Wholesalers buying used / offering to swap

We as a dealer are starting to get calls from Wholesalers that are looking more and more to buy used units “cheap” from one dealer, and then contacting other dealers with used units and offering to trade it to other dealers “cheap”, and presumably they will retail or wholesale the unit they now have at a profit at some point. Does this mean the used market is starting to move up or is this a new trend, or has it been going on and we were not aware.

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I think yes to both points. Based on the hard cash auction sale price I’ve been compiling for 27+ years now, used values began to stabilize last year, and even strengthen just a bit beginning in early November. This trend has held through May '17. And yes, beginning to see the activity you describe of folks calling dealers about acquiring used items and then moving them to other dealers in other geographies.

To me this makes good sense. Think of realtors…they don’t just sell houses they have listed personally. They sell from all available homes for sale.

I think as the price of farm machinery has escalated SO rapidly here over the past 10-15 years, new thinking and new approaches to effectively managing used equipment inventory becoming more & more important for dealers.


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