LECTURA Residual Value Study of 4WD Tractors

Residual Value Study of 4WD Tractors

LECTURA Specs currently lists 13,500 models produced by 59 manufacturers in the 4WD tractor category (as of July 2023). This section is visited by approximately 300,000 industry professionals every month who search for technical specifications and data prior decision making. We decided to support their research and conduct a study with a goal to analyse the relationship between the age of machines and the residual values.

Our study compares models of tractors with engine power higher than 90HP, excluding specialty tractors. We took into account models and model series of the most popular tractor manufacturers and evaluated the residual values development in order to find out which brands or models retain their value even after several years and therefore appear to be a good investment.

How did we do it?

• We used offer prices analysed through the used-machines market

• Over 45,000 data points in total

• 6 popular tractor manufacturers and their models/model series (Fendt, Case IH, New Holland, John Deere, Massey Ferguson, Claas)

• We aimed to explore the relationship between the age of machines and the residual values

• For the analyses, multiple linear regression, GLM with regularisation specifically, was used

What did we find out?

• Generally speaking, John Deere tractors have the most stable residual values over time

• On the manufacturer level, John Deere has the slowest decline of residual values followed by Case IH and Massey Ferguson

• The lowest slope of the residual value curve is apparent for the 6M Short & Small Frame series, compared to competitors of that series. Even after 10 years, the price is still 78% of the original price

• On the other hand, New Holland T6 loses the value the fastest - after 10 years, the price is only 41% of the original purchase price.

• John Deere 7R Series keeps the residual value more stable over time compared to Fendt 900 Vario

• Claas Axion 900 and Case IH Magnum have much steeper slopes than John Deere 8R Series

….and much more! Find it out and check the report here!