LINCOLN, Neb., Oct. 23, 2020 /PRNewswire/ -- A new Sandhills Global market data report indicates the year-over-year average value of used equipment in the heavy-duty truck market, as well as key segments in ag market, are on the rise. The YOY values are notable as equipment buyers and sellers begin to prepare for 2021 and looming year-end sales. If these trends continue, equipment sellers could see more demand and the potential for bigger profits on their used inventory.
US 175+ HP Tractor Used Market - Average Price & Inventory Trend by Age Group
US Excavators Used Market - Inventory & Price Trend by Age Group
The used inventory on TruckPaper.com, MachineryTrader.com, TractorHouse.com, AuctionTime.com, and Sandhills' other industry-leading websites and trade publications provide an enormous share of the data that Sandhills tracks for its analysis and reporting. This data is reflected in Sandhills' Used Price Index. The following trends could have a significant impact on values.
Chart Takeaways Dropping used inventory levels in key sectors of the truck and agriculture markets have positioned specific equipment categories for bigger returns, with average prices on the upswing. The used inventory decline is partially a reflection of reduced production that began in 2015 for many segments, such as 40-plus-horsepower tractors in the ag market, and has continued at declining or flat new production levels. By comparison, used inventory in the construction market echoes increased new production in recent years.
Used sleeper truck inventory on TruckPaper.com dropped nearly 30% YOY for the month of September, continuing a steep decline for used heavy-duty trucks and contributing to 4 percentage-point increase in YOY price.
Trends in YOY used truck inventory have begun to look similar to the level of declines last seen in Q3 2018.
Within the 1- to 3-year age group for tractors rated at 175-plus horsepower, Sandhills continues to see a gradual price increase driven primarily by the significant decline in inventory. September used tractor values in this horsepower category increased 4% YOY.
In the construction market, there is a notable increase in excavator inventory in the 0- to 5-year age group when compared to historic trends. Although current values have rebounded from Q2, the excess inventory continues to pull down the average price for excavators in the 0- to 5-year age group.
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About Sandhills Global Sandhills Global is an information processing company headquartered in Lincoln, Nebraska. Our products and services gather, process, and distribute information in the form of trade publications, websites, and online services that connect buyers and sellers across the construction, agriculture, forestry, oil and gas, heavy equipment, commercial trucking, and aviation industries. Our integrated, industry-specific approach to hosted technologies and services offers solutions that help businesses large and small operate efficiently and grow securely, cost-effectively, and successfully. Sandhills Global—we are the cloud.
About Sandhills Used Price Index Sandhills Used Price Index is a principal gauge of the estimated market values of used assets—both currently and over time—across the construction, agricultural, and commercial trucking industries represented by Sandhillls' marketplaces. Powered by FleetEvaluator, Sandhills' proprietary asset valuation tool, the Used Price Index provides useful insights into the ever-changing supply-and-demand conditions for each industry.
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