Market Report: Surprising Trends in Used Trucks, Trailers, and Equipment
Sandhills Global has released its latest market reports, showing that inventory for used day cab trucks has surpassed sleeper trucks for the first time. With values continuing to trend down, these reports provide essential insights for both buyers and sellers across trucking, construction, and farming industries. From the drop in auction values to unprecedented inventory surges, here’s a look at the critical trends shaping the used equipment market.
U.S. Heavy-Duty Trucks: Day Cab Inventory Surpasses Sleeper Trucks
For the first time, day cab truck inventory levels have overtaken sleeper trucks, driven largely by an increase in 5- to 10-year-old heavy-duty trucks. Overall, inventory is trending down year-over-year, with day cabs up 27% while sleeper trucks declined by 31.77%. Auction values dropped 18.68% YOY in October, with day cabs showing the largest decline at 23.5%. For those monitoring trends, auction prices may serve as an early indicator of where market values are heading.
Semitrailer Market: Flattening Trends and Inventory Shifts
Inventory for semitrailers is up 8.52% YOY, although down 5.84% month-over-month. The used reefer trailers experienced the most significant auction value decrease, down 30.38% YOY. Flatbed trailer inventory saw the largest YOY gain, increasing by 28.53%. Asking prices have continued a downward trend, falling 18.87% YOY, signaling that sellers may need to adjust expectations as values align with market demand.
Construction Equipment: Auction Values Declining Faster Than Asking Prices
Used heavy-duty construction equipment, such as dozers and wheel loaders, saw inventory levels rise for the ninth consecutive month, with auction values dropping faster than asking prices. October auction values were down 10.29% YOY, while crawler excavator values fell the most. Stephanie Olberding, Director of North American Construction, notes the importance of sellers closely watching these trends as auction prices may indicate the market’s future direction.
Farm Machinery: High Inventory and Falling Values
The farm machinery market is experiencing increased inventory levels, particularly with high-horsepower tractors. Inventory for 300-hp and greater tractors rose 46.54% YOY, with auction values falling 13.77% YOY. The EVI spread in the farm equipment category remains high, illustrating a significant gap between asking and auction values. According to TractorHouse Manager Ryan Dolezal, these figures suggest a potential glut of lower-hour tractors in the market, a trend likely to impact future pricing.
EVI Spread as a Market Predictor
The Sandhills Equipment Value Index (EVI) measures the percentage difference between asking and auction values. With spreads remaining historically high across various categories, the EVI serves as a vital tool for assessing market conditions. Elevated EVI spreads in farm equipment and construction machinery markets indicate that auction values are under more pressure than retail prices, which may foreshadow future declines in asking values.
Why These Trends Matter
Scott Lubischer, Truck Paper Manager, highlights that auction values often provide the first glimpse of a market’s trajectory. Sellers and buyers alike can use the insights from Sandhills reports to optimize decisions regarding acquisitions and liquidations. Monitoring EVI spreads across trucks, trailers, and equipment categories can offer early indicators of potential shifts in value.
View Full Sandhills Market Report
To access the complete reports, including detailed market insights and specific metrics for each equipment category, visit Sandhills Global’s market report page here.