Prices on late-model large hp tractors have risen recently offering some of the best trade-in values in years.
If you are considering selling or buying a late-model, high-horsepower, front-wheel-drive (FWD) tractor, then the marketplace is in a good news/mixed news state of affairs of late.
The good news: Values of high-horsepower FWDs (250 to 400 hp.) are up from the last couple of years. Dealers have sold off the massive tractor inventories that filled their lots since 2014. This, in turn, is pushing up asking prices (5% to 15% overall compared with 2017 and 2018) for high-horsepower machines, which means your trade-in tractor is worth more.
This situation is being aided by the fact that dealers are anxious to sell brand-new tractors and, thus, are willing to make positive trade-in offers to move fresh-from-the-factory iron.
The mixed news: You are certainly going to pay more for a late-model, high-horsepower tractor than in the past four years, as large tractor prices have been at historically low levels.
This price rise is relative in that dealers are also paying more for older tractors sought out by buyers looking to upgrade tractors that are 5 to 15 years old.
Time for some deep thinking
The change in market values should inspire sellers and buyers to ask a lot more questions, says Greg Roberg of AgDirect Sales. “Is there equipment I should be updating? Is there equipment that has more technology that I need? Do I have equipment out of warranty that will add to my downtime or repair costs?” Roberg asks. “Many times these factors will motivate decisions to upgrade equipment even if farmers are concerned about commodity prices. Do your homework ahead of time, ask yourself these questions, and go into the dealership to really find out what options are right for you.”
A large part of that homework is putting an accurate value on the tractor you are looking to trade in or buy. The Pocket Price Guide gives you a glimpse of values in one segment of the high-horsepower market: dealer asking prices on 290- to 310-hp. tractors built in 2015.
You can get far more detailed pricing by availing yourself of a free appraisal offered by Iron Solutions (see details below). This in-depth report of dealer sales prices provides exact details on similar tractors (year, hours, accessories, etc.) based on actual dealer sales.
For a broader view of just green equipment, take a look at the prices for John Deere high-horsepower tractors below. The numbers listed in this analysis are based on 851 8000R series tractors built in 2015 and 2016.
In amassing these values from Deere’s dealer website, I set out to calculate prices based on hour ranges and found that tractors with:
- 100 to 500 hours have an average price of $224,100.
- 501 to 750 hours have an average price of $220,000.
- 751 to 1,000 hours have an average price of $209,900.
- 1,001 to 1,500 hours have an average price of $205,000.
- 1,500-plus hours have an average price of $188,500.
Prices For High-Hp Deeres
8370R
2015
- Average price: $243,400
- Price range: $182,500 – $298,000
- Hours range: 86 – 2,456 hrs.
2016
- Average price: $277,300
- Price range: $232,500 – $345,000
- Hours range: 570 – 3,593 hrs.
8345R
2015
- Average price: $232,200
- Price range: $184,950 – $275,000
- Hours range: 262 – 3,533 hrs.
2016
- Average price: $254,100
- Price range: $207,170 – $299,900
- Hours range: 185 – 2,256 hrs.
8320R
2015
- Average price: $222,130
- Price range: $160,000 – $301,481
- Hours range: 73 – 4,678 hrs.
2016
- Average price: $235,100
- Price range: $199,500 – $269,900
- Hours range: 151 – 2,852 hrs.
8295R
2015
- Average price: $197,450
- Price range: $146,000 – $275,000
- Hours range: 187 – 3,297 hrs.
2016
- Average price: $219,720
- Price range: $184,000 – $252,000
- Hours range: 234 – 2,135 hrs.
8270R
2015
- Average price: $173,100
- Price range: $112,900 – $222,810
- Hours range: 339 – 7,285 hrs.
2016
- Average price: $204,100
- Price range: $155,000 – $239,000
- Hours range: 108 – 3,151 hrs.
8245R
2015
- Average price: $170,500
- Price range: $129,000 – $220,736
- Hours range: 259 – 7,950 hrs.
2016
- Average price: $173,100
- Price range: $139,500 – $219,500
- Hours range: 252 – 2,851 hrs.
Article by DaveMowitz via Successful Farming