#United States #Lincoln #Sandhills Global #Used Equipment #Auction Prices

Year-End Equipment Auction Trends

As we step into 2025, the used equipment market has shown some unexpected results during the year-end auctions. According to the latest reports from Sandhills Global, auction values for used equipment, including trucks and trailers, experienced an overall increase in December as is typical for this time of year. However, the same cannot be said for late-model units such as combine harvesters from 2021 and 2022, which have significantly lost value.

Market Dynamics: Auction Values Rise, Late-Model Units Decline

In December, auction values were up noticeably, reflecting a seasonal trend. Specifically, used equipment auction values increased overall by 4.6% month-over-month (M/M), yet there was a stark contrast for newer assets, which depreciated between 21% and 25% compared to the previous year. This decline suggests a growing disconnect between older and newer equipment valuations as buyers gravitate toward products that offer better value for their money.

Inventory Trends

Despite an overall upward trend in inventory levels that persisted for six months, December witnessed a slight decrease of 1.46% M/M attributed to the seasonal slowdown. Comparing year-over-year (YOY), inventory is still up by 19.5%. Categories that showed the most significant month-over-month inventory adjustments include a 2.21% drop in the 175- to 299-horsepower tractors, while high-horsepower tractors (300 HP and above) experienced a robust 29% increase YOY.

Additionally, the Equipment Value Index (EVI) spread, which measures the disparity between auction and asking prices, decreased to around 47% for this market segment in December—an indicator of how much buyers might negotiate.

Detailed Analysis of Key Sectors

Sprayers and Tractors

The report indicates that used sprayers saw auction values rise by 4.59% M/M but dipped 17.88% YOY, suggesting volatility in this market. Meanwhile, the inventory of used combine harvesters rose slightly by 3.19% M/M, although this figure still reflects a decrease when compared to a year earlier.

For tractors, specific categories exhibited wide-ranging auction values. The used 175-299 horsepower models faced a 15.12% decline YOY but managed a small 1.36% M/M increase.

Heavy-Duty Trucks and Trailers

The heavy-duty truck market is witnessing diverging trends as day cabs have remained relatively stable while sleeper truck inventories are declining. Auction values for used sleeper trucks have taken a sizeable hit, with a 20.25% YOY decrease, and auction values fell by 3.62% in December alone. Additionally, the inventory for used semitrailers has trended downward, notably down 5.39% M/M.

Looking Ahead: Market Considerations for Sellers

Ryan Dolezal, the manager at TractorHouse, emphasizes the importance for sellers to stay vigilant regarding external market influences such as tariffs and commodity prices, which could lead to further fluctuations. Similarly, Scott Lubischer from Truck Paper notes the need for stakeholders to remain informed about ongoing inventory trends to make competitive pricing decisions.

While trends indicate improvements in some aspects of the used equipment market, the reality for sellers is more complex, with certain categories trending downward. This highlights the necessity for potential buyers and sellers alike to leverage the insights from the Sandhills Equipment Value Index.

In conclusion, as we move forward, understanding these dynamics will be crucial for participants in the equipment marketplace. Staying updated not only aids in maximizing returns but also prepares sellers for any shifts that may arise in 2025 and beyond.