In recent years, the
agricultural industry has seen a significant shift in how farmers purchase
equipment. While traditional dealerships and auctions remain popular, many
farmers are turning to non-traditional channels to acquire the machinery they
need.
For
example, online auctions, digital marketplaces and private party sales have created
opportunities for buyers to search for equipment beyond their local area,
making it easier to compare prices and find specialized machinery. Each of
these alternative avenues can offer unique advantages, from cost savings to
access to a wider variety of equipment.
Online auctions
The popularity of online auctions has soared
post-pandemic, driven by the unmatched convenience of remote bidding. Today, farmers
can participate in equipment auctions from virtually anywhere, eliminating the
need to travel to physical auction sites.
Another benefit of online auctions includes
access to a large inventory of equipment from different brands and
manufacturers, increasing buyers’ chances of finding machinery that suits their
specific needs. However, there are tradeoffs to consider, such as limited
warranties or quality concerns, with most auction transactions treated as an
“as-is” sale.
“Some producers are reluctant to purchase at
auction because it means they will need to sell the equipment they are
replacing on their own, which can be inconvenient and comes with some risk,”
says Dan Takle, an AgDirect territory manager in Iowa. “However, producers who
are comfortable handling the sale themselves, rather than trading in to a
dealer, are increasingly looking to auctions—especially for high-dollar,
late-model used equipment.”
“They're also keeping an eye on auction prices
for big-ticket items to better understand what they should pay for new
equipment and the value of their trade-ins,” he adds.
Recent farm
machinery auction trends show hybrid auctions, which blend
in-person and online participation, are also gaining popularity. This model gives
potential buyers the flexibility to engage in bidding without being restricted
by location, while maintaining the traditional auction atmosphere for those who
prefer an in-person experience.
Digital marketplaces
Like online auctions, digital marketplaces have
also gained greater appeal as farmers become increasingly comfortable buying
equipment sight unseen. A recent AgDirect survey underscores this shift toward
online transactions.
According to the survey, while most machinery
purchases are still made at the dealership, platforms such as BigIron,
AuctionTime and Facebook Marketplace are among the top sales channels farmers
consider when shopping for agricultural equipment.
Digital marketplaces offer many of the same advantages
as online auctions, including a broad selection of equipment and convenient
online shopping. Additionally, buyers can casually browse listings, benefit
from price transparency and review photos and equipment details to make
informed purchase decisions.
Similarly, online auctions and digital
marketplaces share some of the same limitations. Buyers may need to work with a
trusted third party to inspect or verify the quality of the equipment, and
account for potential shipping costs.
Private party deals
Another key insight from the AgDirect survey
revealed 22% of producers acquired their most recent used equipment purchase
directly from a private seller, ranking it as the second choice behind
traditional dealerships.
This trend suggests private party sales
continue to play a valuable role in the equipment marketplace, especially when
local used equipment inventories are low.
One of the primary advantages of private party
transactions is direct communication with the seller, which allows buyers to
inquire about the equipment’s history, maintenance and performance before
negotiating a price. Buyers can research comparable prices online or consult
with a trusted equipment advisor to strengthen their negotiating position.
Of course, there is a risk the seller may not
disclose all relevant information about the equipment, leading to unexpected
issues. Lack of a warranty also means buyers are responsible for any repairs or
issues that arise after the purchase.
Non-traditional equipment buying channels can
be a great place to find used equipment at competitive prices. With the market
softening due to rising new machinery inventories and declining net farm
income, buyers looking to expand or upgrade their equipment at a lower cost may
be able to land even bigger bargains.
Whether purchasing equipment in-person or
online, it’s always a good idea to follow fraud
protection and awareness best practices to avoid potential equipment
scams.
AgDirect
offers financing options for both new and used equipment purchased at the
dealership, at auction, online (auction platforms and marketplaces) and via
private party.
Apply online,
check rates, quote payments and compare options at agdirect.com or
using the free AgDirect Mobile app available for download from the App
Store and Google
Play*.
Or learn more about AgDirect equipment financing by locating your nearest
AgDirect territory manager or contact the AgDirect financing
team at 888-525-9805.
*Your
mobile carrier’s messaging data rates apply. The App Store is a service mark of
Apple, Inc. Google Play is a trademark of Google, Inc.