The price of used tractors today. What happened?

I was looking at a 5088 a few days ago at a CIH dealer in KY. About five - six years ago they were running around 10,000.00 to 15,000.00. The dealer was asking 21,500.00 for this one. Looked on the tractor house web site and could not beleive what used tractors are going for today. I bought my 1486 in 2001 and gave 8,500.00 for it then and on tractor house ones just like mine they are asking anywhere from 11,000.00 to 20,000.00 .
What's making them go up in price from just a few years ago?

Inflation, environmental regulation increasing production cost, added cost of health care reform, higher taxes, etc, etc.

the dealer has to pay very high insurance and other rediculous costs.

Go price a new red one of equal size and ratings to either a 1486 or 5088 and there's your answer. Good, well cared for used machinery in general, has been rising for several years, not everyone can buy new. I would buy a magnum before either 86 or 88 series. If your pocketbook doesn't allow it, I would take the 5088 over a 1086 any day.

Asking price and selling price are two differant figures.

I have seen that used ag equipment prices are super high right now wether its dealer, auction or private sale. I have been reading this in Succesfull Farming the past couple years or so. Kinda makes me wish a bought a bunch of decent used trators a few years ago and watched the values increase and sold now! Unbelievable.

(quoted from post at 17:37:57 06/11/10) Asking price and selling price are two differant figures.

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Go offer the dealer $15,000 on that 5088 he's got priced at $21,500. See how far it gets you. Wait 6 months and try again. See how far it gets you then. Wait another 6 months and try again. See how far that gets you.

A dealer would rather let the tractor rot into the ground than sell it for a reasonable price. It's got to be BIG BIG profit or nothing at all. Been like that since I can remember, over 30 years. Has nothing to do with anything going on today.

Supply and demand. With the economy in the tank, fewer are willing to risk buying a new tractor. That in turn creates a shortage in used tractors and drives the price up.

We have had a couple of good years for crop prices. I know in my area a lot of new iron has shown up in the last few years.

You also have to factor in demand. In good crop years, farmers have some money to play with. One of the first things they look at is buying equipment they can depreciate and get a tax write off for.

Three years ago I saw lots of bargains. Two years ago with $9 wheat, when I went looking for a used grain truck at a bargain, so was everyone else and the prices went through the roof. They started the bidding higher than I wanted to pay.

It depends upon where you are and what the farm economy is doing at the time. Most prices are down now so they shouldn't expect as much.

The first tractor I bought was from a dealer. He saw me coming and took advantage of my naivete. That old IH 460 diesel with manure bucket wasn't what I really needed but that is what he had and what he said I needed.

Of course, my 2606 loader/backhoe ebay special wasn't quite the condition claimed by the sellers but that is on me and my responsibility. You assume the risk whenever buying from ebay.

I talked to a guy on Thursday who paid $10,000 cash for a car on an internet site,(not sure which one),and his cash went to some friend of the car owner in New York and he got no car. This was last year. The state attorney general won't help and a Philadelphia lawyer sent his retainer back saying he couldn't help(Don't know why he got a Philly lawyer for a New York case anyway). Some local attorney is now charging him a bunch of his savings right now. I doubt they have any luck and he will spend ten grand trying to get back his ten grand. He wired the money without even exchanging addresses and telephone numbers with the seller so they don't even know who it is. I don't have much sympathy as we all know it is let the buyer beware.

I got a cold call from an out of stater asking me to hold about ten grand in escrow, inspect the condition, make sure it is crated properly, and gets handed over to fed ex ground before handing the guy the check for a Harley. It was going to involve at least 2 trips to this small town, taking pictures, emailing them and so on. I'd have a lot of time in it but as a favor would do it for a couple hundred and he balked at the price. I told him I had never heard of the seller and he wasn't listed in the phone book and likely some methhead. I don't know if he got his bike or not.

Years ago I bought some out of state concert tickets. I called a local lawyer and asked as a matter of professional courtesy between snakes in the grass if I could send the check to them and they exchange it for the seller's tickets when the seller came in. Went off without a hitch.

The price of used is tied to the price of new... if new goes up 20%, used will soon follow.
I'm retired and drive cars for a dealer part time. The price of cars at the auctions has increased so we now are paying wholesale the same as retail was a few months ago. I guess it's called inflation.

I've noticed TractorHouse prices are always a little on the high side, don't know why. People want $2,500 for an H that would list for $1,500 on here. Same for the bigger HP tractors.

Uh huh. That used tractor was produced a few years ago. It's just some wishful think by some sellers.