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New combines too expensive with a oversupplied second hand market. New combines have increased in price and offering very little for trades in Australia at the moment. Interested in some thoughts on this and has anyone else found this.
 

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I cannot understand the astronomical price of equipment in general. Not just combines. I dont know how anyone can justify new machinery theses days. My motto is, im gonna run what i got until the wheels fall off ,then im gonna fix it til they fall off again.
 

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Sorry I cant offer much as new price does not effect me. But I dont think the dealers can offer much for trades when their lots are full or trades from the past 3 years. I dont think the trickle down theory went as well as wall street had hoped. Kinda stopped at about the 3rd owner.
 

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The reason new machinery has increased in price that there is always 2-4% price rise an when our Australia dollar drops from $1.08 to 95c that aproxx 10-15% change in an price over $450k-$550k it's 40-60 rise in price an the reason why they are not offering decent trades is because the dealers have I'm guessing $2-3millin worth of trades that would cost them a lot of money in interest $150k plus that's why there is not going to many new headers bought in the coming years until the 800 headers get sold that are in the yards
 

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Another question is with all the turn over of 1-2 yr old combines how many of these high valve near new machines can the market absorb before it devaluates low hour trades, and dealers and companies put a stop to it?
 
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