The Magic 10 Year Old Mark for Tractors
Dec 23, 2015
Recipe for new record or near record high auction sale price on a used tractor: excellent condition; low hours; and oh yeah, one more thing...most likely 10 plus years old.
Check, check and check on the 2005 model John Deere 8120 (pictured above) with 1,752 hours sold yesterday, December 22, 2015, on a farm retirement auction in south-central Iowa. It went for $130,000. That is tied for the 2nd highest auction sale price I've ever seen on a John Deere 8120.
Our auction sale price data over the past years has consistently shown the magic of the "10 plus year old" connection on hot selling used tractors. Not really too hard to understand the forces at work. The price of new tractors (and all other types of new equipment) has just continued to rise over the years. That truth tends to "pull up" on the value of really nice condition, low hour used tractors, particularly as they get a bit of age on them. The 10 year old mark tends to be the sweet spot. Come with me to auctions anywhere when tractors like this come up for bid and what do you hear my auctioneer friends say:
"Boys, what's a new one cost?"
Quite a bit more $$. So hot bidding usually ensues on these 10 year old tractors like the 2005 model John Deere 8120 sold yesterday on the south-central Iowa farm auction for $130,000. Below is a look at auction sale prices on other very nice condition, low hour John Deere 8120's, including Youtube video I shot on the record setting 8120 sold for $138,000 on a March 31, 2012 farm auction in northeast Iowa:
2004 John Deere 8120 with 1,033 Hours: $138,000 (3/31/12 farm auction, northeast Iowa)
Here's Youtube video I shot of this tractor selling for $138,000. Spring of 2012 was near the very top in terms of record high used farm equipment values:
2003 John Deere 8120 with 1,105 Hours: $130,000 (12/18/12 farm auction, northeast Iowa)
2005 John Deere 8120 with 1,671 Hours: $125,000 (2/4/14 farm auction, northwest Nebraska)
The 8120 for $130,000 wasn't the only "HOT" seller on yesterday's south-central Iowa farm retirement auction. This 1989 John Deere 4455 2WD with 4,370 hours sold for $60,000, a very strong price for a 2WD: