Farming News - Stock levels at second-hand machinery sales increase by 31 per cent

Stock levels at second-hand machinery sales increase by 31 per cent

09 Apr 2019
Finance / Machinery

Cheffins, which conducts the largest monthly sale of second-hand tractors and agricultural machinery in the world, has reported sales of over £12,642,000 in Q1 2019 throughout both Cambridge Machinery Sales at the firm’s dedicated site near Ely, and at on-farm auctions across the UK.

At the Cambridge Machinery Saleground, gross sales hit £11m in the quarter, showing an uplift of 11 per cent in comparison with Q1 2018, which achieved total sales of £9.9m. Stock levels at the Cambridge Machinery Sales were up 31 per cent in the quarter, compared to Q1 2018, as sellers look to make the most of high prices achieved in the run up to Brexit. In a similar vein, the onsite sales team saw four farm-based auctions in Q1, grossing £2,642,000, with 1628 lots offered in total.

In March alone, Cheffins sold over £5m-worth of machinery, with just over £4m-worth sold at Cambridge Machinery Saleground at the regular monthly sale and £1.366m at on site sales across the country.

Bill Pepper, Director, Cheffins comments: “The numbers of entries for this quarter at both the Cheffins monthly sales and on site are indicative of sentiment in the second-hand machinery market as sellers look to cash-in on the high prices being achieved ahead of Brexit. Brexit has brought with it a golden touch for second-hand machinery values over the past three years or so as overseas buyers looked to pick up bargains and make the most of our weakening currency. Uncertainty over import and export tariffs once we finally do leave the EU has encouraged sellers to cash-in quickly and disperse of machinery in early 2019 as the final Brexit deadline looms large.  The result has been this enormous uplift in stock levels which is purely illustrative of the sentiment we have experienced since the start of this year. Prices have not grown throughout the first quarter in line with stock, indicating that lower value items have dominated the past three auctions, however sale rates have held firm as the buyer base at the machinery sale continues to broaden. For example, 2019 so far has seen the return of developing markets, including the likes of Sudan and Afghanistan following relaxation of important restrictions in their domestic markets. These buyers tend to pick up 1970s and 1980s tractors with values up to around £6,000, however they buy in bulk in order to meet demand back on their home turf. Similarly, the Middle Eastern market appears to have picked up with a number of strong sales to the region as political tensions begin to settle.”

The top buyers throughout Q1 2019 at the Cambridge Machinery Saleground are once again led by the Irish, followed by Spanish, Polish, Bulgarian and Romanian, whilst the highest-grossing lot for the period is a £85,000 for a 2013 John Deere 8310R, followed by £80,000 for a 2015 Fendt 939 Profi tractor.