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Nw Iowa | I think auctions tend to discount bigger items, but pretty hard as a dealer to over discount for instance a 1 yr old DB 60 48 row to auction prices and still keep your customer. If a dealer puts everything to auction prices you will never get the deal. Things May be changing as dealers control such large territory’s, but 7-8 yrs ago, the dealer of same brand was biggest competition. The stuff that has been auctioned in last 6 months was never planned to go to auction when deal was made. I think some dealers that have been putting some big money away to cushion them when market turned. They knew they would have too much inventory if things slowed down and with interest clock accelerated they dumped alot of stuff. I still don’t think they were expecting it to turn this quickly. I don’t envy them now trying to figure out how to make it work from here on out. I guarantee you if they offer auction price on any deal, MUD or not, not going to be too many takers, especially late model trades. The spread is just too wide. Combines have always been first to soften and last to rebound, tractors the opposite, last to soften, first to rebound in the past. I was surprised that very late model tractors tanked as much as they did, as normally, even in a downturn they don’t get discounted that much %.
Some areas probably not as much of a problem as more farmers using more same size equipment.
I get too wordy on all this but it is never as simple as people want to make it. My experience is getting to be old and probably getting outdated and I can only post what was non confidential and public information, but try to explain the other side so people understand it isn’t easy as people think it is. | |
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Class 10+ Combine Depreciation. Specifically X9 and new AF11
