Variable Auction Prices Of Used Heavy Equipment Inventory In August 2024

The construction equipment market is quite interesting as it keeps fluctuating and keeps the attention of people intact. The inventory level rises and falls, all depending on the demand and the purchasing power of the construction companies and contractors whereas this ratio sometimes surprises the equipment dealers. 

Not only the heavy-duty construction equipment but the medium-duty trucks and lifts are also in this fluctuating list that has a dynamic state of asking and auction values. Declining auction prices have been a noticeable trend recently, indicating major shifts in the industry landscape. Recent trends show that while higher inventory levels may indicate increased availability, they can also put downward pressure on values. Hence why, stakeholders must be attentive and keep an eye on these dynamics to effectively navigate the purchasing and selling process within this dynamic environment. 

How does the inventory level affect the market value?

The level of inventory stock up at the equipment dealers basically decides and defines the actual asking and auction values of the equipment. 

These inventory levels provide important information about supply and demand dynamics and are a crucial indicator of market positioning. According to Sandhills Global’s most recent market analysis, the US market for used heavy-duty construction equipment shows a varied image across many categories. 

Category of heavy-duty equipment 

In this category, equipment like excavators, dozers, and wheel loaders are evaluated. According to the August 2024 data, the inventory level increased by 20.86% over the same period last year and by 2.48% over July-August.

The largest rise was seen in wheel loaders for sale specifically, which increased by 3.22% each month and by 31.65% annually. Nonetheless, asking prices are declining—they are down 5.59% from the previous year and 1.26% from the previous month. With a monthly reduction of 1.64% and an annual decline of 10.36%, auction prices are declining even more quickly, maintaining the difference between asking and auction prices.

Category of medium-duty equipment

Skid steers, backhoe loaders, and mini excavators make up this medium-duty equipment category which was also found to increase. This inventory was found rising by 42.68% from the previous year and by 3.01% from July to August.

Track skid steers increased by 53.61% year over year and by 1.9% month over month, showing the largest year-to-year growth. 

The inventory of loader backhoes increased sharply as well, rising 19.79% year over year and 9.82% from the previous month. 

While auction prices decreased by 10.7% annually and by 0.96% monthly, asking prices decreased by 0.68% from July and 7.07% from the previous year.

Category of Lifts 

The United States’ inventory of used lift equipment increased by 7.9% in August over July and by 17.03% over the previous year, maintaining a trend of continuous growth. Despite this, asking prices have decreased by 10.37% from the previous year and have only slightly decreased by 0.03% from the previous month. Even though auction prices increased by 0.48% on a monthly basis, they are still on the decline, having fallen by 15.69% from the previous year.

What are the fluctuating variables?

Many variables, such as the aftermath of shortages caused by the epidemic and manufacturers’ subsequent increase in production, might be blamed for the drop in auction prices. The balance between supply and demand changes when fresh inventory floods dealer lots, affecting prices all around. Additionally, the depreciation rates of specific equipment may be impacted by evolving consumer demands and technical improvements. 

How does it affect the buyer and seller?

The falling auction prices provide buyers of old vehicles and construction equipment a chance to purchase items at potentially reduced pricing. However, to guarantee the calibre and dependability of the machinery or truck being bought, it’s imperative to carry out detailed examinations and evaluations. On the other side, in a market where values are declining, sellers might need to modify their pricing tactics to stay competitive. This fluctuation and decline may not be in favour of the seller. This might be possible that they are not even able to cover their investment well in the sale of used equipment. However, the rainy days in businesses are no joke. The dealers and equipment fleet owners need to act quite smartly.

A quick glance

There has been a substantial shift in the dynamics of supply and demand in the construction equipment and truck market, as evidenced by the dropping of auction prices. Making smart decisions during these transitions requires sellers and buyers to keep up with industry developments and understand the elements that affect pricing. Your success in the market will depend on your ability to adjust to the changing market conditions, whether you are buying or selling assets. Stakeholders may negotiate the difficulties and take advantage of the opportunities in this dynamic market condition by staying aware of market information and utilizing data-driven initiatives.

Whether you are looking for used equipment from the heavy-duty category, medium-duty category or the lift category, browse through our inventory at MY Equipment. We are Houston, Texas-based used equipment dealership that excels in dealing with quality equipment from leading brands and offers a seamless delivery option to your doorstep. Contact us right away to et your best pick from our inventory.

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