Auction Result (A Tell?)

[JimmyJazz]

In the recent pandemic supply constrained period it had become common for used tractors, cars ,and trucks to sell for more than their original cost. Well today on Auctiontime.com I witnessed a Kubota MX5200 with both a loader and backhoe, hydro ,with 360 hours sell for $30,500 with no additional fees. The newer near equivalent MX5800 outfitted similarly with Pennsylvania State tax would have cost me over $53,000 according to the Kubota build it feature. I feel that was a good deal for the purchaser. It was 1150 miles from me and it would have cost $2,350 to ship so I obstained from bidding . Still expensive for me but maybe the prices of used equipment have seen their peak .

 

[Impala]

Always seems to me the larger equipment is a tougher market. The subcompact / compact market has been overinflated for many years before the pandemic. That is why I bought new the last 2 times. I could not justify the cost of a used machine that was 5-10 years old when a new one with discounts and 0% was only 2k more.

 

[The Evil Twin]

Always seems to me the larger equipment is a tougher market. The subcompact / compact market has been overinflated for many years before the pandemic. That is why I bought new the last 2 times. I could not justify the cost of a used machine that was 5-10 years old when a new one with discounts and 0% was only 2k more.

That is exactly why I bought new. We financed for 5 years at 0%. A used machine would have cost more factoring in a 3% rate.

 

[Ton]

I enjoy watching TTWT's tractor auction videos. I think he mentioned in his most previous one that prices were coming down based on what he was seeing as well. With inflation, the lockdowns, more people doing remote work, more people moving out of cities, and shipping/logistics costs, I guess it was a perfect storm for awhile to have demand way up and supply way down. Glad things finally seem to be normalizing.

 

[minthral]

Demand has been down in the last quarters, but is still up year over year. Basically it is on a down turn.

My local john deere dealers have a lot on their lots. Kubota less so, but still plenty. It isn't like it was 1 year ago with nothing in stock.

Many attachments are in stock now or can be had in less than 1 month.

In X more months, you'll probably see over supply.

 

[PaulL]

Ideally we'd have a soft landing. The demand will drop a bit, the supply will lift a bit, and things will be just fine. If we end up with over supply we also run the risk of layoffs/unemployment. That'll hurt us all.

 

[fried1765]

Ideally we'd have a soft landing. The demand will drop a bit, the supply will lift a bit, and things will be just fine. If we end up with over supply we also run the risk of layoffs/unemployment. That'll hurt us all.

"Ideally" .......will very likely not be the case.

IMHO we are in an inflation period that will continue to deepen.
Small tractor prices will probably continue to fall, as potential buyers shy away from such discretionary items.
Food, utilities, home mortgage, and transportation will necessarily be first priority for the total available family dollars.