News

Late-Model High-Horsepower Tractors Pile Up as Inventory Continues Rising Among Equipment, Trucks, and Trailers

The latest Sandhills Global market reports point to rising inventory levels across the board in Sandhills marketplaces, with particularly noteworthy inventory surges in high-horsepower tractors (300 HP and greater) and track skid steers. As reported last month, these inventory increases have led to lower auction values and a wider spread between asking and auction values.

“The new market reports show a mix of expected and unexpected trends, especially in farm equipment categories,” says TractorHouse Sales Manager Ryan Dolezal. “With inventory piling up, we expect to see a wider gap between asking prices and auction values. It’s unusual, though, to see combine and high-horsepower tractor inventories continue to grow this time of year when those numbers typically start coming down.”

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

• Inventory levels of used farm equipment continue to rise after several consecutive months of increases, driven mainly by high-HP tractors. Inventory levels rose 3.1% month over month and 36.24% year over year in September. Although there is typically a seasonal inventory drawdown for combines and high-HP tractors, inventories in these categories increased in September.
• Asking values were up 0.39% M/M and 8.91% YOY after consecutive months of increases.
• Auction values decreased 1.07% M/M and 1.07% YOY, marking the first YOY decline since 2018. Combine auction values have been driving this market lower as other segments follow. Used farm equipment auction values are currently trending down.

U.S. Used High-Horsepower Tractors (300HP and Greater) 

• Sandhills has observed a surge in used high-HP tractor inventory levels since Q2 2023, especially in 2022 model year row crop tractors. Among high-HP tractors overall, September inventory levels were almost double what they were last year, up 84.91% YOY. Inventory was also up 6.41% M/M following months of increases.
• After consecutive monthly increases, asking values were up 1.27% M/M and 11.17% YOY in September. The spread between asking and auction values continues to expand as inventory increases.
• Auction value decreases paused in September, posting increases of 0.65% M/M and 0.33% YOY. Auction values are down, however, compared to Q1 2023 and are now trending sideways.

U.S. Used Compact and Utility Tractors

• Inventory levels of used compact and utility tractors continue to set historic highs, pushed mainly by late model years 2021 or newer. Following months of increases, inventory levels rose 1.24% M/M and 32.82% YOY.
• Tractors under 40 HP showed the greatest YOY value decreases in September as overall values in this market continue to trend downwards. Used compact and utility tractor asking values declined 0.98% M/M and 2.3% YOY.
• Auction values dipped lower at 0.96% M/M after consecutive months of decreases and were 5.58% lower YOY.

U.S. Used Heavy-Duty Trucks

• Used heavy-duty truck inventory level increases paused again in September, but the market is still trending upward for 2023. Inventory levels ticked up 0.56% M/M, rose 44.22% YOY, and are currently trending sideways. Sandhills notes that sleeper trucks have observed greater inventory swings and price volatility in 2023 compared to day cab trucks.
• Asking and auction values held steady in September but are still trending downwards. Asking values were up 0.93% M/M, down 19.08% YOY, and are trending down.
• Auction values increased 0.32% M/M, decreased 26.51% YOY, and are trending down.

U.S. Used Semitrailers

• Used semitrailer inventory levels have grown M/M in 2023, and September was no different. Inventory was up 2.93% M/M and 70.05% YOY. Dry van semitrailer inventory levels have surged to more than double year-ago levels.
• The gap between asking and auction values has reached a historic high for used semitrailers. Semitrailer values continued trending downwards in September, with dry van semitrailers showing the largest M/M decrease. Used semitrailer asking values declined 1.87% M/M and 20.55% YOY.
• Auction values fell 3.21% M/M and 26.68% YOY after decreasing for several months in a row.

U.S. Used Medium-Duty Trucks

• Used medium-duty truck inventory levels rose 10.28% M/M and 41.41% YOY, maintaining a trend of M/M increases throughout 2023 led largely by dry cargo delivery trucks.
• Sustained inventory increases have applied pressure to asking and auction values, which have consistently posted M/M decreases since September 2022. Asking values fell 3.07% M/M and 15.32% YOY in September.
• Auction values decreased 4.48% M/M and 19.97% YOY and are currently trending down.

U.S. Used Heavy-Duty Construction Equipment

• Inventory level increases paused in September for this market, but the upward trend that started in Q1 2023 remains intact. Following months of increases, inventory levels of used heavy-duty construction equipment were up 0.32% M/M and 10.87% YOY in September.
• Values, meanwhile, are trending down, with the largest value decreases within this market observed in the dozer category. Asking values decreased 0.09% M/M and 4.23% YOY.
• Auction values are decreasing faster than asking values as the gap between the two continues to return to normal levels. Continuing months of decreases, auction values declined 1.71% M/M and 8.01% YOY.

U.S. Used Medium-Duty Construction Equipment

• Inventory level increases continue for used medium-duty construction equipment, up 3.66% M/M and 53.63% YOY. Track skid steers are driving the change in this market, and Sandhills has observed large increases in late-model units across the board.
• As asking and auction values maintain their downward direction, the gap between them continues to grow to historic highs. Asking values decreased 1.38% M/M and 2.76% YOY in September.
• Auction values decreased 3.11% M/M and 9.51% YOY. Notably, auction values for used wheel skid steers and mini excavators fell 12% YOY.

U.S. Used Lifts

• Continuing an upward trend that began in Q1 2023, used lift inventory levels rose 2.86% M/M and 9.01% YOY in September. The used telehandler and scissor lift categories contributed the greatest M/M change in this segment.
• The gap between asking and auction values is growing. September asking values remained on par with year-ago values, up 0.09%. Asking values decreased 2.03% M/M and are trending down.
• Auction values fell 3.98% M/M and 8.79% YOY, with the largest decreases in this market observed among used telehandlers. Auction values are currently trending down.

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About the Sandhills Equipment Value Index

The Sandhills Equipment Value Index (EVI) is a principal gauge of the estimated market values of used assets—both currently and over time—across the construction, agricultural, and commercial trucking industries represented by Sandhills Global marketplaces, including AuctionTime.com, TractorHouse.com, MachineryTrader.com, TruckPaper.com, and other industry-specific equipment platforms. Powered by FleetEvaluator, Sandhills’ proprietary asset valuation tool, Sandhills EVI provides useful insights into the ever-changing supply-and-demand conditions for each industry.