Machinery Pete: The Right Resource to Call Right NowFebruary 22, 2017
I’ve said it before, and I’ll say it again: If you are looking to buy used farm equipment, your first stop should be your local implement dealer.
This is true now more than ever.
Although your local dealer might not have exactly what you’re looking for on their used lot, they have access to a growing list of off-lease used tractors and combines that might not show up on the internet for a while. We saw an explosion of leasing activity beginning in 2015 as new farm-equipment sales slowed down amid the softening ag economy.
This past year, the first wave of off-lease returns began to wash back ashore. The waves are getting bigger. Machinery-leasing firms such as John Deere Financial and Case Credit have lot of inventory coming back onto the market.
A Trusted Resource. Your dealer has access to off-lease units. If they know what you need, there’s a good chance they can find a match for you.
Think of it this way: You talk with local salespeople when you shop for a new pickup. If they don’t have the black F-250 XLT with leather that you want, they can get one by calling another dealer and working it out. They have it delivered in just days.
That can now be done with late-model used tractors and combines.
I'm starting to see the term "off-lease" show up more frequently on the auction front. On the sale bill for a Jan. 23 farm-retirement auction in west-central Iowa, I noticed a Case IH Magnum 335 tractor with 1,895 hours that had been bought off-lease with 300 hours. The table on this page shows that sale price of $121,000 along with other recent Magnum 335 sales.
For the most part, I like what I’m seeing from finance and lease companies pushing off-lease tractors and combines through the dealer channel. It’s easier to do this now because internet channels are more developed. That’s in contrast to 17 years ago, when I last saw a glut of off-lease tractors wash into the used market. That was not pretty. Values fell hard.
Off-Lease Advantages. Another huge benefit of buying off-lease machinery through your local dealer: You are working with local folks you know and trust.
You need your dealer to be there when you need great service, support and technical advice. And your dealer needs your farm to be strong and vibrant.
Your local dealer stands ready to help you find what you need. Stop in and start the conversation. Tell ’em Machinery Pete sent you.
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.