Rough condition equipment worth more
Not all used farm equipment is shiny.
But you know what? In this crazy used equipment market, even stuff on the opposite end of the condition scale has been selling for more money. A lot more money.
We assign one of four condition ratings to every piece of equipment we compile that sold at auction. The ratings are: E=Excellent, G=Good, F=Fair and P=Poor. Over the 18Â½ years I've been collecting auction sale price data on all types of farm and construction equipment, my goal has always been to accurately represent the condition of each and every piece of equipment reported sold. Honestly, I don't care whether the item sold was shiny new (E) or ready for the scrap pile (P).
Lately sale prices on the rough stuff have been shooting higher.
Case in point, a small farm auction in southwest Ohio back on April 16. Auctioneer John Kramer of Kramer & Kramer, Inc. (www.kramerauctions.com) dropped me an e-mail the evening of the sale. “Small auction with great attendance and muddy field parking, southwest Ohio just outside Dayton. Tractors and equipment were rough, 2 or 3 on a scale of 1 to 10.”
So how did those tractors sell? Check out the facts:
1974 Case 970 diesel, high hours, rough: $5,000
1974 MF 165 diesel, hours unknown, rough: $4,400
1970 MF 135 diesel, hours unknown, rough: $3,300
How do those prices compare to others sold? Let's look at that Case 970 as an example. (Click on the link above to view all the other auction sale prices I've compiled on Case 970 tractors over the last 10 years.) Note the 970 with 4,913 hours in "Good" condition sold last December for $4,400 in west-central New York and the 1972 model 970 with 4,682 hours in "Good" condition sold for $5,900 in west-central Illinois in January.
So what gives? Why did the 1974 Case 970 with high hours in rough condition sell for $5,000 at basically the same money as the pair of 970s in "Good" condition? Check the sale dates. The pair in "Good" condition sold in December & January. The used equipment market was running hot, but our data showed another noticeable jump from late February through April 2008. . . Right when the 970 sold for $5,000 in Ohio.
One more example for you: a JD 4450 two-wheel drive tractor with 9,632 hours sold on an auction in northeast Iowa on April 5, 2008. This tractor was a Quad Range transmission in "Poor" overall condition with four bad tires, poor paint and Â½ the glass out of the cab.
It still sold for $29,500.