The machinery void

[mountfarm]

Had the bank manager out this last week about our personal current accounts but got chatting generally and she was saying in her client portfolio there’s a growing concern about machinery prices and how she is being asked more and more about financing used machines. She said a typical scenario with a standard sized tractor is a customer has a tractor now worth £30,000 (7000 hours, 5-7 years old) with a new replacement being £130,000. To finance the £100,000 over 5 years means £2000/month repayment which many are walking away from and then asking if they can get finance on half that because they are looking at used around £80,000. She said it’s a common theme within AG manager team in our bank across the country. Has the tide finally turned against the manufacturers and the silly price hikes?
We moved brands about 3 years ago because of this but still bought new saving £25,000 in the process, but now when we buy again I can say for sure it won’t be new. We’ll work out what we can afford to spend and then go searching within that budget rather than going searching and then getting a price.

I think historically machines have sold themselves because of the way they look, popularity and the fact generally farmers have a love for it. Now though we most definitely look at them as just a tool so brand marketing is now ignored.

 

[Deerefarmer]

Currently rebuilding the trans in a 10 series deere with 14k hrs. As the customer said : its cheaper to fix this than to buy a new machine "...

 

[GeorgeK]

Factor in BPS going and it's hard to see how the trend for too big, too many and fear of auto self destruct if the hour clock gets into 4 digits will be adhered to.
But if we'll mostly be doing environment schemes that's fine because you don't need anything fancier than a Fergie 135 to scratch in a few acres of bumblebee flower seed! Couple of thousand for a good one and they will run on used baler twine and slime scooped out the bottom of biodiesel tanks

 

[ARW]

I bought my first tractor in 2007, 15 year old machine with 4000 hours
Next machine I bought in 2010, 6 year old machine with 4000 hours for £25k
Then my current tractor I bought in 2014, 5 year old machine with 4000 hours for £35k
Today a main brand around 5 years old 4000 hours are around £50k

The old tractors didn’t depreciate much as the new tractor price keeps climbing but it’s a huge jump up in price and the newer expensive ones can still break down and cost more to repair that our current old junkers

 

[daveydiesel1]

But sum1 has to buy new or there wont be second hand. While we all keep jd on top spot theres no reason why they should stop price increases plus a reason there always gettin so much dearer is were always upgradin on size and spec. In 2003 we bought new 4370 for 24k. What would a 120 hp tractor with completely manual gears dry clutch 2 spools manual linkage no suspension 18.4 tyres 2 spot lights front and back cost? Would be far cry from 130k

 

[Yale]

Three out of five tractors we have were bought new,oldest being 25 year old.

The last one we bought spring 19 is now 6 years old with 2500 hrs when bought.

It has no adblue and was getting on for half the price of a new one.

My policy is to run extra tractors and loaders with ability to have a back up for repairs to be done.

New tractors are just too expensive compared to the better value of a second hand tidy one.

 

[ARW]

We can’t afford the depreciation on warranty so we have to run the risk of repairs

 

[icanshootwell]

It,s not just buying the tractor at over inflated prices, they then want you to pay for expensive service charges, warranty is another cost to be factored in, do i or don,t i !!! Which ever way you look at it, there,s a lot of money tied up in metal, bring back the days when a new one cost 25k, you still got the same level of excitement when it turned up on the lorry, just an easier pill to swallow.
I think the clever money would be more wisely invested in land/ property, you could put down a nice deposit on a house for 100k.

 

[Scribus]

At the smaller end of the market there are plenty of budget tractors that are not bedecked with sophisticated electronics and will be cheaper to run and repair, but let's face it, they haven't the cachet of the usual green/blue/red tractors that we like to be seen driving.

 

[Drillman]

I’ve just for various reasons sold 2 older tractors and have one newer one arriving soon to replace them.

however I do have some backlash as the chap who helps me driving the bale wrapper is giving me earache about selling his favourite tractor??

 

[Chae1]

Nice underlining

 

[Drillman]

Nice underlining

No idea why it did that?

 

[daveydiesel1]

At the smaller end of the market there are plenty of budget tractors that are not bedecked with sophisticated electronics and will be cheaper to run and repair, but let's face it, they haven't the cachet of the usual green/blue/red tractors that we like to be seen driving.

For example we were quoted 56k for a 135 kubota which is 141 hp elec linkage front suspension 3 spools 600 tyres led spots powershift gears. I thought it wasnt to bad and that was b4 to much hard dealin

 

[Johnnyboxer]

But sum1 has to buy new or there wont be second hand. While we all keep jd on top spot theres no reason why they should stop price increases plus a reason there always gettin so much dearer is were always upgradin on size and spec. In 2003 we bought new 4370 for 24k. What would a 120 hp tractor with completely manual gears dry clutch 2 spools manual linkage no suspension 18.4 tyres 2 spot lights front and back cost? Would be far cry from 130k

Armatrac do a basic manual tractor with a decent cab & aircon with 120 HP for about £45k + Vat

 

[Chae1]

How long will these cheap/basic tractors last?

Most look like they'd be wrecked after 5k hours hard work.

 

[daveydiesel1]

Armatrac do a basic manual tractor with a decent cab & aircon with 120 HP for about £45k + Vat

Exactly its stil achievable at that money. An average beef sheep milk farmer could make the payments on that and have anew tractor way warranty but how could ye justify 100k+ just to spread bita slurry fertiliser and stuf round the yard. Its not on anymore

 

[mf7480]

Been getting quotes recently, they are considerably less than the same quotes a year ago, back to 2017 levels. The list price is bonkers but the discounts available are massive now.

 

[daveydiesel1]

How long will these cheap/basic tractors last?

Most look like they'd be wrecked after 5k hours hard work.

They should do ok. You might have to fix it from time to time but thers plenty out ther that bought fendt and jd and ended up havin to replace varios and had engine problems

 

[David.]

Armatrac do a basic manual tractor with a decent cab & aircon with 120 HP for about £45k + Vat

You'd still be better off with a 6000hr Deere or similar for £28k

 

[daveydiesel1]

You'd still be better off with a 6000hr Deere or similar for £28k

Do you have 1 or no some1 that has had 1 and had problems? If not how would you possibly know? Ther a bit of an unknown and therfor ppl are sceptical about them but that doesnt mean they are a bad product. If no1 was willin to try the first touchscreen smart phones how would we of knew if they were good or not and now nearly every1 has 1