Covid19 effect on used tractor and machinery prices

[Hereward]

Looking at buying a secondhand 200hp tractor approx. 5 years old, what is the opinion of where tractor values are heading?

With factorys all closed and closing there will presumably be less used equipment coming onto the market but I guess the export market is also dead at the moment.

Buy now or wait a bit??

 

[jack6480]

Get it bought

 

[redsloe]

Bought one yesterday.
I hear some people are pulling out of deals but not sure if they were mainstream farmers. New tractor sales will suffer more than second hand I reckon so perhaps it's better to get it done?

 

[daveydiesel1]

They might actually come down in price cause lets face it whos headin out to buy these days unless ye really have to. Farmers are more concerned with the supply chain for all the stuf we need to keep operational like vets fert diesel feed parts hardware bale plastic. Its only now that makes ye realise how much stuf ye need to run a farm

 

[Hilly]

Up it never stops going up.

 

[D14]

I think it’ll go quiet and prices will drop. Reme
Bet this is worldwide!

 

[roscoe erf]

what would the dealers rather have metal on the yard or cash in the bank deals to be had if you can get them to open

 

[kill]

Up it never stops going up.

Factorys closing and parts will become harder to get hold of so very possibly dealers will take advantage and up prices, as we all only know too well when times are hard every body loves to screw farmers!!!!!

 

[Martin Holden]

Bought one yesterday.
I hear some people are pulling out of deals but not sure if they were mainstream farmers. New tractor sales will suffer more than second hand I reckon so perhaps it's better to get it done?

I have heard of a couple of related industry tractor orders being cancelled - for example arboricultural contractors and council contractors - so assume non essential work at present. I’d be surprised if pure farming orders were falling over just due to Coronavirus but maybe I’m wrong

 

[thesilentone]

As we are heading for the busy time, and many factory's will be closed down, there will be a longer lead time for new. My advice would be buy quickly as s/h prices may rise.

 

[Cowabunga]

I have heard of a couple of related industry tractor orders being cancelled - for example arboricultural contractors and council contractors - so assume non essential work at present. I’d be surprised if pure farming orders were falling over just due to Coronavirus but maybe I’m wrong

Telehandlers and tractors to holiday camps and race courses/stables and similar are certainly being impacted but farming, as we all know, keeps chugging along nearly as normal, although some farm income and certainly confidence will be hit [again].

 

[Cowabunga]

Parts availability over the medium term is the biggest issue facing farmers. It is most often the case that we can make do with the older equipment, deferring new purchases for a good long while if necessary, but we often cannot repair machines if parts are unavailable. Machines on stop means food not harvested.

Food not harvested ultimately means that much less food available for consumption. Emptier shelves.

 

[Martin Holden]

Factorys closing and parts will become harder to get hold of so very possibly dealers will take advantage and up prices, as we all only know too well when times are hard every body loves to screw farmers!!!!!

Parts availability over the medium term is the biggest issue facing farmers. It is most often the case that we can make do with the older equipment, deferring new purchases for a good long while if necessary, but we often cannot repair machines if parts are unavailable. Machines on stop means food not harvested.

Food not harvested ultimately means that much less food available for consumption. Emptier shelves.

I think that's an issue all in the trade are well aware of right now. two issues: firstly are the parts in a stock holding place somewhere and secondly can they be shipped. I am sure many industries are going to claim "we are essential" but i hope food production is definitly in that catagory!

 

[Timbo]

Some seriously cheap money to be borrowed about at the moment.

Know of one chap who has swapped his 16 plate tractor in for Brand New 20 plate and is now paying less £/month for the new than he was for the old (same term etc)

 

[Weasel]

Up it never stops going up.

Viagra?

 

[Dave W]

I've advertised 6 machines this week. Didn't expect to sell them but equally they won't sell if not advertised.
trade is absolutely dead. Folk have clearly got other things on their mind other than spending.

 

[335d]

Some seriously cheap money to be borrowed about at the moment.

Know of one chap who has swapped his 16 plate tractor in for Brand New 20 plate and is now paying less £/month for the new than he was for the old (same term etc)

don’t understand your statement at all. Monthly payments mean nought, and is how salesmen make stuff look attractive. The guy could have had a £20k deposit on the 2016 deal, and now a £40kdeposit or trade in on the new deal. It could be lower spec, different brand. you Can only compare finance deals on the amount borrowed. Although interest rates should have went down, meaning slightly lower payments.

 

[ollie798]

The weak pound lately against the US dollar/Canadian dollar/Euro have meant a lot of export trade - 12 machines sold for export so far this week as. Users abroad are fearing a UK lockdown. New JD machines selling well so far as well.

New prices increasing due to the weaker pound in today’s economic climate are bringing used values up.

 

[hutch123]

With factories closing that will make dealers free stock in short supply. The pound is down making export of UK used tractors a good prospect. Therefore my guess is good second hand tractor prices will be strong.

 

[kill]

don’t understand your statement at all. Monthly payments mean nought, and is how salesmen make stuff look attractive. The guy could have had a £20k deposit on the 2016 deal, and now a £40kdeposit or trade in on the new deal. It could be lower spec, different brand. you Can only compare finance deals on the amount borrowed. Although interest rates should have went down, meaning slightly lower payments.

Favourite trick of any rep these days is to put the machine over a couple of extra years than have previously done before as you will be working it over X amount of years so make it pay for itself over the X amount of extra years to reduce payment size per month even if costs more over all.