Well it depends on what level of used your looking at.
The high end equipment like late model used combines are down 15-25% depending on the model. Example: JD 9670 combines are down $20,000-35,000 from just two years ago. Contrary to the popular farmer thinking, that dealers are getting rich selling high end combines, the margin is usually around 10% of dealer invoice price. List means nothing. An example of this would be: they sell a $250,000 combine they plan on a $25000 profit. Then the value of the trade-in drops more than that and take longer to sell. The JD dealerships have to pay floor plan interest from day one now. They do not get interest free terms anymore. So they can get into losing money real easy in a declining market.
IN JDs case the company has already told the dealerships to not be as concerned about the market share numbers like in years past. This market share helped set the volume rebates that dealerships got.
The equipment that only has the LARGE grain farmers as it's market is off in price.
Now the more modest price equipment, usually under $100,000 is holding it's own or even slightly higher. Also things livestock producers usually buy is stead to up because of better livestock prices.
Then the lower priced collector stuff is still much lower than it was several years ago. The only stuff still bringing high dollars is the rare or unusual equipment.
There is still some models that are just outrageous in price for what they where and are. Example is the JD late model 4020s. Also the IH 1206 and AC D-21. These tractors are hot property as the 40-50 year olds are collecting the tractors from their youth.
There is going to be some serious pain in the new and late model used equipment market. I really think there will be some major players go broke in this down turn. I do not think any of the manufactures will go out but they easily could change ownership.
Examples of this would be Fiat as a owner. The parent company is still in serious money problems from their car divisions. The AG division is the one that has made consistent profits. This makes it ripe to be sold off. The Italian banks have been pushing for Fiat to do so and pay down their debt load.
At the dealership level. I am pretty sure the Titian chain of dealerships will not survive in it's current form. The industrial division has already closed stores and reorganized once an is still bleeding money. Titian stock is a penny stock almost now. They are having issues just getting operating capital.
There are none of the JD chains that pop to mind as being in trouble YET but there will be. It just will take a few years of low new equipment sales to show up. Then add in major losses on late models equipment and there will be money issues at these chains.
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