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Sweet Spots in Self-Propelled Sprayer Depreciation
We looked into the valuation history of some of the most popular high-capacity, self-propelled sprayers from the largest manufacturers over the last 10 years in search of depreciation trends. What we found were two sweet spots in the depreciation curves that might be useful to those using, purchasing, or trading these self-propelled protectors of produce.
We define the high-capacity category for our study as those sprayers that carry 900 gallons or more. The set covers a 10-year span of models manufactured from 2009 through 2018 from Case IH (Patriot models 3330 to 4440), John Deere (models 4830 to 4940, R4038, and R4045), Miller (Condor models GC260, GC 300), New Holland (models SP.240F to SP.400F), and RoGator (models 984 to RG1300B). Miller and RoGator became part of larger manufacturers (CNH and AGCO) in 2014 and 2001, respectively.
We’re all familiar with the idea of a new car’s dramatic depreciation often referred to as its value “falling off a cliff” the moment you drive it off the lot. And, you guessed it, the same is true in this sprayer category. The average first-year depreciation for all sprayers in this category is 24%. Ouch! While 24% depreciation in the first year is pretty painful, it is surprisingly consistent across each of the five manufacturers in this analysis. Case, Deere, Miller, New Holland, and RoGator all showed a near-identical depreciation rate in the first year of ownership.
After the first year of depreciation, a couple of key points emerged in the analysis. The chart (right) shows the additional percentage of depreciation incurred in each year of age and typical use in that year. Once past the initial year’s value decline of 24%, the rate on the second year is only 6%. This additional depreciation is relatively consistent for these machines as they age in years 2 through 5. Age 6 sees the next significant change in this rate when it drops to 3% value decline per year.
So, for you extreme sprayer bargain hunters out there, the data suggests that purchasing a 6-year-old sprayer would result in the highest percentage of retained value in the four years to follow. Or, in other words, the 6-year-old unit would have the lowest percentage depreciation for the four years to follow. For those who need or prefer newer technology, the 2-year-old units might be sufficient and still spare the pain of 24% depreciation on the first year.
Bear in mind these numbers come from averages across many models of sprayers across all of North America. They will vary depending on the geography, machine condition, and many other factors. Check out current local market listings on IronSearch.com to see current advertised prices and tweet us any questions @IronSearch.
What’s It Worth?
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