Strong used equipment values have been a theme for the past 18 to 20 months, and Machinery Pete doesn’t see that story changing anytime soon. There were expectations prices would soften to start 2023, but that hasn’t been in the case. However, if you’re searching for a bargain, during National Farm Machinery Show last week Machinery Pete revealed two areas farmers may want to watch.
Greg Peterson, also known as Machinery Pete, says prices of used four-wheel-drive tractors have been on fire as farmers are paying premiums prices for slightly older pre-DEF, pre-Tier IV four-wheel-drive models that are still in nice condition.
So, just how dynamic is the used equipment today? Machinery Pete says he’s running out of adjectives to describe it.
“As hot as it was a year ago, which was the hottest I’ve ever seen by a huge factor, amazingly, through the end of ‘22, the used values kept going up across the board,” says Machinery Pete. “When the calendar flipped, there were a lot of people thinking it can’t go any higher because now we’re taking out the urine taxpayers November December, but used values have got nothing but up since January.”
Another Key Indicator of Used Market Strength
He says the biggest driver of values continues to be availability, along with the right piece of used equipment on the market, even if it has high hours. Now, there’s another indicator of the market strength.
“We’re seeing auction pricing, strong pricing out of the deep South,” says Machinery Pete. “And over my 33 years, that’s always been a sure sign that you know that’s a hot market when used values there are exploding and higher in value.”
What to Watch for the Best Bargains
So, where are the bargains? Well, they may not be huge bargains, but there are a couple areas showing the best value for those in the market to buy.
“The only two spots that I see are low horsepower tractors, frankly, because there’s just more manufacturers so supply is built back up,” he says. “And just since the second week of December, we’re starting to see one- to three-year-old late model combine softened a little bit. It’s not like prices are dropping like a rock, but just softening.”
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