Is the machinery trade in trouble?

[Aircooled]

How can that be over charging. He's advertising them for a price and people pay it.
You imply that somehow people are being forced to buy these tankers

If they have the tankers then yes. They NEVER ever put price in the adverts.

 

[Two Tone]

Maybe the farmer just wants it. Sometimes things don’t have to have rational behind them. Plus after 5 years his new asset will still be worth a lot more than the current ones £40k.

What might appear madness to one man, is another mans pride and enjoyment, even if only in his own head.

The impression I got was that the farmer would rather keep his money.
Even the operator wasn’t that bothered.
We all agreed that the new one was a fantastic machine. But as to £160k over five years…………….!

 

[Dave W]

If they have the tankers then yes. They NEVER ever put price in the adverts.

I've noticed that seems to be a trait of Irish dealers. Some English are bad enough with POA. But Irish seem to be the worst for it

 

[marco]

The impression I got was that the farmer would rather keep his money.
Even the operator wasn’t that bothered.
We all agreed that the new one was a fantastic machine. But as to £160k over five years…………….!

He might keep it for 10 or 15 years

 

[ACEngineering]

The impression I got was that the farmer would rather keep his money.
Even the operator wasn’t that bothered.
We all agreed that the new one was a fantastic machine. But as to £160k over five years…………….!

Would still have the value of the machine (Asset) at the end of the five years though

Currently the machinery trade appears good, long term maybe not so?

I thought after Brexit the bottom end of the machinery trade would collapse but it doesn't seem to have been affected much at all

 

[MF-ANDY]

Lack of staff also seems to be a problem around here. Red Green and Blue dealers all asking for sales and service people.

 

[Steevo]

Currently the machinery trade appears good, long term maybe not so?

I thought after Brexit the bottom end of the machinery trade would collapse but it doesn't seem to have been affected much at all

I think you've summed it up pretty well here. I'm sure there will come a point at which everyone is spent out....well apart from anyone who has sold for housing or such and just has money to burn.

That said......plenty of celebs etc buying farms/land that seem to have endless supplies of money also.

 

[thesilentone]

I think you've summed it up pretty well here. I'm sure there will come a point at which everyone is spent out....well apart from anyone who has sold for housing or such and just has money to burn.

That said......plenty of celebs etc buying farms/land that seem to have endless supplies of money also.

"I'm sure there will come a point at which everyone is spent out"

Which will never happen, the good businessmen won't allow it to happen.

Unless of course farming disappears, which it never will.

There are many very wealthy (cash rich) farmers in the both the stock and arable sectors, because they run a very good profitable operation.

Making a buying decision of any kind needs lot's of planning, and in the case of combines and other high cap-x equipment, the help of your accountant.

Some make good well thought through decisions, some make crap decisions, but that's life in general.

The machinery industry will survive, however some won't because they are crap at it, again that's life in general.

Change is the catalyst to moving forward, greet it and embrace it. New technology on equipment will fly over the next decade to the point only highly skilled well trained people can use it (I can hear the fingers tapping the responses from here).

 

[warksfarmer]

He might keep it for 10 or 15 years

He might do but the fact remains £160k + interest will be leaving his bank account over the next 5 years.

 

[Adeptandy]

I went to a farm the other day to look at a new Combine being demonstrated. It was very nice and as an ex-demo is on offer for about £200k. Being £30k off the new discounted price.
The dealer is offering about £40K for his old one which is 14 years old, in superb condition and has plenty of life left in her, but obviously a little bit slower than the new one.
So £160k to change, financed over 5 years is going to be the best part of £35k per year over the next 5 years.

There’s me thinking WTF for?
How the Feck can that be justified?

Just to be able to have something that does exactly the same thing!
There is no way that keeping the old one will cost anything like that to keep running each year.
It is just Sheer madness.

It’s not an MF then

 

[michael N123]

Would still have the value of the machine (Asset) at the end of the five years though

Currently the machinery trade appears good, long term maybe not so?

I thought after Brexit the bottom end of the machinery trade would collapse but it doesn't seem to have been affected much at all

The bottom end is what’s overpriced theres No point going to half the machinery sales because everything gets bought up by cowboy Machinery dealers

and what doesn’t go to a sale gets advertised on Facebook for silly money I’m amazed a lot of tackle on there even sells

 

[ACEngineering]

The bottom end is what’s overpriced theres No point going to half the machinery sales because everything gets bought up by cowboy Machinery dealers

and what doesn’t go to a sale gets advertised on Facebook for silly money I’m amazed a lot of tackle on there even sells

If its selling then its not overpriced though, just that's its market value. Its more your opinion that its overpriced which i agree it all makes far too much money but if you want it your gonna have to find a way to pay for it

 

[nelson]

The impression I got was that the farmer would rather keep his money.
Even the operator wasn’t that bothered.
We all agreed that the new one was a fantastic machine. But as to £160k over five years…………….!

it mite stop him best part of £ 50.000 tax if he has made it and with NIC

 

[betweenthelines]

So still cost him over £100 grand

 

[nelson]

So still cost him over £100 grand

your choice buy the machine or keep the money and pay thr tax

 

[ashmore]

I don't understand how people can get upset at dealers making a few quid on second hand machery. I've just swapped two trailers, and yes perhaps I could have made made more money on selling the old ones privately. But a quick look online shows that privately sold equipment is either too expensive or fit for scrap. This means it'll be stuck in the back of the shed/corner of the yard for ages deteriorating and getting old.
My deal includes collection and delivery, and everyone's happy. The comment about "putting it through the workshop" is valid though, I suggested to the salesman he'd easily make a profit on the trade ins, but considering the time taken to load up and deliver my new ones (probably best part of a day) and pay wages, fuel, and road tax. There can't be much left in the job for profit. If dealership can't make a few quid then where do we go for all the free advice over the phone at the busiest times.

 

[roscoe erf]

Main dealers saying it’s “ been thorough our workshop “ ha what a joke that line is !!

that's cause the brakes don't work

 

[Chae1]

He might keep it for 10 or 15 years

Might be cutting 2k acres per year with it.

4t/acre wheat@£200/t £800/acre 1000 acre of wheat
Its gathering £800k worth of income per year.

 

[Steevo]

Might be cutting 2k acres per year with it.

4t/acre wheat@£200/t £800/acre 1000 acre of wheat
Its gathering £800k worth of income per year.

Just like the previous machine that the dealer valued at £40k has done this harvest.