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Machinery Pete's watch list for the rest of 2010
Two things to share this week.
First is my “Pete’s Watch List for Rest of 2010”. This is a list of seven bullet points, current themes/trends in the used farm equipment market I’ll be keeping a close eye on in the weeks and months ahead. Here’s my list:
- Rising level of late-model used inventory on dealer lots
- Increase in # of big dealer and consignment auctions....increased # of "no sale" items on these auctions
- Rumblings about higher no. of auctions coming in Fall 2010
- Online auctions continue to build momentum. More regional auctioneers joining the online game
- Used GPS Equipment: steady increase in buyer interest & demand
- Europe (Greece, Spain): will debt turmoil affect sales of new farm equipment across the pond? If so, ripples back home?
- Watch for continued strong demand for 10-30 year old equipment in very good condition. Buyers pay premium to acquire
I worked up these talking points up for a recent talk I gave to an FFA alumni conference in Johnston, Iowa. Great group, lots of really good questions on the used equipment market, emerging trends, etc. Of these (7) points, I told the FFA alumni group that point 7 is the one set in stone.
I don’t see this one changing any time soon.
To highlight the point, I grabbed auction sale price data from our Machinerypete.com web site on CaseIH 7130 front-wheel assist tractors sold at auction. I sifted through our data and pulled out the (5) highest auction sale prices I’ve seen on CaseIH 7130 tractors:
(5) Highest Auction Prices I've seen on CaseIH 7130 Tractors (mfg. 1987-93)
- $52,500: 1991 model, 2,271 hours, sold 12/14/07 northwest Iowa
- $47,500: 1991 model, 2,914 hours, sold 3/18/06 north-central Iowa
- $50,000: 1990 model, 1,424 hours, sold 1/26/05 northeast Missouri
- $45,500: 1991 model, 3,588 hours, sold 3/1/05 northwest Minnesota
- $45,000: 1988 model, 6,260 hours, sold 1/10/10 east-central Nebraska
Just look at the last example from the January 2010 auction in Nebraska. A 1988 model 7130, so now 22 years old, with 6,260 hours (way more than the other highest selling 7130’s) still sold for $45,000. Pretty darn impressive and totally reinforces my point No. 7: there is and will continue to be strong demand for good used equipment 10-30 years old.
Oh, the second thing I wanted to share with you this week? Here it is, a new video from our “Machinery Pete” Youtube channel. This video an interview I did recently with Keith Bode, a used farm equipment jock from Fairfax, Minnesota. Keith has been buying and selling used equipment since the mid 1980’s. He’s done tons of equipment buying at auctions throughout the Midwest.
All from his wheelchair.
Pretty cool story about perservearance and grit.