly know virtually nothing about the costs associated with tractor manufacturing, but my educated guess is that a small percentage of the total tractor cost is comprised of parts, or raw materials, coming from China. There are lots of costs associated with marketing, engineering, overhead, etc. that get rolled into that total cost.

On a $20k tractor, the cost of production to the manufacturer, before they sell it to the dealer is what, maybe $15k (total guess)? If even 1/3 of those costs, which seems really high, are from materials and parts subject to tariffs, you are talking about a roughly 5% increase on $5k, so $250 on the total tractor cost. That's pretty small.

 

[Jstpssng]

There will always be a negative while trying to get out of a ditch I guess.. Some of the positive things I have read that he is working on I never heard come out of the mouth's of the men before him, let alone try to do something about them.. I think he is doing the best he can with what he has..

I don't care for him, yet I do think that he believes he is doing what's best for the country. Sometimes you have to rock the boat to wake people up. Time will tell if it works. We just lost a governor who also rubbed people the wrong way, and it isn't taking very long to undo everything he/we did over the last 8 years to get the state back on an even keel.

 

[atsah]

I don't care for him, yet I do think that he believes he is doing what's best for the country. Sometimes you have to rock the boat to wake people up. Time will tell if it works. We just lost a governor who also rubbed people the wrong way, and it isn't taking very long to undo everything he/we did over the last 8 years to get the state back on an even keel.

It's a tough row to hoe..

 

[big bubba]

do hope the tariffs provide expected results. the working man & woman certainly deserve it. & no doubt, China is derelict in the trade imbalance.

in terms of overall fiscal responsibility, well....please teach your children well when it comes to financial hard times. this administration has thrust the next generation into a nightmare of deficit & debt. apparently the congressional enablers have turned a blind eye to the traditional fiscal responsibility of Conservatives. anyway, maybe in the short term, the tariffs will work. only time will tell.
in the meantime, happy tractoring. & hope your kids will be able to enjoy as ourselves. best regards

2 people you should never trust:
a religious leader who tells you how to vote
a politician who tells you how to pray

 

[Oldoak]

id say on that %5. most people finance and really I doubt they will notice or care about the difference of 1,000$

Could that be the reason so many people today are over their heads in debt?

Whether financing or paying cash, $1,000 is still a $1,000. I, for one, always focus on the bottom line, not on the monthly payments.

 

[Jstpssng]

I always focused on the initial cost, with no real idea what the (tractor, truck, snowmobile,...) was going to cost me in repairs in the near future. Too many times I bought items which should have been headed for the junk yard, it's taken 60 years for me to finally see the light.

 

[Diggin It]

the working man & woman certainly deserve it.

They may not be able to afford it any more.

 

[Industrial Toys]

Not only is it the reason people are up to their eyeballs in debt, but I don't have the slightest doubt that many things cost as much as they do, because no one is expected to pay cash for them. It just boggles my mind, how many things I see that have no price on them, just the bi-weekly payment amount.

 

[Oldoak]

It just boggles my mind, how many things I see that have no price on them, just the bi-weekly payment amount.

Yep, even some of the car ads on television flaunt the "low" monthly payment and never give the actual price of the vehicle.

 

[atsah]

Low monthly payments for ONLY "84 months"..

 

[big bubba]

Low monthly payments for ONLY "84 months"..

to me that's the attraction of the recent corporate/wealthy tax cuts of this admin. sorry, know this steps on some toes, but what about the future of our kids, that's all i'm saying

 

[cathy liebchen]

everyone is glad to pay more to help American jobs. Better than paying more taxes to give free stuff to people unwilling to work

 

[Jstpssng]

Low monthly payments for ONLY "84 months"..

"Lease for only $239 per month" [size=-3] $2695 down at signing. 2 year lease, 1200 miles per year. .75$/mile charge for going over. [/size]

 

[atsah]

People use to save money and now they don’t, when a cell phone costs $1,200 you know something is wrong. The only reason they sell them is because you can pay for it over 24 months otherwise most people couldn’t afford them and would buy something reasonable.

You can’t blame whatever administration is in office for bad decisions people make. People live for today and don’t care about tomorrow.

I read the other day the default rate on new car loans is at an all time high, just people buying things they can’t afford.. Happens all day every day..

 

[Jstpssng]

People use to save money and now they don’t, when a cell phone costs $1,200 you know something is wrong. The only reason they sell them is because you can pay for it over 24 months otherwise most people couldn’t afford them and would buy something reasonable.

You can’t blame whatever administration is in office for bad decisions people make. People live for today and don’t care about tomorrow.

I read the other day the default rate on new car loans is at an all time high, just people buying things they can’t afford.. Happens all day every day..

I just read an article stating that Lyft claims that car ownership is dying. Carpocalypse now: Lyft's founders are right — we're already in the endgame for cars

Unfortunately our government spends money the same way that a lot of people do; and you can't point to any single administration when saying that.

 

[Diggin It]

^^ That may be true in some urban areas, but it simply won't happen ... ever ... in rural areas. We depend too much on our vehicles to go when we need them at a moment's notice and haul whatever load of groceries or supplies we need for a month or more. We don't have the interest in waiting for some one else to show up in a pipsqueak vehicle.

 

[Jstpssng]

^^^^
If you read the article it seems more like wishful thinking, trying to boost their company value. They base their numbers on very recent trends, i.e. citing one month's decline in Britain and implying it as a trend.

There is a faction of people who would like us to all live in apartment buildings, go to gyms for exercise and otherwise spend our lives in complete boredom. Public transportation works well for that type of lifestyle. I'm not sure what you are supposed to do for entertainment; volunteer for soup kitchens all weekend or something.

 

[Diggin It]

Yeah, the people pushing public transit is another sore spot for me. It works well for some that have a reasonably fixed schedule and route. Or for occasional use for some of us.

I lived in a big city with public transit, but my work schedule always varied and I often went other places either before or after work. Many days I went out during the day for errands. I needed my car virtually every single day of my working life. Public transit was not a choice I could make.

 

[Trillium Farm]

everyone is glad to pay more to help American jobs. Better than paying more taxes to give free stuff to people unwilling to work

Absolutely Cathy! Alas the liberal governments have stripped us of our identity and sense of nation and instead of supporting it we support whatever is cheaper even if it undermines our own economic well being. That's what our schools have produced, selfish non thinkers.