Recent 2023 market reports show that farm equipment inventory is rising across the board, spelling an excellent opportunity for potential buyers and sellers alike to start paying attention to auctions. With this rise occurring in both used and retail markets, the overall value of the equipment is dropping. This drop signals the perfect time for buyers interested in used and new equipment to see what they need.
According to Sandhills Global, inventory levels rose across the board for everything from trucks and trailers to construction equipment and farm machinery. When inventory is up, values for said equipment also tend to drop. For example, in a May report concerning rising inventory, Sandhill’s stated that a 4-year-old sleeper truck initially worth $120k this time last year was now valued at nearly a third of that, going for $80k YOY. This continues a 20% dip following the value rise/low inventory between 2020 and 2022. It should be noted that, while still being part of this overall dip, farm equipment is holding steady, only dropping 0.29% from April, while the value is 6.37% higher than last year.
This value dip is excellent news for buyers, who can go into auctions knowing they can get a great deal on farm equipment. This can also be viewed as great news for the seller. Despite the drop in value (which is still higher than it was in April of last year), the state of the market means that your equipment might start at a lower value but has a higher potential of being bought. On top of that, rises in inventory for the used equipment market usually signal the same in the retail market. If you want to purchase new equipment, selling your old equipment to buy new retail might be in your best interest.
Given the current market conditions, DPA Auctions stands out as the premiere platform for selling and buying used farm equipment. Sellers can capitalize on this market trend and attract a larger pool of potential buyers, while buyers can look at getting affordable used equipment. With DPA Auctions’ expertise in the auction industry, sellers can navigate this market landscape with confidence, maximizing their chances of a successful sale. Don’t miss out on this opportune moment—choose DPA Auctions for your equipment buying and selling needs.