Can a market be hot and cool at the same time? Yes. Let’s look to the used self-propelled sprayer market as an example. Generally speaking, hard cash auction prices on used sprayers softened a bit throughout 2019.
One sign of somewhat weaker buyer demand showed itself in the form of falling search traffic on used sprayers for sale at MachineryPete.com.
Traffic was down 16% in the fourth quarter of 2019 versus the third quarter. It was off 12% in the fourth quarter of 2019 versus the fourth quarter of 2018.
From a value standpoint, the used units in nice condition didn’t decline. It was more of a softening in prices for units in OK-to-average condition.
Average auction prices on John Deere R4030 sprayers dipped down to $133,864 last year, while the current average dealer advertised price is $203,998. That’s a Machinery Pete Ratio of 65.5% (average auction price divided by average dealer advertised price). Anything under 70% is a soft market.
New Year, New Strength
We began to see a surge in search traffic on used sprayers early in 2020. Auction results showed strengthening buyer demand too. For example:
- 2017 Hagie STS16; 609 hours; Jan. 18 farm auction in Scribner, Neb.; $312,000, which was the highest auction price ever on a Hagie sprayer and the second-highest ever auction price on any sprayer. The only higher auction price was on Feb. 24, 2017, in Washington Court House, Ohio, when a 2016 John Deere R4045 with only 216 hours sold for $317,500.
- 2014 John Deere 4730; 594 hours; Jan. 15 farm auction in Greenfield, Ohio; $190,000, which was the highest auction price in the U.S. on a John Deere 4730 in 7½ years.
To watch a video of the 2015 Hagie STS14 with 1,186 hours sell for $247,500 at a west-central Illinois auction, visit AgWeb.com/Hagie-sale
Greg Peterson is the most trusted name in farm equipment. Visit MachineryPete.com, for his latest analysis as well as equipment listings from dealers and equipment for sale at upcoming auctions.