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Used Combine Values Falling
Aug 01, 2013
Values on late model used combines are falling. Again.
This is the 5th year in a row I've seen values on late-model used combines slip during 2nd Qtr. into 3rd Qtr. of the calendar year based on the auction sale price data we compile. Definitely a great time of year to BUY a good used combine. Why are values falling? No secret, there are just way too many late-model used combines sitting on implement dealer lots all over. Do a quick count next time you're out on the road and pass local dealerships...."5, 10, 15....wow, there are a LOT of shiny, big, late-model used combines sitting there, aren't there?"
To illustrate, let's consider the example of (2) CaseIH 5088 combines sold on western Illinois farm auctions. First came a 2010 model 5088 with 775 engine hours, sold on a December 14, 2012 farm auction in northwest Illinois (pictured below). It sold for $188,500:
So year end sale there, used equipment values have shot UP the past 11 years during 4th Qtr. Why? Tax reasons of course. Tons of folks looking for last minute write offs via the Sec. 179 IRS write off option of any business asset purchase (new or used). December...great time to SELL a used combine, or any piece of equipment.
Ok, now let's compare that 2010 CaseIH 5088 with 775 engine hours above, sold for $188,500 last December to the 2011 CaseIH 5088 with only 376 engine hours sold on a farm estate auction last week (July 25, 2013) in west-central Illinois....for $166,000. Here's a pic:
So one year newer with 400 fewer engine hours...but sold for $22,500 less. As I said, used combine values are falling. What will happen with used combine values the rest of 2013?
Here's a Youtube video of the 2011 CaseIH 5088 combine selling on last week's west-central Illinois farm estate auction: