Used Farm Equipment Values

[Stocker Steve]

Machinery Pete delved into why "this time it is different" in podcast #51. Basically, he said OEM were behind on orders AND there was very little inventory on the dealer lots - - so used equipment prices would not drop (much) when commodity price cycle turns down. His suggestion was to plan ahead about 2 years on machinery upgrades or replacements.

 

[SBMF 2015]

This thing is so up side down. An equipment dealer told me yesterday that a Jd4240 with low hrs 3k brought $100,000 on an online auction. That is just STUPID!
I don't have to upgrade tractors in the next couple years, but I sure would like to get a JD 4450 mfwd. I think it will have to wait.

 

[M.Magis]

My neighbor went to an auction this weekend to watch a Deere 7330 sell. Exactly like the one he bought brand new for just under $70k about 10 years ago. The one that sold had a few more hours. If I recall, it went for $130k. It doubled its value after 10 years of use.

 

[50/50Farms]

If this crap goes much further then your input costs doing it the 1900s way will be cheaper even if you account for time.

 

[Rmc]

Imagine that. With John Deere pulling their crap about dealer only access to computer diagnostic systems. And government emission mandates. Aren't helping matters any.
Same thing has happened with the semi tractor market. Pre emissions limited computers means you can work on them yourself.
How much money will one loose if the crop is ready to harvest and tractor goes down and no one can work on it but the dealer? And the dealer can't or won't work on it for two weeks, then has to wait for up to three weeks for parts ?
Wouldn't take too many times of that happening or having to pay dealer service call prices for things like plugged fuel filters before the old ones start to have more and more advantages.

 

[SBMF 2015]

Wouldn't take too many times of that happening or having to pay dealer service call prices for things like plugged fuel filters before the old ones start to have more and more advantages.

The problem is (at least in the corn belt) that unless your a small farm the older tractors with minimal electronics just are not big enough. The 300+ hp section of the used market is pretty slim if your looking for non computerized.

I know of at least 2 neighbors that a JD 4440 is nothing more than an auger tractor.

 

[Rmc]

The problem is (at least in the corn belt) that unless your a small farm the older tractors with minimal electronics just are not big enough. The 300+ hp section of the used market is pretty slim if your looking for non computerized.

I know of at least 2 neighbors that a JD 4440 is nothing more than an auger tractor.

And how long can he be without auger tractor? 5 weeks during the busy season?
How much is a new 300hp tractor?
What is the availability on the tractor and parts?
Dealer called neighbor up wanting to know if he was ready to trade in his 2 year old diesel pickup yet. Offered more on trade then he paid for it new.
Used small construction equipment is the same way . Used is selling more than it was when purchased new.
When the wait for new equipment is up to two years what do you expect?

 

[SBMF 2015]

And how long can he be without auger tractor? 5 weeks during the busy season?
How much is a new 300hp tractor?
What is the availability on the tractor and parts?
Dealer called neighbor up wanting to know if he was ready to trade in his 2 year old diesel pickup yet. Offered more on trade then he paid for it new.
Used small construction equipment is the same way . Used is selling more than it was when purchased new.
When the wait for new equipment is up to two years what do you expect?

Its crazy. Dealer told me one guy bought a new combine last December with the hopes it would show up before this fall. It didn't. So the guy traded it in. On a new combine to be built and delivered by fall of '23. This guy traded in a new JD combine with zero hrs on it, hadn't even had it on his place and it cost $70,000 to boot to trade for the latest model.

I'd guess these new tractors are running somewhere around $1,000/hp or more.
But if you can't get parts for the used ones your screwed to. Last spring you couldn't find a new hydraulic pump for a JD 50-60 series tractor if you had to, unless you were lucky enough to have a dealer that keeps real good inventory.

 

[Stocker Steve]

But if you can't get parts for the used ones your screwed to. Last spring you couldn't find a new hydraulic pump for a JD 50-60 series tractor if you had to, unless you were lucky enough to have a dealer that keeps real good inventory.

