High-horsepower tracks are outselling 4WDs with tires

An interesting trend has developed with articulated four-wheel-drive (4WD) tractors. Based on available late-model tractors at press time, high-horsepower tracks are outselling 4WDs with tires.

Take note of the 2021 John Deere 9620RX tractors featured in the accompanying Price Guide. There were 44 RX versions of this model on dealer lots compared to just 14 of the rubber-tire model Rs. The two versions of the models 9570, 9520, and 9470 are equally split in availability. However, the trend shows a growing preference for tracked articulated 4WDs, whether they are green, red, or blue.

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Regardless of configuration, all brands of used 4WDs are in tight supply for late-model (1 to 4 years old) or older. Farmers switched to buying used when they couldn’t depend on the availability of new machines coming from manufacturers. At first, this resulted in a drought of late-model units.

Then older 4WDs started to become the target of power-hungry buyers.

Very Tight Supplies

Only tight supplies can be seen in the numbers of 2021 models at press time. The following are the sum total John Deere RX versions at dealer lots nationwide:

• 9620RX: 44
• 9570RX: 20
• 9520RX: 13 
• 9470RX: 3 

Rubber-tire 4WD inventory is no better. 

Again, here are the 2021 versions available at press time.

• 9620R: 14 
• 9570R: 23
• 9520R: 31 
• 9470R: 8
• 9420R: 9

This supply situation places farmers in the position of being an aggressive buyer, something that is a bit unusual and uncomfortable for farmers who prefer to kick tires and dicker on prices.

As such, if you see a machine that fits your needs, don’t hesitate to buy it on the spot. You can try to strike a bargain on price with a dealer, but don’t expect much give, and prepare yourself to swallow hard when prices go crazy while you’re bidding at auction.

Expect to pay significant transport charges to get the tractor home before next spring, as the likelihood of finding a machine in your area — let alone your state — is rare.

The exception to this situation is Minnesota. Nearly half of the dealer-held 9620RXs listed on the next page reside in that state. The same trend is true for other tracked and rubber-tire 4WDs.

The hottest spot for such tractors is around Mankato in southern Minnesota. Seven of the listings in the Price Guide came from that town.

Ritchie Bros. Auctioneers

Crazy High Prices For Semi Trucks

If you think the price run on late-model farm machinery is bad, consider what happened to semi truck values in 2021 and the first half of  2022.

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A used 5-year-old Class 8 day cab that would  have cost about $30,000 to $35,000 toward the end of 2020 skyrocketed in price to $70,000 to $80,000. If it were a highly sought truck brand, such as Peterbilt, sale prices of $80,000 to $100,000 would not have been unusual.

Over-the-road sleeper truck prices also went wild. A 3-year-old Class 8 sleeper with typical mileage (about 400,000 miles) would cost $165,000 to $175,000 last winter. Not only is that 80% more than normal, according to Chris Visser of J.D. Powers, but often the same value as a brand-new truck.

This is a once-in-a-lifetime situation, semi truck analysts all agree. As a result, late-model values are at historical highs.

Fueling this price fire are the same challenges facing farm equipment manufacturing. Shortages of components — including semiconductors, electrical wiring and harnesses, axles, tires, mirrors, and plastic components — forced manufacturers to scale back production in 2021 and 2022 and set conservative goals for 2023.

New Prices Prevail

Like farmers looking to the used vehicle market to meet their needs, freight haulers readily gobbled up late-model, low-mileage trucks, stripping the marketplace bare of inventory. Next, facing a shortage of used trucks, transport companies started keeping their old trucks and repairing them for longer ownership.

Fleet buyers that typically purchase late-model trucks do so, on average, with 3-year-olds, then sell them on their fifth year. Now, this segment of the market is holding onto trucks for two or three more years.

Good News Is Emerging

However, some good news is emerging in the current marketplace. Used semi values started slumping this summer. Used trucks sold at auctions in the second  quarter of 2022 are already 20% cheaper than those sold during the first quarter, observes Rob Slavin, senior pricing analyst at Ritchie Bros. Auctioneers, one of the largest truck auction outlets in the world.

Slavin expects semi truck prices to continue to slide slowly at first, with no major drops in value occurring until 2024 or 2025.

For that to happen, manufacturers need to get the necessary supplies and key components to meet new demand. After that, the used marketplace will begin to restock its inventory, which will weigh down used values.

In the meantime, late-model used trucks and certain high-level older semis are going to bring premium prices at auction or dealer lots.