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| (4) Kilbros 655 gravity wagons sold for record prices on southwest Ohio farm sale Saturday: $8,750 - $10,200 - 4/19/2013 | |
LATE MODEL USED COMBINE VALUES Shaping up to be another interesting Spring & Summer on the late model used Combine front. The sheer # of units sitting on implement dealer's used lots around the country speak to an on-going supply & demand issue slightly out of whack. Nothing new I'm reporting here...been this way for a while now. The auction sale price data I've been compiling now for 23 1/2 years first began to shine light on this issue back 3 years ago, in Spring 2010. What I saw happen was this....auction sale prices on late model used Combines fell (roughly 10-15%) that Spring of 2010 right through the summer. Then used values rebounded in 4th Qtr. 2010 with our annual run up in used equipment values & stronger auction sale prices toward the end of the calendar year as farmer buyers sought last minute tax deductions via the IRS Sec. 179 tax write off. I saw this exact same trend last year in 2012...late model used Combine values "softened" 10-15% during Spring & Summer months then strengthened come year end with tax buyers out in force. So, what are we queued up for again here in 2013?? I'd say probably the same exact pattern. Again, the sheer volume of late model used Combine units sitting on implement dealer lots all around the country cry out for a continuing need to PUSH THEM OUT....even with this super LOW interest rate environment we've been in for so long now, even with these low rates there is MIGHTY pressure on dealers, or should I say more correctly "dealer groups", to MOVE 'EM OFF THE LOT. The very, very HIGH PRICED late model used Combines kinda tend to tie up the old credit lines.....so MOVE 'EM OUT. TIMING is the very interesting aspect to me in this scenario. Of course our common sense would tell us that these excess units need to be sold prior to harvest, so move 'em out spring & especially mid to late Summer months, right? Seems to make sense. But I sit here analyzing & chewing on all this data I've been compiling from all points for 2+ decades now....and our data has shown, actually for each of the past 10 years now, that auction sale prices cut higher during 4th Qtr. of the calendar year....even on harvest equipment. Why? You know why.....TAXES.....buyers want/need those end of year tax write offs. Now figure our current situation with IRS Sec. 179. The Fiscal Cliff deal the Feds in Washington struck on Jan. 2, 2013 pushed the Sec. 179 annual write off limit for this year back up to $500,000, back to where it was in 2010 & 2011, an all-time high level. Lot of uncertainty about what the Sec. 179 $$ limits will be going forward in years to come....but we know what the $$ level is THIS YEAR: $500K. So dealers should wait to push out excess inventory then, right?? Well, umm.....no. "Waiting" is NEVER a good game plan in the implement biz. Keep 'em turning is the way to go. Just like in the farming biz, good years with higher prices are great.....but the $$ RISKS continue to grow as well. Best advice? Get your hands on good, timely, trusted information to help make the best possible decisions you can given the current circumstances.......stay tuned. JD 8130 TRACTORS SOLD IN OHIO, MINNESOTA & WASHINGTON I've seen (3) nice JD 8130 Tractors sell here very recently. Always interesting & fun I think to compare how different factors such as....NO. OF HOURS, LOCATION OF THE SALE...affect sale price. The 1st Youtube video below shows a 2008 JD 8130 with 375 hours selling on a farm auction last Saturday in southwest Ohio. Also on this 1st video is footage of nice 2008 JD 8130 with 482 hours selling on an April 4, 2013 farm auction in southwest Minnesota. The 2nd Youtube video below I just posted...shows a 2007 JD 8130 with 2503 hours selling on a large April 4, 2013 farm auction way out in northwest Washington state: http://www.youtube.com/watch?v=iSqpN8NudUk&feature=player_embedded http://www.youtube.com/watch?v=2Jq303DM8B0&feature=player_embedded |