As inventory levels of used tractors in Sandhills Global marketplaces continue to recover from post-pandemic lows, auction values are exhibiting a decline, according to Sandhills' newest market reports. Inventories of used high-horsepower tractors (300 horsepower and greater) are increasing especially quickly, with auction values trending downward as a result. Used high-horsepower tractor asking values have reacted more slowly to inventory increases, however, resulting in a widening gap between auction and asking values.

Inventory increases across the other industries Sandhills tracks—used farm equipment, construction equipment, heavy-duty trucks, and semitrailers—are also leading to lower auction values as well as a widening gap between asking and auction values. Auction value declines paused in July, however, in the used combine category as seasonal inventory decreases were observed.

"As inventories are building back up for high-horsepower tractors, asking values haven't been impacted as much as auction values," said Sales Manager Mitch Helman. "The gap between auction and asking values keeps growing, so it's important for dealers to note the detailed analysis in the market reports and watch how these trends develop."

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.

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 Farm Equipment

• Used farm equipment inventory levels decreased 0.01 percent month over month in July but rose 36.53 percent YOY and are currently trending up.
• Asking values increased 1.52 percent M/M and 9.66 percent YOY and are trending up.
• Although auction values were 0.96 percent higher YOY in July, auction values only notched up 0.04 percent M/M and are trending down.

U.S. Used Tractors 300 Horsepower and Greater

• Used high-horsepower tractor inventory is quickly on the rise and auction values have declined as a result. Inventory levels rose 7.69 percent M/M in July following consecutive months of increases and were up 66.92 percent YOY.
• Asking values have been slow to react to inventory level increases, a trend Sandhills reported last month that continues to hold true. Asking values increased 0.97 percent M/M and 11.16 percent YOY after several months of increases.
• Auction values were 0.87 percent lower M/M after months of decreases but were 1.76 percent higher YOY.

U.S. Used Compact and Utility Tractors

• Inventory levels of used compact and utility tractors under 100 HP have surpassed pre-pandemic levels. Continuing after several months of increases, inventory levels were up 4.64 percent M/M and 64.01 percent YOY in July.
• Asking and auction values continue to slowly bleed and trend downward. Asking values rose 1.27 percent YOY but dropped 0.83 percent M/M and are currently trending down.
• Auction values have also experienced consecutive months of decreases and continued that trend in July, dropping 1.00 percent M/M and 2.01 percent YOY.

U.S. Used Heavy-Duty Trucks

• Used heavy-duty truck inventory increases and value decreases have persisted for many months. The inventory trend continued in July with 5.06 percent M/M and 37.66 percent YOY increases. Day cab trucks have exhibited more substantial changes, with inventory levels quickly on the rise over the past few months and auction values falling faster than sleeper trucks in July.
• Used heavy-duty truck asking values declined 0.92 percent M/M and 18.63 percent YOY in July after consecutive months of decreases.
• Auction values fell 3.84 percent M/M and 25.71 percent YOY, also following consecutive months of decreases.

U.S. Used Semitrailers

• Used semitrailer inventory continues to recover from historic lows observed at the end of 2021. Following months of increases, inventory levels in this market rose 7.95 percent M/M and 52.09 percent YOY in July. Dry van semitrailer inventory increased significantly compared to other semitrailer categories.
• Asking and auction values continue to follow trends similar to those of heavy-duty trucks. Asking values fell 3.06 percent M/M and 23.94 percent YOY after months of declines.
• Auction values also continued months of consecutive declines, posting 1.42 percent M/M and 24.9 percent decreases in July.

U.S. Used Medium-Duty Trucks                                      

• After a brief decrease at the beginning of the 2023 calendar year, inventory levels have been adding up. Used inventory levels were up 4.98 percent M/M and 32.88 percent YOY in July.
• Asking and auction values in this market remain lower than last year by double digits. Asking values were down 1.35 percent M/M and 12.94 percent YOY after months of decreases.
• Auction values were down 0.36 percent M/M and 18.64 percent YOY, also after months of decreases. The spread between asking and auction values remains at historically high levels.

U.S. Used Heavy-Duty Construction Equipment

• Used heavy-duty equipment inventory levels have posted consecutive months of increases; levels were up 4.14 percent M/M and 7.41 percent YOY in July. Inventory levels have remained steady with the exception of excavators under 18 metric tons. Inventories in these segments are up by double digits and have been trending upwards since April of last year.
• Asking and auction values have slowly decreased since Q2 2022. Asking values notched upward 0.85 percent M/M, fell 3.31 percent YOY, and are currently trending down.
• Auction values inched up 0.45 percent M/M, dropped 5.42 percent YOY, and are trending down.

U.S. Used Medium-Duty Construction Equipment

• As with heavy-duty construction equipment, used medium-duty equipment inventory levels are growing quickly, continuing months of increases, posting 5.91 percent M/M and 45.79 percent YOY increases in July. The track skid steer and mini excavator categories are leading recovery within this marketplace.
• Asking values dropped 0.18 percent M/M and 2.69 percent YOY after several months of declines.
• Auction values, which have also been declining for months, dropped 2.78 percent M/M and 7.91 percent YOY in July. As auction and asking values of used medium-duty construction equipment continue to decline, the spread between these values is nearing historical highs.

U.S. Used Lifts

• Inventory levels of used lift equipment have been increasing since February. Inventories decreased 0.26 percent M/M in July but increased 2.52 percent YOY.
• Sandhills has observed a mix of value trends in this market. For example, a spread between telehandler asking and auction values continues to widen while forklift asking values have begun to decrease following auction value declines. Asking values fell 3.19 percent M/M and increased 1.59 percent YOY after consecutive months of decreases.
• Auction values decreased 1.87 percent M/M and 4.6 percent YOY, also continuing consecutive months of decreases.

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For more information, or to receive detailed analysis from Sandhills Global, contact us at marketreports@sandhills.com.