Today we are talking about the used tractor market and where we think it is headed. If you are enjoying the videos remember to subscribe! B&T MacFarlane Ottawa LTD. 45 Slack Road Nepean, ON 613-225-0555 sales@btmacfarlane.com
We were at the auction in central Indiana yesterday. The prices on tractors were almost troubling to see. Buyers were plunging at over new price on some 100 hour units. Large equipment wasn’t moving like combines. Lawnmowers and side by sides were at almost 90% msrp.
As a used equipment dealer that got started in the prime of Covid, I never did see used prices get as close to new prices as 20%. There was lots of equipment listed for high $$ but it’s hard to say what the piece really did sell for. I do feel that I was able to offer some fair deals on very nice low hour equipment (often with an existing warranty) when no new inventory was available. Things have certainly slowed down since this summer when compared to the past year, but it’s hard to say if that has anything to do with supply of new equipment or simply less people buying tractors. You guys have an incredible inventory from the looks of it, especially on the construction equipment side. I would love to see a video on that (L47?) TLB with the cab shown in a clip during this video.
I should also mention I am located in Michigan and after checking your location the high used prices make sense. I have seen quite a bit of high dollar used equipment in Canada.
I checked into used tractors before the pandemic and what you got for the money was ridiculous! $10k or more for a beat compact tractor up 10-15 years old tractor with 400-1000 hrs … 20k-25k for a well used less than 500 hr compact …..I bought a brand new L2501 back then for 18k …bare bones tractor…..I’ve since Upgraded for a new kubota L3902 HST series for under 30k with the 6 year warrantee (should be my last tractor..😅) I’ve had older tractors and worked on them more than I was able to use….
Good. Let it crash and burn.. i have dealer quotes in my inbox from 2018/19 for $55,000 brand new with a warranty and those machines were going for $68-70,000 used with low hours or 55k with 1,000+ hours. Absurd. Only in a clown world does equipment appreciate.
New equipment is absurdly dependent on manufacturer intervention if something breaks. When talking about agriculture, one day's downtime could mean that you miss the season and incur thousands in losses. Good ol' farm equipment has value in simplicity. Sure, it may not have GPS, moisture sensors, ABS, ESP etc, but you can be sure that the max downtime is in the order of hours if you have a big enough hammer. To service a tractor with software controlled digital systems means waiting days for an authorized technician to come and reset your fault codes. If it's out of warranty you also pay hundreds if not thousands for said technician to come. For example: DPF (diesel particulate filter) catching fire. This happens because organic agricultural products release a lot of flammable dust during harvesting. When such a fault occurs, the equipment CPU automatically puts the equipment in service mode, meaning you can't get more than 20-30% power and max revs out of the engine. To reset that fault, a technician must come from hundreds or thousands of miles away to plug in their proprietary software and reset the code. An old mechanical tractor would still keep working short of a nuclear bomb going off inside the engine.
