Wow, what a week!
I'm not quite sure where or how to start. I suspected things would really begin to heat up once Thanksgiving Day rolled around. I wasn't wrong. In fact, I may have underestimated how hot used farm equipment would get here in late 2007. I had the sense, like most of you I'm guessing, that the low supply of good quality used stuff (fewer auctions, low inventory on dealer lots) factored in with very strong demand from buyers could result in rising used equipment values.
Even so, the sale prices I've seen the last week are amazing. No time to get cutesy here, I'll just jump right in with some things I've seen the last seven days and give you my thoughts.
The highest selling 4020 I've seen was for $31,000. Click here to see Machinery Pete's prices on JD 4020 tractors.
But you know what's really freaky? That 4020 wasn't the most amazing tractor sold on that sale.
That honor goes to the 1998 JD 7610 two-wheel drive tractor with only 537 hours sold for $81,500. Nope, no loader on there. Nope, the tractor hadn't been dipped in gold either. How high is $81,500? The next highest selling JD 7610 I've run across was six and a half years ago (May 5, 2001) when a 1999 mechanical front-wheel drive model with 279 hours and a JD 740 loader sold for $71,500. Still a full $10K short of $81,500.
That auction also saw a 2001 JD 8110 mechanical front-wheel drive tractor with 402 hours sell for $96,000. That's $18,250 higher than any other 8110 I've seen sell.
Now obviously, these tractors on the Ohio auction were extremely low houred, and I'm sure about as nice as you'll ever find. But I'm picking up the rising sale price vibe all across the country and on all different makes and models. More proof for you.
From a nice farm auction November 27, 2007, in north-central Iowa came a 1991 CaseIH 7110 two-wheel drive tractor with 3,782 hours that sold for $40,000. With nearly 100 7110s in our auction price database, I had to go back to September 1997 to find a 7110 that sold for more money. That 7110 only had 445 hours on it when it sold for $41,500 in east-central Illinois.
Jumping over to Nebraska, on November 27, 2007, at an auction in the central part of the state, a 1989 model Deutz-Allis 7085 mechanical front-wheel drive tractor with 4,200 hours and a Deutz-Allis 465 loader sold for $26,000. Pretty strong price there I'd say.