Used High-Horsepower Tractor Values Still Rising Despite Signs of Inventory Recovering

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Dec 16, 2022, 16:15 ET

LINCOLN, Neb., Dec. 16, 2022 /PRNewswire/ -- Asking and auction values for used high-horsepower tractors (300 HP and greater) have not experienced the broader pullbacks seen across other Sandhills Global equipment marketplaces throughout 2022. New market reports from Sandhills show high-HP tractor asking and auction values reached new all-time highs in November. Used inventory levels for this category remain lower than last year, but high-HP row-crop tractor inventory levels have recovered quicker than articulating variants, suggesting that auction values for row crop high-HP tractors are likely to cool in the near future.

Inventory for high-HP tractors increased for the fifth consecutive month, gaining 4.42% month-to-month in November. Despite the recent run of increases, inventory remains historically low and is down 21.13% year over year.

Aged 0 to 10 years began declining significantly around Q4 2020

Following inventory decreases in Q4 2020, auction values for high-HP articulating and row crop tractors in the 0- to 10-year-old age group increased significantly. Asking values increased in early 2021, three to four months after the market reaction for auction values.

The key metric used in all of Sandhills' market reports is the Sandhills Equipment Value Index (EVI). Buyers and sellers can use the information in the Sandhills EVI to monitor equipment markets and maximize returns on acquisition, liquidation, and related business decisions. The Sandhills EVI data include equipment available in auction and retail markets, as well as model year equipment actively in use. Regional EVI data is available for the United States (and key geographic regions within) and Canada, allowing Sandhills to reflect machine values by location.

Takeaways
Sandhills market reports highlight the most significant changes in Sandhills' used heavy-duty truck, construction equipment, and farm machinery markets. Each report includes detailed analysis and charts that help readers visualize the data. The new farm equipment market reports examine the underlying trends occurring in high-HP tractors, including value and inventory changes in articulating and row crop tractors.

U.S. Used Tractors 300 HP and Greater

Inventory for high-HP tractors increased for the fifth consecutive month, gaining 4.42% month-to-month in November. Despite the recent run of increases, inventory remains historically low and is down 21.13% year over year.
Auction values remained strong in November and were up 1.84% M/M and 12.52% YOY.
Asking values for high-HP tractors increased 0.23% M/M and 13.9% YOY.

U.S. Used 0- to 10-Year-Old Tractors 300 HP and Greater Inventory

Inventory for high-HP articulating and row crop tractors aged 0 to 10 years began declining significantly around Q4 2020.
Since Q3 2022, high-HP row crop tractor inventory has shown strong recovery, up 4.64% YOY in November, while high-HP articulating tractor inventory remains low, down 46.97% YOY.

U.S. Used 0- to 10-Year-Old Tractors 300 HP and Greater Auction and Asking Values

Following inventory decreases in Q4 2020, auction values for high-HP articulating and row crop tractors in the 0- to 10-year-old age group increased significantly. Asking values increased in early 2021, three to four months after the market reaction for auction values.
Auction values for 0- to 10-year-old high-HP articulating tractors have been up 15% YOY or more for nearly a year and a half. Auction values increased 18.04% YOY in November, and asking values rose 17.89% YOY.
High-HP row crop tractor auction values increased 16.8% YOY in November, but the rising inventory is likely to impact auction values going forward. Asking values were up 17.42% YOY.

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About the Sandhills Equipment Value Index
The Sandhills Equipment Value Index (EVI) 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 Sandhills Global marketplaces, including AuctionTime.com, TractorHouse.com, MachineryTrader.com, TruckPaper.com, and other industry-specific equipment platforms. Powered by FleetEvaluator, Sandhills' proprietary asset valuation tool, Sandhills EVI provides useful insights into the ever-changing supply-and-demand conditions for each industry.

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