Today's biggest tractor price difference

james ds

Member
Location
leinster
Was roughly quoted £160k for one the other week when the local sales rep called in, doesn't interest me at that money & it's the wrong colour for us. Can you quote for a Case Optum 300 or is it just deeres?
The new valtra t254 can be bought for €130k and that's euro , that is mad money for the Deere . No wonder JD are loosing sales.
 

How much

Member
Location
North East
Not defending the prices in any way but there are few things would effect this price aside from the manufactures profiteering firstly the euro exchange rate has moved significantly back in favour of the £ so your pound now buys much more post Brexit vote then it did immediately after brexit vote. That may well be a short term thing , so maybe the tractor manufactures are not looking to adjust there prices to reflect that but pricing the exchange rate at today's prices would make a big difference.

When it was cheaper to buy right hand drive cars in Europe and import them back to the uk in the late 90's i bought a Audi in the Nederlands it was much cheaper and on the face of it Audi where robbing the UK buyers but when you spoke to the dealer over there the price of the car on the road in the Nederlands was actually significantly more than the UK , the reason it was cheaper was i was not registering it there Audi had priced the car cheaper to offset the very high registration cost that where loaded with some sort of end of life recycling cost that i did not pay.
Audi had changed there cost to Benifit the local market over there , the press in the UK made it look like we where being shafted but the real story was different to what the headline suggested so local economics can effect prices in a big way and it may be that UK farmers can get tax relief on these purchases where perhaps there German counterparts can not.
As a side issue would you be able to get enhanced capital allowance on a secondhand tractor vs new one ?
 

Lincsman

Member
Arable Farmer
Location
Lincolnshire
Not defending the prices in any way but there are few things would effect this price aside from the manufactures profiteering firstly the euro exchange rate has moved significantly back in favour of the £ so your pound now buys much more post Brexit vote then it did immediately after brexit vote. That may well be a short term thing , so maybe the tractor manufactures are not looking to adjust there prices to reflect that but pricing the exchange rate at today's prices would make a big difference.

When it was cheaper to buy right hand drive cars in Europe and import them back to the uk in the late 90's i bought a Audi in the Nederlands it was much cheaper and on the face of it Audi where robbing the UK buyers but when you spoke to the dealer over there the price of the car on the road in the Nederlands was actually significantly more than the UK , the reason it was cheaper was i was not registering it there Audi had priced the car cheaper to offset the very high registration cost that where loaded with some sort of end of life recycling cost that i did not pay.
Audi had changed there cost to Benifit the local market over there , the press in the UK made it look like we where being shafted but the real story was different to what the headline suggested so local economics can effect prices in a big way and it may be that UK farmers can get tax relief on these purchases where perhaps there German counterparts can not.
As a side issue would you be able to get enhanced capital allowance on a secondhand tractor vs new one ?

No, Audi (and others) charged what they could get away with, not its cost plus a standard profit, they just charged what the market could stand compared to the local competition.
 

e3120

Member
Mixed Farmer
Location
Northumberland
Not defending the prices in any way but there are few things would effect this price aside from the manufactures profiteering firstly the euro exchange rate has moved significantly back in favour of the £ so your pound now buys much more post Brexit vote then it did immediately after brexit vote. That may well be a short term thing , so maybe the tractor manufactures are not looking to adjust there prices to reflect that but pricing the exchange rate at today's prices would make a big difference.

When it was cheaper to buy right hand drive cars in Europe and import them back to the uk in the late 90's i bought a Audi in the Nederlands it was much cheaper and on the face of it Audi where robbing the UK buyers but when you spoke to the dealer over there the price of the car on the road in the Nederlands was actually significantly more than the UK , the reason it was cheaper was i was not registering it there Audi had priced the car cheaper to offset the very high registration cost that where loaded with some sort of end of life recycling cost that i did not pay.
Audi had changed there cost to Benifit the local market over there , the press in the UK made it look like we where being shafted but the real story was different to what the headline suggested so local economics can effect prices in a big way and it may be that UK farmers can get tax relief on these purchases where perhaps there German counterparts can not.
As a side issue would you be able to get enhanced capital allowance on a secondhand tractor vs new one ?
First paragraph: Are you sure? The pound fell at the vote and buys less since, helping exports but making imported equipment/raw materials dearer to buy.

