Since the start of 2016, we’ve seen used farming equipment dealers actively reducing their inventory. With this being the case, it’s imperative for dealers and sales managers to always stay up to date on the flow of the market. Here are just a few examples from February reflecting this trend:
- In southeast Iowa, a 2013 John Deere 8335R tractor with 415 hours (ILS) sold for $235,000, and a 2013 John Deere 8285R with 367 hours (ILS) sold for $182,000!
- In central North Carolina, a 2006 John Deere 9660 STS combine with 2,268 hours sold for $80,000!
- In central Minnesota, a 2011 John Deere 7230R with 452 hours sold as part of an online auction for $131,000!
Sure, these are higher-end John Deere tractors, but what else is bringing such high prices to the table? It’s the time of the year—the COLD months! October through February, even if they are close to harvest, generally offer higher auction returns on used farming equipment, mostly because there isn’t a lot on the market during that time.
As you can imagine, fetched prices during the warmer months are much softer, and sales are generally grouped together. Aside from that, more auctions take place, putting more inventory on the market and dropping prices.
What does this mean for managers with high inventory? If you price your used farming equipment right and sell at the right time, you’ll be able to move it. Don’t advertise your inventory, but market it—create a strategy to target buyers at the right time of the year to maximize your selling value.