Tracking the Deals on 4WD Tracked Tractors
Used tracked four-wheel drives (4WDs) were some of the first pieces of equipment whose values took it on the chin when commodity prices plummeted in 2014. At the same time, sales of new tracked 4WDs dwindled between 2015 and 2017. Proof of this is witnessed in the fact that there are more 2012 model year Case IH Steiger Quadtracs available than those made from 2015 to 2017.
Of course, you need to factor in the impact John Deere had when it entered the tracked 4WD market with its RX line in 2016. Regardless of a new player coming into the scene, tracked 4WD sales – both used and new – have been sluggish. That is, until 2018. Large inventories of used tracked tractors have drained away, while sales of new machines picked up, even though those new sales pale compared with purchases made in 2012 and 2013.
retaining value in the future
This situation sets up the possibility, if not certainty, that the values of late-model tracked 4WDs will be static (as opposed to losing value with age and hours) if not escalated in the future. Naturally, this possibility is tied to the prices of corn, soybeans, and wheat. If commodity prices drop, little if anything in the way of iron is going to sell well.
However, if commodities gain in price (which some marketing experts are predicting), then late-model premium machinery (like Class 10 combines or tracked 4WDs) in little supply (due to poor new sale in the past) will be the price leaders on dealer and auction lots. “I could certainly see a situation where they might even increase in value, rather than drop with age,” says Tim Meyer of the Steffes Group. “We saw that happen with combines in the mid-1990s.”
Future prices aside, late-model tracked tractors continue to offer some of the best values in horsepower in the marketplace. Their prices are comparable to high-horsepower FWDs and not necessarily that much higher than straight 4WDs. This sets up opportunities to cash in potential good deals when they present themselves at auction or through a dealer sale.
PRICE box scores on high-hp. 4WD Tracked tractors
Case IH Steiger 600
- Average price: $238,190
- Price range: $206,500 - $269,500
- Hours range: 1,210 - 3,230 hrs.
- Average price: $242,680
- Price range: $214,000 - $282,500
- Hours range: 1,013 - 3,470 hrs.
- Average price: $246,000
- Price range: $182,500 - $284,500
- Hours range: 1,098 - 3,186 hrs.
- Average price: $251,000
- Price range: $220,000 - $299,500
- Hours range: 1,182 - 3,182 hrs.
Case IH Steiger 620
- Average price: $307,300
- Price range: $242,500 - $369,000
- Hours range: 1,292 - 2,780 hrs.
- Average price: $343,650
- Price range: $309,000 - $379,250
- Hours range: 480 - 1,603 hrs.
- Average price: $410,500
- Price range: $375,620 - $447,400
- Hours range: 315 - 1,062 hrs.
John Deere 9620RX
- Average price: $402,200
- Price range: $375,000 - $449,000
- Hours range: 422 - 2,275 hrs.
- Average price: $471,702
- Price range: $425,000 - $519,000
- Hours range: 200 - 1,067 hrs.
TRACKING THE RETAINED CASH VALUE OF TRACKED TRACTORS
By David Davidson, director, Iron Solutions
This month, I’m tracking tracked tractor values from model year 2016. The models included in the analysis include Case IH Magnum 310, 340, and 380 Rowtrac; Case IH Steiger 370, 420, 470, and 500 Rowtrac; Case IH Steiger 470, 500, 540, 580, and 620 Quadtrac; John Deere 8320RT, 8345RT, 8370RT, 9470RT, 9520RT, and 9570RT.
When comparing the average new selling price in 2016 to the average used cash value today, you can get an idea of the average retained cash value after three years considering average hours and condition on each model. The bar charts below show the percentage of the new selling price retained after three years of use and depreciation. Across each manufacturer, this percentage is very similar – around 68%.
Yet, when looking into individual tracked models, some interesting points emerge. For example, the John Deere models show a very consistent retained value across the product line from the smaller 8320RT to the largest 9570RT. The broader line of Case IH reveals more variation in its range of retained value. Notably, the Case IH Rowrac 420, 470, and 500s are holding their resale values better than some similar equipment.
Before you draw any conclusions, remember that averages are average. They can be misleading. For example, the larger Case IH Quadtracs are often utilized in construction and heavy civil applications where their use over three years is much different than use on the farm. Obviously, a machine used in a road construction project might have a retained value far less than one used on a Midwestern farm. This type of difference can skew the average, and it’s why I always caution buyers and sellers to appraise specific units. Its options and usage could be very different from the average.
Check out 2016 tracked models up for sale on IronSearch.com.
What’s It Worth?
Be sure to cash in on your two free equipment appraisals by going to Agriculture.com/whatsitworth. These free appraisals are based on actual dealer sales, auction purchases, and wholesale transactions on selected equipment built in the past 20 years. Used by banks, equipment manufacturers, and equipment dealers all over North America, the Iron Solutions equipment appraisal data is now available to you!