Tractor Dealers Yards Seem to be brimming with used stock!Future Conundrum?

Just a general observation that I have made in recent times from being in some yards and the dealers large ads that they are placing in the national press.

Have never seen dealers yards so full of stock, particularly high (>10,000 hour) well worn tractors of the old staples such as New Holland TM's and TS's and well as 20 series Deeres.

Is it how the people have been putting off changing tractors for longer due to increased costs and now a wave of replacement is occurring through necessity?

What will happen to these high houred second hand tractors going forward, is a considerable drop in values for these machines on the horizon as they seem too large for many of the export markets? Seem to be a lot of TM's and TS series New Hollands in particular appearing on the second hand market now, most likely as there is a move to T6 and T7s.
 

Al R

Member
Livestock Farmer
Location
West Wales
Your about 4-5 years late with the post as there are plenty of R series let alone 30’s with 10,000+ on them, big contractors doing big hours etc etc...
Down here most go to Cambridge auctions at 4 year old and probably exported or sold cheap?
 
@Al R I'm referring to the Irish Market.

Sorry, should have made this clear in my first post, yes I agree though as I have often saw very young tractors in the UK over the years with what I thought at the time were extraordinary hours compared to the average Irish trade in.

Only seems to becoming more common place here now as we move to a concentration of larger contractors covering larger areas and portfolios of work than they would have historically as well as major increases in the size of dairy and tillage operations.

We don't have the critical mass of work or scale to see as many high hour 0-5 year old tractors as the UK.

In saying that, many of the TMs in yards now with 10,000 or so hours would have come in from the UK as 5 and 6 year old tractors and most likely received a haircut when they arrived so the true hours worked probably closer to 15,000 on these.

I just wonder is there a sea change in second hand values coming down the line here and where will all these tractors end up? Not so long ago I remember any decent TM155 commanding prices well in excess of 40,000 euro. Not far off this now picks up a nice T7.200
 
@Drillman - Yes, agree with you here, can never understand why they don't let stuff off at it's true market trade value and keep the wheel turning for their trading situation. Maybe they don't want to let the guy who traded in know how little they actually gave for his trade and how much was pushed on to the price of the new tractor to balance the books.I assume the reason for holding stock this is that they are writing off the cost of the stocks depreciation against their trading accounts?
 

Robt

Member
Location
Suffolk
If you’ve bought it right you will sell it right! Had that drummed into me 15 years ago. It’s often why some think dealers are lifting their leg with low trade in value! If it’s bought right then it’s a calculated risk to avoid chancers that will offer you low bids... how often do we hear “ huge main dealer offered me peanuts for trade in”” local chap paid way more! “. Sadly local chaps are decreasing as big dealers have the skilll and connections to buy it and sell it right. That said, nothing in life is easy!
 

Drillman

Member
Mixed Farmer
@Drillman - Yes, agree with you here, can never understand why they don't let stuff off at it's true market trade value and keep the wheel turning for their trading situation. Maybe they don't want to let the guy who traded in know how little they actually gave for his trade and how much was pushed on to the price of the new tractor to balance the books.I assume the reason for holding stock this is that they are writing off the cost of the stocks depreciation against their trading accounts?
Neither can I but then it’s rare we hear of a dealer going under so they must be making money somewhere?
 

Robt

Member
Location
Suffolk
@Drillman - Yes, agree with you here, can never understand why they don't let stuff off at it's true market trade value and keep the wheel turning for their trading situation. Maybe they don't want to let the guy who traded in know how little they actually gave for his trade and how much was pushed on to the price of the new tractor to balance the books.I assume the reason for holding stock this is that they are writing off the cost of the stocks depreciation against their trading accounts?
You can only do that if you are profitable in the first place! Cash is a commodity, if you can’t get about 5-8% return on your cash then it’s better to invest in banks. When you can borrow at 2-3% it doesn’t take a genius to work out money is cheap, cash is expensive
 

Dave W

Member
Location
chesterfield
@Drillman - Yes, agree with you here, can never understand why they don't let stuff off at it's true market trade value and keep the wheel turning for their trading situation. Maybe they don't want to let the guy who traded in know how little they actually gave for his trade and how much was pushed on to the price of the new tractor to balance the books.I assume the reason for holding stock this is that they are writing off the cost of the stocks depreciation against their trading accounts?
Ok so they sell said machine off cheap to generate capital. But shat do they spend that capital on? Another machine that nobody wants. So may as well sit on the original.
 

Farma Parma

Member
Arable Farmer
Location
Northumberlandia
Ok so they sell said machine off cheap to generate capital. But shat do they spend that capital on? Another machine that nobody wants. So may as well sit on the original.

Reduce there direct costs/overdraft for a start.

It begs belief how some are trading, keeping big money priced used tractors, alot with no warranty for the used buyer.
Sat fs for 6months/12months & more then you see price finally reduced but its still there, doesnt that tell you something
 

chaffcutter

Moderator
Arable Farmer
Location
S. Staffs
There must be a proportion of traded in kit that never finds a buyer and ends up as scrap, do dealers work on a percentage write-off like shopkeepers have an allowance for shoplifting/spoilt goods?
 

Farma Parma

Member
Arable Farmer
Location
Northumberlandia
Grain doesn't depreciate and go.to look rougher or get the steps / ecu / robbed off it though
the problem longer term with keeping grain if you had the storage is it costs money somewhere to do this & more importantly it could be a cashflow
driver for a lot of us. My Local Grain Store needs to have most of its store emptied out around the time or not long after the next years harvest has started
otherwise where are they going to put the stuff?
Not just a small store neither, 120,000t plus
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 80 42.3%
  • Up to 25%

    Votes: 66 34.9%
  • 25-50%

    Votes: 30 15.9%
  • 50-75%

    Votes: 3 1.6%
  • 75-100%

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

    Votes: 7 3.7%

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

  • 1,292
  • 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