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Used iron worth more than a year ago
Used farm equipment values are higher than summer 2010.
More proof was delivered yesterday, June 28, 2011, on a farm estate auction in north-central Indiana. The lead tractor on this auction by the very fine auction firm of Schrader Real Estate and Auction Co. was a 2002 model JD 8220 MFWD model with 1,589 hours.
It sold for $112,000.That sale price figure was pretty much right in the ballpark of what I thought it might sell for. But a couple other items on the sale yesterday trended higher, including:
- 1995 JD 7800 2WD tractor with 4,232 hours, sold for $56,000
- 1996 JD 9500 combine with 2,717 engine hours, sold for $60,000
- (2) J&M 525 gravity wagons, sold for $10,000 each
Compare those sale prices to prices from a similarly nice farm auction held back on August 9, 2010 in nearby east-central Illinois. Here's what stuff sold for that day:
- 1996 JD 7800 2WD tractor with 1,871 hours: $56,000
- 1998 JD 9510 combine with 1,554 engine hours: $71,000
- J&M 525 gravity wagon: $8,100
Each of these (3) items listed on the August 9, 2010 auction in east-central Illinois was listed in "excellent" condition. Look at the number of hours on the JD 7800 2WD tractor, only 1,871 hours vs. 4,232 hours on the 7800 2WD tractor sold yesterday on the north-central Indiana auction...yet they sold for the exact same price: $56,000.
Now compare the combines. Last August a 1998 JD 9510 with only 1,554 engine hours sells for $71,000 and yesterday an older 1996 JD 9500 with nearly twice the engine hours sells for only $11K less. Very strong price for a 15-year old 9500 combine I thought.
The last comparison is easy. Last August a J&M 525 gravity wagon in excellent shape sold for $8,100 on the Illinois sale. Yesterday on the Indiana auction two J&M 525 wagons brought $10,00 apiece.
Sometimes figuring out where we are now is helped by being able to look back a bit and read the mileposts we've passed along the way. My advice? Buy, sell, trade and appraise used equipment with your eyes wide open, knowing where we are with used values right now.
Below is a link showing you all the J&M 525 gravity wagons I've seen sold at auction over the past few years.