Some BTOs have reacted to the parts availability concerns by buying a backup tractor or combine. This helps drive demand up.

With the recent increase in used equipment prices - - a backup would be much better investment than putting $$$ in the bank or in the stock market.

 

[BFE]

This thing is so up side down. An equipment dealer told me yesterday that a Jd4240 with low hrs 3k brought $100,000 on an online auction. That is just STUPID!
I don't have to upgrade tractors in the next couple years, but I sure would like to get a JD 4450 mfwd. I think it will have to wait.

JOHN DEERE 4555 - farm & garden - by owner - sale

1990 JOHN DEERE 4555 3300 HRS. GREAT SHAPE 2nd OWNER LAST 22 YEARS ALWAYS SHEDDED.

carbondale.craigslist.org

I choked when I seen the price, but apparently it's in the ballpark.

 

[SmokinM]

Its crazy. Dealer told me one guy bought a new combine last December with the hopes it would show up before this fall. It didn't. So the guy traded it in. On a new combine to be built and delivered by fall of '23. This guy traded in a new JD combine with zero hrs on it, hadn't even had it on his place and it cost $70,000 to boot to trade for the latest model.

I'd guess these new tractors are running somewhere around $1,000/hp or more.
But if you can't get parts for the used ones your screwed to. Last spring you couldn't find a new hydraulic pump for a JD 50-60 series tractor if you had to, unless you were lucky enough to have a dealer that keeps real good inventory.

This guy has more money than sense and apparently doesn't really need a combine since he never got the first and can wait a year on the second.

 

[SmokinM]

The only time you put all your eggs in one basket is with a wife. Everything else if you really use it keep a spare.

 

[Warren Allison]

I bought a 1999 F350 Powerstroke in 2001. King cab, 4wd, Lariat. Had 33k miles and I bought it for $29k. Best thing to happen to me as far as re-sale value was Ford discontinuing the 7.3 International motor in them. Nearly 500k miles pulling horses allover the US< and all I ever did was add a Bully Dog programmer, a front axle that broke on me in Florida with a load of horses on the trailer, and I had to replace the clutch one time at about 200k ,miles ( it was a 6 speed manual and manual locking hubs, my preference). Sold it this summer for what worked out to be about $30k. Guy gave me $16k and a 97 F-350 long bed, regular cab, 7.3 Powerstroke. 4wd with manual hubs, and automatic trans, manual door locks and roll=up windows and rubber mats. He had replaced the vinyl bench seat with cloth bucket seats and a console from another 1990's F250/350. If I could have ordered one in 1997, this is exactly how I would have equipped it. and it probably would have cost under $29k new. It had 58k miles on it! This will be the last truck I buy..it should last at least as long as I do . Around here, if you can't find a good 7.3 motor in a junkyard for less than $10k.

I have been a loyal Ford man all of my life, but the tree worst mistakes they ever made was getting rid of the 7.3, the indestructible 300 in line six, and the Mercury Grand Marqui, I have a 2007 Grand Marqui I bought for $7k in 2017 with 23k miles on it. Those 4.6 v8s are pretty much bullit proof, too. 26 mpg and the trunk will hold as much as the newer little mini-van looking SUVs most manufacturers make now. And you can't beat the ride from that air-ride suspension. If you find a good one for sale now, they will be $15 to $20k. I bought my ole lady a 2018 Ford Escape last January, and I can't figure out how to get the lights on, the heat or air on, or the wipers without putting on reading glasses and squatting outside the door to try to figure it out. That Marqui will be the last car I ever buy, too.

In 1973 My granddaddy bought a 1966 Ford 3000 diesel for a few hundred dollars. We put a front end loader on it with a spear on it in 1974, When my grandma died in 2001 we sold it for $8500. No telling what it would cost now. and I bet it would be hard to find parts for one now.

 

[Stocker Steve]

The only time you put all your eggs in one basket is with a wife. Everything else if you really use it keep a spare.

sister wives...

