mountainrancher
Active Member
I'm shopping for equipment and looking for some insight to pricing. Is there a proper place to do this on the forum?
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Proper place to discuss pricing here?
- Thread starter mountainrancher
- Start date
What are you looking for? A Philips head screw driver? A Cat D11? Or something in between?
dieseltoolz
Member
Only thing I can afford is the phillips
I think premium brands will stay high for ever.In the last 3 years,inflation globally has caused significant price increases for the manufacturers themselves.
Pre covid,a UK D9T would set you back £680k approx for a new 2019 unit.
This saw major jumps to £750k in 2020.That trend continues to this day,and as of last week,a new D9 will cost £946k and you’ll get it in 2024.
This has put continuous upwards pressure on second hand kit.
Cat is a global currency
Pre covid,a UK D9T would set you back £680k approx for a new 2019 unit.
This saw major jumps to £750k in 2020.That trend continues to this day,and as of last week,a new D9 will cost £946k and you’ll get it in 2024.
This has put continuous upwards pressure on second hand kit.
Cat is a global currency
As the economy shrinks,the price of used quality plant will initially ease off,or simply stop increasing.It won’t come down that much unless you start seeing insolvency auctions,but even then,the big boy dealers with money in the bank won’t let others buy it too cheap.They’ll have it themselves and sit on it for as long as it takes.
Then there’s a few of the wealthier contractors that may sell a few of their older machines to keep the wages going through tight times,but probably not enough to cause prices to tumble.
Then,last of all,there’s the small outfits that are selling up because they can’t make it pay,or they’ve just had enough.
The big manufacturers will simply stop or slow production down,they won’t cut their selling prices at the factory.They can’t.
Then there’s a few of the wealthier contractors that may sell a few of their older machines to keep the wages going through tight times,but probably not enough to cause prices to tumble.
Then,last of all,there’s the small outfits that are selling up because they can’t make it pay,or they’ve just had enough.
The big manufacturers will simply stop or slow production down,they won’t cut their selling prices at the factory.They can’t.
I should point out,that I’m only talking about premium brand equipment that has a global market.I’m not sure how prices of cheaper brands,or products that are made and only sold in the countries that they are made in,would hold up in a recession.
mountainrancher
Active Member
Currently looking at a mini excavator KX040 from Kubota. Buying one now, am going to hold off on the latter for a while. Pricing for a single machine is about 12% off MSRP, apparently they have more factory incentives if you buy more than one.
Not sure if the dealers are negotiating lower than this right now or not. The machine has a cab and 6way blade and is $69k.
CM1995
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Well said N68.
The only thing I would add that will keep the price of the larger iron up is all the money the US Fed has printed over the last several years has not all been released/spent in the market which will only drive up inflation. A good chunk of this yet to be spent money will be on infrastructure projects driving up or at least holding steady the demand for heavy equipment. Now this may not affect the global equipment market but will affect the North American market.
Birken Vogt
Charter Member
In general, some time after everyone agrees that "the price of this or that is outrageous and will never come down" is when it tanks real bad.
We'll see.
We'll see.
mountainrancher
Active Member
Yeah. Commercial real estate is going to get hurt hard. However we have lost the petrodollar. Printing more money is the only option. I'm not sure if there will be a meaningful correction. I'm really curious though if the dealers are negotiating yet. The last couple of years they were not in my area.
Mike L
Senior Member
Word on the street down here is that interest rates will start dropping in the 3rd and 4th quarter of this year and also Deere is getting ready to offer some incentives like 0% financing. the word on your street may be completely different and YMMV.
mountainrancher
Active Member
What's that mean? Prices will come down? Kubota is already offering pretty low interest rates.
Mike L
Senior Member
I doubt the actual price will drop but hopefully interest rates will lower. What is kubota offering? I was looking into upgrading service trucks this year and the interest rate on a used truck scared me into keeping mine a while longer.
mountainrancher
Active Member
They've got their cash discount on the machine of about $2300. If you finance, that $2300 you pay buys you 3 years. Then, adding on to it, it's 1% for 4 years, 2% for 5, and 3% for 6.
The 3 or 4 year plan are most appealing IMO.
cfherrman
Senior Member
Idk but i can't wait for oil to be $100 again this summer
Welder Dave
Senior Member
I think if you can get a good deal and/or good financing you're better to buy now than hope the price will come down. A mini-ex is a fairly small investment in the overall heavy equipment field.