The graph illustrates price trends among manufacturers by showing the extent to which prices changed relative to Q1 2013. Indexed values greater than 1 indicate that prices are higher compared to prices in Q1 of 2013, while indexed prices lower than 1 reflect a decrease from Q1 2013 levels.
Key Takeaways for Decision Makers
FINANCE: Brand names are important when considering equipment collateral. Be sure to look beyond original prices and into the used marketplace when considering a tractor’s value.
A study using 65,520 sales records from the used equipment marketplace found that indexed prices for high horsepower tractors rose 3% from January 2013 until the end of December 2014. While trends for each manufacturer were far from uniform, four of the top five manufacturers of tractors with 225 PTO horsepower or greater saw minor price increases.
After rising steadily for six consecutive quarters, market prices for Case IH tractors dropped in the final months of 2014. Even with the decline, however, prices rose at a higher rate than prices for the other top manufacturers. By the end of 2014, Case IH prices were 6% higher than levels seen in early 2013.
While Deere’s prices fell 6% from their peak in early 2014, buyers interested in a Deere model can still expect to see a significant price premium. Similar Challenger models were more modestly priced, but even so, prices for this manufacturer rose 4% from Q1 2013 levels.
New Holland prices exhibited the most volatility but stabilized in the second half of 2014. Prices for Versatile models, on the other hand, have been relatively steady since the third quarter of 2013. Versatile was the only manufacturer which saw an overall decline in asking prices, with prices falling 1% from 2013 through 2014.