Can you negotiate when buying a tractor? The answer, a couple of years ago during Covid, when demand was high and inventory tight, was "no". But that's all changed. 3rd Quarter tractor sales numbers are out from the Association of Equipment Manufacturers and we're starting to see an inventory problem in small tractors. So, especially with the time of year it is, I would think that dealers will be motivated to negotiate now, more so than any time since 2019.

The numbers tell us that under 40 hp tractor sales in the U.S., through three quarters, are down 11.2% from last year. Of course, last year, the supply chain was still getting back to normal. If you go back and compare to the last year before Covid, 2019, we've seen a dip in demand and an increase in supply. In 2019, there had been 130,616 compact tractors sold year to date, this year we're at 125,047. Beginning inventory in September was 89,653 in 2019, it was 97, 269 this year and starting to be a concern.

We see a similar trend in the 40100 hp tractor market. Sales through the 3rd quarter are down 7.7% from last year to 45,660 units. Compare that to 2019's number of 45,040 and we're actually up in sales of midrange tractors. Inventory is at 39,961 units this year, compared to 34,170 in 2019.

Sales of tractors over 100 hp are up 7.7%, articulated tractors are up 43.3% and combines are up 25.3% from last year. Sales of anything related to crop production are brisk, and inventories, if anything, are low.

Which brings us to our question today, can you negotiate when buying a tractor? If I were a dealer for small and midrange tractors, I'd find a way to try to nail down every customer that came in my door right now, especially considering the slow times for small tractor sales are November, January and February. When we roll around to the spring rush, if dealers are not aggressive, they could be looking at some aging inventory. We may not be in a fullblown buyer's market yet on compact and midrange tractors, but that's definitely the direction we're headed. If that's what I was shopping for, I'd search until I found a dealer who was willing to negotiate!

LINKS YOU NEED TO KNOW ABOUT...
Tractor Mike Website/Fun Store: https://asktractormike.com/productsf...
Support the Tractor Mike Channel:   / tractormike  
Amazon Affiliate Page: https://amzn.to/2DR5ith

Contact us at: [email protected]

Copyright 2023 Tractor Mike LLC