One of the most prominent trends I’ve seen in the used farm equipment market the past 5 years has been the astronomical increase in the amount of late model used equipment selling at auction vs 5, 10, 15, 20+ years ago.
Tons of late model used iron has been sold at auction the past few years.
I crunched the numbers this afternoon…in 2019 I’ve seen a 378.8% increase in 5 year old equipment sold at auction vs 10 years ago.
Almost a 400% increase!
WHERE 5 YEAR OLD EQUIPMENT SOLD AT AUCTION THIS YEAR
- MachineryPete.com data showed (1,307) 5 year old items sold at auction in 2019
WHERE 5 YEAR OLD EQUIPMENT SOLD AT AUCTION 10 YEARS AGO (2009)
- MachineryPete.com data showed (273) 5 year old items sold at auction in 2009
Makes perfect sense if you think about it. SO MUCH New equipment was sold back when times were good in ag and the $$$'s were flowing through the system, back from 2008 - 2013. Entering that HOT period for new equipment sales of course we were coming off a long period of “sitting tight” in terms of new equipment buying, basically from the late 1990’s to early 2007. So when commodity prices surged higher late in 2007…unleashed was a WAVE of folks looking to update their tired equipment lines.
And of course the fact that IRS Sec. 179 was allowing for greatly increased immediate write off of any equipment purchase (new or used) acted as the lighter fluid to the iron buying frenzy…buy equipment and lower my taxes. That recipe resonated in a HUGE way in farm country. Still does today, but we just haven’t had that strong flow of ++ farm income to goose the buying mood for new iron.
Now as more profit challenged times in ag have stretched out for nearly 7 years…we naturally began to see an increase in the number of farm retirement auctions, older farmers deciding to hang it up and the equipment lines on their auctions has featured more late model used iron than I’ve seen at any point in my now 30 year career tracking auction sale prices daily.
Also interesting to how much 5 year old equipment is selling for at auction now vs 10 years ago. Here’s a look at the Highest Auction Prices on 2014 model stuff this year vs 2004 model stuff selling at auction back in 2009.
HIGHEST AUCTION PRICES THIS YEAR ON 5 YEAR OLD EQUIPMENT
- Data by www.MachineryPete.com
HIGHEST AUCTION PRICES ON 5 YEAR OLD EQUIPMENT 10 YEARS AGO (2009)
- Data by www.MachineryPete.com
As I’ve been saying, writing, blogging about throughout 2019…the best current BUYING OPPORTUNITIES lie in the 4-7 year old age range, particularly on Tractors and Combines, which puts 5 year old 2014 model equipment square in the buying opportunity bullseye.
Link to (1,827) 2014 Model Tractors For Sale Today: https://tinyurl.com/rnda2zh
Link to (608) 2014 Model Combines For Sale Today: https://tinyurl.com/w5bs2xw
Link to (236) 2014 Model Planters For Sale Today: https://tinyurl.com/t5qqofh
Link to (277) 2014 Model Self-Propelled Sprayers For Sale Today: https://tinyurl.com/sqgvvmk
Pete
Machinery Pete
www.MachineryPete.com