As inventory levels of used tractors continue to recover from post-pandemic lows, auction values are exhibiting a decline, according to Sandhills Global’s newest market reports. Inventories of used high-horsepower tractors (300 horsepower and greater) are increasing especially quickly, with auction values trending downward as a result. Used high-horsepower tractor asking values have reacted more slowly to inventory increases, however, resulting in a widening gap between auction and asking values.
Inventory increases across the other industries Sandhills tracks — used farm equipment, construction equipment, heavy-duty trucks and semitrailers — are also leading to lower auction values as well as a widening gap between asking and auction values. Auction value declines paused in July, however, in the used combine category as seasonal inventory decreases occurred.
“As inventories are building back up for high-horsepower tractors, asking values haven’t been impacted as much as auction values,” Mitch Helman, sales manager at Sandhills Global, said. “The gap between auction and asking values keeps growing, so it’s important for dealers to note the detailed analysis in the market reports and watch how these trends develop.”
The key metric used in all of Sandhills’ market reports is the Sandhills Equipment Value Index (EVI). The Sandhills EVI data include equipment available in auction and retail markets as well as model year equipment actively in use.
U.S. Used Farm Equipment
Used tractor inventories are recovering from post-pandemic lows, as auction values eased year over year in July. Overall, used farm equipment asking values remain elevated despite rising inventory and decreasing auction values. Used combine auction value decreases paused in July, however, as seasonal inventory decreases were occurred.
U.S. Used Tractors 300 Horsepower and Greater
Used high-horsepower tractor inventory is quickly on the rise and auction values have declined as a result. However, asking values have been slow to react to inventory level increases, a trend Sandhills reported last month that continues to hold true. The spread between asking and auction values continued to widen in July.
U.S. Used Compact and Utility Tractors
Inventory levels of used compact and utility tractors under 100 horsepower have surpassed pre-pandemic levels. Asking and auction values continue to slowly bleed and trend downward.
U.S. Used Heavy-Duty Trucks
Inventory increases and value decreases have persisted for many months. Day cab trucks have exhibited more substantial changes, with inventory levels quickly on the rise over the past few months and auction values falling faster than sleeper trucks in July.
U.S. Used Semitrailers
Used semitrailer inventory continues to recover from historic lows observed at the end of 2021. Asking and auction values continue to follow trends similar to those of heavy-duty trucks. Dry van semitrailer inventory increased significantly compared to other semitrailer categories.
U.S. Used Medium-Duty Trucks
Asking and auction values in this market remain lower than last year by double digits. After a brief decrease at the beginning of 2023, inventory levels have been adding up. The spread between asking and auction values remains at historically high levels.
U.S. Used Heavy-Duty Construction Equipment
Asking and auction values have slowly decreased since Q2/22. Inventory levels have remained steady with the exception of excavators under 18 metric tons. Inventory levels in these segments are up by double digits and have been trending upwards since April of last year.
U.S. Used Medium-Duty Construction Equipment
As auction and asking values of used medium-duty construction equipment continue to decline, the spread between these values is nearing historical highs. Used inventory levels are growing quickly, with the track skid steer and mini excavator categories leading the recovery within this marketplace.
U.S. Used Lifts
Inventory levels of used lift equipment have been increasing since February. Sandhills has observed a mix of value trends in this market. For example, the spread between telehandler asking and auction values continues to widen, while forklift asking values have begun to decrease following auction value declines.
U.S. Used Cranes
Inventory levels in the used crane category have been slowly decreasing in 2023 but have recently remained steady. Auction and asking values, meanwhile, remain higher than a year ago across all categories, with used lattice boom crane values starting to trend down.
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