Where Are The Best HP. Buys?
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.