Where Are The Best HP. Buys?

Successful Farming - - MACHINERY INSIDERª - By Dave Mowitz, Ex­ec­u­tive Edi­tor, Ma­chin­ery & Tech­nol­ogy

Bar­gain prices, low- and no-in­ter­est loans, and other en­tice­ments such as cer­ti­fied pre-owned pro­grams have cer­tainly shrunk the once bur­geon­ing sup­plies of late-model ma­chin­ery and, par­tic­u­larly, trac­tors sit­ting on deal­ers’ lots.

In­deed, deal­ers are feel­ing more pos­i­tive about their used in­ven­to­ries. In 2016, nearly 60% of deal­ers felt their used in­ven­to­ries were too high. That per­cent­age has shrunk to 47%, ac­cord­ing to a sur­vey by the As­so­ci­a­tion of Equip­ment Man­u­fac­tur­ers and Equip­ment Deal­ers As­so­ci­a­tion.

Yet, Suc­cess­ful Farm­ing mag­a­zine’s anal­y­sis of late-model trac­tors finds sig­nif­i­cant num­bers of cer­tain sizes of trac­tors wait­ing for buy­ers. This is es­pe­cially true of high­horse­power, front-wheel-drive mod­els.

For ex­am­ple, a sur­vey of late-model (2015 through 2017 model years) trac­tors up for sale by John Deere deal­ers as listed at ma­chinefinder.com re­veals:

• 315 four-wheel-drive (on tires) mod­els 9370R up to 9620R listed.

• 345 tracked trac­tors (both two- and four­wheel drive) listed.

• 1,274 high-horse­power, FWD mod­els 8245R up to 8370R were avail­able.

• 560 medium-horse­power mod­els 6140R up to 6125R listed.

Only 7 se­ries trac­tors (mod­els 7210R up to 7310R) were light, stand­ing at 189 units avail­able.

“We don’t face the used in­ven­to­ries of a cou­ple of years ago,” says Jeremy Knuth of Her­itage Trac­tors, which op­er­ates Deere deal­er­ships in Kansas and Mis­souri. “We’re still ag­gres­sive in work­ing with buy­ers to move the trac­tors out that we have on hand. There are a great many good deals in trac­tors to be found.” Trade war ef­fects on sales

The re­cent trade war and its di­rect ef­fect on com­mod­ity and live­stock prices has, how­ever, put a damper on new and used trac­tor sales. As the end of the year ap­proaches, deal­ers will likely be of­fer­ing spe­cial buy­ing op­por­tu­ni­ties to re­duce in­ven­to­ries.

The dealer ask­ing prices on page 33 pro­vide a com­pre­hen­sive price guide on nearly 2,000 late-model (2015 to 2017) trac­tors by var­i­ous con­fig­u­ra­tions.

A cu­ri­ous ef­fect of the healthy sup­plies of late-model trac­tors is that it is driv­ing up prices on older (10 to 20 years old) high-horse­power mod­els. I com­pared re­cent (within the last six months) high-horse­power trac­tors of this age and found an av­er­age 10% to 15% in­crease in their dealer ask­ing prices as well as auc­tion val­ues. “This re­flects de­mand by farm­ers need­ing to up­grade trac­tors but do­ing so with older units, es­pe­cially those trac­tors that are in ex­cel­lent con­di­tion with­out a lot of hours for their age,” says Tim Meyer of the St­effes Group.

Pho­tog­ra­phy: name goes here

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