The current market saturation of used combines

A large part of the valuation process for farm and construction equipment is examining the condition, age, usage and specifications of the assets. But a proper valuation also takes into account the nature of the market and the supply or saturation of similar assets in the area. Watch Bill Albaugh describe what he is seeing regarding the current market saturation of used combines and how that consideration must impact the values of trade-ins of harvesting equipment.

Combines are a tough market. They continue to be a tough market and have been for some time. Number one, you're talking about dollar amounts. Number two, you're talking about something that's used once maybe twice a year. As you look at combine valuations and you look at the market — specifically more so John Deere because they dominate the market — there might be 1,000 S670 combines out there. That makes you take into consideration, on an evaluation of equipment, if there's another thousand of that same model out there — and, specifically, if you've got a combine between 1000 and 1500 hours — and you go and look and there's 75 of them out there that you've got to compete with, it hurts your value. On top of that is if you don't have options on the combine that everyone else needs — like Contour-Master in John Deere is a big thing. If it's a fixed feederhouse, your pocket of buyers is a lot less. If it has a spreader and not a chopper, there are only certain regions that are going to take a spreader and not a chopper — and that kind of spreads across all brands. If you look at the advertising in TractorHouse or Machinery Pete — whatever publication that you choose to look up what's out there and available for sale — you'll see huge numbers of specific models of combines.

Proper trade-in valuations include many types of data from different sources. If you'd like to learn more about how HeavyWorth can streamline the appraisal process by putting all of that information in one place, contact us today.