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For sale: Five-year-old combine; how much?

Agriculture.com Staff 08/02/2006 @ 9:15am

"What's the resale value of a five-year-old John Deere 9550 combine with around 400 to 500 separator hours?"

That question was posted recently in the "Machinery Talk" discussion group on this Web site. The key term here is "resale value." When you're trying to sell used farm equipment, whether it be a late-model combine or an older field cultivator, you need some good current reference points to work off of.

These reference points need to be based on current data.

For example, in the case of our John Deere 9550 combine, I could provide the following data from the calculator pricing tool in our Web site.

Average auction sale price on John Deere 9550s this year: $79,000

Average auction sale price on John Deere 9550s last year: $87,750

Average dealer advertised price on John Deere 9550s this year: $101,956

Average dealer advertised price on John Deere 9550s last year: $108,691

Very good reference points to help us start out in figuring value, but our guy wanted to know specifically what a five-year-old 9550 with between 400 to 500 separator hours is worth. So let's try to narrow things down a bit. Let's start by highlighting what similar 9550s have sold for recently at auction. Here's a few to chew on.

$81,250: 2000 model, 554 sep. hours, good, west-central Illinois

$80,000: 2002 model, 524 sep. hours, excellent, north-central Illinois

$85,000: 2002 model, 1,117 sep. hours, excellent, northwest Ohio

$94,000: 2003 model, 403 sep. hours, excellent, west-central Illinois

So it appears on a "hard cash" basis, a five-year-old 9550 with these kind of separator hours should be worth in the $85K range, give or take a bit. This lets our guy know what he could expect to get for his if he put it up for sale tomorrow. And from our data above, we saw that the average auction sale price ($79,000) was running at 77.5% of the average dealer advertised price ($101,956).

So if our current "hard cash" auction value on a five-year-old 9550 with 400 to 500 separator hours is in the $85,000 range, that would place the average dealer advertised price on a similar combine around $109,675 ($85,000/77.5%).

Now we've got our reference points. We know our "hard cash" current value is around $85,000, and we know the current retail value (dealer advertised price) is around $109,675. Now our guy can set his asking price accordingly. He's free to set his price wherever he'd like, but if he wants to move his combine quickly, he'll set the price more toward the "hard cash" value.

Click here to download a PDF with expanded auction price data on John Deere 9550 combines.

"What's the resale value of a five-year-old John Deere 9550 combine with around 400 to 500 separator hours?"

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