News

Combine & 100-Plus-Horsepower Tractor Inventory Levels Surge, Driving Down Auction Values While Asking Values Slowly Catch Up

The newest Sandhills Global market reports cover the latest trends in farm machinery, construction equipment, commercial trucks, and semitrailers in Sandhills marketplaces. Zeroing in on the ag equipment market, Sandhills notes a continued increase in inventory levels of combines and 100-plus-horsepower tractors as newer, more expensive equipment represents a significant and growing portion of the market. Auction values in these categories have continued a consistent downward trend while asking prices remain elevated, increasing the spread between auction and asking values. The compact utility tractor category, meanwhile, is bucking that trend, showing consecutive months of inventory decreases.

“Auction values react much quicker to market changes than asking values,” says TractorHouse Sales Manager Ryan Dolezal. “Sandhills is currently seeing rapidly growing spreads between auction and asking values, and that’s bringing us closer to the value spreads we experienced during 2015 and 2016.”

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 Tractors 100 Horsepower and Greater

• Inventory levels rose 2.54% month over month, marking a continuation of recent upward trends noted for several months, and are now 58.3% higher than the same period last year. The category comprising tractors 300 HP and greater is the leader in inventory gains, up 106.93% YOY. 
• An influx of newer models on dealers’ lots has elevated asking and auction values; currently, 54.99% of tractors 100 HP and greater are within zero to five years old. In the category as a whole, however, values are declining. Asking values were down 0.22% M/M and up 5.18% YOY in April and are trending sideways.
• Auction values experienced a larger M/M decrease in April at 2.23% and are on a downward trend. Auction values were 2.02% lower YOY.
• EVI spread, which measures the percentage of asking values over auction values, is approaching historic highs at 37%.

U.S. Used Planters

• Inventory levels decreased 0.29% M/M in April but remained higher YOY at 41.59%. Used planter inventory levels are now trending sideways.
• Asking values rose 1.01% M/M in April despite a downward trend and were 7.73% higher YOY.
• Auction values stabilized slightly since March, posting a 1.87% M/M increase in April, but are trending down. Auction values were 11.42% lower YOY.

U.S. Used Combines

• Used combine inventory levels have shown steady growth, posting a 1.49% M/M increase in April and a noteworthy 17.63% YOY rise.
• Asking values are trending up, with a 1.65% M/M increase in April and a significant 8.27% hike over last year’s figures. 
• Despite inventory increases, auction values decreased slightly in April by 0.15% M/M and are trending sideways with a marginal 0.56% YOY drop. EVI spread, which measures the percentage of asking values over auction values, has matched historical highs, reaching 48% in April.

U.S. Used Compact and Utility Tractors

• Unlike inventory levels of tractors 100 HP and greater, used compact and utility tractor inventory levels continue to trend sideways. Inventory was down 3.63% M/M in April but up 15.6% YOY.
• Sandhills noted a slight increase in asking values, up 0.44% M/M in April, but the overall trend is pointing downward. Auction values were 1.79% lower YOY. 
• Auction values decreased marginally, by 0.05% M/M in April, continuing a steady downward trend, and were down 3.79% YOY. EVI spread in this category matched historic highs, reaching 41% in April.

U.S. Used Heavy-Duty Trucks

• The used heavy-duty truck market experienced a 3.87% M/M inventory increase in April. Inventory levels were up 16.15% YOY and are trending sideways.
• Asking values decreased 2.55% M/M and 16.9% YOY and are trending down.
• Auction values fell 4.43% M/M and 19.88% YOY and are trending down.

U.S. Used Semitrailers

• Inventory levels of used semitrailers rose 2.8% M/M in April, continuing a growth trend with levels now 42.91% higher than year-ago figures.
• Despite the rise in inventory, both asking and auction values are trending down. Asking values dropped 2.69% M/M in April and 22.24% YOY.
• Auction values decreased 1.92% M/M following consecutive months of decreases and posted a significant 20.87% drop YOY. Within the larger semitrailer market, Sandhills observed a notable 6.54% M/M decrease in the reefer trailers category.

U.S. Used Medium-Duty Trucks

• Inventory levels of medium-duty trucks continued to climb in April with increases of 3.45% M/M and a substantial 41.29% YOY.
• Asking values decreased 3.47% M/M and 14.36% YOY and are trending down.
• Auction values, meanwhile, took a significant hit in April, dropping 6.12% M/M and 15.23% YOY. Auction values are now trending down.

U.S. Used Medium-Duty Construction Equipment

• Sandhills noted a continued surge in medium-duty construction inventory levels, which have been trending up since February 2023. In April, inventory was up 3.23% M/M and 59.05% YOY. The highest volume increases are occurring in the track skid steer category, with inventory up 82.27% compared to last year.
• Asking and auction EVI, however, continue trending downward. Asking values remained steady M/M, increasing just 0.05% in April, but decreased 5.47% YOY.
• Auction values decreased 1.68% M/M and 10.39% YOY. Despite the downward price trends, EVI remains elevated due to the availability of newer equipment. In the track skid steer and mini excavator categories, for example, nearly half of all inventory on dealers’ lots is between zero and five years old.

U.S. Used Heavy-Duty Construction Equipment

• Like the medium-duty construction equipment market, the heavy-duty construction equipment market showed increased inventory levels and decreased values in April. Inventory accumulation is gaining momentum, with levels up 4.39% M/M and 21.62% YOY.
• Asking values were down 1.05% M/M and 3.35% YOY in April and are trending down.
• Auction values decreased 1.54% M/M and 8.8% YOY and are also trending down.

U.S. Used Lifts

• Inventory levels of forklifts and other lift equipment have been rising, showing increases of 2.21% M/M and 8.56% YOY in April. This marks a consistent upward trajectory in lift availability. Within the lift market as a whole, the telehandler category posted a noteworthy 5.8% M/M increase in April.By contrast, values have seen downturns. Asking values dropped 1.89% M/M in April following several months of decreases and were down 7.55% YOY.
• Auction values fell 1.93% M/M in April, also following several months of decreases, and were 13.74% lower YOY, indicating a sustained decline in the value of lifts sold at auction.

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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.