Big demand for used farm equipment creates a hot market and higher sales prices.
Due to the COVID-19 pandemic, raw materials are scarce, and heavy equipment makers have had to readjust how they are manufacturing farm equipment, which has caused production to slow down and delivery delays on new equipment to be common. The scarcity of equipment is causing a large demand for used machinery by buyers who aren’t able to purchase anything new for a period of time, creating the perfect scenario for those who want to sell equipment or are contemplating retirement and selling off assets.
If you are working with farmers who have been debating the life-changing decision of retirement or are simply looking to sell equipment they are no longer using, now is the time to act. This greater demand for used equipment is resulting in higher final sales prices for sellers, which provides a more significant financial return and can put them in a better financial position for retirement. If a farmer is wavering or just recently made the decision to stick it out for one more year due to optimism in the ag market, they may be better off liquidating their assets now when buyers have more money in their pockets. There is no guarantee that prices will remain high. Retiring farmers can capitalize on higher returns now, while future retirees who choose to farm one more year risk obtaining less for their assets next year.
The pandemic has also changed the auction business, and farmers are turning to online auctions more than ever to sell used equipment and farmland. The benefits of an online auction are increasingly apparent and an excellent choice for your clients who want to retire and increase their capital. Sellers can take advantage of the hot market as well as showcasing equipment to a global buyer base, which means even more buyers bidding on equipment and driving up profits.
The best online auction companies will help your clients develop a strategy for liquidating their assets to help them reach their retirement goals. This means developing an entire marketing campaign around their auction.
They should know that not all auction companies are created equal. Many traditional auction companies have shifted to online auctions because of the pandemic, but they may not have the experience, online presence, or auction platform to do the best job, especially for larger auctions. Your clients could end up waiting a much longer period of time for auction proceeds, and they may not have as many buyers bidding or the ability to obtain the best price possible for their assets.
The best online auction companies will help your clients develop a strategy for liquidating their assets to help them reach their retirement goals. This means developing an entire marketing campaign around their auction. Because every retirement auction is different or has its own unique set of challenges to overcome, sometimes that means a marketing campaign needs to be designed with those specific hurdles in mind. Typical marketing includes a presence on digital channels, print and radio. For larger items, it’s typical to have outdoor signage.
While seemingly obvious, it is also paramount to the auction’s success that people know there is an event happening. Our experience has proven that most people are typically willing to travel about 250 miles to pick up purchased equipment. This means that the local community needs to know it’s happening. Full-service online auction firms specialize in getting the word out and making the auction both an online and local event, with social distancing and COVID precautions in place.
Your clients should also work with experienced online auction companies that conduct UCC checks and, if a lien is found during the check, the auction company should communicate with the seller to find a solution. Also, auction houses that make it a priority to allow buyers to contact the sellers with questions or to test the equipment are vital. Building an environment of trust and transparency will almost always yield higher returns for your clients. Sellers accessible to buyers will have a more confident buyer base willing to bid higher. Lastly, your clients should ask the auction company to provide them with the bidding history on their items post-auction so that they can have full confidence in the proceedings.
The online retirement auction process can be complicated during an already emotional time, but an honest and reputable company can help farmers through the process. Taking advantage of the current selling market and high buyer demand can help farmers boost their personal finances and make the start of retirement a smooth and exciting process.
