Auction Buckle your seat belts - nov. & dec.

admin

Guest
2000 JD 7610 2WD Tractor with 3000 hours & Loader sold for $53,000 on southeast Kansas farm sale Saturday - 10/28/2013

BUCKLE YOUR SEAT BELTS - NOV. & DEC.
Almost go time....are you ready? I've written, blogged & spoken a lot the past 2-3 years about the big DROPOFF in the No. of machinery auctions, a whopping 55-60% decrease compared to 2000 - 2005. Just haven't been many good farm auctions around, have there? Nope. Well looks to me like that's about to change as November & December '13 are shaping up to be very BUSY months in terms of raw No. of machinery auctions. We'll have a good No. of all types of auctions too....traditional farm retirement and/or estate auctions, regional consignment auctions, on site dealer auctions and of course ever increasingly these days....online machinery auctions. Seems to me as though lot of folks...farmers & dealers....will be looking to time their auctions here in 2013 before the end of the year, in great part to try and maximize the TAX MOTIVATED year end buyer push. This has developed (year end tax buyers bidding UP auction sale prices) into one of the more defined trends I've spotted covering the used machinery market. Analyzing our auction sale price data, over 500,000 actual sale prices on all types of equipment, there's no doubt that auction sale prices have crested HIGHER each of the past (11) 4th Qtr's on the calendar. Read that again....the PAST 11 YEARS auction sale prices have gone UP during the 4th Qtr. of the year. Wow. Specifically the period from the the 1st week of November through the end of Dec.....HOT time to sell. And now here we are in late October 2013 and our lovely folks in Washington D.C. are at their annual impasse. Nice. They need to go back and spend a day in Elementary school where we were all taught to PLAY NICE. You don't have to like each other, but let's get along. Seems easy.....alas. Anyway, as we roll toward the end of the '13 the IRS Sec. 179 tax write off clause that allows for immediate write off of any biz asset purchase (new or used) for up to $500,000 (tied all-time high $$ level) is set to cascade ALL THE WAY DOWN to only $25,000 for 2014.
Beyond a huge $$ drop.
Some folks out there think our Washington friends will once again (like last year) pass legislation to bump the IRS Sec. 179 write off limit back up, maybe not back up to $500K for '14 but maybe $200K+ range. Could be. Others are convinced nope, no bump up coming, it will just fall to $25,000. Either way the potential effect on used farm equipment values could be huge. Earlier this year when the Feds made their Jan. 2nd Fiscal Cliff agreement and pushed the IRS Sec. 179 write off limit back up to $500,000 for '13...I blogged that evening that Katie bar the door here we go....used equipment values could jump higher, which they promptly did....like the JD 4440 sold for $47,500 on the Jan. 19, 2013 farm auction in Hudson, IA (see Youtube video below):

[video=youtube;9AAl_Yg8GxY]http://www.youtube.com/watch?v=9AAl_Yg8GxY&feature=player_embedded[/video]

More at http://www.machinerypete.com/Blog/Default.aspx?ppovId=306


 
 
Top