Wishing to pick yer brains re a "new-to-me" tractor.

[difflock]

"Every cloud has a silver lining" time

post yesterdays budget, with its kick in the teeth to land owners and farmers re IHT changes,

which is bound to hit agricultural machinery sales, in the short-term at least.

So how do I best take advantage?

[Muddy42]

1 hour ago, difflock said:

"Every cloud has a silver lining" time

post yesterdays budget, with its kick in the teeth to land owners and farmers re IHT changes,

which is bound to hit agricultural machinery sales, in the short-term at least.

So how do I best take advantage?

 

I'm not sure its going to result in a flood of second hand tractors.  IHT is only paid when people die and in reality only when people die in middle age, unexpectedly, unprepared or unadvised.  By preparation I mean you can give away assets and live for 7 years or taking out life insurance.  

[GarethM]

14 minutes ago, Muddy42 said:

 

I'm not sure its going to result in a flood of second hand tractors.  IHT is only paid when people die and in reality only when people die in middle age, unexpectedly, unprepared or unadvised.  By preparation I mean you can give away assets and live for 7 years or taking out life insurance.  

The machinery side of things is going to be people buying new equipment, the prices are already beyond being mental.

 

Which is obvious when you see the numbers of manufacturers and dealerships closing or downsizing as people can't afford new equipment unless you're Dyson.

 

Granted IHT might force anyone with a viable business to actually keep more equipment on finance or rental agreements so they never actually own the equipment.

 

A few grand a month Vs 100k on the books and taxable.

[GarethM]

14 minutes ago, Muddy42 said:

 

I'm not sure its going to result in a flood of second hand tractors.  IHT is only paid when people die and in reality only when people die in middle age, unexpectedly, unprepared or unadvised.  By preparation I mean you can give away assets and live for 7 years or taking out life insurance.  

The machinery side of things is going to be people buying new equipment, the prices are already beyond being mental.

 

Which is obvious when you see the numbers of manufacturers and dealerships closing or downsizing as people can't afford new equipment unless you're Dyson.

 

Granted IHT might force anyone with a viable business to actually keep more equipment on finance or rental agreements so they never actually own the equipment.

 

A few grand a month Vs 100k on the books and taxable.

[difflock]

I based my remark on a comment I read, made by a farmer last night, on his return from a packed to capacity monthly machinery buyers group, which group apparently comprises a mix of farmers with their own acreage, tenant farmers, contractors and each and every other permutation connected to agriculture.

They all were saying that as a result of yesterday's budget, that they were not for buying any machinery, even if they had otherwise planned to so do.

If true this has to have major implications for the sake of agricultural machinery.

I suppose the auction prices will be the first "tell".

Edited October 31, 2024 by difflock

[GarethM]

Yeap, auction prices are usually a good indicator, plus if the old machinery stops going for export will also be a good indicator.

 

Maybe it'll create a boom in spare parts orders, granted probably not from the manufacturers as they're milking it with the like of John Deere but from independents.

[Muddy42]

3 hours ago, GarethM said:

The machinery side of things is going to be people buying new equipment, the prices are already beyond being mental.

 

Which is obvious when you see the numbers of manufacturers and dealerships closing or downsizing as people can't afford new equipment unless you're Dyson.

 

Granted IHT might force anyone with a viable business to actually keep more equipment on finance or rental agreements so they never actually own the equipment.

 

A few grand a month Vs 100k on the books and taxable.

 

Sorry I understand you know.

 

As @difflock suggests there are probably loads of elderly farmers that still own the farm, land and machinery that havn't passed assets on or taken advice.  There sons now have to prepare for a big bill or sell some land.  You mentioned Dyson, its land speculators like him that have caused the massive increase in farm land values anyway.

 

[dan blocker]

2nd hand tractor prices are creeping up and will probably continue to do so because the cost of new is prohibitive for a lot of farmers?

[difflock]

It is quite depressing seeing how little 2nd hand tractors were worth 10 year ago. Ditto for new ones I also realise. 

 

[monkeybusiness]

This doesn’t look a bad buy for your job imo.