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Steal Deals - Tale of Two Tractors
Whether you get a deal on a tractor at auction is going to depend a lot on its horsepower. Dave Mowitz is the machinery and technology editor for Successful Farming magazine, and researches the price trends of machinery. He was recently at an auction in eastern Iowa where he tracked a 67 hp utility tractor, and a 225 hp full-size tractor. Mowitz thought for sure that the larger tractor would sell for six-figures. But it didn’t. He says it went for just over $80,000.
"That guy can take that tractor, use it for the next 3-4 years, and I bet he trades it in or sells it for as much money as he paid for it. He can basically get free use of that tractor for several years because this is an historic low price," says Mowitz. "We are at the floor, I think, of everything large in machinery – combines, tractors, planters, tillage equipment."
The smaller utility tractors are cross-over machines for many different types of uses. Mowitz says he suspected the price of the utility tractor he was looking at would be relatively stable – and he was right.
"This tractor sold for $26,000. And I recently tracked the recent sale of two other tractors just identical to this, and they brought in between $26,000-$28,000," he says. "So there, you have an example that the utility tractor market is certainly strong, and it’s firm, and that’s because other industries are in there bidding on those tractors."
Read more about late-model machinery values