Machinery Pete: Nearly New Equipment Captures Strong PricesMarch 27, 2017
One thing I hardly ever used to see: Almost-brand-new farm equipment sold at auction. I’d only run across like-new equipment at farm estate auctions where the owner had recently bought new equipment before dying unexpectedly. Outside of that unfortunate situation, why would a farmer ever buy new equipment and then abruptly sell it? Over my 27 years of keeping track, they didn’t.
But to quote Bob Dylan: “The times, they are a changin’.” In July 2015, I began to see this new trend of nearly new farm equipment en masse at auction. Commodity prices had sunk from the lofty highs
of early 2013, and the raw number of machinery auctions had climbed rapidly.
Strong Values. The trend of newer and shinier iron selling at auction only intensified through 2016. The trend has continued this year. Check out the accompanying data table showing recent sale prices for equipment manufactured in model year 2016. These sales happened in the short time from Dec. 1, 2016, to March 12 this year. I didn’t have room to include all 64 recent sales of machinery from model year 2016.
The question then becomes: Well, how did these items sell? All things considered, my take is they’ve sold fairly well. Remember, these are hard-cash actual sale prices.
Take the first item in the table, the 2016 John Deere R4045 sprayer with 216 hours. It sold for $317,500 on Feb. 24 at a farm auction in north-central Ohio. You can watch the sale video at MachineryPete.com, where I highlighted the fact that the average dealer-advertised price for 2016 models is $329,445.
I think one reason I’ve seen solid to stronger sale prices since Nov. 1 is dealership dynamics. Many dealers had to move a high volume of late-model used units off their lots in late 2015 and early 2016.
Buying Season. Because used values have found footing for the past 12 months or so, even on large late-model equipment, it is still a good time to buy aggressively if you are able. Don’t forget to begin your used-equipment searches with trusted local dealers. If they don’t have what you are looking for, chances are good they can help you find what you’re after.
In the market for used equipment? Check out the Machinery Pete marketplace. Shop for used machines from across the country and search more than 105,000 listings for free, using innovative tools for farmers and dealers. Visit MachineryPete.com.