Auction prices in Nebraska set record highs
Well, I guess now we know.
The used equipment market is, in fact, going to be red hot this winter. An auction in southeast Nebraska Tuesday (November 28, 2006) proved the point. The recent run up in grain prices had me suspecting we'd be looking at a very competitive market in the coming weeks and months. But suspicions won't get you very far, facts will.
So, try on these facts from Tuesday's sale.
How about a 1992 CaseIH 7140 mechanical front-wheel drive tractor with 2,815 hours selling for $49,250? That's the highest selling 7140 I've seen since October of 1999!
Click here to download a PDF of auction sale price data for CaseIH 7140 tractors.
Also on this sale was a 1992 model JD 9500 combine with 1,334 engine hours. It sold for $67,000. How high is that? Higher than high. I had to go all the way back to August 9, 2001, to find a Deere 9500 combine that sold for more money. For comparison sake, check out these later model 9500s sold at auction over the past few years.
$46,500: 1995 model, 1,290 engine hours, sold 12/05 in south-central IA
$57,000: 1997 model, 1,369 engine hours, sold 3/05 in east-central ND
$64,500: 1997 model, 1,018 engine hours, sold 1/04 in southeast NE
$64,000: 1997 model, 883 engine hours, sold 12/03 in southwest MN
$62,000: 1997 model, 821 engine hours, sold 1/02 in north-central IL
Click here to download a PDF of auction sale price data for JD 9500 combines.
Now consider that the 9500 sold for $67,000 Tuesday was a 1992 model and had 1,334 engine hours. Contrast to the 1997 model with 1,018 engine hours sold in January 2004 in the same southeast Nebraska region I've listed above for $64,500.
Should I go on?
OK, there was the 1987 JD 4250 2WD tractor with 1,555 hours that sold for $44,000. Of all the JD 4250s I've seen sell at auction over the last 10 years, $44,000 is the highest. And it's a 2WD model, not mechanical front! Not only is $44,000 the highest sale price I've seen, it's the highest by a mile. It's the only one over $40K. The next highest went for $39,000 back on September 6, 1996. It was a 1983 model with 2,600 hours, sold in southeast Minnesota. But it was mechanical front-wheel drive.
Remember now, it takes two to tango. There were folks who were in the running on these pieces of equipment right up until the last bid. They're still in the market looking for what they need. If you look at these sale prices and scoff, thinking those buyers simply paid too much, I'd say think again. I'm seeing very strong auction sale prices from all over the place, and it doesn't have to be just on equipment in cherry condition. Even the stuff in just decent shape is selling very well.
If you're looking to buy, better get used to it. Looking to sell? Merry Christmas!