Why are tractor prices higher!!

I found when this "recession" started that prices went up. Everybody wanted to use their tractors as their stimulus package I guess. 

Yep, it's called inflation. Corn used to be $3.00 and now it's $7 so really your getting a deal if the tractor price hasn't gone up 50% in the last 2 years.

The prices of new tractors have pulled the prices of used equipment up also. Anyone looking for decent used horsepower is comparing prices to new. I payed just over $10K for my 7060, but I got a tractor that will last me the rest of my farming career.

Just after the market crash of 2008 people were fearful of what was going to happen with our economy.  Businesses and individuals were highly leveraged and didn't have a revenue stream to pay for the debt that was incurred during the good times.  Equipment and assets were being sold a fire sale prices.

Now that things have "normalized", the fire sale prices are few and far between.  The equipment that was sold during the panic was exported.  Now that there is less good equipment on the market prices have gone up.

The other factor involved in the price of old equipment is that scrap iron prices have climbed again to record levels.  Depending on where you are in the country over-sized number one iron is worth between 185.00 and 300.00 per ton.  What this means is that the 2.5 ton AC WD 45 is worth between 450.00 and 750.00 at the scrap yard. 

Therefore instead of taking insulting offers on the tractor people are taking off a few high value parts, carb, distributor, manifold, starter, alternator, radiator, tires, sheet metal ect.  Selling the parts and sending the rest to the scrap pile.

As oil prices continue to climb expect scrap prices to rise as well.  If you really think you want that old tractor then pay the price or it is going to be exported and come back as another cheap consumer product with the "Made in China" label on it.

VTTractorParts wrote: Just after the market crash of 2008 people were fearful of what was going to happen with our economy.  Businesses and individuals were highly leveraged and didn't have a revenue stream to pay for the debt that was incurred during the good times.  Equipment and assets were being sold a fire sale prices.

Well I really wasn't talking about a two year drop then return downward spike, I was talking about what seemed to be a fairly flat price point since the mid '90s, now in the last few short years it has blown up, I guess the scrap price, and inflation have done in the reasonable price point.

I think it really depends on what it is. Only certain models of any mfg are going to hold value or go up. All the rest is basically hovering at scrap value.

Three years ago sold a WD with a E series gleaner engine for $5,500.00. It ran great and was repainted and looked great. Have a similiar unit today, repainted with gleaner engine and a loader. not moving for $3,500.00

Only 2 reasons for high prices. Someone wants it or the seller doesn't really need to sell it.