Ritchie Bros gives you tips on buying and selling used machinery

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[ADVERTISEMENT] Five factors influencing the price of used farm equipment, brought to you by Ritchie Bros. Auctioneers

Ritchie Bros gives you tips on buying and selling used machinery
Ritchie Bros conducts hundreds of unreserved public auctions each year, selling a broad range of used and unused equipment

If you've ever bought or sold used agricultural equipment, you know there's a lot at stake. If you're dealing with larger quantities or entire fleets of tractors or combines, there is huge financial investment involved in this specialised machinery. Understanding what influences prices will give you a better idea of farm equipment's true value, and help you make more informed business decisions when it comes time to buy or sell.

Here are some of the main factors that affect equipment pricing:

1. Supply & demand
Just like commodities in any other market, the laws of supply and demand affect equipment prices. As demand goes up or supply goes down, prices rise as businesses compete for available machines. Conversely, if the market is saturated with a particular type of equipment, buyers have the advantage. Consider looking for equipment-or buyers-outside your local area to take advantage of favourable conditions.

2. Seasonality & growing regions
Industry cycles, weather patterns, and the seasonality of farming - dictating which equipment is needed at different times in different areas of the country or the world - can have a huge influence on prices. During seeding or harvest, demand (and therefore prices) for equipment can be high. If drought or other poor weather conditions have affected crops, it can be a buyer's market. Again, it's smart to look outside your region or even overseas when buying or selling. This is especially important if you're buying or selling equipment used for a specialty crop unique to your area.

3. Manufacturer
Leading brands often command higher prices. People are often reluctant to try a new brand of equipment, remaining loyal to their favourites, and a well-known brand name itself often simply implies a certain level of quality. But lesser-known and possibly less expensive brands may do the job just as well. Having access to detailed information about the equipment and being able to compare models side-by-side better helps buyers determine its value.

4. Model & features
Standard models fluctuate less in price and are often easier to sell than specialised pieces of farm equipment. And more potential uses means more potential buyers. If you have a specialised item to sell, it's important to market your equipment to the biggest audience possible-and also the most targeted audience. Make sure the people who need and want your equipment know that you're selling it.

5. Age & condition
Age is an important factor in determining price. Generally, equipment depreciates as it ages - it's seen a lot of use, is showing signs of wear and tear, needs more repair and maintenance, or has become out-dated by newer technology. And two identical pieces of equipment of the same age can vary widely in price - one that's well-maintained or has low hours can be worth considerably more. One of the best ways to gauge pricing trends is to use a resource that allows you to search a variety of equipment with current and historical selling prices. Create a free account on Ritchie Bros. website, and access equipment auction results from the past two years.

About Ritchie Bros. Auctioneers As the world's largest industrial auctioneer, Ritchie Bros. conducts hundreds of unreserved public auctions each year, selling a broad range of used and unused equipment and trucks. Ritchie Bros. conducts regular auctions at its permanent auction sites in Brisbane, QLD and Geelong, VIC. For upcoming auctions, equipment inventory and more, visit rbauction.com.

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