It’s been almost two years since the US equipment boom that gifted many farmers with impressive deals on late-model equipment. Now it seems the well has run dry. As demands continue to exceed supply, the costs of selling and renting used equipment has continued to increase, and new AG dealer software can help them track it.
Thanks to this particular bubble having finally completed its journey through the system, dealers are now seeing promising market opportunities and more potential for dealership profit.
What Caused the Equipment Bubble?
Farm valuation expert Greg Peterson has over 25 years of experience recording and analyzing dealership equipment trends. From his collected data and firsthand observations, Peterson listed these reasons for the most recent cheap equipment sale surge:
- Seeing an over saturation in the marketplace, manufacturers cut back on production.
- Knowing they could take advantage of used equipment available for hundreds of thousands of dollars below ticket price, farmers halted purchasing on new models to take advantage of major savings.
- Equipment dealers also changed their buying habits to fulfill the needs of their buyers.
All of these actions and reactions came together to at such a rapid pace that it has taken the market a few years to level out.
What This Means for You
As a result of this trend, farmers are placing more value in high quality used equipment over newer, shinier models. And now that the tides have shifted in favor of equipment rental once again, dealers need to arm themselves with the proper tools for inspection and valuation.
Here’s what you’ll need:
- A reliable inspection report app for documenting individual assets
- View inspection reports from in your business management system.
- Asset valuation software that uses real-time asset and market data
- Access to records on the latest market and auction values to see how your equipment compares
- Streamlined access to real time data makes market trends accessible within reports, selection screens, and analysis screens.
The best way to gather these essential tools is to choose a single AG dealer software platform to house and integrate with your existing data. The ASPEN Business Management System includes the power of Sandhills Publishing’s full suite of products so dealers can take advantage of the latest market trends.