Look out for sharp deals on compact tractors after the July 2 election and closer to spring as dealers are expected to offer discounts to relieve swollen inventories. Source: The Weekly Times
A 14% dip in sub-40hp tractor sales in the first half of the year have seen inventories grow and Iseki product manager Saviour Mangion said this is good for buyers.
“It’s currently a buyers’ market,” he said. “Dealers who have a lot of stock will be moving (tractors) just to get them of their books.”
The sub-40hp segment is a big volume market and Mr Mangion said that meant dealers often bought in bulk.
He said that when the market slows, the pressure is on to “move metal” to maintain market share.
“Between John Deere, Kubota and us (Iseki), there are 800 units that go into just the 22 to 24hp market,” he said.
He said he expected the big deals will come in spring.
“For hobby farmers in compact tractors, spring is the peak buying time.
“I think the big deals will come through in spring when (dealers) try to make the most of what’s in the market and encourage more people into the market.”
But Agriview managing director Alan Kirsten warned not to expect massive clearance sales, as there is “no desperation” at dealer level to move stock.
“Yes, the market has slowed and there is some stock build-up but it’s not out of hand,” he said. “I don’t think there’s a glut of inventory.”
He said that he expected the compact tractor market to “shake off some the sluggishness” after the election and with a drop in interest rates announced for early August.
