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Post by Oatking on Mar 27, 2021 8:26:39 GMT -6
I noticed since January 2021 a lot of equipment has increased in price due to shortages. I was surprised to see a 1 out 7 peterbilts trucks I bought in the beginning of February has gone up a few thousand dollars. Has any body else seen this or been to auctions this winter where pricing is going haywire. You guys find it harder to negotiate good deals or feel the premium equipment disappearing from lots. When I bought my combine a few weeks ago I was having a tough time finding a premium unit. I decided to ask my deere dealer to buy an off sight dealer machine , or privately advertised machine so I could finance it for 2.99% through deere. My bank was not close to that interest rate. I was happy they agreed to that arrangement. I think they were relucted to do this and would rather sell me a high hour POS machine on there lot reducing there inventory. Yes doing this deal I had to give up some money for there commission but I feel I got a perfect machine. Another advantage is my deere dealer took my other combine on trade.
Have any you guys noticed higher prices from dealers or tried what I did to buy my combine?
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Post by slipclutch on Mar 27, 2021 9:54:10 GMT -6
Everything is up. From Real estate to dog food!
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Post by cptusa on Mar 27, 2021 10:22:12 GMT -6
Equipment is nuts here. If you need it or want it and find it you better buy because it may not be there tomorrow. If you're looking at new and want to order it for next spring, you best do it in the next 2 months. Combines are hot now. Not possible to order a grain bin this year anymore, in fact you can't get bin sheets to replace damaged ones. 8 months out on MF tractors now. Grain hoppers are 7 months. Tires are in short supply. Packaged chemicals are going up because there is a cardboard shortage. Cars/trucks sitting on lots waiting for chips. Just heard more delays because there is a foam shortage for seat cushions.
Most of this is due to the COVID19 goat screw bullshit. We haven't even got to the big problem in shipping at the Suez canal yet with the Ever Given plugging the hole.
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Post by kevlar on Mar 27, 2021 10:48:20 GMT -6
Ya, it's getting stupid, but honestly, machinery has been getting that way for the last few years. I had mentioned this in another thread about old snowmobiles and people dragging junk out of the bush and selling for retarded prices. I see the same happening now with quads and bicycles, just check any sites that sell stuff, everyone is trying to cash in on the high prices. I could get more now for my quad than I paid for it 5-6 years ago.I think we are just starting to see the pain caused by all the Covid bull crap, going to get a lot more painful I believe going forward. Without a doubt we are in hyperinflation territory. Even with the huge increase in lumber and building costs, people are still building houses. Makes me wonder where people are coming up with the money to buy so much non essential stuff like quads and such, "free" government money?
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Post by shmiffy on Mar 27, 2021 11:51:30 GMT -6
Weird things going on with grain bins.. I just ordered one. Had a sept build date in the quote. Put the actual order in and it’s July for bin availability. Will believe it when I see it
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Post by torriem on Mar 27, 2021 13:17:09 GMT -6
Latest Richie brothers auction saw some quite decent Flexi-coil drills and carts sell for cheap. Maybe everyone wanting independent opener, precision drills is killing the resale value of these older hoe drills (and by older I mean about only 8-10 years). I believe a 70' drill and cart went for $20k. Even if you had to work it over good and put $30k into it to refurbish it, that would still be far better than buying the new equivalent. I believe a flexi-coil hoe drill brand new is about $400k now, and most of that is the cart. I suspect that when we decide to pick up a second drill, either as a spare, or to increase our speed, it will be an auction drill. I'm not afraid of the 10-year-old flexi-coil drills at all, as I've been through them fairly extensively. I know where the mechanical wear points are. Even if all the electronics completely failed, that can be replaced in its entirety with Raven gear for a reasonable sum.
We just finished a $23k refurb of our current air drill cart. All stainless meters, manifolds, couplings, etc. Should be good for another 20 years now. There's zero incentive for me to "upgrade" at current machinery costs.
I was beginning to wonder about the wisdom of sinking crazy money into a large new shop. But makes it so much easier for us to overhaul machinery in the winter now.
