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Ritchie Bros gives you tips on buying and selling used machinery

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

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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