by Greg Peterson, Machinery Pete
Although rollercoaster rides are fun, there are serious and important business implications we’re talking about here pertaining to your net worth. This is also important knowledge to apply when buying, selling and trading farm equipment.
The down part of the rollercoaster is exhibited in the accompanying chart, which shows falling used farm equipment values. The data come from my quarterly “Used Values Index” report.
Using my rating scale of 1 to 10 for reference, see how we topped out in the first quarter of 2013 with a rating of 9.5, tying the all-time high.
Why Prices Fell. The fall started in the second quarter of 2013, driven largely by softening auction prices on one- to five-year-old large, late-model, used units. That includes four-wheel drive tractors, 200 hp tractors, combines, 24-row planters and self-propelled sprayers.
As commodity prices fell, it became difficult for dealers to move late-model trade-ins, and they piled up fast on lots.
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