Used high-horsepower tractor inventory continued to surge year over year in May, with late-model values continuing to fall significantly.
The rise in inventory and drop in price are expected to stay throughout summer and into the start of fall, Sandhills Global Equipment Lease and Finance Manager Jim Ryan told Equipment Finance News.
“You’re seeing stuff hit the wholesale market and hit the auction block; something you typically don’t see but you’re starting to see now,” —Jim Ryan, Manager, Sandhills Global Equipment Lease and Finance
Used planters, combine and compact or utility tractor inventories all increased gradually.
Used tractors, 100 horsepower or more
- Inventory increased 49.6% YoY in May, despite dropping 0.4% from April;
- Asking values rose 4.2% YoY, but dropped 0.8% from April; and
- Auction values decreased 2.4% YoY and dropped 2.7% from April.
As new, higher-tech tractors have hit the market, existing tractor inventory is becoming harder for dealers to sell, Ryan said.
Late-model tractor values dropped around 10% to 20% YoY in May, according to the report.
Used planters and combines
- Planter inventory rose 34% YoY in May, but dropped 5% from April;
- Planter asking values rose 2% YoY in May, but fell 6.4% from April; and
- Auction values for planters dropped 19.6% YoY in May, falling 11.5% from April.
- Combine inventory rose 12.5% YoY in May, dropping 1.3% from April;
- Asking values for combines rose 8.6% YoY and decreased 0.7% from April; and
- Auction values rose 1.2% YoY but dropped 3.2% from April.
An increase in newer, more expensive combines is causing late-model combine values to drop at a faster rate, according to the report.
Used compact, utility tractors
- Used inventory rose 7.3% YoY in May, but dropped 3.4% from April;
- Asking values decreased 2.9% YoY and dropped 1.2% from April; and
- Auction values dropped 4.5% YoY and dropped 1.7% from April.
Gatorland Kubota, a Gainesville, Fla.-based dealer, has seen meager YoY inventory rises in its sales of under-50 and over-80 or more horsepower tractors, owner Mark Waldorff told EFN.
“We’re seeing inventories level increase, although not to unmanageable levels yet, for us,” he said. “Our sales are maybe withdrawn a little bit from last year.”
