Is Now A good Time To Buy A Tractor

[Vicinalvictor]

With everything going on in the world, I don't know if now, is a good time to buy a tractor or not. John Deere dealership is telling me a 7% increase on tractor prices next year and low inventory. I know one thing, nothing is cheap, 25 hp. 3025e w/loader is just under $30,000 here in Michigan. Your thoughts appreciated.

 

[Bruce from Can.]

The day you can buy a tractor, and have a use for that tractor which will cover off both the capital cost associated with ownership, as well as fuel and maintenance. That is the day to buy a tractor. Doesnt matter new or used. You have to be able to afford the purchase, regardless what the price is. Older tractors I purchased and have used for many years, most required some work along the way, but I have kept them maintained. These tractors have served me well and will still bring as much as I paid for them today.

 

[Vicinalvictor]

I just sent the Salesman from Deere an e-mail. No sale! I cannot justify buying a 25 hp. tractor today for more money than a 50 hp. tractor cost new five years ago. Trade in is a screw deal.

 

[caterpillar guy]

I think when the public finds out they are not rich anymore there will be opportunities to buy pretty nice tractors for a lot less than they paid for them new. You will then get a reasonably priced tractor. They will eat the inflated price. things are about to make a big change for the worse as this inflation drives the market shortly. It has already been doing that for the last year or so now but we're in for a much worse scenario coming.

 

[rustred]

good for you! them salesmen are just there to sell sell. my nieghbour bought a new j. d. yard tractor about 32 h. p. he said the saleman told him it would do what he wanted to do. he came from the city and no clue what he needed. when he showed me the tractor i laughed and said i would have it back on their doorstep fast. i said it wont lift a round bale, he said they told me it would, ha ha. so in the meantime he went and bought an old case 1030 with a front end loader. i said that will lift your bales. i made his hay for him this summer too.

 

[Ted in NE-OH]

If you have to finance don't buy now. The Fed will keep raising the interest rates. They say a recession is coming if so there may be a glut of tractors on the market in 6 to 9 months and if you can pay cash there may be real deals. At 25 hp it doesn't sound like a work tractor but sounds like a home owner type so ROI may not be important.

 

[DoubleR]

I have been trading my small Kubota loader tractor in about every 8-10 years. I just tried to trade my 2012 in on a new one. I got some pretty fair prices, I thought. on a deal but when it came time to close on it the price for new and trade in had changed considerably. Not to mention nobody knew when they could even get the model I wanted. I'll be keeping the one I got for a while and at my age may be the last one.

The new price on the 2018 Kubota I brought is up about 25 percent from what it was in 2018.

 

[E.B. Haymakin']

after reading the thread you've already made your decision. I think now is a terrible time to take on any debt. And just like what has been said about trade ins-you lose. Unless you can expense it out for business I wouldn't do it.

 

[Bruce(OR)]

I just took a trip into the dealer looking for an entertainment factor at a small machine.
Here's the part I figured out.
Wait for a price drop when the 'recession' bites the MFG.
NOW if your paying attention, a slightly used machine might not be far off.
A years plus worth of free finance and a decent economy and people were buying machines left and right.
Daddy loses the job and mommy say's the machine goes.

 

[paul]

No, but yesterday was.......

I bought used, and paid cash, so it works out.

Prices are up, but if you are in the farm economy grain prices have been good, so it works out.

The issue for farm equipment is we are in harvest season now, so farmers are busy. Come thanksgiving time a lot of harvest winds down, and farmers meet with their tax advisor. Tax advisor is going to say you had a pretty good year, you can pay xx,xxx taxes, or buy something and pay x,xxx taxes. And there wont be anything left to buy by December.

So if you can afford something cash and want/ need it this year, sooner is going to be better than later to buy this year.

As others say, I think the economy is in for tough times, and maybe a year from now will be very different, with lots of stuff for sale and lower prices on it. Maybe.

Paul

 

[Vicinalvictor]

I farm but was looking at a smaller yard tractor, but these tractor salesmen are getting like car salesmen with their add-ons and tactics. There is not much incentive to buy new from a Dealership anymore unless you need the tax write off, which I don't.....

 

[Vicinalvictor]

I agree, but the Salesman thinks now is the perfect time to buy, because prices for next year are going up around 7 percent, not to mention short supplies. I asked about zero turn mowers, he said they didn't have any, very short supplies and not sure if/when they could get a specific model. He said it could take several months.

 

[Bill(Wis)]

Here's a nice 72 year old WD that can be had for $5500. (;>))

 

[Traditional Farmer]

Sales people whether its tractors,real estate,cars,etc ALWAYS say NOW is the time to buy their product and can give you a list of reasons,nature of the beast.Vehicle repos are up and tractors like you are looking at with stretched out payments can't be too far behind.Bought my first gooseneck trailer back in 1980 from a bank that repoed a dealers inventory for about half what his asking price was a year before.To me things are shaping up to go about the same way now as they did then.

 

[paul]

I also got 2 implement tires bought and mounted yesterday, one was bigger (400bu wagon), one was regular size. Fella first thought he couldnt get the smaller one, as Firestone shut that line down for over a year, but he misread the size. Called me back and said he was actually out of the Firestone brand after all, but had a Regency yet if I wanted that. The 2 tires with mounting were $900.

