Cheffins latest Machinery Auction saw the highest grossing sale of second-hand machinery in early November with sales totalling £3.5m at the saleground in Sutton, Cambridgeshire. This is an uplift of sales of over £1m compared with November 2015.
The most expensive tractors were purchased by UK dealers who are reporting a shortage of used stock due to a decrease in trade-ins from farmers. Against a challenging agricultural climate, dealers are reporting that farmers are turning to second-hand stock rather than purchasing new machines and this was reflected in the latest sales results.
The Agricultural Engineers Association (AEA) reported 2016 tractor registrations are down by 11 per cent which illustrates the decrease in new tractor purchases. As farmers continue to expand their replacement policies, rather than purchasing new, the second-hand trade has continued to grow. Coupled with significant increases in manufacturers’ prices, quality second-hand stock is becoming increasingly attractive.
UK dealers accounted for over 50 per cent of deals at the November sale. The highest ticket prices included; a John Deere 6210R which sold for £54,800; £50,500 for a John Deere 6125R and £46,000 for a Fendt 828 all of which sold to UK dealers.
The weakening pound also continues to attract foreign purchasers and November’s sale saw the return of a number of mainland European buyers who have been absent over the last two years. Buyers included a large contingent from France, Spain, Belgium, Czech Republic, Bulgaria, Poland and the Ukraine. There was also strong trade from Southern Ireland, the Middle East and Northern Africa.
There was also an increase in sales of tractors direct from farms. Farmers have been looking to replace machinery and to make the most of the strong trade and prices achieved at auction due to the export market.
Bill Pepper, Director, Cheffins, commented, “With sales grossing over a third on November’s sale last year, we can really see that both the UK and export market for second-hand machinery is booming. The cocktail of rising prices for new tractors, lack of new tractor registrations, a shortage of stock for dealers and a drop in trade-ins has really bought the UK dealers back to our market. This, combined with the export trade making the most of a drop in the pound, has led to UK buyers vying against the foreign buyers and has in turn pushed up prices.
“A number of farmers have been entering stock to be sold as they see auction as the best way to achieve the highest prices. One farmer from Lancashire drove his John Deere all the way to Cambridgeshire for the sale, taking him eleven hours, however, it was well worth the trip as it eclipsed its reserve price by £5000 and was purchased by an East Anglian dealer.”
The next machinery sale will take place on Monday 5th December at Cheffins Machinery Saleground, Sutton, Ely, Cambridgeshire, CB6 2QT.