MIP #437 Price Increases & Depreciation The Market Landscape Shaping The Iron Solutions Spring Guide
Moving Iron's Official Data Partner Is Fusable. The Home Iron Solutions And EDA Data. Ignite Your Dealership's Growth With Fusable.com
Move More Iron with Fusable! Get your Free Demo at
info.ironsolutions.com/moving-iron-podcast.
Summary
The conversation covers the current state of the market, focusing on combines, tractors, and other agricultural equipment. It delves into the impact of price increases, depreciation, inventory stacking, and uncertainty in the market. The discussion also addresses the adjustments made to wholesale values and the depreciation of late-model equipment. The conversation delves into the challenges of valuing used equipment in the agricultural industry, the impact of supply and demand on pricing, the influence of interest rates and financing options, and the changes in the market dynamics. It also discusses the updates in the fall guide and the importance of client feedback in refining the guide's accuracy.
Keywords
#agriculturalequipment, #markettrends, #priceincreases, #depreciation, #inventorystacking, #uncertainty, #wholesalevalues, #latemodelequipment, #agriculturalindustry, #usedequipment, #supplyanddemand, #pricing, #interestrates, #financing, #marketdynamics, #fallguide, #clientfeedback
Takeaways
Price increases have significantly impacted the market, affecting depreciation and inventory stacking.
The uncertainty in the market has resulted in farmers holding off on equipment purchases, leading to a surplus of inventory.
Adjustments to wholesale values and depreciation of late-model equipment must align with market trends and normalize sold reports.
Insights from auction data and dealer feedback are crucial in understanding market trends and making informed adjustments to guide values. Valuing used equipment in the agricultural industry is challenging due to the fluctuating time between placing an order and receiving the equipment.
Supply and demand dynamics significantly impact the pricing of used equipment, making it difficult to assess its value accurately.
Interest rates and financing options play a crucial role in the buying and selling of agricultural equipment, influencing market behavior and decision-making.
The fall guide updates include the 2024 values and analysis of average hours on equipment, emphasizing the importance of client feedback in refining the guide's accuracy.
Sound Bites
"When I look at Combines, the depreciation, auction value wise anyway, the depreciation that you're seeing from the price of a new one versus what they're advertised for a one year old or two year old used one and what they're selling for at auction, there's a huge gap there."
"When you look at that humongous price increase in the 23s... to really get those values down to where they're relative to the 22s."
"When we were getting all this pricing information together from Deere and Case, New Holland, everybody else, and I started seeing these price increases and interim price increases, I was like, well, this is gonna be interesting to see what holds up."
"The supply catch up demand price is gonna change, right? You're looking at the machine you have and I come back to you at, this is say, the average price out on the various websites are 300,000 bucks, right? I come back to you with 250,000 and you're looking at me like I'm ripping you off."
"It doesn't matter what it was back then. It matters what it is now. That tractor is worth that now."
"The numbers you guys are putting out are very in line with what's going on in the marketplace."
Chapters
00:00 Adjusting Wholesale Values and Depreciation
21:35 Challenges of Valuing Used Equipment
24:31 Impact of Supply and Demand on Pricing
35:32 Influence of Interest Rates and Financing
38:44 Changes in Market Dynamics
39:14 Updates in the Fall Guide and Client Feedback
Click To Watch:
https://youtu.be/OycgI8eB4do
Click To Listen:
Presented By @AxonTire @AgDirect @IronSolutions @randallreilly @Fusable @EDAdata @Valleytransinc
