For late model used equipment. (3 year old machines and less), do you feel it’s a buyer’s or seller’s market now?
Trend going forward? Thanks!
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Great question. What I’ve seen with <3 year old used equipment values has been a very slight uptick in overall values since 1st week of November '16. Seems like good buyer competition for the very good condition late model used stuff, even the large late model used stuff. This seems to surprise folks I talk with all over. Guy in KS yesterday for example said “So Pete, used prices must be way down, right?” I understand where the question is coming from, but its just a bit behind. I did see a huge drop in used values from last 1/2 half of '13 into mid '15 but since that point generally flat lining used values…until Nov. '16 when slight uptick kicked in.
So I think still a real good opportunity right now to upgrade into late model used. Still plenty on dealer lots, but it must be noted that the overall level has subsided a bit. Lot of dealers moved LOT of excess late model used inventory in '14 - '15.
One angle I’m thinking about more here lately…we’re now 4+ years into much slower cycle of new iron purchases. As this stretches out further, seems like conditions ripening for strong equipment sales whenever commodity prices do finally push upwards. I think the uptick in used values since Nov. '16 speaks to this possibility. So in this light…once again, pretty good opportunity right now to be a buyer if you’re able.
Pete
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Being a long time auctioneer in IN, retired now, I’ve always been interested in used equipment values. I always told customers if it looks good it’ll sell good. If it looks bad it’ll take a hit. If it is bad it’ll bring what it’s worth. I always said the condition of the inside of the cab indicated the kind of care & maintenance a tractor or combine had.
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Every new series that comes out seems to be higher priced and poorer quality . farmers know this and seem to want that slight used one that could be one series away from current and seem willing to pay up and I see this hanging in there especially if we get higher farm prices
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Spot on comments Marve!
Pete