April 3, 2020
Bidding Brisk, Prices Strong on Equipment as Conversion to All-Online Goes ‘Without a Hiccup’
With crowd sizes restricted due to the Covid-19 pandemic, Steffes Group’s conversion of all auctions to online went smoothly, resulting in great prices and satisfied sellers.
“The transition occurred without so much as a hiccup,” said Representative Brad Olstad.
“We’re seeing prices for good used equipment in online auctions that are simply incredible. Late model, well-maintained equipment that has been stored in sheds is going for prices we would not expect with wet fields and a pandemic affecting the economy in ways that nobody can forecast,” he said.
He pointed to a recently completed online auction in Grenora, North Dakota.
“Just to take one example, we had a 2008 John Deere 9770 that sold for $152,000 after 83 online bids. And that’s a 13-year-old machine!” said Olstad.
In the same auction, a 2008 John Deere 9530 brought $187,000 after 100 online bids. “That was well over pre-auction estimate. Again we’re talking about a 12-year-old piece of equipment, but it had low hours and was well-maintained. We just can’t emphasize the importance of maintenance and care enough.”
Yet another 13-year-old -- a John Deere 7330 went for $99,000 after 99 bids. Olstad noted that the prices are typical of recent equipment auctions.
“Even equipment that isn’t late model or in the best condition is still doing better than it was a year ago. And it’s remarkable that we’re seeing all these results even with new snow on the already wet ground in many of our areas,” said Olstad.
Representative Tim Meyer in Iowa pointed to the torrid pace of auctions since March 15, when the Centers for Disease Control first advised that no gatherings of more than 50 take place. “Believe it or not, we’ve had 48 auctions since March 15,” he said.
“Even before Covid-19, more than 60 percent of our auctions were online, and going entirely online doesn’t seem to have affected either our results or the number of people seeking to sell or bid. Equipment prices are up 7 to 11 percent. And we have record numbers of people registering on our site and bidding on assets,” said Meyer.