Also as I read this thread I am going over the recent bill to dealer inspect my John Deere 9220 tractor, and make a few "minor" repairs to it. Set the valves, replace the damper and front engine seal, check axle end play and final drive bearings, and correct any play. Total bill is about $17k. Working on those axles and final drives is really expensive. But I think this is the first major repair bill on the tractor in nearly 15 years. The good news was that the axle wear was well within tolerances, and the bearings themselves just needed a bit of tightening to bring them into spec. This tells me the tractor should run well for years to come, as long as I don't lose my water pump (which was already replaced once)!
For fun I pulled up the specs on the newest 9R series machines. The smallest unit is 370 hp, which is about what I'd need (an upgrade from what I have now). Yet except for an improved cab, it's not much of an upgrade, honestly. Transmission and drive train is still the exact same (fancier control module now). The engine actually got smaller, 9.0L compared to 12.5L. When you combine that with the twin turbos, EGR and SCR, I wonder about the reliability compared to what I have. I have a semi-retired neighbor with a pristine 9320 tractor. If she'd ever part with it, I think I'd buy it in a heart beat.
When my father was farming, we typically traded off machines every 7-8 years. Now I'm having a harder time justifying that, except for maybe high-wear combines. Back when I was young, there was a huge difference between the old and new machines, both in terms of capability and also user comfort. Every trade felt like an upgrade. Now, not so much. Trading off an 8 year machine for a new machine that's nearly the same in every way. Am I just getting old? Seems like the "upgrades" are more along the lines of subscription services.
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Post by cptusa on Mar 27, 2021 13:28:29 GMT -6
Weird things going on with grain bins.. I just ordered one. Had a sept build date in the quote. Put the actual order in and it’s July for bin availability. Will believe it when I see it What brand bin? Here that market is artificially swamped due to the derecho. Hundred(s) of millions bushel of capacity were erased that day. |
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Post by shmiffy on Mar 27, 2021 15:35:38 GMT -6
Westeel. Meridian said no metal for bins after may for about six months. I figured your area would be busy replacing a lot of bins
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Post by bob123 on Mar 27, 2021 22:13:58 GMT -6
Salesman said they were raising the price of new equipment 5% across the board due to steel price increase now
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Post by SWMan on Mar 27, 2021 22:53:23 GMT -6
This is what happens when a large amount of dollars are chasing a finite amount of goods. Only bound to get worse. There is still a large spread between new and used though, hard to ignore that unless making money isn't the primary goal. And I used to be the kind of guy to flip every piece of equipment every 1-3 years...  |
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Post by slipclutch on Mar 27, 2021 22:56:07 GMT -6
Yeah. Might have to be on the 6-8 year flip plan now?
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Post by meskie on Mar 28, 2021 0:10:34 GMT -6
Yeah. Might have to be on the 6-8 year flip plan now? And buy 4-5 year old machines. I was talking to our bin dealer the other day and prices have gone up a lot since we booked a couple at the end of January. |
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Post by SWMan on Mar 28, 2021 8:30:50 GMT -6
Yeah. Might have to be on the 6-8 year flip plan now? Really depends on the type of equipment/dealer. I just flipped two 2015 Wilson triaxles for new units a month ago and I at the same time sold a one year old combine and bought two ten year old machines. I think both of those transactions made good sense on paper, hopefully they do in the field...ha ha |
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Post by slipclutch on Mar 28, 2021 8:57:44 GMT -6
The one thing with older equipment. You need a good shop to go over them in the winter. I wanted to buy a new corn head. Just too much money right now. Looked at a good uses four years old. Still 135k. Overhaul a old gearinghoff from one end to the other for 25k. Had to do some sourcing for parts rebuild. All the parts from Hoff would have been 45k. So the long and short of it. By the time i bought the head and rebuild I’m all 100 plus K ahead. Or retain earnings. And the 25k is 100% tax deductible
Not 10% CCA.
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Post by kevlar on Mar 28, 2021 17:27:14 GMT -6
I wonder if dealers are selling much? Locally very little on the lots, and have been that way for a couple years now. Seems to be more people selling privately, and after having tried to trade off a combine last fall, with the trade value they were going to give us for our machine, I can see why. They have been calling dad to see if he wanted to take some equipment in for them to give a look over, we very seldom take or get them to work on our equipment, this tells me they are getting short of work. I'm thinking parts and labour could be getting even more painful here shortly.
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