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.

• Used farm equipment inventory levels decreased 0.01% month over month in July but rose 36.53% year over year and are currently trending up.
• Asking values increased 1.52% month over month and 9.66% year over year and are trending up.
• Although auction values were 0.96% higher year over year in July, auction values only notched up 0.04% month over month and are trending down.

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.

• Used high-horsepower tractor inventory levels rose 7.69% month over month in July following consecutive months of increases and were up 66.92% year over year.
• Asking values increased 0.97% month over month and 11.16% year over year after several months of increases.
• Auction values were 0.87% lower on a month-over-month basis after months of decreases but were 1.76% higher year over year.

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.

• After several months of increases, used compact and utility tractor inventory levels were up again in July, rising 4.64% month over month and 64.01% year over year.
• Asking values rose 1.27% year over year but dropped 0.83% month over month and are currently trending down.
• Auction values have also experienced consecutive months of decreases and continued that trend in July, dropping 1% month over month and 2.01% year over year.

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.

• Used heavy-duty truck inventory levels have been rising for several months and continued in July with 5.06% month-over-month and 37.66% year-over-year increases.
• Asking values declined 0.92% month over month and 18.63% year over year in July after consecutive months of decreases.
• Auction values fell 3.84% month over month and 25.71% year over year, with this data also following consecutive months of decreases.

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.

• Used semitrailer inventory levels followed months of increases with 7.95% month-over-month and 52.09% year-over-year increases in July.
• Asking values fell 3.06% month over month and 23.94% year over year after months of declines.
• Auction values also continued months of consecutive declines, posting 1.42% month-over-month and 24.9% year-over-year decreases in July.

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.

• Used inventory levels were up 4.98% month over month and 32.88% year over year in July following months of increases.
• Asking values were down 1.35% month over month and 12.94% year over year after months of decreases.
• Auction values were down 0.36% month over month and 18.64% year over year, with this data also following months of decreases.

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.

• Used heavy-duty equipment inventory levels have posted consecutive months of increases, as levels were up 4.14% month over month and 7.41% year over year in July.
• Asking values notched upward 0.85% month over month but fell 3.31% year over year and are currently trending down.
• Auction values inched up 0.45% month over month but dropped 5.42% year over year and are trending down.

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.

• As with heavy-duty construction equipment, used medium-duty equipment inventory levels are growing quickly, continuing months of increases by posting 5.91% month-over-month and 45.79% year-over-year increases in July.
• Asking values drooped 0.18% month over month and 2.69% year over year in July after several months of declines.
• Auction values, which have also been declining for months, dropped 2.78% month over month and 7.91% year over year in July.

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.

• Following months of increases, used lift inventory levels decreased 0.26% month over month but increased 2.52% year over year in July.
• Asking values fell 3.19% month over month and increased 1.59% year over year after consecutive months of decreases.
• Auction values decreased 1.87% month over month and 4.6% year over year, with this data also following consecutive months of decreases.

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.

• Used crane inventory levels increased 1.66% month over month but decreased 29.23% year over year in July and are trending down.
• Asking values increased 0.49% month over month and 7.39% year over year. Asking values are currently trending sideways.
• Auction values decreased 0.14% month over month but rose 9.21% year over year and are trending sideways.