Stuff is a little nuts.

Lot of my old stuff is on old pickup tires, but even those are hard to find now that newer trucks are on 17 and so rims.........

Paul

 

[Geo-TH,In]

Your thoughts appreciated.
Talk to your CPA.
You may want to buy it before the end of the year and
take it at a business expense.
I'm not a CPA. I think the rules have changed and you will get
more off your taxes.
Talk to your CPA about how it will help you out on your taxes.

 

[d13series1]

I was looking for a new tractor to replace the Case 430, needed power steering, hydrostat for lower tilling speed, and loader since my old Massey is out of condition. Needed 40HP or so, no loader. Most dealers are not showing current inventory online. Went to the nearest Kubota dealership, did not have what I wanted, but had similar, little older model or one with cab, gave me prices above Kubota list. Says dealers are not swapping tractors so could not get exactly what I wanted.

Found what I wanted online, in inventory, 2 hour drive, called, was given price in line with list. Drove up, liked it, added the options I wanted, paid half cash. That was Wednesday. Will be delivered today. Had finance options including 0% for 48 months.

Dealer says they will know the allocation for next year as of Oct. 6.

Bought it because I needed it and can afford it. But had to do a lot more legwork than I was expecting. Key was to find a dealer who worked with me. Even if his dog growled, then walked over to the wife to get petted.

Quite few little tractors (sub-compact) coming up for sale now that the mulch is moved and the payments are hitting. But when you get up to 40+HP not much used available.

 

[fusion1]

I just purchased a new Kubota L4701
I wanted a 2 wheel drive but could not find any in dealer stock
so I got a 4 wheel drive paid 29340.00 nice tractor .
Dealer had 4 in stock .
I paid cash so there was a rebate from Kubota

 

[dhermesc]

Interest rates and prices are both going up. If you have the need and the ability buy now.

 

[4520BW]

I would think someone would offer 0% when the market dies down. Dad bought a 32 hp to mow with that way a few years back.

 

[710ltd2002]

I wonder if there will be major adjustments after the midterms. A change in confidence. Dave

 

[Blackhole49]

Don't know what your plans are for it, but I would be looking for something used. I bought everything you see (2015 w/600hrs) from Marketplace in Jan. (SE MI) for a little over 1/2 that money.

 

[TomA in CA]

I would not consider anything new. Look for an older tractor that has been well maintained. New stuff is fraught with problems and will be of limitted usefulness.

 

[Geo-TH,In]

2019 Kubota offered 0% interest.
I'm not sure how much my CPA was able I write off in 2019. It was a lot.
Zero interest and a big tax right off. WIN WIN.
Some one has to buy new or there wouldn't be good deals buying used.
I'm not going to buy used tractors, cars or trucks. I'm done fixing used junk.

I would never sell my 2005 Buick I bought new.
Still a good car. Why would anyone want to sell anything that's good?
Junk yard will get my 2005 Buick.
My 2007 GMC and my 2018 Cadillac.
All were purchased new.

 

[4520BW]

I still have my 1995 f350 i bought new when i was 20.

 

[coonie minnie]

All companies have low or no inventory. I would not expect that to change unless we enter something close to a depression, and even then companies will cease production vs build inventory.

If you can afford to borrow right now and fix the interest, might not be a bad deal. If trends continue, it will likely look to be good- price will be lower and interest less than a year from now.

I would not hold my breath on the price of new ones declining anytime soon. Nor would I expect used ones to decline much.

 

[d13series1]

That was option #2. Nice tractors, actually like the control layout better, but needed the extra 400# of chassis weight. L4060 Grand, loader, pallet forks, double acting rear valve, beet juice in rear tires, delivered in my drive way this morning $43K. Already used it to move stuff around, will take some getting used to but that power steering is a godsend.

 

[d13series1]

Dealer I bought the tractor from pointed out a top of the line zero turn and said he won't swap it to another dealer becasue he is afraid he won't get a replacement next year.

Dealers are now hoarding.. but customer cash will walk them out the door.

 

[Bill(Wis)]

Swiderski has 5 locations in central Wisconsin and they have new New Holland tractors in just about any size at each of their 5 locations. They also sell Massey Ferguson and Kioti. They had a lot of New Holland (new) tractors last year at this time when John deere couldn't get any. I bought a new Farmall 120C from Service Motors, also located in central Wisconsin, because they had one with the euro loader connections which I preferred because that's what my 2011 CaseIH 125 Maxxum has. This way I can put my forks on either tractor. Same hook up. I don't know what Swiderski is selling these New Holland tractors for now but they were making good deals late last fall. Service Motors matched the price so I had no complaints. If you're interested, take a look on their websites.

 

[jm.]

That is just not so the newer tractor will more than likely be MORE use full than anything even 10 years old. Off 830 new Kubota's sold buy our dealership last year less than 3% had any warrant issue. I think the new tractors are very reliable . If a man has a need right now is a good time to buy if he can find what he wants.

 

[jm.]

You will be glad you bought the 4 wheel drive more than you ever thought. The reason you could not find a 2 wheel is they just do not sell , no need for a dealer to stock something that does not sell.

 

[Vicinalvictor]

Yes, I've done this, and it does help. Right now, I really don't need the write off or depreciation from a new tractor, I'm spending enough money on everything else.