A recent market report from Sandhills Global says the continued increase in inventories has resulted in the continued decrease in the value of used equipment, including the heavy-duty truck and semitrailer categories.
According to the Lincoln, Neb.-based company, the spread between asking and auction values also has widened.
“As we continue seeing inventory levels rise across our markets, a corresponding drop in auction values is to be expected,” Sandhills Global Sales Manager Mitch Helman said. “Asking values are dropping less quickly in some markets. The spread between asking and auction values is especially pronounced for medium-duty construction equipment, medium-duty trucks and high-horsepower tractors.”
The data in the report included equipment available in auction and retail market as well as model-year equipment actively in use, Sandhills Global said.
Andrew King, research analyst for the OOIDA Foundation, recently detailed the Foundation’s most-recent market update with Land Line.
Used heavy-duty trucks
An increase to inventory levels paused in August, but the trend remains upward. Asking and auction values continued a downward trend with sleeper trucks falling faster than day cabs. Asking values increased but were down year-over-year.
Used medium-duty trucks
Box truck inventories increased the most, with increases reported across all categories. In addition, used medium-duty trucks showed the largest gap between asking and auction values. Asking values continued to fall, but the decrease in auction values has paused.
Used semitrailers
Inventory levels are up month-over-month as well as year-over-year. Dry van and reefer have seen the largest increases. Dry van also saw the most significant decrease to asking and auction values.
The Sandhills Global equipment value 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 Sandhills Global marketplaces.
A complete version of the report is available on the company’s website.
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