Trade Values and Trends:
Resale Values for Seeding Equipment
For full list of articles from the Oct./Nov. Issue, click here.
This installment of Trade Values & Trends takes an in-depth look at the resale values of different types of seeding equipment, including planters, drills, air drills and air seeders.
Figure 1 compares the average resale value over time for each of the 4 equipment types. It clearly shows the rapid depreciation that’s seen within the first few years, particularly with air drills and air seeders.
From this chart, it’s easy to see that drills tend to depreciate more slowly. This means that dealers can be confident when accepting trades, even though the market for drills is smaller by comparison.
With planters, timing is more critical. Dealers can be confident when trading 3- or 4-year-old models, but are wise to know their markets for trades beyond about 5 years, when both resale values and demand diminish.
Air drills and seeders tell a different story. Even within the 2- to 4-year-old range, variations in resale values can be huge. This reflects the wide range of air drill and air seeder attachment options, which can vary dramatically in terms of type, market demand and price.
Figure 2 shows that within the planter segment, the leading brands have all seen average resale values of late-model units increase since 2006. This year, the resale value for planters under 5 years old averaged more than $80,000 for 3 leading brands: Deere, Great Plains and Case IH. Because the chart represents all planters reported, it also reflects each manufacturer’s trend to larger, more advanced planters between 2006 and 2010.
More important is the emergence of Great Plains as a leading contender within the last 5 years. In fact, Great Plains, which has introduced a number of new planter technologies in the last few years, is likely driving the recent growth in resale values within the segment.
With 24-row planters gaining in popularity, it’s also important for dealers to look at the per-row values when determining an asking price for a used planter.
Figure 3 illustrates the depreciation line for planters on a per-row basis. Ten years ago, there weren’t many new 24-row planters in the market, resulting in fewer 10-year-old units available for resale today. The chart shows that for 1-3 year old models, 24-row machines have gained in both popularity and demand and are now as popular as 12-row units.
With drills, there’s very little difference over time in value between the early and older model years. Drills are used on fewer acres, tend to last longer, and technology hasn’t changed much over the years. As a result, older models still hold their value when compared with newer ones.
With planters, dealers can go into a trade on a 3- to 4-year-old unit and be confident that’s there’s going to be a solid market for that unit. In addition, they can keep the per-row numbers in mind when trading and adjusting for attachments on that unit. Regardless of the machine’s size, a 4-year-old planter will be trading at between $3,500 and $4,000 per row, on average.
With air drills and air seeders, it’s especially important for dealers to know their markets, and to have a buyer identified in advance when taking used air drills and seeders in trade. A swing in the wrong direction can easily cost a dealer in excess of $10,000.
For full list of articles from the Oct./Nov. Issue, click here or choose from the list below: