Gray Market Tractors Hot, But Not For Long

Gray Market Tractors Hot, But Not For Long TRACTORS New Tractors 30-1-19 Gray market tractors are still a cheap way to get a good used tractor, says Richard Cole, but that may not be for long. EPA rules only allow import of noncompliant emissions standards tractors if they were built prior to 1996. This means that with each passing year, available tractors are that much older. "Over a period of time, this will spell the end of gray market tractors," says Cole. "That's why the Chinese are bringing all their new tractors into compliance at a price that's competitive with gray market tractors." Although Cole has also started importing new Chinese tractors, he is still importing reconditioned tractors from Japan. Brands include Yanmar, Mitsubishi and Kubota and sell for about a third the price of a similar-sized new tractor. "A new 20 hp Deere with a Deere loader and tiller will sell for more than $20,000," says Cole. "We can sell the whole thing for $7,999 to $8,995." Tractors are either shipped to Vietnam for reconditioning or reconditioned in the U.S. Reconditioning includes engine, transmission, steering, hydraulics and electrical system. New front and rear tires are installed along with a new seat. All fluids are replaced, and the tractor receives a new paint job. "It may take three to four tractors to make one," he says. "We buy from a number of suppliers that we have dealt with for several years, and they send us good quality, low-hour tractors." The tractors are loaded in shipping containers, up to 16 at a time, depending on their size. "If you tell me what tractor you want, I will try to locate it," he says. "I get a list of 100 to 200 tractors each month and pick out the load I want." This may be the best time ever to buy a low-cost compact tractor, adds Cole, pointing to the current availability of reconditioned tractors and the low-cost, new tractors from China. However, he doesn't expect these prices to last as the gray market disappears. "Once the Chinese establish market share, I expect their prices will rise," says Cole. Contact: FARM SHOW Followup, Compact Tractor Consultants, P.O. Box 416, White River, S. Dak. 57579 (ph 605 360-9600 or cell 605 259-3300 or 866 381-6753; tractor@gwtc.net; www. compacttractor consultants.biz).

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