Second paragraph: Yes, maintaining price stability in local markets can have odd effects. At the same time as your Audi example, there was a watchdog hoohaa about it being cheaper to ship a Rover 200 from brum to Italy, and bring it back, than to buy one here. The reason was simple - the Rover could not justify any price increase on the Italian forecourt, so had to be offered for the same Lira. Let's say the UK price was reduced to match (further increasing the losses and frustration of BMW shareholders), then what would happen when the exchange rate swung back? Increase UK prices for a product that never left its shores or have the Italians moaning that it would be cheaper to import their cars privately (leading to a case for reducing Italian prices by the same arguement)? If a company was to react like this, they'd eventually be giving product away. No defence, but some explanation for seemingly rip-off discrepancies

The other factor that has sucked up R&D budgets is, of course, emissions reduction. Previously, buyers would have expected R&D spend to deliver performance-enhancing benefits, which made price increases easier to swallow.
 

How much

Member
Location
North East
First paragraph: Are you sure? The pound fell at the vote and buys less since, helping exports but making imported equipment/raw materials dearer to buy.

Second paragraph: Yes, maintaining price stability in local markets can have odd effects. At the same time as your Audi example, there was a watchdog hoohaa about it being cheaper to ship a Rover 200 from brum to Italy, and bring it back, than to buy one here. The reason was simple - the Rover could not justify any price increase on the Italian forecourt, so had to be offered for the same Lira. Let's say the UK price was reduced to match (further increasing the losses and frustration of BMW shareholders), then what would happen when the exchange rate swung back? Increase UK prices for a product that never left its shores or have the Italians moaning that it would be cheaper to import their cars privately (leading to a case for reducing Italian prices by the same arguement)? If a company was to react like this, they'd eventually be giving product away. No defence, but some explanation for seemingly rip-off discrepancies

The other factor that has sucked up R&D budgets is, of course, emissions reduction. Previously, buyers would have expected R&D spend to deliver performance-enhancing benefits, which made price increases easier to swallow.

Yes JD in uk would have adjusted there prices post brexit to cover pound devaluation .
But price importing a tractor today independently it wont cost as much as it would have as drop in price has more or less halved over the past months compared to what it was It could be argued JD could look at there pricing against current exchange rate but they are as likly to drop again as strengthen.
 

jorgenbg

Member
Location
Oslo, Norway
Trust me. UK usually have cheap tractors. Norway on the other hand, is very expensive. Lots of imports form UK.

The rule between dealers is that a tractor has to have at least 400 hours on the clock before it can be sold to Norway. I bought a new tractor through an independent dealer in UK, and the local dealer here did not take it well.

From what I understand, the currency rates are usually fixed for 6 months at the time between manufacturers and import. Dealers need this to have a price list. When the currency change in that period of time, buying abroad can be good and bad.

When the euro went sky high against the norwegian krone, even our dealers started to export. Mainly eastern europe I think.

So, when you search the big interweb and find a cracking deal in Germany. Maybe its just a cracking deal?
 

e3120

Member
Mixed Farmer
Location
Northumberland
Yes JD in uk would have adjusted there prices post brexit to cover pound devaluation .
But price importing a tractor today independently it wont cost as much as it would have as drop in price has more or less halved over the past months compared to what it was It could be argued JD could look at there pricing against current exchange rate but they are as likly to drop again as strengthen.
Get you now. When there was such a lovely external reason for a price rise, I doubt JD will give it up too readily. In retail prices anyway - discount is the murky way.
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 79 42.9%
  • Up to 25%

    Votes: 63 34.2%
  • 25-50%

    Votes: 30 16.3%
  • 50-75%

    Votes: 3 1.6%
  • 75-100%

    Votes: 3 1.6%
  • 100% I’ve had enough of farming!

    Votes: 6 3.3%

Red Tractor drops launch of green farming scheme amid anger from farmers

  • 1,287
  • 1
As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
Top