What Does the Market Look Like?
First things first, let's talk numbers. The Global Agriculture Equipment Market was valued at a whopping USD 166.9 Billion in 2022. It soared to 305.6 Billion in 2023. That's a consistent yearly growth rate of 6.4%. If we keep up this momentum, by 2024 and 2025, we'll see this market cruising at about USD 187.5 Billion and USD 202.6 Billion, respectively.
The cost of new equipment has completely surpassed the rise in commodity prices, therefore, farm income will be down and less opportunity to sell costly new equipment.
JAMES WEISENBERGER Selby Implement Company
What’s the Buzz in the Used Equipment Market?
The next couple of years promise a robust used equipment market. As the demand for brand-new machines rises, there'll be a spillover effect on used equipment. But here's the twist—prices might stabilize a bit. As more folks buy new equipment, they'll trade in their old ones. Hence, the inventory of used equipment could see a gentle rise. With the demand for both new and used equipment staying strong for the foreseeable future (at least the next 12-18 months), dealerships can rest easy... (kind of). Many are keeping their fingers crossed that the Federal Reserve will hold back on increasing interest rates. That interest relief could further boost demand.
What This Means For Dealers:
• With the used equipment market buzzing, accurate valuation is crucial. • Used equipment will always have its charm. Ensuring quality and offering certified refurbished products could be a game-changer. • Consider packages or promotions that encourage trade-ins. If new equipment sales surge, harnessing the influx of used equipment can be both a challenge and an opportunity.
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