Selling used equipment can bring a price bump
Perception is reality. This may be true nowhere more so than in the used farm equipment market.
Recently I exchanged e-mails with a Machinerypete.com subscriber from eastern Iowa. He mentioned he just made a two-for-one trade with his local dealer.
In on trade went his absolutely pristine 2004 John Deere 2700 mulch ripper and a similarly sparkling 6-year-old Brent 572 grain cart. In turn, he upgraded his grain cart to a Brent 678.
The Deere 2700 had only 1,300 acres of use. Both the 2700 and the Brent 572 grain cart were always shedded. I’ve said it before and I’ll say it again: There’s tremendous value in taking great care of your used equipment.
My subscriber friend relayed to me how having access to my current auction sale price data made the equipment trade an easy process. That made my day, but what really struck me about the subscriber’s e-mail was what he said next.
“I just love it,” he wrote, “when my dealer wants me to hold the trade-in at my farm shop until he sells it. He says it’s easier to sell equipment right off my floor than off his lot. He brought out a potential buyer for the grain cart the next morning and sold it on the spot.”
That, my friends, is one smart dealer.
A few days later I was visiting with a longtime implement dealer. He echoed the wisdom of this strategy. His salesman was bringing a customer out to look at a tractor (valued at $90,000) the dealer had just taken in on trade. The tractor was still at the former owner’s farm, which was beyond pristine. This first guy who came out to look at the tractor bought it for $90,000.
The buyer later told the dealer he made up his mind halfway up the seller’s driveway.
I’ve seen this same phenomenon at work in my 21 years compiling auction sale price data.
Take those retirement or estate auctions where the farmyard and shop are in immaculate condition and detailed historical equipment care records are readily available. How do items usually sell on those auctions? Sky high. The trust factor and comfort level of bidders is as high as it gets.