Dozer Pricing

[John C.]

Did the research. A Deere 750J sold in Illinois in July for $160,000. It was an LGP model with cab and all the bells and whistles. It could be a misprint or someone badly needed that machine soon. We don't know who bought it or where it went.

However if you do the rest of your home work you will see the markets for the last 365 days on Machinery Trader.

High/Low/Average North America Listings
You Searched For: Manufacturer = DEERE; Model = 750J; Year From = 2007; Year To = 2007; Country = USA; Listed Since = 12/20/2008
Auction Prices Equipment For Sale Prices
Total number of listings found: 5 9
Highest price found: US $160,000 US $230,000
Lowest price found: US $67,500 US $69,500
Average price: US $111,000 US $136,111
Average w/out High & Low: US $109,167 US $132,214

The average dealer asking price for the same machine without the high and low is just 17% higher than the average auction price without the high and low. Dealers are in business to make a profit. Since we don't know what people of paid for a machine at a dealer, then that is not the market. The confirmed market is the auctions. Individual machines with other than average condition for that year model can be anywhere in those ranges that are presented.

kmfcap, you seem to be wanting to pick a fight about your perceptions of markets. In your first post you ask "is it me". From my point of view I think it is.

 

[kmfcap]

Absolutely not picking a fight John C. Just trying to find any reasons that explain the large spread in pricing.

 

[taggmann]

Went to an auction that had a floor jack, one you could pickup at the time at sams for 50 bucks. Watched a city boy ( no disrespect) buy it for 100 bucks and proud as a peacock, he was happy paying double retail. I was at a house hold auction with friends bidding on some small item just for fun. The fun really started when my friends realized I was bidding against myself. The auctioneer would just look the other direction and raise the bid. So a good laugh was had at my expense for not paying attention. Bottom line is he could only get what I was willing to pay and if I jumped out he'd be stuck with a stalled bid. Went to a local art auction (fundraiser for the local art group, my sister paints) and bought what I liked, seemed cheap, all the local " well to do" ,of which I am not one, were sitting on there hands. None of the out of towners were there and they mostly support the pricing, so the crowd was wrong. One of the paintings I bought for 80.00 my sister told me at a show would go for 600.00+
For me to sell equipment at an auction would be the last resort for an fast sale and get less than I could sell it for in the paper and to buy it at auction is to check it over best I can and gamble, hope it goes cheap enough to fix whatever is the reason for it being there in the first place. Oh one more story. bought a snow blower at a springtime auction, got it cheap, no body else wanted it. A fellow smirked and said " what you gonna do with that? I said; Not really sure I just got this feelin' winter might come back someday.

 

[kmfcap]

The variances in prices is also because of hours differences, which leads me to ask how easy is it to "adjust " hours on a new dozer? I seem to have seen quite a few JD's with very low hours but look like they've done at least 10,000. Can you "adjust" Cats as easily?
Would appreciate input from anyone with real knowledge on this.

 

[kmfcap]

Pricing Update

I looked up some of the auction pricing for the beginning of the year....seems to be some real bargains out there. 07 D6t lgp $75000 ( under 2000hrs). Also saw a 07 D6N go for $111,000 on Ironplanet(to a foreign buyer......). It looks like there are a ton of D6t's coming up at auction in the next couple of months, are there any problems with CAT's newest design?....Can't understand why it went so cheap. Maybe its just the buildup of inventory...kinda like housing.

 

[Nothinbetter]

Auctions low

I think there are 2 huge factors going with auctions right now. One with the economy in the shapes it is in, people don't have the money to spend. Going down that road the credit markets are tight, so people who want to spend are having problems getting money.

The 2nd is the CA problem.California is not allowing Diesels to be grandfathered with the tighter emission laws. From what I have read starting about 2 years ago this forced a large number of smaller contractors out of buisness and largers ones to get newer machines. One article I read about a year ago was a guy who was a 3rd generation contractor who was going out of business. His fleet average was less than 5 years old, yet only 1 machine was compliant and he could not afford to retrofit or buy all new. This has caused machines to fall in value, in some cases to scrap prices. Now you can buy a machine in CA and ship it anywhere cheaper than to buy local. Dealers some machine may have been setting on the lot for a year or more, and they have money in that machine. They gave someone a trade in at some point probably higher than current auction pricing.

What really makes me mad about the CA thing is. The guy who did the study that drove this no grandfather thing was a fraud. He did not have the degree he claimed to have. CARB or ARB knew this before the study came out and did not make in pubilc. It is now just coming to light 2-3 years later.

http://www.landlinemag.com/todays_news/Daily/2009/Dec09/113009/120309-02.htm