In this episode, Andy Campbell and John Hoffmann – used equipment manager at Atlantic & Southern Equipment – discuss the current state of the used equipment market, highlighting the challenges faced by dealerships, particularly in 2024. Hoffmann provides insights into his dealership’s history and market focus, emphasizing their expertise in higher-horsepower equipment, including Fendt tractors, application machines, and specialized sprayers. Hoffmann states that, while his dealership caters to a variety of customers—from hobby farmers to corporate service providers—their primary focus remains on large-scale agricultural equipment.

Hoffmann shares that one of the AGCO dealership’s biggest challenges in 2024 has been managing overvalued used equipment acquired during prior inventory booms. As new machines began arriving in early 2023 after long delays, high-dollar trades were taken in, but market values have since dropped, leaving the dealership with costly inventory. He explains how the dealership has adjusted strategies, including reducing prices, expanding markets, and exploring auction channels—tactics previously less common for them. Despite the challenges, Hoffmann highlights the growing success of the Fendt brand, which is attracting new customers and expanding market share for the dealership.

Finally, Hoffmann emphasizes the importance of maintaining strong networks with other dealers and manufacturers, especially during tough market cycles. He also advises sales teams to balance work and life, encouraging them to use vacation time to avoid burnout. As the equipment market slowly stabilizes, Hoffmann expresses cautious optimism about beginning to see improvements by late 2024 or early 2025.