Saudi Arabia? Yep, that’s where the winning bidder was from for the 2008 John Deere Gator TS utility vehicle sold on Ironplanet.com’s Oct. 15, 2010, online auction. The Gator was in nice condition, had 412 hours on it and a 4' dump bed. Where was the seller of that 2008 Gator? He was located in Illinois—a long way from Saudi Arabia.
This is just one example of how online auction sites continue to gain momentum. I’m sure we will see this momentum and growth continue throughout 2011 and beyond. Have you looked into selling excess used inventory on one of the major online auction Web sites? I’m guessing you have, or at least maybe you have been thinking about it.
You’re probably wondering how sale prices on these online auctions compare to traditional farm auctions, as well as regional consignment and dealer inventory reduction auctions, right?
Check out the accompanying table showing auction sale prices on late-model combines. Prices include sales from December 2009 to October 2010. Pay special attention to the columns on the right, where I’ve noted the type of auction for each sale. For the online auctions, you can tell which states the sellers were from by looking in the Area column: Kansas, Colorado, Minnesota and South Dakota.
Now compare the prices from these online auctions to the sale prices realized on farm, consignment and dealer auctions. It’s an interesting comparison.
I think buyers are still willing to pay a premium for nice condition equipment sold at traditional farm auctions. Look at the Case IH 8120s listed in the table. Two sold on online auctions, one on a dealer inventory reduction auction and one on a farm auction. A pretty strong price is $240,000 for that 2009 8120 with 235 engine hours sold on the December 2009 farm sale in southwest Kentucky.
I will continue to compile sale price data from the major online auction sites, including PurpleWave.com, BigIron.com, IronPlanet.com and IQBID.com, and stack those prices up against data from farm, consignment and dealer auctions around the U.S. and Canada.
With commodity prices surging during fall 2010, the end of the year and early 2011 could be very interesting times for used equipment values, especially on late-model, big-ticket items like these combines. Stay tuned.