Industry Q&A
Question:
Is your inventory of used tractors and combines higher or lower than it was one year ago? What has led to this deficiency or excess of inventory, and what steps are you taking to rectify the situation?
Answers:
We bought some equipment at auction to supplement our sales. During the past month, used tractors have sold really well and at the prices we are asking. Our used inventory today (March 9) is at a several year low. Used equipment prices have been steadily increasing the past several months.
— Walter Green, New Albany Tractor, New Albany, Ind.
“Our inventory of good late model used tractors is drastical- ly reduced from last year, and in the last two months or so we have had a run on late model Case IH Magnum tractors, as well as other models.
Traditionally, our dealership doesn’t go out and purchase used equipment, however our sales guys have been told to go out and try to get some good trades coming in for new farm equipment.
I believe right now there might be some uncertainty about the new Tier 4 engines and some may not want to go there. However, 3 years from now this will be a non-issue.
Right now is a good time for customers to get high trade values on their equipment. Who knows if the new engines will really perform in the field with increased horsepower and better fuel economy? Down the road, values may drop and the customer may not get as much for his older tractor. Right now it’s all speculation.
— Rollie Moseng, Service Motor, Stevens Point, Wis.
“Our inventories are low so we’re trying to sell more new equipment to get more trades. We sold three new combines in December. All three had trades. All three trades are sold.
— Steve Bray, Mini Cassia Equipment, Heyburn, Idaho
Our inventory of used tractors is less than it was a year ago.
Used combine inventories are larger then last year, due mostly to aggressive sales of new combines in late 2010 and early 2011.
We are aggressively pre-selling new Tier 4 tractors and offering premium trade values on good used equipment to rebuild our used inventory.
Case IH, with its SCR technology to meet Tier 4 requirements, has been widely accepted. Demand for our Tier 4 high-horsepower Magnums is just tremendous.
Many farmers are doing their 2011 tax planning early for fear of not having the equipment available to purchase in November or December, as many would normally do.
— Dan Bruns, Titan Machinery, Grundy Center, Iowa
We stocked a lot of new Tier 3 tractors and currently are down to six of these units. We are selling them in lieu of Tier 4 emission tractors.
Yes, we’re selling a lot of used tractors — mostly units under $50,000. We have a lot of late-model low-hour trade-ins in stock. Used combine inventory is very high right now.
As far as sales planning, we are currently ordering machines for year-end sales right now and will be working on spring 2012 units by the end of April!
— Lance Carlson, Quincy Tractor, Quincy, Ill.
Tulsa New Holland does not sell combines and our tractor sales are mainly under 100 horsepower. We cater to the rural lifetyle people.
Our inventory is low, but about the same as last year. Good used 4-wheel drive compact tractors with loaders were hot property due to the two record snows that we received in February — we sold out a week after the second big snow.
—Mike McCrate, Tulsa New Holland, Tulsa, Okla.
Used tractor inventory is about the same. Used combine inventory is somewhat higher.
—Larry Dinkel, Dinkel Implement, Norfolk, Neb.
Our used 4-wheel drive tractors and hillside combine inventory is history. We sold all we had before year-end, and have been buy- ing anything that we can get at other dealers or auctions. We’ve purchased a few, but the prices are going up as supply goes away. If you know of any Case IH dealers with 4-wheel drives let us know....
—Tom Herres, Farm & Home Supply, Pomeroy, Wash.
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