Worth more in Texas or Wisconsin?
Is a used tractor worth more in Texas or Wisconsin?
We're about to find out. This Saturday (Nov. 12th) I will be in Argyle, WI, along with our film crew for the "Machinery Show" on RFD-TV, to film a small, but very nice farm retirement auction by Powers Auction Service. You can find the sale here.
One of the tractors for sale on Saturday's auction in southern Wisconsin is a 2007 JD 5225 mechanical front-wheel drive, 45 HP, open station with 263 hours and a JD 542 loader & bucket. Here's a picture of this tractor:
Now just 12 days ago, on October 28, 2011, a 2006 model JD 5225 mechanical front-wheel drive tractor with 319 hours and a JD 542 loader with bucket sold on a consignment auction in northeast Texas. How much did it go for?
It did have a cab vs. the 5225 tractor selling on the Wisconsin auction Saturday being open station and the Texas 5225 sold on a consignment auction vs. Saturday's sale in Wisconsin being a farm retirement auction. Consignment auctions generally tend to produce somewhat "softer" sale prices, but not necessarily if the consignment auction is known as an "absolute" auction where everything sells.
So not a 100% perfect comparison, but pretty darn close.
What do you think? Will the northern tractor sell for more than the similar southern tractor? Of course Texas has been in the throes of a terrible drought for quite a while now. Did that drive down the sale price of the 2006 JD 5225 tractor and loader to $30,500? How much higher could the similar Wisconsin tractor go for?
Stay tuned. I will post a Youtube video with highlights from Saturday's farm auction in Argyle, WI online Saturday evening after I get home from the auction. Here's a link to our Machinery Pete Youtube channel:
I will also have our film crew for the "Machinery Show" along with me next Thursday, November 17, 2011, to a very nice late-model farm auction in Aurora, IA, a sale by Northeast Iowa Auction Co. Here's a link to the sale bill:
I made a blog post on our http:www.machinerypete.com web site last weekend mentioning this particular auction. It is one of three farm auctions in Iowa in the coming weeks in November to feature a late-model JD 9670 STS combine, this one a 2011 model with 182 engine hours. There has been much talk here the last few months about the buildup of inventory on implement dealer's lots on late-model combines.
Increased supply of one, two and three year old used combines plus decreased number of "second buyers" on these machines = "softer/falling" used values.
That trend will butt heads directly with another trend I've seen building momentum since November 2004, namely the trend of auction sale prices ramping up come November & December due to year-end tax write off motivated buyers.
Did I say motivated buyers? Excuse me, I misspoke. These year-end tax write off buyers are EXTREMELY motivated.
So now the question becomes how to tell if the auction sale prices on these (3) JD 9670 STS combines selling in Iowa in the coming weeks, including the 2011 model 9670 STS with 182 engine hours next Thursday, sell high or low. What's the going rate on a 9670 STS combine? Easy enough, check out the other auction sale prices I've compiled:
Lock in your sale price estimates now, what will it go for? I will post another Youtube video online next Thursday after the Aurora, IA auction. Tons of late-model stuff on this sale, including a 2010 JD 8270R tractor with 467 hours and a 2010 JD 8345R tractor with 447 hours.
Should be quite a fun day at the auction. If you're in the neighborhood Saturday in southern Wisconsin or next Thursday in northeast Iowa, stop on out and say hi, I'll be the tall goofy looking guy with the Machinery Pete cap on writing down sale prices. Or just look for Bill, the short goofy looking guy with the big camera on his shoulder.
Note to Bill: remember, no Chicago Bears cap allowed. Saturday we'll be in Packers country plus don't forget..Machinery Pete is a Vikings fan from Minnesota :-).
www.Machinerypete.com (1-yr. subscription $69.95; 1-week $10):
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- "Who Makes it?" searchable database of farm equipment Mfg's
- "Classifieds" free place to list your used equipment for sale
- Machinery Pete blog...see what Pete's yakking about
- Machinery Pete's 2010 Auction Price Guide: $19.95, call 800-381-0423
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