Used Machinery Markets Face Continued Inventory and Value Challenges

December was a challenging month for U.S. used machinery markets. New market reports show a continuously decreasing in asking and auction values coupled with a significantly increase in inventory levels for construction machinery,trucks, and semitrailers in market. Overall, the reports show markets adjusting to oversupply and softer demand.

 

"The trends observed in the latest market reports highlight ongoing struggles in the used heavy-duty truck, semitrailer, and other machinery," says Truck Paper Sales Manager Scott Lubischer.

 

U.S. Used Heavy-Duty Trucks

 

Used heavy-duty trucks in market continued to face challenges in December as inventory levels, asking values, and auction values all declined month over month. Inventory levels fell 4.8% month-on-month but remained higher than last year, up 30.48% year-over-year indicating a persistent oversupply of trucks.

 

The heavy-duty truck market has been trending downward since mid-2022, primarily due to production and supply chain issues. Asking value have been falling for several months in a row, and December continued that trend, falling 1.82% month over month and 24.1% year over year.

 

Auction value fell 3.37% month-on-month and 30.3% year-over-year, also experiencing month-on-month declines.

 

U.S. Used Semitrailers

 

The inventory level of second-hand semi-trailers increased slightly in December, with a month-on-month increase of 2.08%, almost twice that of last year (a year-on-year increase of 92.03%). This indicates sluggish demand as buyers either delay or cancel purchases. On the other hand, values have been declining.

 

After several months of declines, asking value are down 2.51% month-over-month and 23.64% year-over-year.

 

Auction value fell 2.45% month-on-month and 25.69% year-on-year, following months of declines.

 

U.S. Used Medium-Duty Trucks

 

Second-hand agricultural machinery inventory levels showed an upward trend for the second consecutive month, increasing 1.1% month-on-month and 26.51% year-on-year. The largest increase in inventory was in the combine category (up 3.73% month-over-month), but inventory levels for high-horsepower (300 horsepower or more) tractors are also noteworthy, as they have been growing steadily for eight consecutive months.

 

Asking value fell 1.06% month-on-month and increased 0.42% year-on-year, showing a sideways trend.

 

Auction value fell 1.22% month-on-month, showing a downward trend, and fell 9.35% year-on-year. December value trends suggest supply is higher than demand as the market faces excess inventory and falling prices.

 

U.S. Used Compact and Utility Tractors

 

It has observed an increase in inventory levels and a decrease in values in the used compact and utility tractor market. Inventory levels increased 1.88% month-over-month, maintaining an upward trend for the eighth consecutive month and rising 32.78% year-over-year.

 

Asking value remained steady for the second month in a row. After several months of declines, asking value are down 0.12% month-over-month and 3.02% year-over-year.

 

Auction value continued a months-long downward trend, falling 0.99% month-on-month in December and down 6.2% year-on-year. Market conditions are not favorable for sellers of used compact and utility tractors, given the trend of excess inventory and declining values.

 

U.S. Used Heavy-Duty Construction Machinery

 

Inventory levels remained above last year's levels (up 18.68% year-over-year) and were trending upward, but fell 0.83% month-on-month, reversing the previous growth trend.

 

Asking value fell for the second consecutive month, falling 1.43% month-over-month in December and down 7.66% year-over-year. In this market, crawler excavators experienced the largest month-on-month decline, down 1.93%.

 

After falling for several consecutive months, auction value fell 1.8% month-on-month and 14.91% year-on-year, with bulldozer prices falling 3.03% month-on-month. These changes indicate that the supply of used heavy construction machinery in the United States exceeds demand.

 

U.S. Used Medium-Duty Construction Machinery

 

Inventory levels in this market have risen for 12 consecutive months, rising 0.81% month-on-month in December, with skid steer loader inventory levels rising 2.84% month-on-month. Inventory levels increased by 80.99% year-on-year.

 

After several months of declines, asking value are down 1.37% month over month and 6.6% year over year.

 

Auction value fell for the 10th consecutive month in December, down 2.55% month-on-month and 13.16% year-on-year.

 

U.S. Used Lifts

 

Report noted that the lift machinery market was mixed in December, with inventory levels increasing (up 5.47% month-over-month and 30.61% year-on-year) but values declining.

 

Asking value fell 5.72% month-on-month and 9.59% year-on-year, showing a downward trend.

 

After months of decline, auction value fell 5.59% month-on-month and 21.06% year-on-year. These changes indicate a mismatch between supply and demand, as the used lift machinery market is overstocked and prices are falling.