In the past, we have found correlations between usage and price for used combines, as well as correlations between discounted price and time spent on the resale market. In order to gain even deeper insight into combine trends within the agricultural equipment industry, we utilized our EquipmentWatch Values database; pulling over 14,000 sales records for Q2 2015 for a volume and price trend analysis on John Deere combines.
[su_box title=”In terms of market activity in Q2 2015, June proved to be the most lucrative month for Class 9 and lower size-class models, while April was significantly more successful for Class 10.” box_color=”#ddd” title_color=”#000000″] [/su_box]Key Takeaways for Decision Makers
BUYER: June of 2015 was by far the most profitable month for combines under Class 10, for which April was shown to be more lucrative. Class 9 models tended to be older than Class 8 or 10 models on average, with more modest prices and lower volume over Q2 2015.
RENTER/SELLER: June Q2 2015 was significantly more prosperous in terms of volume of used combines sold, and sold at higher average asking prices than the rest of the quarter for Classes 4 through 7. Class 10 combines were the most profitable during June 2015, but showed lower resale volume than any other class for that month, with the exception of Class 9 combines.
When we compared average asking prices across class to volume of combines sold month over month, we found that prices increased with higher class for each month for the most part; however, prices for Class 9 combines were found to drop instead of following the upward trend, as other classes did. To investigate further, we looked at volume for each class for April, May, and June. Volume for Class 9 combines was lower than any other class. We also found that model year for Class 9 combines tended to be older than for Class 8 or Class 10 models. Model year for Class 9 combines ranged between 2007 and 2011, with average year being 2010. Both Class 8 and Class 10 models tended to be relatively newer, with average year for both being 2013. Both Class 8 and Class 10 models also had a wider range of model years, with year for Class 8 ranging from 2008 to 2015, and 2003 to 2014 for Class 10 models.
When comparing resale volume to price trends by class, it was of further interest to find that even though prices went up for class with the exception of Class 9 combines, volume peaked for June of 2015 for Class 7 combines before taking a downward slope. While Class 10 combine prices peaked at over $300,000 for Q2, higher than any other class for the quarter, volume for June was significantly lower than any other class for that month, with the exception of Class 9. Prices for Class 9 models were found to be highest in April; however, volume was almost half of what resale volume for June was shown to be.
While prices for May 2015 were slightly lower than for the rest of Q2 across class, volume was found to be significantly lower, possibly reflecting trend differences in demand in between spring and summer seasons. Volume was higher for both April and June than for May for all John Deere combine classes.
[su_note note_color=”#EEE” text_color=”#555″]Interested in model specific valuations? Request a live demo today. [/su_note]