Our Machinery Pete biz has worked very hard, and invested a lot of time and money, to arm dealers with new tools to get to the bottom of actual used valuations. These are very powerful new tools.
Let’s look at a pinch point in the used market to see how these new Machinery Pete tools can be of help. What combine model is there the most of currently in the used market? The John Deere S670. I find 869 listed for sale at www.machinerypete.com as I write this. On the auction side, what have they been selling for?
I could tell you the average auction price so far here in 2017 on a John Deere S670 is $142,915, down 11.4% from last year’s average auction price of $161,253. But we really need to get more fine grain than this. Check out our Machinery Pete data if we break it down by the type auction S670s sold at:
Avg. Auction Price on Deere S670s (Farm Auctions)
Avg. Auction Price on Deere S670s (Consignment Auctions)
Wow, look at the price/value spread based on type of auction sold at. S670’s going for 31.2% more $$ when sold on farm auctions vs. consignment sales. Of course you knew there would a spread here, but isn’t it interesting, and helpful, to know exactly how big the current price spread is? I certainly think so.
One dealer asked me recently, “Pete, do you think the farm auction price is the new retail price?” That’s a good question I thought. Looking at this Machinery Pete data you can see his question has validity. Here’s a look at the five highest auction sale prices so far here in 2017 on Deere S670 Combines sold on farm auctions:
Highest Auction Prices on Deere S670 Combines (Farm Auctions) in ‘17
This 2016 Deere S670 (Hillco) with 504 engine hours sold for $245,000 on 8/19/17 farm auction in southeast Nebraska. Specs: Hillco, 520/85R42 duals, 750/65R26 rears, leather interior, grain tank & auger cameras, annually inspected, extended wear package, 366 sep. hours, SN:1H05670SLE0765934
Of course, I’m often asked “Hey Pete, how do online auction sale prices compare to other auctions?” Again, great question. If we stay zeroed in here on John Deere S670 combines, the answer to that question is “a little better than consignment auctions, but not close to farm auctions.” So far this year the average auction price on a John Deere S670 sold on “Online” auction = $138,794 with a high of $187,500 and a low of $90,500.
That’s nice to know. Why guess when you don’t have to?
Of course we can further parse our Machinery Pete auction sale price data and dealer advertised price data by search filters such as “Model Year”, “Hour Range”, “Location”, just to name a few. So what would the average auction price be so far this year on a 2012 model S670 with between 1,000 – 1,500 engine hours sold on Consignment auctions in the U.S?
Answer: $129,948…High $187,500; Low $89,000. This Avg. Auction Price of $129,948 is 13% down from last year’s Avg. Price of $149,292 (High $205,000; Low $85,000).
Of course it’s not always (ever) fun to look at this wholesale auction sale price data, but to not look is like driving at night with the headlights off.
Don’t do that.
We’ve only touched here on using our new Machinery Pete data search tools in terms of accurate, if painful, used valuations. The fun comes in utilizing this data and the new uber targeted tools we’ve developed on the marketing side of the biz.
We can help answer: where are the used values the highest and where are more of the current search clicks coming from on that particular item?
Our goals are: making the most of your limited marketing dollars, moving more iron, and at higher price points.