We mine our data to create articles that help professionals in the ag and outdoor power equipment industry understand trends in used equipment valuations. Each month we chart the most recent data from retail and auction sources, interpret what we find, and share it with you, in the Iron Solutions Used Equipment Trends. You can only find this in our newsletter so subscribe today! It’s Free!
Auction data is available in surplus, but insight into retail values of used equipment isn’t. Iron Solutions has been working with Ag equipment dealers for 80+ years to build the most robust database of used equipment known to give equipment professionals like you insight into the used equipment retail market.
The Iron Monthly Index is a value that represents the changes in the selling price of an average piece of equipment, after it has been adjusted for Age, Usage and Seasonality. To calculate the average adjusted selling price in a month, we determine what represents an average unit for that given month. We do this by identifying all the reported sales transactions for this type, make, model that are less than 5 years old reported to us in the past 12 months. From this data set we calculate the average age in months. We use Nov. 1 of the (model year – 1) as the born-on date for the calculation of age. Ex. if the unit is identified as a 2015 model, it was born on Nov. 1, 2014. Once the average age is calculated, we determine what the expected usage is for that age. The usage is the average usage that we publish in the Iron Guide for a unit of that age. Usage is typically measured in Engine Hours but for Combines it represents Separator hours. For each sold report identified, we adjust the reported sold price so that it is representative of the average unit sold in the current month. Our proprietary predictive model tells us how much we need to adjust the reported sold value for each hour difference from the average usage as well as for each month of age if this unit differs from the average age. We also adjust for the month sold to account for seasonality. Once all the reports have had the reported sold price adjusted, the average is calculated and this becomes the Iron Index Monthly value for that type, make and model. Finally, we compare that value to the previous months’ value and display the change in value as percentage difference.
IronGuides® is a trademark of Iron Solutions, Inc.
DISCLAIMER: Iron Solutions makes no representations or warranties, express or implied, as to the accuracy, timeliness, or usefulness of the Used Equipment Trends and other information in this report, or that its use would not infringe upon privately-owned rights including intellectual property rights. Iron Solutions expressly disclaims all liability or responsibility for any errors or omissions in the information in the Report or the results obtained from the use of such information or Report. Users are solely responsible for determining whether the information provided is suitable for their purposes, and reliance on the information is at the users’ sole risk. Users should obtain any additional information necessary to make an informed decision. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply an endorsement, recommendation, or favoring by Iron Solutions.
Solutions For Dealers | Solutions for Lenders
© 2022 Iron Solutions, all rights reserved.