LINCOLN,
Neb., July 8, 2024 /PRNewswire/ -- According to
the newest Sandhills Global market reports, asking and auction
values for used farm equipment in Sandhills marketplaces are
continuing a downward trend. However, auction values are declining
at a faster rate, driving an increasing gap between auction and
asking values, especially among used combines, planting equipment,
and 100-plus-horsepower tractors.
"The spread between asking and auction values has grown
significantly over the past few months," says TractorHouse Manager
Ryan Dolezal. "While dealers have
begun to cut prices, this spread exceeds historical values. Dealers
should monitor these trends closely as we expect a large influx of
equipment ahead of this year's harvest season."
This value spread is also occurring in Sandhills' used
construction equipment marketplaces such as MachineryTrader.com.
"Heavy equipment inventory is still accumulating on dealers' lots,"
says Director of North American Construction Stephanie Olberding. "This is causing equipment
value depreciation to accelerate further."
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 and model-year equipment
actively in use. EVI spread measures the percentage of asking
values over auction values.
Additional Market Report Takeaways
Sandhills market
reports highlight the most significant changes in Sandhills' used
heavy-duty truck, semitrailer, farm machinery, and construction
equipment markets. Key points from the current reports are listed
below. Full reports are available upon request.
U.S. Used Tractors 100 Horsepower and Greater
- Inventory levels in this category experienced a marginal month
over month decrease in June but were up 40.37% compared to last
year's figure. Inventory levels are trending sideways.
- Values continued a downward trend in June. Asking values rose
less than 1% M/M in June, were up 3.89% YOY, and are trending
down.
- Auction values continue to fall faster than asking values,
increasing the separation between the two, referred to as the EVI
spread. Following consecutive monthly decreases, auction values
fell 3.53% M/M and 6.09% YOY in June.
- EVI spread increased to 45% in June, exceeding the historic 39%
peak for this category observed in 2015.
U.S. Used Planters
- Following seasonal declines, used planter inventory levels
ticked down 0.23% M/M in June but were up 16.22% YOY and are
trending upward.
- After months of decreases, asking values decreased 1.65% M/M
and remained nearly steady YOY with a marginal increase.
- Auction values increased 0.97% M/M, dropped 19.24% YOY, and are
trending down.
- The rapid decline in auction values pushed the EVI spread
wider. The EVI spread for the used planter market reached 73% in
June, exceeding historic highs last seen in 2015.
U.S. Used Combines
- The U.S. used combine market showed slight relief from
inventory increases in June. Levels decreased 1.59% M/M, rose 11.1%
YOY, and are now trending sideways.
- Asking values remained steady M/M and are trending sideways,
but posted a noteworthy 11.24% YOY increase.
- Auction values followed months of declines with a 2.83% M/M
decrease in June but remained 1.9% higher than the previous year's
figure.
- EVI spread has increased dramatically for used combines over
the past few months, reaching 57% in June.
U.S. Used Compact and Utility Tractors
- Inventory in the used compact and utility tractor market
continued downward trends in June. Inventory levels decreased 1.27%
M/M and rose 2.77% YOY.
- Following months of decreases, asking values were down 0.94%
M/M and 3.21% YOY.
- Auction values dipped 0.56% lower M/M after months of decreases
and fell 4.16% YOY.
U.S. Used Medium-Duty Construction Equipment
- The used skid steer category has driven a surge in inventory
level increases across the U.S. used medium-duty construction
equipment market. In the overall market, inventory levels rose
7.56% M/M and 51.85% YOY, adding to consecutive months of
increases.
- Asking values, following moths of decreases, ticked 0.74% lower
M/M and dropped 7.16% YOY in June.
- Auction values also continued a trend of monthly decreases,
dropping 2.27% M/M and 11.63% YOY in June.
U.S. Used Heavy-Duty Construction Equipment
- Inventory continues a steady recovery in this market, but at a
slower rate compared to medium-duty construction equipment.
Inventory levels of used heavy-duty construction equipment rose
4.15% M/M and 21.02% YOY in June, adding more pressure on values,
which remain on downward trends.
- Sandhills has observed several months of decreases in both
asking and auction values. Asking values decreased by 1.91% M/M and
5.41% YOY in June.
- Auction values fell 2.92% M/M and 9.56% YOY in June.
U.S. Used Heavy-Duty Trucks
- Inventory levels of used heavy-duty trucks decreased slightly
M/M in June by 1.24%, increased by 0.7% YOY, and are now trending
sideways.
- Values, meanwhile, continue trending down following months of
decreases. Asking values decreased by 1.66% M/M and 17.6% YOY in
June.
- Auction values dropped by 4% M/M and 20.18% YOY.
U.S. Used Semitrailers
- Inventory levels of used semitrailers are nearing pre-COVID
levels, driven primarily by increases in the dry van trailer
category. Used semitrailer inventory levels dropped just 0.66% M/M
but are trending up and were 26.81% higher YOY in June.
- After several months of decreases, asking values decreased
2.15% M/M and 19.55% YOY.
- Auction values have also experienced months of decreases.
Auction values were down 0.33% M/M and 19.68% YOY in June.
U.S. Used Medium-Duty Trucks
- Inventory levels in this category were up 2.65% M/M in June
following months of increases and were 28.21% higher than last
year.
- Rising inventory levels of medium-duty trucks continue to add
pressure to asking and auction values, which are both trending
downward. Asking values posted a marginal M/M increase in June,
decreased by 12.85% YOY, and are trending down.
- After months of decreases, auction values dropped by 3.02% M/M
and 16.37% YOY in June.
U.S. Used Lifts
- Inventory levels of used lifts remain elevated while values
continue downward trends. Inventory levels in this market were up
5.3% M/M and 11.29% YOY in June and are trending upward.
- Asking values dropped by 3.2% M/M and 9.05% YOY.
- Auction values fell 3.65% M/M and 14.78% YOY.
Obtain the Full Reports
For more information, or to
receive detailed analysis from Sandhills Global, contact us at
marketreports@sandhills.com.
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 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.
Contact Sandhills
www.sandhills.com/contact-us
402-479-2181
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SOURCE Sandhills Global