This month, I’m tracking tracked tractor values from model year 2016. The models in the analysis include:
|Case IH Magnum Rowtrac||Case IH Steiger Rowtrac||Case IH Steiger Quadtrac||John Deere|
When comparing the average new selling price in 2016 to the average used cash value today, you can get an idea of the average retained cash value after three years considering average hours and condition on each model. The bar charts below show the percentage of the new selling price retained after three years of use and depreciation. Across each manufacturer, this percentage is very similar – around 68%.
Yet, when looking into individual tracked models, some interesting points emerge. For example, the John Deere models show a very consistent retained value across the product line from the smaller 8320RT to the largest 9570RT. The broader line of Case IH reveals more variation in its range of retained value. Notably, the Case IH Rowrac 420, 470, and 500s are holding their resale values better than some similar equipment.
Before you draw any conclusions, remember that averages are average.
They can be misleading. For example, the larger Case IH Quadtracs are often utilized in construction and heavy civil applications where their use over three years is much different than use on the farm. Obviously, a machine used in a road construction project might have a retained value far less than one used on a Midwestern farm. This type of difference can skew the average, and it’s why I always caution buyers and sellers to appraise specific units. Its options and usage could be very different from the average.
Check out 2016 tracked models up for sale on IronSearch.com.
For information on what your equipment is worth visit IronAppraiser.com
Originally posted on Successful Farming on March 18, 2019