The Time to Buy Is Now

If you’re looking for a 300–400-hp tractor, the time to buy is now, according to Jon Walker, a sales manager at Baker Implement Company, a Case IH and Kubota dealer, with 14 locations in Missouri and Arkansas. 

“Now’s the time to buy, because dealers are willing to do whatever they need to do to move it along,” he said. “They’re itching to sell it, and you’re going to get a better deal on the cash price, a better financing option, and probably even a warranty.”

Walker said used prices in his area have dropped considerably for this category of tractors – as much as 35%. 

“It used to be that the 280s were the tractor everyone wanted. But in the last five years, it’s shifted and moved into the 310 area, and all the way up to the 380s is the hot spot,” he said. “It was all about the price; you could save $30,000–$40,000 on a 280 over a 340. Now people are seeing they can pull a bigger implement with a 340 and get more work done off the width of the pass. Labor plays into it more.”

Andy Campbell, director of insights for Tractor Zoom, said he sees the market softening in general, especially as tractors approach the 2,500–3,000-hour mark. 

“Usually, the person looking at a tractor with more hours is going to be your second, maybe third owner, and typically, they have less cash reserves and are more price sensitive,” he said. “Dealers are being incentivized to move equipment off the lot, and I think we’ll see a summer sell-off to further reduce inventory at the dealer level.”

However, according to Tractor Zoom research, Campbell said the one area where equipment is still bringing a premium is retirement auctions.

“We believe this is because certain buyers are looking for a well-cared for machine, and retirement auctions are one place to find them,” he said. “More so than estate auctions or consignment auctions, our data shows a statistically significant increase in valuation at retirement auctions.” 

Campbell said he believes this is because if a farmer is having a retirement sale, they are likely a successful farmer, and to reach that level of success, they would have cared for their business and their assets well. Plus, the farmer is usually present and can answer any questions at the sale or afterward.

Recent Sales Data

Focusing on the Case IH Magnum 340, Tractor Zoom Pro had 16 recent auction sales results for 2022 and newer model years. Sale prices ranged from $340,000, for a 2023 model with 199 hours in South Dakota, to $221,000, for a 2022 model with 713 hours in North Dakota. The average price was $268,413. 

The eight tractors sold with PowerDrive powershift transmissions brought an average price of $286,000, and the one unit with CVT transmission brought $288,900. Two 2022 model year Rowtrac units were sold, with an average price of $235,300.

“Tracked options seem to be more of a personal preference than anything else,” Walker said. “I have one farmer who only has one rubber-tire machine, and everything else is some sort of track. Then I have others who only have tires.”

Looking at the equivalent John Deere model 8R 340, Tractor Zoom Pro returned 107 auction results, with an average price of $315,652. The highest sale price was $452,000, for a 2023 model with 731 hours in Arkansas, and the lowest was $237,500, for a 2023 model with 1,114 hours in Iowa. Tracked models averaged $365,525, CVT transmission machines averaged $313,966, and powershift transmission units averaged $305,886.

“John Deere is priced higher at the beginning, so low-hour models usually have a slightly higher resale price point,” Campbell said. “However, after a few years, we tend to see the resale values converging closer together.”

Factors Influencing Value

Beyond the usual features that affect a used machine’s value, such as overall condition, hours, and age, Walker recommended looking at tire or track wear. 

“Tires have gotten expensive, and needing to replace those right away adds to the cost,” he said. 

He also recommended examining which guidance system is included, if any, along with what style of transmission. Typically, cab upgrades are also something that brings a premium in the resale market. 

If you’re purchasing from a dealership, Walker recommended asking for a multi-point inspection by the service department as part of the deal. “Like everything else, the service side is struggling for business too,” he reminded, “And some of the corporate dealers are paying to have the multi-point inspections done for customers.”