Gravity wagons rising in value
I do it every time.
When sale price reports come in from auctioneers or our own field reps, I always make a quick scan of the equipment and the sale prices. Does anything jump out at me? Quite often here lately it's been gravity wagons catching my attention.
Like the Brent 544 wagon sold for $11,900 on a September 26th farm auction in east-central Iowa. $11,900 is the second highest auction sale price I've seen on a Brent 544, topped only by the 544 wagon sold for $12,500 on a northeast Illinois farm auction back on August 15, 2009.
Pete's auction prices on Brent 544 Gravity Wagons
In a follow up note to another auction sale price report I received recently on a different sale, the auctioneer made a very astute comment. Talking about yet another historically very high auction sale price on a nice used gravity wagon, the auctioneer said this:
"I think guys are buying these wagons as hedges against the future."
What he was getting at was the future of continued rising prices of new gravity wagons. Farm equipment manufacturers have been steadily rising prices on new equipment now for a good long run, strong and steady hikes the past seven years especially. The result? Customers conditioned to expect more price hikes to come.
And customers willing to pay more for the very nice used ones that come available on the auction market, not just gravity wagons, but also tractors, grain trailers, disks, planters, batwing mowers, grain trucks, augers. The list goes on.
I see the proof every day as sale price reports roll in from around the U.S. and Canada. The rest of 2011? I'm expecting more of the same.
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