With talks of a coming recession having plagued most of 2022 and continuing to persist into 2023, it’s easy to see why people are hesitant to sell their equipment on the market. With the stability of the market having been in question since last year, stocks plummeted for established equipment companies such as Deere (-6.9%) and Caterpillar (-6%), according to a report from stock research site Seeking Alpha back in June of 2022. The mounting fears have made people resistant to wanting to sell their equipment, wanting to instead weather out the storm that has yet to hit.
If you look at some of the data, the recession fears are still taking a bit of a toll, though certainly not as bad as it could be. When it comes to heavy duty trucks and semitrailers, values are shifting downward, with an inventory increase of 30.49% from where it was in February of last year. While the numbers show that inventory number is decreasing by over 2% per month, the value the trucks has still taken a hit.
So why is now a good time to sell your used equipment?
Despite the fears of recession and contrary to other reports, the market value for used farm equipment has steadily been on the rise. According to Sandhills Publishing, who has done extensive research using their own equipment value index system (EVI), the inventory for farm equipment (ranging from Tractors to Combines) has followed the trend of increased inventory, with the numbers showing an increase of 6.43% per month and 10.61% from where it was last year. Despite this long-term inventory increase, the asking and auction value for equipment remains high, with the auction value showing that equipment value is up by 8.55% from where it was last year.
It is important to make the distinction that the value remains higher than it was despite increased inventory, as usual trends show an increase in inventory leads to declining value, as shown with the semitrucks example above. Despite this inventory increase, going against this trend, the value of selling farm equipment is growing from where it was last year.
We can look at our own auctions to show that people are still able to confidently sell their equipment. Between December 1st of 2022 and our most recent auction at the time of writing this post (February 7th, 2023), we have sold high numbers of equipment. In that time frame, for example, we have been able to sell 62 self-propelled sprayer vehicles were sold. This is compared to during the same period last year where only 50 of these kinds of vehicles were sold.
With the market trending upward and the predicted recession continuing to be delayed, now is the time to sell off your used equipment, and DPA is ready to help. We offer some of the lowest commissions on the market, while also providing a top of the line, no hassle experience that combines amazing customer service with an all-in-one process that handles marketing, title, and money transfer. There are very few auctioning companies that offer all of these, and that’s because DPA Auctions is family owned and operated, wanting to see all of those who partner with us, both buyer and seller, get the most out of their time and money.
If you would like to jump on the equipment value trend, or are interested in selling through DPA Auctions, check out our selling page, or contact one of our friendly DPA Representatives. We would love to partner alongside you and see you get the most from your investment.