Greg Peterson, A.K.A. Machinery Pete, has been following, analyzing, and commenting on the used equipment market for decades, and even he has to admit that 2022 was surprising.
Just when you couldn’t think the used market of 2021 could be topped, 2022 came along and blew it out of the water, he says in the interview below.
“November, December (prices) went higher by the day,” Peterson says.
Strong farm income, plus a tight supply of used equipment has fuelled the used market, but there’s more to it than just basic supply and demand, Peterson says.
How short is the used market? For some categories, he says, the volume of listings is down by over 70 per cent.
It’s not just a tight supply for used equipment driving the market, working backwards, the tight supply of new equipment in recent years has driven prices higher, too. Fewer new buys means fewer upgrades, fewer trade-ins and, ultimately, fewer pieces of equipment total up for offer.
How is the retail and dealership network adapting? One word: consolidation. And that means these dealers are approaching sales and inventory programatically, which will likely keep inventories low.
“Whatever it is you need, don’t worry about the price, just get your hands on it,” Peterson says.