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Re: Why are the older tractor prices not too much different that the new ones?
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Posted by steamnut on January 11, 2001 at 18:01:14 from (207.44.55.52):
In Reply to: Why are the older tractor prices not too much different that the new ones? posted by Warren on January 11, 2001 at 16:46:12:
Lets see if maybe I can put a couple things into perspective. First, as F14 said, tractors rather are over engineered, so they last a long time. Second, the eighties were a real drag for a lot of farmers (remember Farm Aid?) they were having trouble meeting the mortgage let alone able to make payments on new machinery, so fairly few new tractors were built during that time. Now it is the aughts, and those mid 50s Reds and Greens that got the family farm through the worst of that downturn are really showing their age...and besides some nut is willing to give a couple grand for it (just so he can ride it around in parades!) :) . So our old farmer goes looking for a suitable replacement, but he still is leery of the bank, so he prefers looking for a used one. The supply is still thin (because of the 80s), and as the demand rises so do the prices. Add into the equation all those boomers who are retiring to the country and want a small to midsized tractor for odd jobs and you can see where the price will only rise some more. Meanwhile, all those people NOT buying new tractors exerts some pressure on the manufacturers to lower prices to move their existing inventory... In theory the prices could indeed meet in the middle with new and used within a thousand or two of each other. On the other hand, I could also not know anything, and this whole explanation might be a crock of bullshit. :(
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