The Right Time to Sell Your Used Heavy Equipment Is Now

Owing to the current market trends witnessed in the heavy-duty construction equipment industry in the last month (August), there has been a remarkable shift in the auction prices. This has been the result of the rising inventory levels of heavy-duty construction equipment in recent times.

Inventory levels rising for heavy-duty equipment

Taking into account the dozers, excavators, off-highway trucks, wheel loaders, and other equipment, the market saw climbing inventory levels in the past month. The excavators and wheel loaders have seen a sharper increase in inventory levels as compared to the other two equipment, but nevertheless, the inventory levels for all machinery have been rising.

More pressure on auction and market prices

Since the auction price directly represents the inventory levels, the direct effect of a rise in inventory level has resulted in the auction prices falling. So, it is expected that since the inventory levels will continue to rise in the near future, the auction prices and the market prices will likely continue to fall.

The overall construction equipment market is witnessing an increase in inventory levels that are putting more pressure on the asking and auction values. This trend is expected to grow further, thereby ensuring a continuous month-over-month decrease in market and auction prices.

Current market trend expected to persist in the future

With experts pointing out that this rising inventory trend level is not expected to level out any time soon, companies are advised to sell their used heavy-duty construction equipment now to get a fair amount back on their investment. Doing this before prices fall further in the future will result in a significant amount of cash flow back to their accounts.

The Gap between Auction and Market Values Widens

Another market trend worth mentioning is that the gap between the auction price and market value that was already present in the market has started to widen further. Experts say that this widening of the gap is due to the rise in inventory levels that have resulted in volatility in the market. So, the auction values are further expected to fall later this year. So, without wasting any time further, it is time to focus on reselling your used heavy-duty equipment as soon as possible to get the best money out of the deal.

A few tips on making preparations to resell your used machinery

Start researching the market demand for the specific type of equipment you need to sell. Be transparent about the equipment’s history and ask an expert to determine its current market value and ways to enhance its appeal to potential buyers. This way you can set a fair and competitive price in the market. Possible factors to look for are the market value and the age of the equipment. These factors will help you reach a competitive price.

Once you get buyers coming to purchase your equipment, be prepared to negotiate. Always understand the true worth of your equipment and negotiate a fair deal.

Last Word

Since at the time of writing this article in September 2024, the inventory levels of heavy-duty construction equipment are already increasing and expected to increase further, this is a good time to sell any equipment that is not profitable to your business any longer. So, make cash by selling machinery that does not serve your current or future project needs.

Start thinking about reselling the machines you are no longer using for cash. The selling process may become laborious and time-consuming as time passes compared to what it is now and the price you obtain may turn out to be low.

*Disclaimer: The above conclusions have been drawn based on data provided by Machinery Trader. The site can be accessed at MachineryTrader.com.

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