Nice Condition Older Model Combines Holding Value
March 17, 2018Machinery Pete's Blue Ribbon winning recipe...time tested over past 28 years:
* Take any piece of used farm equipment
* Let it age gracefully to the 10 year old mark
* Take great care of it, shed it religiously, service it religiously, keep great records
* Last step, now put it up for sale anytime in this 10 plus year old range
Result...extremely high buyer demand and very strong sale price to you, the happy seller. This time tested winning recipe has been on display daily since last November. While average to rough condition used equipment prices have softened at auction, values on the good stuff, the super condition, well cared for equipment, have held very strong, even inched up a little.
Even on older Combines.
Let's take the example of the John Deere 9570 STS combine, a smaller Class size machine, at this point now bracketing our magical 10 year old mark. Today (March 17, 2018) on a farm retirement auction in southeast Minnesota, our friends at Maring Auction (http://www.maringauction.com) sold the 2010 model John Deere 9570 STS combine pictured below with 1,649 engine hours for $119,000.
Just 3 days earlier, on a March 14, 2018 online farm auction in southwest Michigan, the great team at Sheridan Realty & Auction Co. (http://www.sheridanauctionservice.com) sold the super clean 2008 model John Deere 9570 STS combine pictured below with 1,580 engine hours, RWA, for $121,000:
There were 82 online bids for this 10 year old combine, proving numerically that buyer demand is strong to acquire the nicest condition 10-ish year old farm equipment. This trend is even more pronounced with Tractors.
Pulling back to look at the big picture, here's a look at the Avg. Auction Price on John Deere 9570 STS Combines over the past four years:
Avg. Auction Price on John Deere 9570 STS Combines
* Data by http://www.MachineryPete.com
Note how the average auction price on 9570's has actually inched higher the past two years after a big drop in value back in 2016. I'm guessing at the southeast Minnesota farm auction today where the 2010 model 9570 STS sold for $119,000 my auctioneer friend Matt Maring probably at some point while he was selling it pointed out a fact that ALWAYS pushes bids higher...
"Boys, what's a new one cost?"
There's the key component that has made my Machinery Pete Blue Ribbon recipe time proven. As the price of new farm equipment (all types) has continually risen over the decades it has worked to pull UP on the value of the best condition used equipment. And I'm here to tell you the magic line in the sand when this collectively starts to happen has historically been right around the 10 year old mark.
It's almost as if group think kicks in at that point...."Hey, I liked that model when I ran it, wish I could find a super nice one now with low hours, great history of care, I'd jump on it, after all, what's a new one cost today." Only thing is if you're going to an auction to bid on one, or calling about that private ad or on the dealer lot you're competing against 3, 5, 10 other folks that feel the exact same way.
So price goes up. Note the 82 online bids on the 2008 model 9570 STS sold for $121,000 this past Wednesday on the online farm auction in southwest Michigan.
So where's the best value to be had Pete?
My advice on this question hasn't changed. Doesn't matter if we're talking used combines, tractors or most other categories of used farm equipment. The best value lies in acquiring the best condition 3-7 year old used models, because guess what...if you continue to take great care of it, shed it, in a few years YOU will own what everyone always wants...
A super condition 10 year old ____.
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