 

[SBMF 2015]

JOHN DEERE 4555 - farm & garden - by owner - sale

1990 JOHN DEERE 4555 3300 HRS. GREAT SHAPE 2nd OWNER LAST 22 YEARS ALWAYS SHEDDED.

carbondale.craigslist.org

I choked when I seen the price, but apparently it's in the ballpark.

Unfortunately, with those low hrs that's what some people are asking. I saw a 4450 on tractor house not that long ago. Low hrs, in the same price range.

 

[cfpinz]

........ Guy gave me $16k and a 97 F-350 long bed, regular cab, 7.3 Powerstroke. 4wd with manual hubs, and automatic trans, manual door locks and roll=up windows and rubber mats. He had replaced the vinyl bench seat with cloth bucket seats and a console from another 1990's F250/350. If I could have ordered one in 1997, this is exactly how I would have equipped it. and it probably would have cost under $29k new.

I bought a new 4wd single cab F350 XLT srw with the 7.3 and 5 speed, lock out hubs with power windows and locks on December 26, 1997. Sticker was just shy of $31k and I gave $26.5k for it, for what it's worth.

Keep an eye on the transmission in the one you just got, the E4OD/4R100 was one of the worst transmissions Ford ever put in a working truck from my limited experience.

 

[mml373]

I bought a 1999 F350 Powerstroke in 2001. King cab, 4wd, Lariat. Had 33k miles and I bought it for $29k. Best thing to happen to me as far as re-sale value was Ford discontinuing the 7.3 International motor in them. Nearly 500k miles pulling horses allover the US< and all I ever did was add a Bully Dog programmer, a front axle that broke on me in Florida with a load of horses on the trailer, and I had to replace the clutch one time at about 200k ,miles ( it was a 6 speed manual and manual locking hubs, my preference). Sold it this summer for what worked out to be about $30k. Guy gave me $16k and a 97 F-350 long bed, regular cab, 7.3 Powerstroke. 4wd with manual hubs, and automatic trans, manual door locks and roll=up windows and rubber mats. He had replaced the vinyl bench seat with cloth bucket seats and a console from another 1990's F250/350. If I could have ordered one in 1997, this is exactly how I would have equipped it. and it probably would have cost under $29k new. It had 58k miles on it! This will be the last truck I buy..it should last at least as long as I do . Around here, if you can't find a good 7.3 motor in a junkyard for less than $10k.

I have been a loyal Ford man all of my life, but the tree worst mistakes they ever made was getting rid of the 7.3, the indestructible 300 in line six, and the Mercury Grand Marqui, I have a 2007 Grand Marqui I bought for $7k in 2017 with 23k miles on it. Those 4.6 v8s are pretty much bullit proof, too. 26 mpg and the trunk will hold as much as the newer little mini-van looking SUVs most manufacturers make now. And you can't beat the ride from that air-ride suspension. If you find a good one for sale now, they will be $15 to $20k. I bought my ole lady a 2018 Ford Escape last January, and I can't figure out how to get the lights on, the heat or air on, or the wipers without putting on reading glasses and squatting outside the door to try to figure it out. That Marqui will be the last car I ever buy, too.

In 1973 My granddaddy bought a 1966 Ford 3000 diesel for a few hundred dollars. We put a front end loader on it with a spear on it in 1974, When my grandma died in 2001 we sold it for $8500. No telling what it would cost now. and I bet it would be hard to find parts for one now.

I was always a Ford truck guy, too. I needed a diesel in the mid-2000s when they were dealing the new 6.0 and having to crack cabs off to work on them. They wouldn't negotiate a price. Been a Dodge guy ever since. My '06 Ram 3500 (six speed, Cummins) is still going strong and will likely last me the rest of my life. New trucks are too expensive, so I'm sure it will.

The best Ford I ever owned has been their stock. Dividends from THAT would make a fair chunk of the payment every month for one of their trucks, nowadays, if only I'd sell the Dodge (haha). Fords are good trucks, but have had zero issues with my Dodge. The chip/performance stuff folks add and the DEF/emissions stuff since 2007 or so makes me shy away from even considering buying a used diesel.