The Multifaceted Market

December 5, 2015 02:37 AM
 
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Yes, I’m the guy who has been talking about auction prices for 26 years. But we all know the used farm equipment market is multifaceted. Farmers buy and sell iron privately. Used equipment brokers play a vital role in the market. The auction trail for used equipment is vibrant. Of course, there are more than 3,000 dealers across the U.S. who sell, buy, trade and service used equipment.

In the past couple of years, it has become easier to fixate on price alone. But as the son of a third-generation implement dealer, I recognize the value of a tight working relationship with your local dealer. Whether you’re a farmer or a dealer, don’t take that relationship for granted. 

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This 443-hour John Deere 6420 sold for $59,950 on Oct. 2, 2015, at a farm auction in Tennessee. 

There’s also value in knowing the latest “hard cash” auction price on used equipment, but we all know there’s more to the story. You want to buy the right equipment but not overpay. That’s important, and always will be. But it’s also important to know the seller stands behind the tractor or combine you just bought. There’s comfort in knowing you can call your trusted local dealer at any hour of the day or night to get you back up and running should a breakdown occur.

You need your local dealer. The farmer and dealer act as a partnership. When you have a problem or a question about the GPS equipment in the cab or the technology on your planter, you call your local dealer. Their job is to help keep you running.

The value of any dealership lies in tight relationships among the sales rep, farmer and service team. Trust is hard earned, and rightly so. Yet in this fast-paced 24/7 world we live in, I think trust can be easily overlooked.  

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This 2004 AGCO RT100 sold for $46,000 at a farm auction in south-central Minnesota on March 21, 2015. 

Keep in mind: When shopping for used equipment, don’t forget to talk with your local dealer. Even if they don’t have the item you’re looking for, dealers have channels they can access on your behalf to find exactly what you need. Give them a chance to use their connections.

Take 10-year-old 100-hp tractors as a great example. Given the strength in the livestock segment, this category has been pretty hot the past 20 months. See for yourself in the data table below of recent auction prices. 

There are strong sale prices—such as the 2004 AGCO RT100 2WD with 2,180 hours and no loader that sold for $46,000 at a March 21, 2015, farm auction in south-central Minnesota. Compare that recent sale to the 2004 AGCO RT100 MFWD with 2,276 hours and loader from Montana that sold for $39,000 at a May 21, 2010, online auction.

It can be hard to find 10-year-old 100-hp tractors because they don’t tend to sit on dealer lots for long. Call your local dealer and share what you need. They can help you find the one you’re after. 

If you’re in the market for used equipment, check out the all-new Machinery Pete marketplace. To shop for used machines from across the country, visit www.MachineryPete.com

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Comments

 
Spell Check

JBG
WC, KS
12/14/2015 07:25 AM
 

  @jdm. Agree 100%. Huge mark-ups and as far as the "day or night" service,,,,, yeah right. You call after hours and you will be charged accordingly and also get the privilege of talking to ticked off people because they are being bothered outside of their banker's hours of business. I'm sure there are some dealers who are good, but they are certainly in the minority.

 
 
jdm
south mn, MN
12/7/2015 07:33 PM
 

  "There’s comfort in knowing you can call your trusted local dealer at any hour of the day or night to get you back up and running should a breakdown occur." **Can somebody tell me what dealer they are talking about. Too many dealers only care about whats going into their pocket. And there are way too many multiple store dealerships that have terrible service and the sales people never return your call.

 
 

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