When economic times are tough, many producers turn their attention to the used equipment market.
“Used equipment values were surprisingly strong in 2018 and that momentum has carried into the first few months of 2019,” says Greg “Machinery Pete” Peterson.
“The trend goes back to 2017,” he says. “Despite a high level of auction activity, used values rose slightly and we started to see strong buyer demand for good condition used farm equipment.”
Since then, profit pressure and pent-up buyer demand have driven used equipment values up year over year.
Overall, new and used equipment sales are up across the board. According to MachineryPete.com data, so is search traffic for combines, planters and large horsepower tractors.
“Producers had a lot of new iron when the downturn started,” says Peterson. “Now, those who held out on making equipment purchases over the last few years are needing to update their equipment lines.”
At auction, Peterson has seen solid pricing on late model, low-hour machinery, and strong bidding in the nine- to ten-year range, but he says the best buying opportunities are between that age gap.
“Keep an eye out for the four- to seven-year-old equipment,” says Peterson. “That’s your value buy and the advice I give producers looking for a bargain.”
Selling used equipment
For producers making plans to sell their used farm equipment, Peterson says a little personalization can go a long way.
He recommends capturing drone video of the equipment in action and pairing the footage with a short clip of the owner talking about the machinery’s use and history.
“The nature of how you sell in today’s world is as much about marketing yourself as it is about marketing your machinery,” he says. “Any connection you can build with potential buyers will help make your used machinery worth more.”
Used equipment financing
No matter how you choose to acquire machinery, AgDirect has attractive rates and ag-friendly financing options to meet your needs.
“As margins have tightened, producers have been looking for additional ways to cut expenses and that has meant more used equipment purchases at auctions and through private party transactions,” says Cory Nordhausen, vice president of AgDirect sales in the western region.
“AgDirect works with customers buying used equipment through these channels in addition to the traditional dealership model,” he says. “From financing terms to interest rates, we have the tools and resources, like our AgDirect Mobile app, to help you look at each scenario independently, compare options and manage expenses on a case by case basis.”
Are you planning to buy, finance or lease used equipment in 2019? AgDirect can help you make the right decision for your operation.
To learn more about AgDirect or locate your nearest AgDirect territory manager, contact the AgDirect financing team at 888-525-9805 or visit agdirect.com.